Car rental young driver fee and waivers explained

Maybe you’re a college student or recent graduate, and you and your friends decide to take a road trip to the lake over spring break or during the summer. Once you start booking your trip, if you are renting a car under 25, there’s a good chance you’ll see an extra young driver fee when you’re ready to check out. 

If you’re not a fan of paying extra for a car rental just because of your age, let’s talk about why car rental companies levy this additional charge.

What is a young driver fee?

A young driver fee is an additional charge that car rental companies make specific drivers pay during the rental process. Most of these companies have a minimum age to rent a car, which is usually 21 at the youngest, but they’re still concerned about the risk of  renting vehicles to drivers younger than 25. Some states, like New York and Michigan, have lower age limits for car rentals, so young driver fees for those who are ages 18, 19 or 20 also exist.

Because of this hesitation, the young driver fee applies to drivers between the ages of 18 and 25. Even if you’re a 24-year-old with a clean driving record and no accidents, you’ll still probably pay more than someone who is 27 and has a couple of speeding tickets.

So why do car companies charge young driver fees in the first place? It all boils down to one major factor: statistical risk.

Younger drivers are, on average, more likely to be involved in car accidents. They’re less experienced on the road, often leading to higher insurance claim rates. It’s not just about the number of claims, but the dollar amounts attached as well. The rental company passes this financial burden to the people most likely to cause it.

In short, it’s nothing personal nor a reflection of your driving record. 

How much is a young driver fee?

Young driver fees vary by rental car company and location. Most companies charge between $10 and $30 each day you have the car. For example, Enterprise charges most young drivers approximately $25 extra per day. Hertz charges roughly $19 per day. Drivers younger than 21 might see charges as high as $35 per day if they’re even allowed to rent a car. 

While these amounts might seem small, they add up quickly for a multi-day trip. That’s why if you can waive a young driver fee — either as a member of an organization or through a different rental provider — it’s worth shopping around.

How do you waive a young driver fee?

You have options if you want to waive the young driver fee for your rental. 

Certain finance companies, like the United Services Automobile Association (USAA), allow its members to qualify for waived fees at select rental car companies across the country. USAA membership is open to current and former military members, spouses and children.

To be eligible for USAA rental car benefits (including waived fees), you might have to be insured through the company and present a valid military ID. 

You should also check with your employer or university for partnerships with car rental companies. These perks can range from reduced rates to waived underage driver fees. 

Are there rental companies that don’t charge a young driver fee?

Most traditional car rental companies will charge some form of a young driver fee. And even if a company waives them at one location, there’s no guarantee your requested location will do the same. But that doesn’t mean budget-conscious renters are entirely out of luck. 

Our favorite solution when you need a rental car is to use Avail, which offers affordable daily rates to all drivers aged 21+ and doesn’t charge extra to add a second driver. If you’re looking for a vehicle for your Chicago or Denver road trip, work trip or vacation, download the Avail app and find the perfect car. Learn more about booking a car for drivers under 25.