When traveling in the USA, a car can become a necessity due to the long distances and limited availability of public transportation. I have written about my experiences and included tips from readers for you in this article, which I will keep updated. I will advise you on what to watch out for to avoid falling for the tricks of car rental companies. You’ll learn how to rent a car at a great price, get a better car for free, and pick up other useful tips.
-
Table of Contents
- What You Need to Know About Renting a Car in the USA
- Car Rental Conditions in the USA
- Tips for Cheap Car Rental in the USA
- What to Look Out for When Renting a Car in the US
- Car Insurance in the USA
- Price for Car Rental in USA
- 10 Major Car Rental Companies in the USA
- What to Do When Picking Up a Rental Car
- Car Rental in the US for Drivers Under 25
- Car Rental in the USA for Drivers Aged 18 to 21
- Rent a Van in USA
- RV Rental in the USA
- Frequently Asked Questions About Renting a Car in the USA
- Cheap Car Rental in USA
What You Need to Know About Renting a Car in the USA
There are hundreds of car rental companies in the US, including international chains such as Enterprise, Hertz, Avis, Budget, National, Thrifty, Alamo, and Dollar. The terms car rental, rent a car, rent-a-car, rental car or car rental are used for car rental companies.
A car can be rented directly from a specific rental company or through a broker, who usually represents most of the companies in the area. You can usually get a better price through a comparison site, probably the biggest one is RentalCars.com from the Booking.com group, an alternative is DiscoverCars.com.
As a rule, the cheapest way to rent a car online is with around one to three months’ notice. The price of a car varies across cities, branches, and seasons, with the biggest influence being current demand.
In America, Canada, and Mexico, driving is on the right. The vast majority of rental cars are equipped with automatic transmissions. If you are inexperienced, you will probably get used to it very quickly. A car with a manual transmission is available on request.
Standard equipment includes air conditioning and a car radio. Free GPS navigation is available on your phone; just download the offline area to Google Maps or buy a local SIM card.
-
Car Rental Conditions in the USA
🧑 Driver’s Age
- 18-20 years old: Rental companies typically won’t rent you a car or may only offer a weaker model while charging an additional fee.
- 21-24 years old: Most rental companies will rent you a car, expect an “Underage Driver Fee” of approximately $25 per day.
- 25 and over: You can rent a car at no extra charge.
🆔 Driving License
In most cases, you only need to show a British driving licence. However, it is recommended to carry your Geneva Convention International Driving Permit with you.
💳 Credit Card
The card is used to pay the rental fee and to pay the deposit. It is better to use a credit card and the name on the card must be the same as one of the drivers. Some companies or their employees may refuse a debit card, require a higher deposit or additional documents. Experiences with using a debit card vary across the US; however, I have personally not encountered any issues with my Google Pay card.
🛂 Passport
The passport serves to verify the driver’s identity. Employees usually scan or make a copy of it when the car is picked up.
-
Tips for Cheap Car Rental in the USA
The price of car rental can usually be reduced. The following rules have worked well for me and I recommend combining them.
💡 Lowest Price Guarantee From Rentalcars
RentalCars.com is a car rental booking portal in many languages, part of the Booking.com group. In the last 12 years I have rented a car through them on every continent. Its advantage is good customer support and guarantee of the lowest rental price. If you find a better deal from a competitor, the difference in price will be made up.
💡 When to Book a Car Rental in the USA
There is no guarantee, many factors affect the price. The lowest rental price is usually 1-3 months before you plan to pick up the car. During summer holidays, around Christmas and public holidays, expect a higher price due to higher demand.
💡 What Class of Car to Choose?
Choose the type of car based on the number of passengers and the length of the route. For multi-week road trips, I recommend avoiding smaller cars, as they offer limited space and are not very comfortable. Even convertibles have limited space and may feel impractical after a few days. Based on my experience, I advise choosing a crossover or SUV.
Economy-class cars are the most affordable. Mid-range cars are 5-15% more expensive, comfortable SUVs cost 20-25% more, and a convertible may cost 65-75% more than the cheapest car.
