If you’re under 25 and about to book a rental car, you’ve probably run into the rental car underage fee — and you may have done a double-take at the number. On a week-long trip, this surcharge can easily add $175 to $210 on top of your base rental rate. This guide breaks down exactly what you’ll pay at each major US company, why the fee exists, and a few legitimate ways to reduce or skip it entirely.
What Is the Rental Car Underage Fee?
[IMAGE: young driver picking up rental car keys at counter]
The rental car underage fee — sometimes called a young driver surcharge — is a daily add-on charge applied to renters below a certain age threshold. In the US, that threshold is almost always 25 years old. Drivers ages 18 to 24 are statistically involved in more accidents per mile driven than any other age group. According to the CDC, drivers aged 16–24 represent about 12% of the US population but account for roughly 27% of the cost of motor vehicle injuries. Rental companies price their risk accordingly.
The fee is separate from your base rental rate, taxes, and any insurance products you add on. It compounds daily, which means a $27/day surcharge on a 10-day road trip adds $270 before you’ve even thought about gas.
How Much Does the Rental Car Underage Fee Cost at Major US Companies?
Rates vary by company and location, but here’s what you can typically expect to pay in 2026:
- Enterprise: $29.99/day for drivers ages 21–24. Minimum rental age is 21 at most US locations, though some airport locations accept 18–20 with an additional surcharge.
- Hertz: $27/day for ages 20–24. Hertz allows drivers as young as 20 at most locations, making it one of the more flexible options for younger renters.
- Avis: $25/day for ages 21–24. Avis enforces a 21-year minimum at the majority of US locations.
- Budget: $25/day for ages 21–24. Budget and Avis are sister companies and typically mirror each other’s young driver policies.
- National Car Rental: $30/day for ages 21–24. National is worth noting because it’s a popular choice through corporate travel accounts, some of which waive the underage fee — more on that below.
- Alamo: $25/day for ages 21–24. Alamo is often the go-to for travelers booking through vacation packages and sometimes bundles the surcharge differently.
- Turo: Peer-to-peer rentals through Turo work differently. Many individual hosts set their own minimum age (often 21 or 23), and Turo itself charges a young driver fee of around $15–$50 per trip depending on the vehicle — not per day. For shorter trips, Turo can be significantly cheaper for young drivers.
Bottom line: budget for at least $25/day extra if you’re under 25. On a seven-day rental, that’s $175 in surcharges — often more than the base rental rate itself for a compact car booked on a deal.
Who Can Waive or Reduce the Underage Fee?
The good news is that the rental car underage fee isn’t always unavoidable. There are several categories of renters who can skip it or get it reduced:
Active-Duty Military
Enterprise, Hertz, Avis, and most major chains waive the young driver surcharge for active-duty US military personnel. You’ll need to show a valid military ID. This is one of the most consistent fee waivers in the industry.
Corporate and Negotiated Rates
If you’re renting through a company account or with a corporate discount code — such as those negotiated through AAA, USAA, or a university travel program — many of those agreements explicitly waive the underage surcharge. Check whether your employer, college, or membership organization has a preferred vendor agreement before booking.
Certain Credit Cards
A handful of premium travel credit cards include young driver fee waivers as a cardholder benefit. This is separate from the collision damage waiver (CDW) or loss damage waiver (LDW) coverage these cards may also provide. Always read the fine print — most cards that cover CDW/LDW do not automatically cover the underage surcharge unless it’s specifically listed. Cards worth checking include those from Chase Sapphire Reserve and certain Amex travel products.
Booking Through Turo or Peer-to-Peer Platforms
As mentioned above, Turo charges a per-trip young driver fee rather than a per-day fee, which can work in your favor on trips of four or more days. Some hosts on Turo set no minimum age above 21 and don’t apply additional surcharges at all.
Can You Avoid the Fee by Adding an Older Driver?
Yes — with an important catch. If an additional driver over 25 is listed on the rental agreement as the primary renter, the underage fee typically does not apply. However, the older driver must actually be present at pickup and listed on the contract. Some companies also charge an additional driver fee (usually $10–$15/day, though many waive this for spouses or domestic partners).
Do not list an older driver and then drive the car yourself without them being authorized. This voids your rental agreement and any insurance coverage you’ve purchased — leaving you personally liable in the event of an accident.
What to Do Before You Book
Here’s a practical checklist for any driver under 25 renting in the US:
- Compare total costs, not just base rates. Always add in the daily underage surcharge when comparing prices across platforms like Kayak, Expedia, or booking directly with the company.
- Check for military, AAA, or corporate discounts that waive the fee before assuming you’ll pay full price.
- Look at Turo if your trip is short — a flat per-trip fee often beats a per-day surcharge on weekend rentals.
- Verify your credit card’s coverage. Check whether it covers CDW/LDW and whether it includes any young driver fee benefit. Don’t pay for the rental company’s collision coverage if your card already covers it.
- Call the location directly if you’re ages 18–20. Policies vary significantly by state and location — some Enterprise and Hertz locations accept renters as young as 18, others won’t go below 21.
Key Takeaways
- The rental car underage fee applies to drivers under 25 at virtually all major US rental companies.
- Typical surcharges run $25–$30 per day, adding $175–$210 or more to a week-long rental.
- Military personnel, renters with corporate discount codes, and some credit card holders can qualify for a fee waiver.
- Turo may offer better value for younger drivers on shorter trips due to its per-trip fee structure.
- Always compare the total out-the-door cost — base rate plus surcharges — before booking.
The rental car underage fee is frustrating, but it’s workable once you know the system. Run the numbers on military discounts, loyalty programs, and peer-to-peer options before assuming you’re stuck paying full freight. A little research before you book can save you as much as $200 on a single trip — money better spent on the road.
Ready to find the best deal? Compare total rental costs including surcharges at Enterprise, Hertz, Avis, and Budget before booking — and always verify whether your credit card covers CDW/LDW so you’re not paying twice for coverage you already have.
Featured photo by Arthur Tseng on Unsplash