For most visitors and newcomers, hiring a car in the United States is a relatively simple process — though the specific rules can differ considerably depending on the state you are in and the rental company you choose. The minimum age to rent is typically 21, foreign driving licences are generally accepted for short stays, and obtaining an International Driving Permit (IDP) before you depart is strongly advisable. Leading operators including Enterprise, Hertz, Avis, Budget, National, and Alamo all have extensive networks throughout the country.
| Item | Details |
|---|---|
| Minimum rental age (as of 2025) | 21 in most states; 18 in New York and Michigan (state law) |
| Young driver surcharge (as of 2025) | Approx. $20–$28 per day for drivers under 25; varies by company and location |
| Licence required | Valid foreign licence; IDP strongly recommended and may be required by some rental companies or states |
| IDP validity | 1 year from date of issue; must be obtained in your home country before travel |
| Insurance standard inclusion | Minimum liability is usually included; CDW/LDW is optional but highly advisable |
| Driving side | Right-hand side of the road |
What are the rules and requirements for renting a car in the United States?
There is no single federal law governing car rentals across the United States; regulations are determined at the state level and supplemented by each rental company’s own policies. Even so, a number of core requirements are consistent across most providers. Knowing what to bring and what to expect before you reach the rental counter can make the whole process considerably smoother.
Minimum age: The vast majority of major rental operators in the US will rent to customers who are at least 21 years old, as long as they hold a valid driving licence and credit card. New York and Michigan are notable exceptions, with state legislation requiring rental companies to serve drivers who are 18 or older and hold a valid licence. That said, younger drivers may be restricted in their choice of vehicle, and an Age Differential Charge may apply, with the amount varying by location and vehicle category.
Young driver surcharges: Drivers under the age of 25 should anticipate a young renter surcharge of roughly $20 to $28 per day — which in some cases rivals or even exceeds the base daily rental rate. Online booking tools typically do not display this fee upfront; it is applied once you enter your personal details. Always factor this into your cost comparisons rather than relying on headline prices alone.
Driving licence: The US accepts a range of foreign licences, including those issued by US states, territories, or possessions; licences from Canadian provinces; licences from countries that were party to the 1949 Geneva Convention on Road Traffic or the 1943 Convention on the Regulation of Inter-American Automobile Traffic; and licences from countries holding a reciprocal agreement with the US.
Passport and additional ID: If you are presenting a foreign driving licence, most rental companies will also ask to see a valid passport at the point of collection. The name on both documents must match exactly. Carrying both at all times will help prevent unnecessary delays at the counter.
Payment method: You will need to present both a driving licence and a credit or debit card when collecting your vehicle. Credit cards are the preferred form of payment for most operators; debit cards may be accepted but often come with additional conditions, such as a credit check, so it is worth confirming the policy with your chosen company in advance.
State-specific rules: Certain rental agreements include restrictions on where the vehicle may be taken — some locations allow unrestricted interstate travel, while others prohibit crossing state lines entirely. Use of vehicles on unmaintained gravel and dirt roads may also be prohibited under the rental contract. Always review the specific terms for your collection location carefully. The official USAGov portal is a helpful starting point for understanding driving regulations at the state level.
Which major car rental companies operate in the United States, and where can I find them?
The US is home to one of the world’s most developed car rental markets, with large multinational chains and smaller regional operators maintaining premises at airports, city centres, railway stations, and hotel forecourts from coast to coast. The following are the key players you are most likely to encounter.
- Enterprise Rent-A-Car — Among the largest rental operators globally, with thousands of US locations spanning both airport terminals and suburban neighbourhood branches. enterprise.com
- Hertz — A well-known international brand with particularly strong coverage at major US international airports. hertz.com
- Avis — Widely represented at airports and city locations across all 50 states. avis.com
- Budget — A value-oriented brand affiliated with Avis, operating from hundreds of US locations. budget.com
- National Car Rental — A favourite among frequent travellers, with broad airport coverage nationwide. nationalcar.com
- Alamo Rent A Car — Known for competitive pricing and strong airport representation; particularly well regarded among international visitors. alamo.com
- Dollar Rent A Car — An affordable option with a presence at many of the country’s busiest airports. dollar.com
- Thrifty Car Rental — Another budget-conscious choice with solid coverage at major airport locations. thrifty.com
Outside the global operators, established local and regional companies such as Fox Rent A Car (foxrentacar.com) can offer attractive rates at key US airports. Peer-to-peer platforms like Turo (turo.com) have grown considerably in recent years, enabling renters to hire privately owned vehicles — though insurance arrangements on these platforms differ markedly from conventional rental companies, so it is essential to read the terms thoroughly before booking.