When you pick up your car, you might be offered an upgrade—a higher-class car at a lower price. The decision is yours. If the car class you reserved is unavailable, ask for a higher-class car at no additional cost.
💡 Car Rental at the Airport or in the City Centre?
Airport car rentals are usually more convenient, as they offer greater competition. While some companies may charge an additional airport entrance fee, renting from the airport saves each crew member the cost of transportation to the city center. However, for multi-week rentals, I recommend checking downtown prices as well.
💡 Return the Car at the Same Place Where You Rent It
You can return the car at another rental branch, in a different city or even state, but there is usually a fee for this option. It is often more convenient to pick up and return the car at the same location.
💡 The Rental Fee Is Charged for Every 24 Hours Started
The unwritten rule of car rental companies is that you are charged for every 24-hour period started. If you pick up your car at 3:00 p.m., always return it by 3:00 p.m. Returning the car even slightly later—e.g., at 3:30 p.m.—will typically result in an additional day being charged. Some companies, however, allow more flexible return policies without extra fees.
💡 Compare Offers From Multiple Car Rental Companies Online
Comparing car rental offers from multiple companies significantly increases your chances of finding a better deal. Instead of visiting each company’s website individually, you can simply use a price comparison tool.
💡 How to Get a Better Car for Free
This strategy works best at smaller rental companies, where the smallest cars are often less in demand. If you arrive to pick up your car relatively late (e.g., around noon), all cars in that class may already be rented. The rental company may then offer you a better car at no additional cost.
-
What to Look Out for When Renting a Car in the US
The following tips will help you avoid the most common mistakes when renting a car in the US.
⚠️ The Advertised Price May Not Be the Final Price
This is a popular trick of rental companies advertising car rental for a few dollars. However, the price only includes the rental itself and no longer includes taxes or hidden fees such as airport returns. Other restrictions may also apply. A seemingly tempting offer can suddenly turn into an unfavorable one.
⚠️ Mileage May Be Limited
Some car rental companies limit the number of miles you can drive and there is a charge for exceeding the limit. The amount varies from rental company to rental company, but as a rough idea, you can expect to pay $0.15 to $0.25 for each mile driven over the limit. You are unlikely to encounter this practice with large rental companies. If you know how many miles you’ll drive, it’s not necessarily a bad thing.
⚠️ Restrictions on Where You Can Take the Car
Rental companies’ terms and conditions clearly state where you can take the car. Travel to Mexico is usually prohibited due to insurance limitations, while trips to Canada are allowed by prior arrangement. Restrictions on travel to other US states (e.g. California, Nevada, etc.) are not common practice.
Again, this is not very common, but just read the relevant part of the contract carefully. Rental cars have GPS locators built into them and there is usually a hefty penalty for breaking the rule.
⚠️ Check the Rating of a Particular Branch
Don’t look at the car rental company’s reviews as a whole; instead, check Google Maps for ratings and reviews of a specific branch from recent times. For example, the smaller Green Car Rental Los Angeles near the airport has a rating of only 2.4/10.
⚠️ Don’t Let Unnecessary Things Get In Your Way
Car rental companies are trying to increase the profit from each customer, so when they pick up the car, they shove GPS navigation, insurance, helpline, etc. I recommend you pay for insurance from RentalCars.com in the range of your choice. Before taking possession, check to see if you will be driving over toll sections of highways. Some rental companies force overpriced (and often unnecessary) passes on customers.
⚠️ Buy Your Fuel at a Petrol Station
The standard rule of thumb when renting a car is that you pick it up with a full tank and return it with a full tank. I recommend filling up the tank 9 mi–12 mi before returning the rental car. If the car is not full when you return it, the rental company will refuel it at their price, which is usually higher. For more information, see our article on how to refuel in the USA.
⚠️ You Will Incur a Penalty for Returning Your Car Late
Rental fees are charged per 24-hour period. If you fail to return the car on time, the rental company will charge you for the next day’s rate. The level of tolerance depends on the car rental company; in some cases, arriving just 15 minutes late may result in additional charges.
