Most car rental companies charge extra fees for drivers under 25, and those surcharges can easily add $15–$30 per day to your total bill. Understanding how young driver fees work—and knowing which rental agencies are cheaper—can save you hundreds on your next trip. Let's break down what you'll actually pay and how to minimize these costs.
What Are Young Driver Fees?
Young driver fees (also called underage driver surcharges) are daily charges that rental companies apply to customers below a certain age threshold. Most major agencies kick in these fees for drivers under 25, though some start charging at 21. The reasoning is straightforward: insurers consider younger drivers statistically higher-risk, so rental companies pass that risk onto you through additional daily costs.
These fees aren't optional. Once you book a car, you're locked into paying them unless you cancel entirely or find a rental company with different age policies.
Typical Cost Ranges
Daily surcharges for young drivers range from $15 to $30 per day, depending on the rental company and your exact age:
- Drivers aged 21–24 typically face the highest surcharges ($20–$30/day)
- Drivers aged 25–29 may see reduced fees ($10–$15/day) at some agencies
- A week-long rental with a $25 daily surcharge adds $175 to your bill before taxes
For example, a 7-day compact car rental might cost $280 base rate, but with a young driver fee of $25/day, you're looking at $455 total—a 62% increase.
Which Rental Companies Charge These Fees?
Not all agencies handle young drivers the same way:
- Hertz, Avis, and Budget typically charge young driver surcharges starting at age 21–24
- Enterprise and National often have slightly lower surcharges or more flexible age cutoffs
- Regional and independent agencies sometimes waive these fees entirely, especially for drivers aged 23+
- Turo (peer-to-peer rentals) varies by owner, but many private renters are flexible on age requirements
Comparing quotes across different agencies is essential. A company charging $20/day might undercut a competitor charging $28/day by over $100 on a week-long rental. Mercoly helps you compare rates and find trusted car rental providers in one place, so you can see exactly which company offers the best deal for your age and trip.
How to Lower Your Young Driver Costs
Use a credit card with rental car insurance Many premium credit cards include rental car damage waiver coverage, which can eliminate the insurance component of young driver fees at some agencies. Check your card's terms—this could save $10–$15/day.
Book through employer or membership discounts AAA, military, corporate, and alumni discounts sometimes reduce or waive young driver surcharges. Ask specifically when booking; these aren't always automatic.
Rent from smaller agencies Independent rental companies and regional chains often skip young driver fees or charge them only for drivers under 21. You'll spend time calling around, but the savings justify it.
Consider peer-to-peer rental platforms Turo and similar services let you rent directly from owners, many of whom don't impose age-based penalties. You'll need your own insurance and will pay a platform fee, but owners set their own terms.
Wait until you're 25 If your trip isn't urgent and you're within a year or two of turning 25, postponing could be your cheapest option. That $175 fee over a week adds up fast.
What Else Is Included in Young Driver Rates?
Be aware that young driver fees sometimes bundle multiple costs:
- A base daily surcharge (the fee itself)
- Higher liability insurance rates
- Limited car category availability (you may be restricted to economy vehicles)
- Mileage restrictions on some rentals
Read your quote breakdown carefully. Some "young driver fees" actually include a mandatory insurance upgrade, while others are just a flat daily charge. Knowing the difference helps you spot real savings opportunities.
Frequently Asked Questions
Q: Can I remove a young driver fee by adding an older driver to the rental agreement? Yes. Rental companies typically charge fees only for drivers under their age threshold. If you add a driver aged 25+, you may eliminate or reduce the surcharge—but they'll need to be present at pickup and willing to sign the contract.
Q: Do young driver fees apply if someone else is paying for the rental? No. Young driver fees are tied to the renter's age, not who's footing the bill. Only the primary renter's age matters.
Q: Are young driver fees refundable if I cancel my reservation? Usually yes, but only if you cancel within the agency's free cancellation window (often 24–48 hours before pickup). Check your specific booking terms before confirming.
Start comparing young driver rates across multiple rental agencies today—the difference in your final bill is worth the five minutes it takes to get quotes.