Aggregator and comparison platforms including Kayak, Rentalcars.com, and Expedia allow you to search across multiple providers at once and provide a useful basis for comparing prices and inclusions.
How does car rental pricing work in the United States, and what should I watch out for?
Car rental pricing in the US has a reputation for being misleading. The advertised daily rate is rarely the figure you will ultimately pay, as numerous additional charges are layered on at the booking stage or when you collect the vehicle in person. Understanding how this structure works before you commit to a booking will help you avoid unpleasant surprises.
Base rate vs. true cost: The base daily rate covers the hire of the vehicle itself. On top of this, taxes and airport concession fees are added automatically — these can be substantial, particularly at major international airports. For younger drivers, an underage surcharge of around $27 per day is typically applied; crucially, this is not reflected in online quotes, as the booking platform does not ask for your age at the initial search stage. Always account for this separately when comparing prices.
Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW): A CDW or LDW removes your financial liability in the event that the rental vehicle is damaged or stolen. While not technically an insurance product, it functions in a similar way. Depending on the company and location, this can cost between $10 and $25 per day. Unlike in many European markets where equivalent protection is often bundled into the standard rental package, in the US it is almost always offered as an optional extra.
Supplementary Liability Insurance (SLI): SLI broadens your third-party liability protection, covering damage you may cause to other vehicles, property, or individuals. US law requires some level of liability coverage, but state-mandated minimums are often quite modest. Purchasing additional SLI is particularly worth considering for longer journeys or if you are not yet accustomed to driving in the US.
Fuel policies: The predominant policy at US rental companies is “full-to-full”: you pick up the vehicle with a full tank and are expected to return it the same way. A prepaid fuel option is sometimes on offer but represents good value only if you are confident you will be returning the car nearly empty. Check the fuel level on collection and photograph the gauge before setting off.
Toll charges: Electronic toll collection is widespread across US highways, bridges, and tunnels. Rental operators typically offer a toll transponder add-on — products such as E-ZPass or SunPass depending on the region — which is billed through your rental account. Without a pass, you may still be able to travel on toll roads, but the rental company will charge you the toll amount plus an administrative processing fee. In many areas, toll plazas no longer accept cash at all, making a transponder effectively essential.
One-way fees: Picking up a vehicle in one city and returning it in another frequently incurs a sizeable one-way drop-off charge. The amount varies considerably by operator and route. Comparison platforms sometimes highlight one-way deals that help to reduce this cost.
Additional driver fees: Any person other than the named renter who wishes to drive the vehicle must be registered as an additional driver and will typically incur a daily fee. Some operators waive this charge for spouses or domestic partners — verify the policy with your chosen company before booking.
Consumer protection: If a dispute arises with a rental company, the US Federal Trade Commission (FTC) publishes guidance on consumer rights and provides a complaints mechanism. The US Department of Transportation also handles complaints relating to car rentals at airport facilities.
Do I need an International Driving Permit (IDP) to rent a car in the United States?
This is among the questions most commonly raised by international visitors and newly arrived residents. The answer depends on several factors: the country that issued your licence, the state in which you will be driving, the length of your intended stay, and the requirements of the specific rental company you are using.
Legal position (as of 2025): Certain US states may require an IDP to drive legally on their public roads, while many others do not. States such as California, Massachusetts, and Arizona generally accept a valid foreign driving licence without an IDP. However, the rules differ across all 50 states, so checking with the relevant State Department of Motor Vehicles (DMV) before your trip is advisable.
Rental company requirements: Independent of state law, individual rental companies may insist on both your home country licence and an IDP before releasing a vehicle. This is particularly likely if your licence is not printed in Roman script or is not accompanied by an official translation. Always review your rental company’s specific requirements well ahead of time.
How an IDP works: An IDP provides a standardised translation of the information on your driving licence into multiple languages, making it recognisable to authorities and rental staff worldwide. It has no legal standing on its own — it must always be presented alongside your original home country licence.
Obtaining your IDP before travel: You must arrange your IDP prior to departure, as the US does not issue them to overseas visitors. The procedure varies by country; contact the licensing authority or transport department that issued your original licence to find out how to apply.