⚠️ Second and Third Drivers Only for an Additional Fee
If you plan to take turns driving the car, always include a co-driver in the car rental agreement. There is usually a charge for an additional driver of around $10.00 per day. Terms vary by rental company, with some offering a spouse as an additional driver free of charge. Do not attempt to cheat. If an unregistered driver causes an accident, the insurance will not cover them, and they will be responsible for the damages.
⚠️ Child Seat in the US
A car seat is typically mandatory for children between 2 and 7 years old; additionally, children under 12 are prohibited from sitting in the front seat. However, rules vary from state to state; refer to the Governors Highway Safety Association website for details.
-
Car Insurance in the USA
When renting a car, it is advisable to purchase comprehensive insurance. Several types of insurance are available in the US, and the following designations are commonly used. For all insurances, read the terms and conditions carefully, especially the deductibles.
🛡️ SLP (Supplemental Liability Protection)
SLP is similar to liability insurance, which covers damages to the health and property of others caused by the insured party. In almost all U.S. states, liability insurance is legally required, with varying minimum insurance requirements. The coverage limit for bodily injury ranges from $25,000 to $50,000 per person, while the limit for property damage ranges from $10,000 to $25,000.
🛡️ SLI (Supplemental Liability Insurance)
SLI is a voluntary supplemental insurance that raises the SLP coverage limit up to $1,000,000. The terms and conditions of the insurance may vary depending on the provider and specific offer.
🛡️ CDW (Collision Damage Waiver)
CDW is collision insurance that covers damage to a rental car caused by the driver. The premium depends on the pick-up location and the car class, ranging from approximately $10.00 to $30 per day.
CDW typically does not include coverage for tires, windows, the chassis, or seat covers. Insurance becomes void if intentional damage, driving under the influence of alcohol or drugs, or driver negligence is determined. Leaving the car unattended with the key in the ignition is also considered a criminal offense.
🛡️ SCDW (Super Collision Damage Waiver)
A supplement to CDW insurance, it additionally covers damage to the vehicle’s undercarriage, glass, tires, and covers. SCDW insurance is usually purchased with a zero deductible, meaning the at-fault party does not have to pay anything extra in case of a loss.
🛡️ LDW (Loss Damage Waiver)
LDW covers damage due to vehicle depreciation (total loss) resulting from an accident caused by you. It is basically a higher variant of CDW insurance. Typically, you can expect a deductible in the range of hundreds of dollars.
🛡️ FDW (Full Damage Waiver)
Collision car insurance is usually provided with no limit on the amount of benefits and no deductible, but it excludes damage to the vehicle’s undercarriage, wheels, windows, and upholstery.
🛡️ TP (Theft Protection)
This type of insurance protects you in the event of car theft.
🛡️ PEC (Personal Effects Coverage)
Insurance for personal effects carried in the car costs approximately $2.00 per day, with a policy limit of approximately $500. If your car is stolen or personal belongings are damaged in an accident, compensation is paid.
🛡️ PAI (Personal Accident Insurance)
Personal Accident Insurance covers the cost of medical treatment for everyone in the rental car. Compensation is also provided in the event of a fatal accident. The premium is around $3.00 per day, the policy limit is approximately $3,500.
🛡️ UMP (Uninsured/Underinsured Motorist Protection)
UMP insurance protects against damage to your vehicle and passengers caused by the driver of another uninsured car.
-
Price for Car Rental in USA
The rental price is primarily influenced by location, current demand, car class, included insurance, and other factors.
During the 2020 pandemic, most rental companies sold off their fleets. When demand recovered in late 2021 and early 2022, rental companies had to respond with huge investments in new car purchases. Unfortunately, this led to a significant increase in rental prices.
While it was possible to rent a car for as little as $25 per day before the pandemic, in 2025 you should expect to pay at least $39 per day, including insurance for the smallest car. For a better idea, I recommend a quick and non-binding calculation.
💵 How Much Does It Cost to Rent a Car in the US?
-
10 Major Car Rental Companies in the USA
There are hundreds of car rental companies in the USA, and the largest ones are usually the cheapest. The largest group is Enterprise Holdings, Inc., with a fleet of 2.5 million cars and approximately 9,500 locations in over 90 countries. The group includes Alamo, Enterprise and National.
