How to Rent a Car Avoiding Under 25 Fee (for the USA) - 2026

Good news: The under 25 fee can be waived if you're renting from participating suppliers on Carla Car Rental. There will be no young renters fee at the counter with under 25 fee waiver unique to Carla.

How to Book Without Under 25 Fees:

  1. Enter your age before searching for cars on Carla
  2. Look for rentals marked "Under 25 Fee Waived"
  3. Book and enjoy the ride without extra fees!

USA Car Rental Under 25 Fee, 2026

⚠️ Important 2026 Update: New York State fees have increased significantly since 2023. Ages 21-24 now pay up to $30.75/day (up from $20), and ages 18-20 pay up to $84/day at some companies (up from $57-64).
Company Minimum Age Ages 21-24 Fee Change from 2023 Vehicle Restrictions
Carla 21 years (18 in NY, MI) $0 (waived) N/A May only rent Economy through Luxury cars
Enterprise 21 years (18 in NY, MI) $25/day Unchanged Economy through Full-size cars
Alamo 21 years (18 in NY, MI) $25/day +$5 Economy through Full-size cars
Avis 21 years (18 in NY, MI) $27/day -$1 Economy through Full-size cars, minivans, small trucks, intermediate SUVs
Budget 21 years (18 in NY, MI) $27/day -$1 Economy through Full-size cars (no specialty vehicles, large SUVs)
Hertz 20 years (18 in NY, MI, AL, NE) $19-25/day -$4 to -$10 Economy through SUVs (no Dream, Prestige, Adrenaline collections)
Dollar 20 years (18 in NY, MI) $29/day Unchanged Economy through Luxury cars
Thrifty 20 years (18 in NY, MI) $27-29/day Unchanged Most classes (excluding StyleSeries)
National 21 years (18 in NY, MI) $25/day +$4 Restricted vehicle classes
Sixt 21 years (18 in NY, MI) $25-30/day Similar range Economy through Intermediate SUVs and minivans only
Advantage 21 years $25/day Unchanged Economy through Full-size cars
Fox 19 years (18 in NY, MI) Varies by location N/A Varies by location
ACE 21 years (18 in NY, MI) Varies by location N/A Economy through Premium cars
Note: Fees vary by location and are subject to change. Always verify exact fees during booking as they can differ by rental location, season, and local regulations.

State-Specific Surcharges (2026)

New York State

Major Fee Increases in 2026!
Company Ages 21-24 Ages 18-20 Change from 2023
Carla $0 Varies by supplier Fee waived
Enterprise $30.75/day $64.75/day +$10.75 / +$7.75
Alamo $24-25/day $64.75/day +$0-5 / +$0.75
Avis $35/day $84/day +$7 / +$20
Budget $35/day $84/day +$7 / +$20
Hertz $25-35/day $52/day Similar range
National $24.50/day $64.50/day +$4.50 / +$0.50
Sixt $25-35/day $53/day N/A

Michigan State

Good News! Michigan fees have decreased at some companies since 2023.
Company Ages 21-24 Ages 18-20 Change from 2023
Carla $0 Varies by supplier Fee waived
Enterprise $15.75/day $36.50/day -$9.25 / -$3.50
Alamo $20/day $42/day Unchanged / +$2
Avis $28/day $41/day Unchanged
Budget $28/day $41/day Unchanged
Hertz $25-29/day $52/day Similar range
National $19/day $42/day -$1 / +$2

Key Changes in 2026

What's New This Year:

  • Hertz now rents to 20-year-olds nationwide (previously 21 in most states)
  • New York fees increased significantly for most companies
  • Michigan fees decreased at Enterprise and National
  • Avis and Budget reduced standard fees from $28 to $27/day
  • AAA-Hertz partnership more widely promoted (waives fees for ages 20-24)
  • USAA benefits expanded at major companies

What is Young Driver Fee? (Under 25 Fee)

Young Driver Fee (also called Under 25 fee or Underage fee) is an additional daily fee applied to rentals for drivers ages 20-24. According to the National Highway Traffic Safety Administration, drivers under 25 years old are statistically more likely to be involved in car accidents. This fee compensates rental companies for the extra insurance risk and accident rates associated with younger drivers.

How to Waive Under 25 Fee

1. Book Through Carla Car Rental

The easiest way to avoid under 25 fees is to book through Carla with companies that waive the fee. Look for the "Under 25 Fee Waived" banner when searching for cars. Simply enter your age before searching, select a participating supplier, and the young driver fee will be waived at the counter.

