Driving & Renting a Car in the US: Age Fees, Insurance, Tolls & Road Rules
Outside a handful of big cities, the US runs on cars. Renting one is easy — but the under-25 surcharge, toll systems and insurance upsells are where newcomers lose money.
Renting: age and the under-25 surcharge
Most companies rent to 21+; Hertz rents from 20 at many locations, and New York and Michigan allow 18+ by state law. Under 25, expect a young-renter surcharge of roughly $19–35 per day on top of the base rate — about $19/day at Hertz, ~$25 at Enterprise, ~$27 at Avis/Budget, varying by location. On a week-long rental that is $130–245 in pure age fees.
Ways to soften it: AAA members can get the fee waived at Hertz; USAA members at Avis/Budget; some corporate or university codes waive it too. Renting off-airport (a neighborhood branch) is often 20–30% cheaper overall than the airport counter.
You need a credit card in the driver's name and a valid licence. A foreign licence works for visitors; if it is not in English, carry an International Driving Permit as translation.
Insurance: the CDW question
At the counter you will be offered the Collision/Loss Damage Waiver (CDW/LDW) — typically $20–35/day — plus liability top-ups. Before you say yes:
- Check your credit card benefits — many Visa/Mastercard/Amex cards include rental car collision coverage (usually secondary, meaning it kicks in after your own insurance).
- Check your personal auto policy — if you have US car insurance, it often extends to rentals.
- If neither covers you, the desk waiver is worth considering — one fender-bender without coverage gets expensive fast.
Toll-road transponder rentals and prepaid fuel are also upsells: decline both unless you have a reason.
Tolls: E-ZPass, SunPass, TxTag
The US has no single toll system — each region runs its own:
- E-ZPass: Northeast and Midwest (NY, NJ, PA, MA, IL, etc.) — the big one.
- SunPass: Florida.
- TxTag / TollTag: Texas.
Most tolls are now cashless — cameras photograph your plate. Rental companies handle this via toll programs that add a daily "convenience fee" ($5–15/day) on top of the tolls themselves, often for every day of the rental whether you used a toll road or not. If you are driving toll roads for several days, buying your own transponder (or a visitor pass where offered) is far cheaper.
Gas stations
Nearly all self-serve (New Jersey is full-service by law). Pay at the pump with a card — foreign cards often fail the ZIP-code check: the workaround is entering the digits of your postal code followed by 00 (e.g. M4B 1B3 → 41300), or just pay inside. Gas is sold by the gallon (~3.78 L); prices are per gallon on the big sign.
Road rules that trip up newcomers
- Speed limits are in mph: 65–75 on interstates, 25–35 in towns, 15–20 in school zones. Enforcement is strict and fines are per-mph-over in many states.
- Right turn on red is legal after a full stop everywhere except New York City (all five boroughs ban it — watch for it the moment you drive in).
- 4-way stops: first to stop goes first; ties yield to the right.
- School buses: stop in both directions when red lights flash (divided highways excepted). Fines are heavy and some buses have cameras.
- Move over: slow down and change lanes for stopped emergency vehicles — it is the law in every state.
Frequently asked questions
Can I drive in the US on my foreign licence?
As a visitor, yes — a valid home licence works; carry an IDP if it is not in English. Once you become a resident, each state sets its own deadline (commonly 30–90 days) to get a local licence.
Should I buy the rental company's insurance?
Only if your credit card and personal policy both leave you uncovered. Paying $25/day for a week ($175) to insure a $40/day car is rarely the best deal — check your card first.
Do I need exact change for tolls?
Increasingly no — most major toll roads are cashless. But never assume: check the route in advance, because a few still take cash only at unmanned booths.
Sources
- Avis age requirements — https://www.avis.com/en/help/usa-faqs/age-requirements
- Alamo age requirements — https://www.alamo.com/en/customer-support/car-rental-faqs/age-to-rent-a-car.html
- Hertz young renters — https://www.hertz.com/us/en/products-and-services/value-added-services/united-states/young-renters
- E-ZPass — https://www.e-zpassiag.com