IDP validity: An IDP cannot be backdated, extended, or renewed — it is valid for exactly one year from the date it is issued. If your stay in the US will extend beyond this period, you should begin applying for a state-issued US driver’s licence before your IDP lapses. To do so, locate your state’s Department of Motor Vehicles and enquire about the application procedure for non-citizens.
The official USAGov page on driving in the US as a non-citizen is a reliable and authoritative source of information. Always verify current requirements directly with your rental company and the relevant State DMV before travelling, as rules are subject to change.
What types of roads and driving conditions should I be prepared for in the United States?
The US road network is extraordinarily varied, encompassing multi-lane interstate freeways, busy urban expressways, scenic coastal highways, and remote unpaved tracks through national parks and wilderness areas. Familiarising yourself with this diversity before you get behind the wheel is an important part of planning any road trip.
Driving on the right: Traffic in the US travels on the right-hand side of the road. If you are used to driving on the left — as is the case in the UK, Australia, India, Japan, and a number of other countries — give yourself additional time to adjust, especially when navigating roundabouts and making turns at intersections.
Speed limits and traffic laws: Speed regulations are set at the state level and posted in miles per hour (mph). Interstate highways typically carry limits of 65–75 mph, with some western states permitting up to 80 mph on certain stretches. Speed limits in school zones and residential areas are considerably lower and are often monitored by automated enforcement cameras. Seat belts are compulsory for all occupants, and using a handheld mobile phone while driving is banned in the majority of states.
Right turn on red: Unless a sign explicitly prohibits it, drivers in most US states may turn right at a red traffic signal after making a complete stop and checking that the road is clear. This rule catches many international visitors off guard, as it is not a standard practice in a number of other countries.
Interstate highways: The interstate highway system — comprising numbered routes prefixed “I-“, such as I-95 and I-10 — links major cities across the country. These roads are generally well maintained, clearly signposted, and equipped with regular service areas offering fuel, food, and accommodation. Around large metropolitan areas, congestion during morning and evening rush hours can be significant.
Toll roads: Tolled roads are a feature of many parts of the country, especially in the northeast (New York, New Jersey, Pennsylvania, and Massachusetts), as well as Florida, Texas, and Illinois. Payment systems vary widely: some tolls are collected at manned booths, while others are entirely cashless and rely on electronic detection. Certain rental agreements also restrict use on unpaved or unsurfaced roads; always read the contract terms carefully, as driving restrictions differ between collection locations.
Seasonal and weather conditions: The US spans a huge range of climates and is prone to extreme weather events. States in the northern tier — Minnesota, Michigan, New York, and others — regularly experience heavy snowfall between November and March, and winter tyres may be required or strongly recommended on certain routes. Extreme heat in southwestern desert regions can affect tyre pressure and vehicle cooling systems. Along the Gulf Coast, Florida, and the Carolinas, hurricane season can cause abrupt road closures with minimal warning. Consulting the relevant State Department of Transportation for live road condition updates before setting out is good practice.
Rural and off-highway driving: Automatic transmission is the norm for rental vehicles across the US. Manual or “stick shift” cars are available but must be specifically requested, and the selection is limited at most locations. In national parks and remote rural areas, unpaved roads are common; check your rental contract carefully, as operating the vehicle on such surfaces frequently invalidates CDW cover.
What insurance do I need when renting a car in the United States?
Insurance for rental vehicles in the US can feel complicated, especially for those accustomed to systems in which coverage is attached to the car rather than the individual driver. Taking the time to understand each product before you arrive at the counter will help you make informed decisions and avoid paying for coverage you already have.
What is typically included as standard: Liability insurance is a legal requirement for driving in most US states. Rental companies generally include a basic level of this coverage as part of your contract. However, it applies only to losses suffered by other parties — damage to other vehicles, property, or individuals — and does not cover harm to the rental vehicle itself. This means your exposure for damage to the car you are driving remains significant unless you take additional steps.
CDW and LDW — protecting the rental car: LDW (Loss Damage Waiver) is generally a broader product than CDW (Collision Damage Waiver), though terminology varies between companies. LDW typically combines protection against collision damage with theft cover, meaning it can apply to both physical damage to the rental car and its total loss through theft. The situation differs from many other countries — including EU member states, Australia, and New Zealand — where different default protections may apply, so it is important to understand what each product actually covers in the US context.
