Car Insurance

Based on the commonly held belief that people in their early 20s are more prone to risky behavior while driving, many car rental companies have restricted renting cars to people under the age of 25 for years.

But with increased competition in the car rental market forcing companies to re-evaluate many long-held assumptions, some car rental companies are relaxing their rules to allow drivers under 25 years old to rent vehicles.

Unfortunately, to many young renters, this comes at a cost.

During a four-day vacation with three friends to Miami, Eugene Minkin, 23, rented a vehicle from Alamo Rent A Car. Minkin was informed of a $30-per-person, per-day fee that he had to pay due to the fact that he and his passengers were all under 25. In addition, he had to purchase insurance and pay the usual four-day rental rate. The total for the rental came to over $650.

Despite the high cost, Minkin felt fortunate to be able to rent a car, where in recent years such transactions would not have been possible.

However, for some companies, renting vehicles to drivers under 25 is not a new development. For instance, at most of its rental branches, Rent-A-Wreck has welcomed young drivers for years.

“By the early ’90s most of our locations were renting to drivers under 25 years of age,” said Jason Manelli, director of public relations for Rent-A-Wreck. “We now consider ourselves to be the experts on rentals to younger drivers, with many of our locations even renting to drivers 18 to 21 years old.”