Car Hire for Under-25s: The Real Cost and How to Get a Fair Deal

If you are under 25 and trying to rent a car abroad, you have probably already noticed the problem: the base rate looks fine, but by the time the young driver surcharge, higher deposit, and restricted vehicle list are added, you are paying significantly more than the headline price suggests.

This is not a trick. It is how the industry prices risk. But that does not mean you are powerless. Understanding exactly what you are being charged for, and why, is the first step to minimising the cost.

Why under-25 drivers pay more

Car hire companies charge young drivers more because insurance data shows they are statistically more likely to be involved in accidents. This is not a moral judgment — it is actuarial pricing. The surcharge is essentially the rental company's way of covering the higher risk premium their insurer assigns to that age group.

The extra cost typically comes from three places:

• Young driver surcharge — a flat daily fee added to the base rate
• Higher excess/deductible — the amount you are liable for if the car is damaged
• Restricted vehicle categories — the cheapest cars may not be available to under-25s, or may carry their own premium

These charges are not always prominently displayed at the search stage, which is why the final price surprises so many renters.

What the surcharge actually costs

The young driver surcharge varies by supplier, destination, and vehicle type. There is no industry standard. Here is what the numbers look like in practice across common destinations:

Europe: Typical surcharge is €10–€25 per day. On a week-long rental, that adds €70–€175 to the total cost before you factor in anything else.

Australia: Expect AUD $20–$35 per day on top of the base rate. Some suppliers charge a flat fee instead. A two-week hire can easily add AUD $280–$490 in surcharges alone.

USA: Surcharges of USD $15–$30 per day are common at major airport locations. Downtown locations may vary. The USA also frequently applies a separate "young renter" fee on top of the young driver surcharge, so read the terms carefully.

UAE (Dubai): The minimum age is usually 21, lower than many other destinations. But drivers under 25 still face surcharges, and the deposit requirement is typically higher than for older renters.

Some suppliers cap the surcharge after a set number of days — for example, they may cap at 7 days of surcharges even if you rent for 14. Always ask.

The deposit problem hits harder when you are young

Every car hire involves a deposit block on your credit card. The rental company puts a hold on your card to cover potential damage or extras. For under-25s, this hold is often significantly higher than the standard amount.

As a rough guide:

| Destination | Standard deposit | Under-25 deposit | |---|---|---| | Europe (euro zone) | €500–€1,000 | €800–€1,500 | | Australia | AUD $500–$1,000 | AUD $1,000–$2,000 | | USA | USD $200–$500 | USD $500–$1,000 | | UK | £500–£750 | £750–£1,200 | | UAE (Dubai) | AED 1,000–3,000 | AED 2,000–5,000 |

These are indicative ranges. The actual amount depends on the vehicle category, the supplier, and your rental duration.

The practical problem: A large deposit hold can tie up money you need for the trip. If you are relying on a credit card with a limited available balance, this can also affect what else you can charge. Some travellers do not realise their card has been charged until they check their app mid-trip.

If the deposit is a problem, ask the supplier if a higher excess reduction product can lower the deposit amount. Sometimes paying a bit more per day for zero excess also reduces the blocked amount significantly.

Vehicle restrictions: the car you want is not always the car you can get

This is the part that frustrates younger drivers most. Many suppliers restrict certain vehicle categories to drivers over 25 or 30. Common restrictions include:

• Luxury and performance vehicles — usually require 25 or even 30+
• Premium SUVs and 4WDs — higher insurance risk, so higher age thresholds
• Specialty vehicles — convertibles, minibuses, certain vans

This means that as a 21- or 22-year-old, you may be directed toward the economy and compact categories, which are also the most in-demand — and sometimes priced at a premium precisely because they are the default option for younger drivers.

Some ways to navigate this:

• Book early. Vehicle availability in the permitted categories tightens fast, especially at peak locations like Sydney Airport, Dubai Airport, or London.
• Check the specific supplier's age policy. There is no consistency. One supplier may allow under-25s to rent a particular vehicle; another may not. Our supplier reviews have real renter feedback on this.
• Consider local and regional suppliers. They sometimes have more flexible age policies than the big international brands. That said, the deposit situation may still be higher, and the vehicle quality more variable.
• Ask about the intermediate category. Sometimes the car just above economy is available without a surcharge and within your age bracket. It is worth asking at pickup.

One-way rentals and young drivers: an extra layer of cost

If you are planning to pick up in one city and drop off in another, that already carries a one-way fee. For under-25 drivers, it compounds.

One-way fees for younger drivers are often higher than the standard one-way surcharge because suppliers are taking on more risk with a less experienced driver over a longer distance. Always factor this into your budget.

For specific one-way advice, our cross-border Balkans guide covers some of the complex one-way scenarios you find in South-East Europe, and the Australia car hire guide covers interstate one-way patterns in detail.

How to reduce the cost

1. Compare the total daily rate, not just the base

When comparing quotes, add the young driver surcharge to the base rate for each supplier. The cheapest base rate may not be the cheapest total rate once the surcharge is applied. Some suppliers have lower base rates but high surcharges; others charge more per day with no separate surcharge.

2. Check if your credit card has car hire cover

Some premium credit cards include car hire excess reimbursement as a benefit. If yours does, and the policy covers the countries you are visiting, you may be able to skip the supplier's excess reduction product and keep the deposit lower. This only works if your card's policy requires you to decline the supplier's cover first — check the terms.

For a full breakdown of how this works, see our car hire insurance guide.

