That happens a lot. You find a car that looks right, you almost finish your booking, and suddenly the price jumps.
Unfortunately the same thing can happen with car rentals. At the final step you enter your personal info and your birth date and then the rental suddenly costs several extra dollars. Why does that happen? Most likely because you are under 25 and the young driver surcharge applies.
So what is that all about. In this article we explain why rental companies tack on the extra fee and which companies might let you avoid it.
Why Does Hertz Charge Young Driver Fees?
The young driver fee isn’t just a way for Hertz to make extra money. Rental companies point to the fact that drivers between 18 and 24 are statistically more likely to get into accidents and typically cost more to insure.
For Hertz, that means higher risk and higher expenses. To offset those costs, the surcharge gets added to your daily rental rate. Insurance partners often require extra coverage whenever the renter is under 25 as well.
💡 Quick insight
It’s basically the same idea as your personal auto insurance. If you’ve ever had your own policy, you know younger drivers usually pay more until they’ve built up years of safe driving.
So in the end, the Hertz young driver fee is meant to cover higher risk and insurance premiums. Of course, it’s easy to see why it feels unfair and expensive when you’re the one paying it, but for the rental company it acts as a kind of safety cushion.
How to Waive or Reduce the Hertz Young Driver Fee
The young driver fee is annoying, but you are not powerless. There are a few reliable ways to cut the surcharge or eliminate it altogether.
There are no other legal shortcuts. Do not put down a false birth date to avoid the fee. That will usually be discovered at pickup and can void your rental agreement and your insurance coverage. Always use legitimate discounts and verified programs to lower the cost.
Hertz vs. Competitors: Is It Worth It?
Being under 25 can seriously bump up the cost of a rental, and the rules aren’t the same everywhere. To make it easier, here’s a quick breakdown of what the major rental companies charge, the minimum age to rent and when those underage fees can actually be waived.
| Company | Minimum Age | Young Driver Fee (Under 25 Surcharge) | Waivers & Special Notes |
|---|---|---|---|
| Hertz | 18 in most states (19 in AL/NE; 18 in NY & MI by law) | About $19/day for ages 20–24. In NY and MI, 18–20 year olds can pay up to $52/day. | AAA members ages 20–24 get the fee waived. USAA members ages 18–24 also get it waived. No luxury, premium or specialty cars if you’re under 25. |
| Avis | 21 nationwide (18 in NY & MI) | Around $27/day for ages 21–24. In NY it’s about $35/day (21–24) or $52/day (18–20). | USAA members ages 18–24 get the fee waived. Under 25 renters are limited to economy through standard cars and smaller SUVs. |
| Budget | 21 nationwide (18 in NY & MI) | Typically $27/day for 21–24 year olds. In NY about $35/day (21–24) or $52/day (18–20). | USAA members ages 18–24 get the fee waived. Restrictions apply on premium cars, large SUVs and vans for under-25 renters. |
| Enterprise | 21 nationwide (18 in NY & MI) | Around $25/day for ages 21–24. In NY about $31/day (21–24) or $65/day (18–20). | USAA members ages 21–24 get the fee waived. Certain universities and employers also have negotiated waivers. Luxury, premium SUVs and specialty cars are off-limits if you’re under 25. |
| Sixt | 21 nationwide (18 in NY) | Fees vary by car class, generally $25–30/day. In NY, about $37/day (21–24) and $53/day (18–20). | No broad waiver programs like AAA or USAA. Under-25 drivers can rent economy through standard cars, plus smaller SUVs, but not higher-end categories. |
FAQs about Hertz Young Driver Fees
How much does Hertz actually charge if I’m under 25?
Hertz usually adds about $19 a day if you’re 20–24. In New York and Michigan, the surcharge can be higher, reaching up to around $52 a day for drivers under 21.
Can AAA or USAA really get the Hertz underage fee waived?
Yes. If you’re a AAA member between 20–24, Hertz waives the fee. USAA members ages 18–24 also get it waived at participating U.S. locations.
Is it cheaper to rent with Hertz than with Avis, Budget or Enterprise if I’m under 25?
It depends. Hertz has one of the lowest base under-25 fees, but Avis, Budget and Enterprise often waive the fee more broadly for USAA members. Checking both price and membership perks is key.
Are there certain cars I can’t rent from Hertz if I’m under 25?
Yes. You can rent economy through standard cars and most SUVs, but luxury models, specialty cars and high-performance vehicles aren’t available until you’re at least 25.