I last verified the number of branches and the ownership structure on January 7, 2025.
Enterprise Rent-A-Car is the largest car rental network in the U.S., with 4,138 locations and a strong presence in city centers. Enterprise caters to a wide range of customers, including business travelers and local residents. The company is part of Enterprise Holdings, Inc.
Hertz Car Rental operates 2,719 locations in the U.S. and has a good range of premium services and an interesting loyalty program. Hertz caters to the entire spectrum of customers, including tourists and business travelers. The company is part of Hertz Global Holdings, Inc.
Avis Car Rental operates 1,405 locations in the U.S. The company targets the premium segment of the market, trying to appeal mainly to business travelers and discerning customers. It offers luxury cars and the Avis Preferred loyalty program with express service. Avis is part of the Avis Budget Group, Inc.
Budget Rent a Car has 1,312 locations across the U.S., and it particularly aims to appeal to price-sensitive rental customers. Budget offers flexible rental terms and lower prices, setting itself apart from premium brands. It is part of the Avis Budget Group.
National Car Rental has 305 locations in the U.S. It focuses on business and regular customers who value speed and flexibility. An interesting option is the Emerald Club loyalty program, where members can pick up a car directly from the lot with no paperwork required. National is a member of the Enterprise Group.
Thrifty Car Rental operates 290 locations in the United States. Thrifty Car Rental strives to appeal to customers for whom a low rental price is important. Thrifty shares its branches with Dollar Rent A Car, increasing their availability. Both companies belong to the Hertz group.
Alamo Rent a Car has 243 locations in the US and targets mainly families and tourists who are price-sensitive. Alamo has the advantage of an easy online check-in process and self-service kiosks that speed up car pick-up. Alamo is part of the Enterprise Holdings group.
Dollar Rent A Car has 228 locations in the U.S., some of which it shares with Thrifty, as both are part of Hertz Global Holdings. Dollar Car Rental targets price-sensitive customers for whom the lowest possible rental price is crucial.
Payless Car Rental operates around 120 branches in the US. The car rental company targets undemanding customers who need only basic services at the lowest possible prices. Payless belongs to the Avis Budget Group. Compared to other companies in the group, it offers lower prices and less stringent conditions.
Sixt Rent A Car operates around a hundred branches in the USA. The car rental company focuses on business travellers and clients who prefer premium and luxury cars. Its main advantage is a usually wide range of cars. Sixt does not belong to any of the major holding companies.
-
What to Do When Picking Up a Rental Car
1️⃣ Car Rental Deposit in the USA
When picking up the car, a credit card is presented to the rental company employee for payment of the deposit. The amount of the deposit varies by company and location and can be as low as 25% of the price or $200. Usually, the higher amount applies. The money is not charged to the card, only blocked.
2️⃣ Refuse Payment in British Pounds
Some rental companies allow you to pay in British pounds via Dynamic Currency Conversion. The exchange rate is very unfavorable with this service; always insist on paying in US dollars.
3️⃣ Read the Car Rental Contract Carefully
Read the rental contract carefully before signing it. Resist any pressure from the rental company and ask questions if you don’t understand something.
4️⃣ Take Photos of Any Defects or Scratches Before You Pick Up the Car
When you take delivery of the car, you will receive a report showing the defects on the rental car. Take photos or videos of any scratches, the condition of inflated tyres, and the fuel level from all angles as proof. Immediately report any discrepancies between the log and the car’s actual condition.
5️⃣ What to Ask When Renting a Car
Ask questions about anything that is not clear: “Are there any special laws or regulations? Are the car documents in the glove box? Should I fill up with petrol or diesel? How does the roof fold down? Where do I call if I crash the car?” Save the helpline number so that you don’t have to search for it later.
6️⃣ Get To Know Your Car Thoroughly
Familiarize yourself with the car thoroughly while it is still at the rental company. Adjust the seat, test the lights and wipers, and examine the gear lever. Ask questions about anything that’s not clear. On a safe stretch, test the brakes and acceleration so you know how the car responds. Also study this article on driving in the USA.