3. Join a loyalty programme before you book

Major suppliers like Hertz, Europcar, and Avis have loyalty programmes that can sometimes reduce or waive young driver surcharges for members at certain tiers. It is worth signing up before your trip — it is free and takes two minutes.

4. Ask about multi-driver discounts

If more than one person will be driving, adding an older additional driver may seem like it adds cost. But in some cases, having a named driver over 25 on the policy can reduce the young driver surcharge or the deposit amount, because the supplier then has a responsible driver to reference in case of a claim. Run the numbers.

5. Look at package deals

Some booking platforms bundle the young driver surcharge into the total displayed price, while others show the base rate and add the surcharge only at the counter. Platforms that show the total upfront give you a better comparison. Our choosing car hire guide covers what to look for in booking platforms generally.

6. Avoid airport locations at peak times

Airport desks at popular destinations tend to charge more, and the queues make it harder to negotiate or ask questions. A city location of the same supplier can sometimes be meaningfully cheaper for a young driver. Just make sure the savings are not eaten by taxi costs getting to the city location.

What the suppliers say vs what actually happens

Every supplier's terms page says something like "drivers between 21 and 24 are subject to a young driver surcharge." What the terms do not always make clear is how much that surcharge is, whether it is daily or flat, whether it caps, and what vehicles are excluded.

Real traveller experiences tell a more detailed story. At some airport locations, younger drivers report that the vehicle they booked was not available and they were automatically upgraded — but that the upgrade put them into a category with a higher deposit, not a lower one. At others, the desk staff were efficient and upfront about the charges. The variation is real, which is why location reviews matter.

Check Sydney Airport car hire reviews for what younger drivers are experiencing at that location. For European destinations, Dubrovnik and Barcelona are both popular with under-25s and have active review feedback.

The minimum age question: is 21 the real cutoff?

Most countries set the minimum car hire age at 21. But some destinations and some suppliers set it at 19, and others require 25 for anything other than basic economy.

In the USA, the minimum is typically 21, with a surcharge for under-25s. Some states allow 18-year-olds with certain restrictions, but they are the exception.

In the UAE, the minimum can be as low as 21, which is worth knowing if you are coming from a country where you are used to a higher minimum.

In Australia, 21 is standard for mainstream suppliers. Some local operators accept 18, but the vehicle options and insurance terms at that age become significantly more restricted.

In Europe, 21 is common but not universal. Some suppliers in Greece, Spain, and Portugal accept 19-year-olds with a higher surcharge and an additional local insurance product.

If you are under 21, your options narrow dramatically. You may need to look at local brokers, specialty young driver programmes, or accept that in some destinations, car hire is not realistic on a standard licence.

Common mistakes young drivers make

Not reading the deposit amount until pickup. Discovering a AED 4,000 or AUD $1,500 hold on your card at the counter is a bad way to start a trip. Ask before you book.

Declining damage cover without understanding the consequences. Younger drivers are sometimes targeted with aggressive upsell pitches. If you are going to decline the excess reduction product, make sure you have alternative cover in place and understand exactly what you are liable for. The car hire scams guide has more on pressure tactics to watch for.

Assuming the booked car will be the car provided. Confirm the vehicle category, any upgrade path, and what the deposit will be on the actual vehicle at the counter.

Forgetting to check licence requirements. An International Driving Permit is required in some countries and for some licence types even if you are over 25. For under-25s, any documentation gap is more likely to result in a rental being refused at the desk.

FAQ

What is the minimum age to rent a car?

In most countries, it is 21. Some destinations and suppliers allow 19 or even 18, but vehicle options and costs become significantly more restricted. A small number of luxury and specialty vehicle categories require 25 or 30 regardless of where you rent.

How much is the young driver surcharge?

There is no standard. Typical ranges are €10–€25 per day in Europe, AUD $20–$35 in Australia, and USD $15–$30 in the USA. Some suppliers charge a flat fee instead of a daily rate. Always ask for the total cost including surcharges before confirming.

Can I avoid the young driver surcharge?

Not entirely, but there are ways to reduce the total cost. Join loyalty programmes before you book — some waive or reduce the surcharge for members. Compare total daily rates, not just base rates. Consider adding an older named driver to the policy, as this can sometimes lower the deposit and reduce the effective cost. In some cases, booking with a local supplier rather than an international brand offers more flexibility on age policies.

Does my credit card cover car hire if I am under 25?

It depends on the card and the policy. Some credit card car hire benefits apply regardless of age; others have age restrictions. Check the specific policy wording before assuming you are covered. If you plan to rely on card cover, you typically need to decline the supplier's excess reduction product first.

Can I rent a car at 18?

In some countries and with some suppliers, yes. But options are very limited, deposits are higher, and the cost is often prohibitive. In most mainstream car hire situations — particularly at airports with major international suppliers — the answer is no. You will need to check local broker options or specialist young driver programmes.

Does adding a second driver over 25 help?

It can. Some suppliers price the young driver surcharge based on the youngest driver. Having an older driver on the policy may reduce or remove the surcharge in some cases, and can lower the deposit. Ask specifically whether the surcharge is tied to the youngest driver or to you by name.

Are there any countries where under-25s can rent without a surcharge?

Rarely. Even where the minimum age is lower, the surcharge typically applies. Some specialist programmes for younger drivers (often partnered with universities or youth travel organisations) offer reduced rates, but they are not widely advertised.

What happens if I am in an accident and I am a young driver?

The same process applies as for any driver: call the rental company's emergency line, file a police report, get a copy of the report, and document the damage with photos. Your liability for the excess is the same regardless of age. If you have excess reimbursement cover through a credit card or standalone policy, you can claim back the amount after paying the rental company.