When people turn 18, the world seems to open up to them. They can now vote, take out college loans, own and run a business, and do other things exclusive to adults. With enough money, they can even buy their first car or truck.
However, other things remain out of reach for 18-year-olds. Buying a vehicle is one thing. Renting a car, however, is another thing entirely. Car rental companies often follow the 25-to-rent rule.
But why can’t you rent a car until 25? How old do you have to be to rent a car?
How Old Do You Need to Be to Rent a Car?
Only two states legally allow 18-year-olds to rent a car: Michigan and New York. However, car rental companies in those states can apply a surcharge called an underage fee or young renter fee to drivers under 21.
Furthermore, 18-year-olds working for the federal government can get a car rental. However, they must show their official government orders to the car rental company.
In other states, car rental companies refuse to rent out their vehicles to anyone under 21.
Why Does Car Rental Cost More for People Under 21?
Car rental companies impose restrictions on the renter’s age and charge higher rental rates for younger drivers. They do this because drivers under 21 usually have to pay higher insurance rates than older people.
Younger drivers have less experience than their older counterparts. They’re more likely to make mistakes that lead to car accidents. Because younger drivers have a higher chance of damaging their car or getting injured, car insurance companies charge them higher insurance rates.
Higher car insurance rates also affect car rental companies. These companies use fleet insurance, a type of car insurance that covers multiple vehicles owned by the same business. Fleet insurance enables a rental company to reduce expenses while effectively insuring hundreds or thousands of cars.
Car insurance companies base their fleet insurance rates on the insurance risk pool or the average risk of a fleet’s insured vehicles. The higher the risk pool, the higher the insurance rate. Rental companies try to minimize the fleet insurance rate by avoiding anything that raises the risk rate.
Because younger drivers have higher risk rates and commensurately more expensive insurance rates, companies generally limit car rentals to older drivers at least 25. That’s the reason for the 25-to-rent rule.
Best Car Rental Options for Drivers Aged 18-25
In New York and Michigan, car rental companies can rent vehicles to drivers with a minimum age of 18 who possess a valid license. These companies can apply a young driver surcharge to their rental rates.
Other states have different regulations on the minimum age of car renters. For example, Mississippi requires a minimum age of 19 to rent a car. Car rental companies usually take their cues from state regulations.
In recent years, the growing number of young drivers persuaded more and more car rental firms to rent one of their vehicles to drivers between 18 and 21 years old. There are even some companies that cater specifically to younger drivers.
Visit car rental company websites and check their policy on younger drivers. You might be able to find one that rents to young drivers who are 20, 19, or even 18 years old.
Active Duty Military With Government Travel or Purchase Orders
Are you a member of the military on active duty with orders to travel somewhere or purchase something? Many rental car companies will accept your application to rent a vehicle, even if you’re only 18 years old. Companies might also waive the underage fee for active duty servicemen with legitimate government travel or purchase orders.
Insurance Replacement
Do you own a vehicle that’s currently in the auto repair shop? You can explain to the car rental company that you want to rent an insurance replacement. Many rental companies will let an 18-year-old driver rent one of their cars as a temporary replacement for the driver’s insured vehicle.
AAA Membership
Show your American Automotive Association (AAA) membership card when you rent a car. Some car rental companies waive the young driver surcharge for AAA members who are 18-21. The company might even waive other driver fees.
USAA Insurance Policyholder
Do you have an insurance policy with the United Services Automobile Association (USAA)? You can use that to get extra driver surcharges like young driver fees waived by the car rental company.
Furthermore, USAA policyholders enjoy reduced car rental rates. You can join the USAA if you’re an active, retired, and honorably separated officer or enlisted military personnel.
Peer-to-Peer Carsharing
Can’t find a car rental company that accepts renters under the age of 25? Try using peer-to-peer carsharing. It’s a version of carsharing where people rent out their vehicles to their peers for short periods.
In peer-to-peer carsharing, the vehicle’s owner sets the age limit for potential renters. You have a higher chance of finding someone willing to rent their car to drivers as young as 18 years old.
You must download the relevant app for the peer-to-peer carsharing service. Most peer-to-peer carsharing services require proof of personal insurance. You must also make a large deposit for security reasons.
Alternatively, you can try Zipcar. Its special membership program targets college students who only drive cars for several hours or a few days.
There are car rental options for drivers under 20 if they know where to look.
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Any information provided on this Website is for informational purposes only and is not intended to replace consultation with a professional mechanic. The accuracy and timeliness of the information may change from the time of publication.