7️⃣ How to Skip the Rental Car Queue
At Thrifty, it pays to sign up for the free loyalty programme on their website before picking up your car. By signing up, you will receive a Priority Pass, which allows you to skip the entire queue at the rental company. One reader successfully tested this at a Thrifty rental at LAX.
-
Car Rental in the US for Drivers Under 25
Drivers aged 21 to 25 must take certain restrictions into account when renting a car in the United States. Car rental companies assume a higher probability of causing an accident, so they usually charge an extra fee for each day of car rental for these drivers.
the “under age fee” varies from state to state and from rental company to rental company; to give you an idea, expect to pay $15.00 to $25 per day. It is best to make a non-binding reservation to get the final rental price. The difference in the car’s base price often offsets the difference in the fee.
You won’t usually encounter a surcharge for drivers between the ages of 21 and 25 in the states of Michigan and New York, which heavily regulate the practice.
Some rental car companies limit the categories of cars from which drivers under 25 can choose. Avis, Budget, and Thrifty are the strictest, and they do not allow young drivers to rent SUVs, vans, or luxury sports cars. Alamo and Enterprise, on the other hand, do not restrict drivers’ choices.
-
Car Rental in the USA for Drivers Aged 18 to 21
Young drivers aged 18 to 21 face even more challenges. Major rental companies typically do not rent cars to them due to liability concerns, with only a few exceptions.
E-Z Rent A Car offers entry-level models at all branches to drivers aged 18 and over, provided they present valid liability insurance. Fox Rent A Car is the most affordable. All branches rent cars to drivers aged 19 and over, with an additional charge of $25 per day for underage drivers.
Car rental companies in Michigan and New York State are required by law to rent to drivers between the ages of 18 and 21. However, this age group may face restrictions on the available vehicle selection, and an underage fee of up to $50 per day is common.
-
Rent a Van in USA
Van rental in the USA is offered by almost every car rental company; it is advisable to book in advance online. The vans on offer are referred to as “minivans” or “12-seat people carriers,” with the most common models being the Chevrolet Express and Ford E350.
Vans are a practical choice when you wish to save on motel costs and can manage with a sleeping bag in the back. They come equipped with air conditioning and automatic transmissions, and daily rental prices in more affordable locations start at approximately $75.
To drive a van for 8/10/12 people, a normal driving licence combined with an international licence is sufficient. A U.S. driver’s license is generally only needed for vehicles that can hold 16 or more passengers, according to technical specifications.
- A No-Obligation Price Quote for Renting a Van in the USA
- Renting a Van in the USA (detailed instructions)
-
RV Rental in the USA
An RV offers a mobile hotel on wheels; in America, it is referred to as an “RV” or “motorhome.” To rent a motorhome, you only need a British (or EU) and international driving licence.
Traveling with a motorhome has its pros and cons. Pluses include lower accommodation costs, no motels to find, no constant packing and unpacking of suitcases, and more freedom in planning your itinerary. You’re not tied to room reservations, and if you like a place, you can stay there for a few days.
The disadvantage of a caravan is its size and the associated demands on the experience of the driver. It’s slower to travel, harder to park and some places you can’t drive to. You are only allowed to park with a caravan in designated sites, or in campsites where you pay more than for a regular tent pitch.
Regular car rental companies do not offer campervan hire in the US, you need to look for specialist companies like CruiseAmerica.com. One-night rentals start at approximately $100, plus a mileage fee. Read about the experience of traveling by RV in the US.
-
Frequently Asked Questions About Renting a Car in the USA
How much is the deposit for car rental?
The deposit depends on the specific rental company, the type of vehicle, and the length of the car rental. For a rental of $1,000, you can expect to pay $250 to $400.The security deposit is an amount that serves as a guarantee for the rental company in case of damage. The rental company will block the money on your card when you take delivery of the car and will cancel the block if you return the car in good condition. The money will be released depending on the terms of your bank in the following days.
I’ll be in the US for a few months; isn’t it better to buy an older car?
