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

UPDATED: Oct 12, 2021

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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
  • A young driver can range between 18- and 24-years-old

Renting a car at a young age can be a frustrating thing. You’re old enough to drive, yet not old enough to rent a car. Before you rent a car, you will want to make yourself aware of all of the car insurance discounts that are available to you.

Rental car companies require you to be at least 25 years of age when renting a car. If you’re anything 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.

Find out the cheapest way to rent a car when you’re under the age of 25 by shopping companies that waive fees. Enter your ZIP code and get a free quote today.

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

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. 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.

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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, you have to do your research. 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 insurance. You will also need renter’s insurance. If you already own a car, your current insurance policy may cover your rental car.

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. If not aforementioned, then those are companies that don’t waive young renter’s fees.

Find affordable, young renter’s car insurance rates. Enter your ZIP code and get a free quote from a car insurance company with waived rental fees today.