Car Hire for Drivers Under 25

Hiring a car when you’re under 25 in Australia can be complicated. Let’s look at the minimum age to hire a car, typical under‑25 car hire fees and how to save.

Good to know:

Most hire companies require drivers to be 21 or older (some allow 18–20, but with stricter limits).
A young driver surcharge usually applies to drivers under 25.
Drivers under 25 are often restricted to economy, compact or intermediate vehicles.
Vehicle type, pick-up location and state policies can affect availability and price.
Always compare total costs, not just the base daily rate, and read the terms before booking.

What is the minimum age to hire a car in the Australia?

In Australia, the minimum age to hire a car is typically 21 years old, though some companies allow car hire under 21 with additional fees and tighter vehicle restrictions.

Most hire firms classify drivers under 25 as “young drivers” and limit them to standard vehicle categories such as economy or compact cars. Premium SUVs, 4WDs, luxury models and performance vehicles are often restricted until you turn 25.

You’ll usually also need to have held your full, unrestricted licence for at least 12 months. P-plate or provisional licence holders may face additional conditions or may not be eligible at all, depending on the provider.

In short: Yes, it’s possible to get car hire under 25 in Australia — but expect fewer vehicle choices and extra costs.

Learn more about the fees, charges and payment options for hiring cars in our guide.

How much is the under‑25 car hire surcharge?

The “young driver surcharge” is a daily fee added to your hire cost. In Australia, expect typical surcharges from $20-35 per day (again, depending on company, car group and location) for young driver car rental. Expect the surcharge to increase for larger or luxury vehicles.

For premium or airport locations, surcharges may be higher or capped differently. And because the surcharge can dramatically impact cost, it’s crucial to compare total prices, not just the base hire rate.

Can you hire a car under 25 without paying extra?

It’s uncommon, but sometimes possible. Here are a few scenarios where fees may be reduced:

  • Membership discounts: NRMA, RACV, RACQ or similar state motoring memberships may offer discounted rates.

  • Student deals: Some providers run student promotions, though the surcharge may still apply.

  • Promotional codes: Seasonal sales can reduce overall costs, offsetting the young driver fee.

  • Older main driver: If someone 25+ is listed as the main driver (where permitted), you may reduce some charges — but additional driver fees may apply.

Waivers are rare, but it’s always worth checking directly with the provider.

Person handing over car keys to another person, with a vehicle showing in the background

Why do companies charge under‑25 fees?

It comes down to insurance and risk. Insurance claims statistics show that younger drivers have a higher likelihood of accidents, so hire companies add surcharges to young drivers to offset that risk.

Younger drivers are also often limited to smaller, lower-risk categories (economy, city cars). Premium, sports or luxury vehicles are typically restricted until you’re 25 or older.

How to reduce or avoid the surcharge

Even if you don’t qualify for a waiver, you can use strategies to lower the cost:

  • Use non-airport pick-up locations: Airport locations often include premium location fees on top of the young driver surcharge.

  • Hire smaller cars: Economy and compact vehicles usually have the lowest fees and fewer restrictions.

  • Book with free cancellation: Lock in a rate, then check again closer to departure in case prices drop.

  • Set alerts: Skyscanner will notify you if rates drop.

  • Check credit cards/insurance cover: Some credit cards or policies may cover excess or reduce costs.

What to check before you hire

Before you confirm a car hire booking under 25, scan these policy details:

  • Insurance coverage: Are you forced to accept more coverage or a higher excess?

  • Licence tenure: Did you hold your licence long enough?

  • Fuel and distance policy: Some surcharges relate to heavy use or going above kilometre caps.

  • Vehicle restrictions: Double-check that premium or large models are allowed for young drivers.

  • Extra driver & cancellation rules: See how fees or conditions apply if someone else drives or you cancel.

Reading these terms carefully before you book can prevent nasty surprises at the desk.

FAQs: Car hire for drivers under 25 in Australia

In Australia, the minimum age to hire a car is usually 21, though some car rental companies under 21 may allow 18–20-year-olds in limited circumstances. Most major providers classify drivers under 25 as young drivers and apply extra conditions.

Yes. Is it more complex? Definitely. The trick is knowing where the extra fees hide—and how to reduce them.

Younger drivers now have more options, especially with compact cars and regional firms. Planning ahead, comparing total costs (not just base rates), and using tools like Skyscanner to see all your options side by side can make a big difference. Choose wisely, and you’ll trade stress for smart savings.

It depends on the hire company. Some providers allow P2 (green P) drivers over 21 to hire a car, while others require a full, unrestricted licence. P1 (red P) drivers are often excluded altogether. Even if permitted, provisional drivers may face higher excess amounts or stricter vehicle restrictions. Always check the licence requirements in the terms and conditions before booking.

Often, yes. Airport locations typically charge a premium location fee on top of the young driver surcharge. That means drivers under 25 may end up paying both fees simultaneously. If your schedule allows, comparing prices at nearby off-airport branches can sometimes result in noticeable savings.

To keep costs down, stick to economy or compact vehicles, book early with free cancellation, and compare the total price — not just the base rate. Off-airport pick-ups can be cheaper, and some state motoring memberships (like NRMA or RACV) may offer discounts. The biggest savings usually come from avoiding unnecessary add-ons at the counter and understanding your insurance excess before you arrive.

When renting a vehicle under 25, expect higher daily fees, larger security bonds and limited access to premium or high-performance cars. Insurance excess amounts can also be higher for younger drivers.

No, it’s not illegal — but availability is limited. Not all providers offer 21 and under car rental, and those that do may impose stricter requirements, including higher fees and proof of a full licence.

To secure a car rental under 21, look for providers that specifically accept younger drivers, book well in advance, hold a full (not provisional) licence, and budget for a young driver surcharge. Comparing policies is key, as rules vary by company and location.

Ready to travel? Skyscanner can help you find the cheapest car hire options for your journey.

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