What CDW/LDW does NOT cover: Most CDW arrangements exclude damage to tyres, glass, the roof, and the underside of the vehicle, as well as any damage incurred while violating the terms of the rental agreement. The rental company’s loss of income during the period when the car is out of service for repairs — commonly referred to as “loss of use” — along with administrative charges, may also be billed to you separately and are often not covered.
Personal Accident Insurance (PAI): PAI covers medical costs for you and any passengers in the event of an accident. If your existing health insurance or travel insurance policy already provides adequate accident cover, purchasing PAI may not be necessary — check your policy wording before deciding.
Credit card cover: A significant number of major credit cards include rental car insurance benefits when the rental is charged to that card. This typically covers collision or theft (CDW) but does not extend to liability. Many cards offer an Auto Rental Collision Damage Waiver (CRCDW) at no additional cost, provided you use the card for payment and decline the rental company’s own LDW/CDW. Premium cards tend to offer primary coverage, meaning they pay out first; standard cards generally provide secondary coverage, which only activates after other insurance has been exhausted. Confirm the precise terms, exclusions, and claims procedure with your card issuer before you travel, as these vary widely between issuers and countries of issue.
Home country insurance: Some internationally issued motor insurance policies include a degree of coverage in the US, while others do not extend beyond the country of issue. Never assume your existing policy applies abroad — confirm the position explicitly with your insurer before your trip.
For impartial guidance, the US Federal Trade Commission’s consumer guidance on car rental is a worthwhile reference.
Are there any specific rules for expats or long-term residents renting cars in the United States?
The rights and obligations that apply to foreign nationals renting cars in the US differ depending on whether you are visiting briefly or settling for the longer term. In particular, the point at which you should transition from a foreign licence to a US state-issued licence is an important consideration for anyone relocating.
Short-term visitors: Two criteria determine whether a foreign licence holder may use their licence in the US: the licence must either be written in English, or be accompanied by an official translation; and the holder should not intend to drive in the US for more than three months. Where both conditions are met, a valid foreign licence is generally sufficient for rental purposes, though carrying an IDP is strongly recommended.
Stays longer than three months: If you are planning a more extended relocation, obtaining an IDP is advisable, as it functions as an official translation of your licence and is valid for stays beyond three months. Bear in mind that IDPs are only valid for 12 months, so if you intend to remain in the US beyond this window, you should begin the process of applying for a state-issued US driver’s licence before the IDP expires. Contact your state’s Department of Motor Vehicles to find out what the process involves for non-citizens.
Obtaining a US driver’s licence as a resident: Foreign nationals who are living permanently in the US may be eligible to apply for a driver’s licence in the state where they reside. The residency requirements for this vary by state. Reach out to your state DMV to understand the documentation required and the steps involved. Most states require candidates to pass both a written knowledge test and a behind-the-wheel practical assessment, broadly comparable to the process in other countries.
Renting while waiting for a US licence: During the period between arriving in the US and completing the application process for a state licence, your IDP will enable you to continue driving legally. Applying for a US licence promptly after relocation is therefore advisable to avoid a gap in entitlement.
Visa holders: Most standard non-immigrant visa categories — including B-1/B-2 visitor visas, F-1 student visas, and H-1B work visas — do not in themselves affect your eligibility to rent a car, provided you hold a valid licence and satisfy the rental company’s requirements. However, the length of your authorised period of stay will determine when you should begin transitioning to a US licence. Always consult your relevant State DMV for the latest guidance, as requirements are periodically updated. The USAGov page on non-citizen driving is a dependable official resource.
How do I rent a car in the United States step by step?
- Obtain an IDP before you travel. Apply for an International Driving Permit through the authority that issued your home country licence. This must be completed before you leave, as the US does not issue IDPs to foreign visitors once they have arrived.
- Compare rental companies and prices. Use a comparison platform such as Rentalcars.com, Kayak, or Expedia to review the major operators side by side. Look carefully at what each quoted price does and does not include, particularly with respect to insurance products.
- Book in advance. Reserving your vehicle ahead of time — especially around public holidays, peak travel seasons, or major events — generally secures better rates and a wider choice of vehicles. Confirm the collection address and opening hours before you depart.
- Gather your documents. Bring your original home country driving licence, your IDP, your passport, and the credit card used when making the reservation. Some operators at airport locations may also ask to see a copy of your travel itinerary.