Obviously, it is more cost-effective to buy an older car and sell it before you leave. Unfortunately for a tourist, the car registration process is so complicated that it’s better to rent a car.One of the conditions is that the owner must be a permanent resident of the state in which they want to register the car. You can’t do that as a tourist. The solution may be visitor.us, which will set up a company for you in Montana, where you don’t need a US driver’s license and where there is 0% tax on car purchases. The car you purchase will be owned by your newly formed company, and the license plates will come to you in the mail.
I don’t have a credit card, won’t I have a problem renting a car?
Most car rental companies prefer to use a credit card to block the deposit. However, I have personally rented a car in the US with a standard debit card without any problems. The important thing is that it must be embossed (your name on it stands out above the surface of the card). Even if you have a debit card, you can mention that it functions as a credit card.What does “or similar” mean in rental companies?
It means a car from a different manufacturer but in the same class (e.g., SUV or compact). Rental companies cannot guarantee the availability of every model. For example, instead of a Ford Escape, they might offer a Toyota RAV4 or a Jeep Grand Cherokee.Where to rent a car for the trip to Mexico?
The vast majority of car rental companies prohibit travel to Mexico. An exception is reportedly Fox Rent A Car, which allows travel if the driver pays for the mandatory Mexican insurance at the rental counter.
Cheap Car Rental in USA
Discussion (6)
I rented cars in Los Angeles twice, each with a different experience.
First time, I chose a compact Toyota Corolla. It was fuel efficient and easy to park, but a bit cramped for my family of 5.
On my second trip, I opted for a Ford Explorer SUV. It provided more room and comfort, but was bit harder to find parking spaces in busy areas.
Make sure to consider your needs and itinerary when selecting a car!
Having rented cars in various states across the USA for both business and leisure, I’ve navigated the maze of insurance options more times than I can count. The article does a great job highlighting the importance of understanding what each insurance type covers, but I’d like to add a few personal insights that might help others.
Firstly, the significance of SLP cannot be overstated. On a trip to California, I was involved in a minor accident that resulted in damage to another vehicle. Because I had opted for SLP, the insurance covered the damages without any issues. It’s a safety net you don’t want to skip, especially considering the legal requirements and the peace of mind it offers while driving in unfamiliar territory.
Regarding CDW, the article mentions the exclusions, which I learned about the hard way. A rental in Nevada got a cracked windshield due to a flying pebble on the highway. I assumed the CDW would cover it, but since windows were excluded, I was out of pocket for the repair. Always double-check what’s included and consider additional coverage for these exclusions if you’re planning to drive in areas where such damage is more likely.
Lastly, the SLI’s high coverage limit might seem overkill to some, but in today’s litigious society, it’s a buffer that can protect you from financial ruin. I’ve thankfully never had to rely on it, but knowing it’s there if needed is worth the extra cost.
In summary, always read the fine print and assess your risk tolerance when choosing insurance options. Each state can have its quirks, and what might be optional in one could be compulsory in another. Safe travels!
Hi:) I have a question about renting a car in the U.S. If I understood the article correctly, the problem is who the rental car is registered to (I mean age under 25) but the problem is that I’m 20 and I can’t drive…:) (situation : we will have 2 drivers – one over 25, one 20, the car will be registered to the older one but both can take turns driving???) thanks for the answer:)
Hey, Kelly,
you can sign the car over to the older of the two of you, but if you want to drive it, you’ll have to put yourself on the policy as the other driver. Only then can you officially get behind the wheel. Although – who gets behind the wheel in real life is up to you. :)
I have the following question. We are a group of about 20-25 people going to the USA. One of us has a fully completed driving licence – including group “D” – bus. Is it possible to rent a bus in the USA? If so, can the holder of a Slovak group “D” licence drive it? Alternatively, under what conditions? Thank you.
Hi, Jaro,
I don’t have any experience with it, but it should work. There are several conditions, such as at least 25 years of age, full liability insurance, and of course a valid driver’s license. It’s probably best to post the exact driver information on a site like RentABus, which offers driverless bus rental.