Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Mar 25, 2022

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The Short of It

  • AAA and USAA waive young driver fees for their members
  • USAA is for military personnel, veterans, and their family members
  • Insurance companies have partnerships with rental car agencies so these fees can be waived

Renting a car at a young age can be frustrating. You’re old enough to drive, yet not old enough to rent a car. 

Rental car companies require you to be at least 25 years of age when renting a car. If you’re any age under 25-years-old, you are faced with underage rental fees. 

Underage rental fees, car rental fees, and renter’s insurance are among some of the costs that you could be faced with, therefore renting a car could become very expensive very quickly.

it’s best to know both the minimum and maximum amount 

If you also need assistance looking for affordable insurance coverage, we have a free comparison tool that will let you compare quotes from different companies.

Which auto insurance companies waive underage rental car fees?

When attempting to find car insurance companies that waive underage rental car fees, you have a few different options. 

The first insurance company that you can look into would be American Automobile Association, better known as AAA. AAA has a partnership with Hertz, a rental car company, that waives young driver fees for AAA members. Other services that AAA offer include:

  • Towing benefits
  • Fuel delivery
  • Locksmith services
  • Battery and jump start services
  • Flat tire services

This goes to show that they’re a fairly well rounded company, and could potentially do more than just save you money on your rental vehicle. 

Another insurance company that you can look into would be The United Services Automobile Association (USAA). For you to qualify for USAA to waive the young driver’s fee, you must be military personnel or immediate family of military personnel as they are the only ones eligible for USAA coverage. 

Lastly, if you’re traveling on business, look into business travelers insurance as an option. Check with your company or car rental agency to see if there is a corporate account available to you that can waive the young renter’s fee. It may seem like a stretch, but if you’re a young person traveling for business, it doesn’t hurt to check and potentially save some money on the price of your rental. 

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Which rental car company does not charge for being under the age of 25?

To be under 25-years-old and rent a car with no fee, there’s going to be a little bit of research involved. Luckily, there are plenty of resources available, as well as some companies who are willing to work with younger drivers.

Needing a rental vehicle is becoming more common as travel for work steadily increases in demand. This also means that rental car coverage is necessary, whether a company waives the young driver fee or not. The good news is that USAA and AAA have partnerships with certain rental car companies where they will waive your fees if you are a young driver.

Young Driver's Fees by Company
Car Rental Company Young Driver's FeeYoung Driver's Age Range
Avis$27/day18-24 years old
Budget$27/day18-24 years old
Enterprise$20/day21-24 years old
Hertz$30/day18-24 years old
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It is important to know that a young driver’s fee is not the same as rental insurance. You will need to ensure that you have coverage of the vehicle you’re renting, no matter if the fee is waived. If you already own a car, your current personal auto policy may cover your rental car. Should you rely strictly on rentals, you may need to look into a temporary form of insurance. Often, this can be secured directly from the rental car agency. 

AAA Auto Insurance and Rental Cars

With an A+ rating from the Better Business Bureau, AAA is among the top insurance companies.

AAA serves over 60 million members in the United States and Canada with their three-tiered membership level. You can benefit from being a Classic, Plus, or Premier Member.

Car insurance is offered by AAA, but so are homeowners, renters, and condo insurance policies. You can choose from your basic coverage options and add extra coverage options, such as rental reimbursement, GAP coverage, disappearing deductible, and accident forgiveness.

Discounts offered by AAA include multi-car, vehicle safety, good student, and AAADrive – their diving monitoring program.

USAA Insurance and Rental Cars

Our USAA auto insurance review ranks it as one of the cheapest insurance companies you will be able to find. Their rates are about 33.66%. lower across every U.S. state.

With a rating of A++ by A.M. Best and B- by the Better Business Bureau, USAA is known for its superior ability to meet ongoing insurance obligations.

USAA offers auto insurance, as well as health, homeowners, renters, and condo insurance, life, small business, valuable personal property, and vehicle insurance policies.

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Auto Insurance and Young Driver Rental Car Fees: The Bottom Line

If you are a young driver, before renting a car, exhaust all your options and do your research to see if there is a way you can get your young renter’s fee waived. 

Should the company you choose not have any waivers, you can always spend a little time looking for other ways to save money. Finding a discount on your insurance policy could help mitigate the extra cost that you would spend on renting a car for example. 

Don’t forget about our comparison tool, which will help you to compare quotes from various companies.