There are five verified ways to get the under-25 young driver fee waived in the US — and several widely-repeated methods that simply don’t work. The strongest are a USAA membership (waived at six major brands), AAA with Hertz (ages 20–24), and government or military travel orders. Where no waiver applies, the next best saving is picking the cheapest supplier for your age, which is what DiscoverCars is for.
Key Takeaways
- USAA is the broadest waiver – Hertz waives ages 18–24; Avis, Budget, Enterprise, National and Alamo waive 21–24.
- AAA + Hertz waives the fee for members aged 20–24 on AAA rates.
- Government/military travel orders remove it entirely at Avis, Budget, Enterprise, National and Alamo from age 18.
- Costco does NOT waive it – a very common myth. Nor do credit card benefits.
- No booking site can remove the fee – but comparing shows who charges least.
The Five Waivers That Actually Work
1. USAA membership (the broadest)
USAA has the widest young-renter waiver in the US market. Hertz waives the surcharge for USAA members aged 18–24; Avis, Budget, Enterprise, National and Alamo waive it for ages 21–24. The conditions matter: the waiver is limited to USAA insurance-eligible members, you must book through the USAA portal so the discount code attaches, proof of membership or a military ID may be requested at the counter, 21–24 renters may still face vehicle-class limits, and the benefit does not apply internationally.
2. AAA membership with Hertz
Hertz waives its young renter fee for AAA members aged 20 to 24 — you must book using the AAA rate or discount code for it to apply. The Prestige, Adrenaline and Dream Car collections are excluded, as are prepaid ’Slash Deals’ rates. Note this is a Hertz-specific benefit: AAA membership does not waive the fee at Enterprise, Avis or Budget.
3. Government and military travel orders
This is the most consistently documented waiver of all. For authorised government travel with official orders presented at the counter:
- Avis — rents from age 18 with no surcharge on government travel orders (including FEMA, USPS and military).
- Budget — 18+ with purchase or travel orders, no surcharge.
- Enterprise, National, Alamo — US military personnel and government employees aged 18+ incur no youthful surcharge for authorised government travel, on presentation of official orders.
Leisure travel does not qualify. The orders must be genuine and shown at pickup — a military ID alone is not enough for this particular waiver.
4. Insurance-replacement rentals
If you’re renting because your own car is being repaired, Budget officially waives the young driver surcharge for replacement renters aged 18 and over from approved insurance providers, naming Allstate, Progressive, State Farm and Travelers. Budget also waives it for renters with disabilities where the renter or an authorised driver is over 25.
5. Corporate or university discount codes
Real, but negotiated per contract rather than published: some employers and universities have corporate codes (CDP/BCD numbers) that include an underage-fee waiver, and many do not. It costs nothing to ask your HR or student travel office whether your organisation’s code covers the young driver fee.
Methods That Don’t Work (Despite What You’ll Read)
These circulate widely and will cost you money if you rely on them:
| Claimed method | Reality |
|---|---|
| Costco Travel waives the fee | False. Costco’s own help pages confirm under-25 members get the member discount but still pay the underage fee, can’t book online, and must call. Costco does reliably include one free additional driver – but an under-25 additional driver still pays the surcharge. |
| Credit card rental coverage waives it | False. Card benefits replace the insurance/CDW upsell. They have no effect on the age surcharge, which is a separate line item. |
| Enterprise student waiver | Stale. Traces to an expired 2020 programme that temporarily dropped the minimum to 18. Any current claim of this is out of date. |
| Turning 25 during the rental | No. Your age at pickup governs the whole rental. There is no partial refund. |
| Add an over-25 driver to skip the fee | Doesn’t work as described. Every listed driver under 25 pays the surcharge, so this only helps if the under-25 person isn’t a listed driver – meaning they can’t legally drive. |
If No Waiver Applies, Compare Instead
Here is the part most guides skip: no booking site can remove a young driver fee — the surcharge is set by the rental company and collected at the counter. What comparing suppliers actually does is show you, side by side, which company charges the least for your age at your exact pickup location. Budget publishes $27/day while Enterprise, National and Alamo average around $25 — and Hertz, Dollar, Thrifty and Sixt publish nothing at all, so their fee only appears at quote stage. That spread is real money, and it is invisible until you compare. Checking DiscoverCars puts every supplier’s total in one list before you commit.
A few practical savings that stack with comparing:
- Avoid airport pickups where possible — surcharges and airport fees both tend to run higher there.
- Check Michigan versus New York if you’re under 21 and flexible — Michigan is roughly half the New York rate.
- Shorten the rental — with no cap, every extra day adds the full surcharge again.
- Book a smaller class — under-25 renters are barred from premium classes anyway, so there’s little point paying up.
- Compare before you commit — the daily spread between brands at one airport can exceed the cost of a tank of fuel.
For the full brand-by-brand numbers see our under-25 fees by company comparison, for the legal minimums see rental car age by state, and for the overview start at the rental car age requirements guide.
No waiver? Compare who charges the lowest fee.
DiscoverCars compares Hertz, Enterprise, Avis, Budget, Sixt, Thrifty and more in one search — so you can see whose young driver fee is lowest at your pickup location before you book.
Frequently Asked Questions
How can you avoid the under-25 car rental fee?
Five methods are verified: a USAA membership (waived at Hertz for ages 18 to 24 and at Avis, Budget, Enterprise, National and Alamo for 21 to 24), AAA with Hertz for ages 20 to 24, government or military travel orders, insurance-replacement rentals at Budget, and some corporate or university discount codes.
Does Costco Travel waive the young driver fee?
No. This is one of the most common myths. Costco’s own help pages confirm that under-25 members receive the member discount but still pay the underage fee, cannot book online, and must call to reserve. Costco does include a free additional driver, but an under-25 additional driver still pays the surcharge.
Does AAA waive the under-25 rental fee?
Only with Hertz, and only for members aged 20 to 24, booked on the AAA rate or discount code. The Prestige, Adrenaline and Dream Car collections and prepaid Slash Deals rates are excluded. AAA membership does not waive the fee at Enterprise, Avis or Budget.
Do credit card benefits cover the young driver fee?
No. Credit card rental benefits replace the insurance or collision damage waiver upsell. The young driver surcharge is a separate charge based on your age and is unaffected by card coverage, a distinction that is frequently conflated online.
Can a booking site remove the young driver fee?
No third party can remove it, because the surcharge is set by the rental company and collected at the counter. What comparing suppliers does is show which company charges the least for your age at your specific pickup location, where the daily spread can exceed $30 in New York.
Disclosure: This article contains affiliate links to DiscoverCars. If you book through them, we may earn a commission at no extra cost to you. Fees verified September 2026 — rental companies change them without notice, so always confirm the total at booking.