How Old Do I Have To Be to Rent a Car in Rhode Island?

Can everyone agree that adulting is hard? Not only that, it can also be confusing, especially in young adulthood. For instance, you can enlist in the military, vote, and buy a gun at 18. However, you can’t drink until 21. Further, you can’t rent a car until age 25 — or can you? In this post, Christy’s Car & Truck Rental (Sunnyside Ave) dispels the minimum age myth to rent a car in Rhode Island (and beyond).

How the Minimum Age of 25 to Rent a Car Law Originated

There was never a law that required a minimum age of 25 to rent a vehicle. However, it was an industry standard for a while, and with good reason. As you probably know, younger, less experienced drivers run a greater risk of getting into accidents. For this reason, insurance companies charge higher rates to insure younger drivers. Anyone with a teen driver in the home understands what happens to their insurance premiums when they include them. 

Historically, insurance companies hesitated to include younger drivers in their policy coverage for rental car companies. Since premiums depend on the value of the insured asset, the cost increases for high-value vehicles. For this reason, the industry sometimes prohibited renting cars to those under the age of 25.

21 Is the New 25

Rental car companies don't want to exclude those under 25 as customers. Young adults travel for business and leisure, and they need rental cars. That being said, when businesses incur costs, they pass those on to the consumer. Insurance policies charge higher premiums for the corresponding risk. If a company rents to people younger than 25, it directly impacts their expenses. Therefore, rental car companies must charge premiums to customers younger than 25.

Practically speaking, most rental car companies rent to people age 21 and older. As previously stated, they add a fee to counterbalance the increased insurance premium. The approach allows younger adults to rent cars and rental companies to mitigate their risk. On the other hand, people under the age of 25 pay more. In fact, the fee could range anywhere from $25-$65 a day.