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Understanding Car Rental Age in the United States



Understanding Car Rental Age in the United States

Car Rental Age

Recent statistics suggest that, by 2026, the car rental industry will grow to accommodate 602 million users. People who rent vehicles vary in age.

Anyone with a driver’s license may consider a rental car for various reasons such as vacations, for work, their current vehicle not working, etc. However, some policies surround the car rental age in the United States.

Understanding the rules regarding age and renting cars is crucial, especially since it directly impacts how much you will pay. There are a few reasons for these restrictions, and here is why.

Rental Car Age Requirements

It’s a significant milestone in life, turning 18 years old. You can take a college loan, buy a car, and vote. You could join the United States Army and risk your life for your country at this age.

Still, a myth about being 25 years before you can rent a car has been spreading. This rule has long been inactive. While there may have been legitimate reasons for its existence, this is not the case today.

Young drivers can rent a car. However, you may not want to. It depends on your circumstance.

Here, let’s take a deeper dive and discover why.

The Confusion About the “25-To-Rent” Rule

Young drivers have higher insurance rates. This is the primary reason that rental car companies would want age restrictions. Drivers are less experienced when under 25 and riskier to rent cars.

According to National Safety Council Injury Facts, the overall rate of crashes decreases steadily as drivers age. While 16- to 19-year-olds make up 3.6% of licensed drivers, they represent 9.3% of drivers in crashes.

For many years, insurance companies have had an invisible line toward coverage for people under 25. Therefore, anyone under 25 is not exempt but is charged a fee.

How Insurance For Rental Companies Works

They pay a fleet policy. This way, rental car companies can get a discount to cover thousands of rental vehicles. The discounted rate is based on an insurance risk pool.

The pool is based on the average risk of the drivers. When rental car companies restrict their renting vehicles to individuals who are only over the age of 25, they reduce risk and get a cheaper fleet insurance rate.

Because of this, many people think it’s by law. People mistakenly believe that people under 25 cannot legally rent a car. This is not true, though.

Today’s Restrictions

In days of the past, rental car companies realized they were missing out on business with this strict policy. Therefore, they devised a solution to allow younger drivers to rent cars. That is why there is an under-25 car rental fee.

This allows car rental companies to accommodate a large demographic and offset their higher insurance costs. Often there is a restriction on which classes of vehicles a young driver can borrow, though. Usually, young drivers cannot rent luxury cars, SUVs, and performance cars.

While those under 25 can rent a car, the disadvantage is that it will cost more. If you are under 25 and worry about the young driver fees, we recommend you go to Visitteo for a better deal.

Exceptions to Young Driver Fees

There are ways you could avoid these fees if you are under 25. First, all United States rental car companies will waive their underage fees if you serve in the U.S. military and on official business.

Therefore, to qualify for a military waiver, you would need to be reporting to another location, transferring to a new base, or reporting for duty. To waive the fee, you must provide proof of the orders to the rental car company.

For a young driver employee renting a vehicle on behalf of their company, the rental company may waive young driver fees because of a rental fleet discount. In this case, you should ask an employer about the corporate account.

Not only that, but Avis and Hertz offer AAA members a waiver on underage fees. You may qualify if you are under 25 and signed up for AAA roadside service access. Ask the rental car company about details of benefits for AAA members.

Is There a Maximum Age?

The Federal Highway Administration reports that 29% of drivers on the road today are considered “senior” drivers. The NHTSA says that in 2020, 233,235 senior drivers were injured in an auto accident.

Senior citizens can rent cars. Generally, there is no age restriction regarding the maximum age for the United States and Canada. Still, if you are over 70, it is best to call the rental car company and confirm their age restrictions, as rules can vary by geographical location.

Although, some countries restrict the age of rental car drivers to 75 or 80. If you wish to rent a car internationally, which could affect you, you should confirm if there is such a restriction before traveling. This can prevent challenges before they happen.

Restrictions Surrounding Car Rental Age

There can be additional rules regarding renting a car when you are between 18 and 25. The car rental age can restrict the types of vehicles you can rent and make renting a car more expensive unless you qualify for a waiver. Although standard car rental services often allow drivers as young as 18 to rent, luxury and exotic car rentals typically require a minimum age of 21. Senior citizens should check for age restrictions directly with a rental car company.

Keep up with today’s trends; hopefully, you can save money. When you visit our site, we want to help you find solutions to everyday questions and challenges. That is why we constantly publish new articles to keep you informed.

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