Why do rental companies have an age restriction to rent cars?
While that’s partially the reason.. the real reason is because basically an insurance company insuring a rental agency would charge substantially more if the company rents to a high volume of younger drivers (Rental agencies have ALOT of liability)… so they largely rent to those 21 or above for that reason because they are getting insured at a much more affordable cost. Sometimes you will see underage fees associated with renters under 25 but are at least 21 because of the same reason, the charge is just to try to re-coupe some of the costs associated with higher insurance premiums. Works about the same as your own personal insurance, the younger the driver the more the yearly premium – at the magical age of 25 your premium tends to drop as insurance companies typically see you as an experienced driver. Imagine the liability incurred on hundreds of thousands of drivers under 21 as compared to hundreds of thousands of drivers 25 or older. Which would u insure? Hope this helps.
