CALIFORNIA, USA — Today's Why Guy question from Bean: "Why do you have to be age 25 to rent a car?"
One of the most persistent myths is that you have to be 25 years old to rent a car.
However, there is actually no law or rule saying that. The National Highway Safety Administration says drivers under the age of 25 are significantly more likely to get into accidents than older drivers.
So, what the auto rental agencies will do is rent to drivers as young as 20, but apply a young renters fee to the daily charge.
In California, drivers ages 21-25 can rent most cars from most agencies for an extra $25 per day on top of what the vehicle rents for.
Two states allow 18-year-olds to rent cars. Michigan's young renter fee is up to $50 a day while New York's is a whopping $65 added on.
Now, Hertz has lowered its rental age to 20 and Budget to 18, so it varies by company, and by state. The risk for rental car companies is higher insurance rates with younger drivers and increased risks of accidents.
So, if you're a young driver in most states between the ages of 20 and 25, you can rent a vehicle. You're just going to pay a whopping extra fee to do it.
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