- Review the rental agreement at the counter. Read the contract carefully before signing. Clarify what insurance is included in the rate, record the current fuel level and any pre-existing damage, and ask about toll arrangements relevant to your collection location.
- Photograph the vehicle before driving away. Capture time-stamped images of every panel, the windscreen, wheels, and the interior. This evidence is invaluable if damage is disputed when you return the car.
- Understand the toll system for your route. Find out whether the roads you plan to use operate electronic tolling. Either add the rental company’s toll pass to your booking or arrange a temporary transponder — many cashless toll systems will otherwise add an administrative surcharge on top of the toll itself.
- Return the car on time and with a full tank. Deliver the vehicle to the agreed location by the agreed time with the fuel level matching collection. Photograph the fuel gauge and odometer before handing back the keys as a record.
Frequently asked questions about renting a car in the United States
Can I rent a car in the US with a driving licence from any country?
Licences issued by countries that were party to the 1949 Geneva Convention on Road Traffic or the 1943 Convention on the Regulation of Inter-American Automobile Traffic are generally accepted, as are those from countries holding a reciprocal agreement with the US. In practice, most major rental operators accept licences from a broad range of countries, provided you also present your passport and, ideally, an IDP. If your licence is not printed in Roman script, an official translation or IDP is strongly advisable. Always verify acceptance with the rental company before completing your booking.
Is there a maximum age limit for renting a car in the US?
The US does not impose a maximum driving age; however, it is advisable to contact your rental location or review the company’s eligibility criteria to confirm you qualify. Some operators apply their own upper age restrictions, so it is worth checking this directly with your preferred provider before booking.
What happens if I have an accident in a rental car in the US?
Pull over to a safe position, call emergency services on 911 if anyone is injured, and exchange insurance and contact details with any other parties involved. Notify the rental company as promptly as possible using the contact number in your rental agreement. When submitting an insurance claim, you will generally need to provide the rental agreement, a damage report or repair estimate, a police report where applicable, and any written communications from the rental company. If you took out CDW/LDW, the rental company will typically coordinate repairs on your behalf; without this cover, you may be personally liable for the full cost of any damage.
Can I drive a US rental car across the border into Canada or Mexico?
Some rental agreements permit unrestricted interstate travel, while others prohibit crossing state lines. In states that border Canada or Mexico, driving a rental vehicle across the international border may require specific advance written authorisation from the rental company. Always raise this question explicitly when booking. Most standard CDW and LDW policies do not extend coverage beyond US territory unless this has been expressly agreed with the rental operator.
What is the fuel policy for most US rental cars?
The prevailing arrangement at most US rental companies is a “full-to-full” policy: you collect the vehicle with a full tank and are required to return it in the same state. Returning with less fuel will result in charges for the shortfall — typically billed at a premium over the standard pump price, plus a refuelling service fee. Prepaid fuel options are sometimes offered but rarely represent good value unless you are confident the tank will be nearly empty on return. Always check the fuel policy in your agreement and take a photograph of the gauge at the start of your rental.
What if I am stopped by police while driving a rental car in the US?
When signalled to pull over by a police officer, do so safely and promptly. Stay in the vehicle with your hands clearly visible unless told otherwise. You will be asked to produce your driving licence, the vehicle registration document (contained within your rental agreement), and proof of insurance. Even in states where an IDP is not a statutory requirement, carrying one is recommended — it presents your licence details in English and can facilitate smoother communication if you are stopped or involved in an accident.
Does my home country credit card insurance cover rental cars in the US?
Many premium credit cards include rental car protection benefits when the rental charge is placed on the card, generally covering collision or theft but not third-party liability. The coverage limits, exclusions, and claims procedures vary enormously between card issuers and between countries. Before your trip, contact your card provider directly to confirm whether US rental vehicles are covered, whether the protection is primary or secondary, and what documentation is required to file a claim. Do not rely on this benefit without written confirmation of the terms.
How long can I drive in the US on my foreign driving licence before I need a US licence?
Two criteria apply: your licence must either be in English or be accompanied by an official translation, and you should not be driving in the US for more than three months on a foreign licence. For those settling permanently in the US, it may be possible to apply for a driver’s licence in the state of residence. As residency requirements differ from state to state, contacting your local Department of Motor Vehicles to confirm the documentation needed and the steps involved is the best course of action. Requirements are subject to periodic revision, so always check the current rules with your specific state’s DMV.