2. AAA Membership + Hertz

Best Deal for Frequent Renters: AAA members between ages 20-24 get the young renter fee completely waived at Hertz locations in the U.S., Canada, and Puerto Rico. This can save you $19-25 per day!

Additional AAA Benefits at Hertz:

  • Discounts up to 20% off base rates
  • Free additional driver (if they're also AAA members)
  • Free child safety seat
  • 10% off fuel if you prepay

AAA membership costs $40-165/year depending on location. If you rent for just 3-4 days per year, the membership pays for itself.

3. USAA Membership (Military & Families)

USAA members can get young driver fees waived at participating U.S. locations:

Eligible members include active duty, National Guard, reserves, veterans, and their families.

4. U.S. Government Employees

Government employees (military and civilian) on official business can rent at age 18 without paying the young driver fee. You must present official orders at the rental location.

5. Corporate or University Programs

Many employers and universities negotiate corporate rates that waive or reduce underage fees. Check with your company's travel department or university transportation office.

Best Companies for Each Age Group

Best for 18-Year-Olds

Renting at 18 is only possible in specific situations:

Best for 19-Year-Olds

Best for 20-Year-Olds

Best for 21-24 Year-Olds

Vehicle Restrictions for Under 25 Renters

Most rental companies restrict the types of vehicles you can rent if you're under 25:

Typically Allowed:

  • Economy, Compact, Midsize cars
  • Full-size cars
  • Intermediate SUVs
  • Standard SUVs (some companies)
  • Minivans (some companies)

Usually NOT Allowed:

  • Luxury vehicles
  • Premium or Full-size SUVs
  • Specialty vehicles
  • High-performance cars (Corvettes, Mustangs, etc.)
  • Passenger vans (12-15 seats)
  • Exotic cars

These restrictions vary by company and location. Always check the specific rental terms when booking.

Tips for Renting Under Age 25

  1. Enter your age upfront: Always input your age when searching online so the total price includes any surcharges.
  2. Compare total costs: A lower base rate plus high underage fees might cost more than a higher rate with no fees.
  3. Check membership benefits: AAA, USAA, corporate accounts, or university programs can save hundreds of dollars.
  4. Bring a credit card: Many locations require a credit card (not debit) for under-25 renters.
  5. Book early: Some locations have limited inventory for young renters.
  6. Read the fine print: Verify vehicle restrictions and any additional requirements at your specific location.
  7. Consider alternative locations: Airport locations often charge higher fees than neighborhood offices.

Required Documents

When picking up your rental, you'll need:

State-by-State Minimum Ages

State(s) Minimum Age Notes
New York 18 years State law requires companies to rent to 18+, but fees are very high ($36-84/day)
Michigan 18 years State law requires companies to rent to 18+, fees $15-52/day depending on age
Alabama, Nebraska 19 years State law sets minimum at 19
All other states 20-21 years Hertz, Dollar, Thrifty rent at 20; most others require 21

Frequently Asked Questions

Can I rent a car at 18?

Yes, but only in specific situations: (1) You're in New York or Michigan, (2) You're U.S. military or government on official business, or (3) Your vehicle is being repaired and insurance covers a rental.

Do all companies charge under 25 fees?

Almost all major companies charge these fees. The main ways to avoid them are: booking through Carla with participating suppliers, using AAA membership at Hertz, or qualifying for USAA benefits.

Can the fee be higher than the rental rate?

Yes. In New York, an 18-year-old could pay $84/day in underage fees on top of a $30/day car rental, making the total $114/day. Always check the total price, not just the base rate.

Will fees be waived if I turn 25 during my rental?

No. Your age at pickup determines the fee for the entire rental period. If you turn 25 during a 7-day rental, you still pay the young driver fee for all 7 days. To avoid this, schedule your pickup on or after your 25th birthday.

Are fees the same at all locations?

No. Fees vary by state, city, and even specific rental location. Airport locations typically charge more than neighborhood offices. Always verify the exact fee during booking.

Never Pay Under 25 Fee Again!

Save $25/day on Car Rentals with Carla

That's at least $300 in savings if you rent 3 times a year!

  • ✓ Avoid Under 25 fee at participating suppliers
  • ✓ Compare all major car rental companies in one search
  • ✓ Rent a car if you're 20 years or older in all states
  • ✓ Rent a car in NY and MI states if you're 18 or older
  • ✓ Transparent pricing with no hidden fees at checkout

Start Your Search on Carla

Disclaimer: Our aim is to provide accurate information as of 2026. While we've researched in detail, rental car terms and conditions can change. Carla does not guarantee the information provided here. Please always check the specific terms and conditions of the car rental company at the time of booking.

Last Updated: February 2026

Author: Carla Car Rental Team