Why do car rental companies charge a surcharge for drivers under 25?
My husband and I need to drive from Delaware to Alabama this spring. He’s 24 and has a class C CDL. We were just checking out car rental rates and all companies will charge us a $25 per day surcharge just to rent a compact car! This is absolutely ridiculous! Its going to double the cost of renting the car. Is there any way to get around these things?
July 24th, 2010 at 12:49 pm
Under 25s have a much higher accident and damage rate. This is why there is a surcharge.
There may be some small local company that will waive the charge, so you’d best look around.
July 24th, 2010 at 1:33 pm
Get a fake ID and call yourself McLovin the 28 yr old Hawaiian organ donor.
July 24th, 2010 at 1:58 pm
Actuaries determine rates based on statistics(accidents, claims…) that U-25 drivers have MORE accidents.
http://www.actuary.org/
http://www.soa.org/
http://en.wikipedia.org/wiki/Actuary
July 24th, 2010 at 2:48 pm
Negotiate a local weekly rental from Enterprise rental cars and make sure the car can be driven out of the local area. You’ll be driving it round trip so who has to know where your driving it to?
http://www.enterprise.com/car_rental/home.do
Check with your personal car’s insurance agent to see if your covered for collision and liability under your policy so that you don’t have to pay the insurance with Enterprise. Make sure all drivers are specified on the contract. Also ask your insurance agent whether Enterprise’s charge for loss of the use of their rental car while it’s being repaired would be covered by your personal insurance company. Make sure to use a credit card that also says they will help with rental car damages if you get into an accident and don’t have the Enterprise insurance.
July 24th, 2010 at 2:51 pm
Statistically, U-25’s are dangerous maniacs. More risk = higher price.
July 24th, 2010 at 2:54 pm
There is no way to get around this…they do this because most accidents with rental cars happen in drivers 25 and younger…so they want to have extra insurance. Don’t worry / one more year and your hubby will not have to pay the extra charge!
July 24th, 2010 at 3:28 pm
Try a different car rental company. Not all have that extra fee. I think that the fee is added for the under 25 drivers because statistically, under 25 drivers are more of a risk to the rental company and their cars. Maybe under 25 drivers tend to carry less insurance independent of the rental agreement, or maybe statistically (as male drivers versus female drivers) have more accidents. I know, that’s a lame fee! Do try another rental company. Or see if you can prove independent auto insurance to the rental company to have them waive the fee.
July 24th, 2010 at 4:11 pm
higher risk with drivers under 25. Speeding, crashes, drinking, cell phone use, inexperience on the road…etc…and…some also charge for drivers over 65…
July 24th, 2010 at 4:37 pm
Because it cost more to insure drivers under 25. You get an insurance break on your 25th bday.
July 24th, 2010 at 5:00 pm
Fact of life in an insurence crazed society. They have to pay insurance based on who is driving their vehicles. Insurance companies charge more (as you know) for drivers under 25 years of age.
July 24th, 2010 at 5:43 pm
Statistics show that people under 25 have more accidents – unfortunately that means that even safe drivers under 25 have to pay higher rates for rental cars and insurance. When you both turn 25 you’ll find that your insurance rates drop as well! Now THAT’S something to celebrate!
July 24th, 2010 at 6:37 pm
Is becos under 25 drife liek loony and crash a lot.
Most under 25 steal car and burn after, no DNA, is vere cheep but riskie
July 24th, 2010 at 6:46 pm
I’ve gotten around the fee once using a fake drivers liscence… if you can get a good quality fake it might even save you money
o yea and these practices are not set in stone… they are kindof subject to the will of the specific branche’s employees. For example, i eventually talked a rental company into renting me a car when I was 19 just by pleading with them a lot, even though it was against company policy… so practice and policy are really two sides of two different coins
July 24th, 2010 at 6:58 pm
I agree!!! My husband and I (22) went to Hawaii for a family vaca for 5 days. At check out they charged us $200 for being under “25” Ok…well if we knew that we would have just rented some damn scooters! I feel your pain..
July 24th, 2010 at 7:57 pm
I remember when i was that age and tried to rent a car. I was able to speak to a manager and get the extra fee waived. It all depends on the rental company you are dealing with. It has something to do with higher risk insurance. Most rental car insurance agencies will charge the rental agency more for a policy for a driver who is under 25.
July 24th, 2010 at 8:12 pm
Certainly, one can understand the rational basis for mandatory car insurance: ensuring that drivers can pay for their mistakes. But in practise, the business is rife with greed, fraud, inequity and counte -intuitive logic.
July 24th, 2010 at 8:30 pm
coz they like 2 pick on young drivers