Renting a car in the USA and Canada

Who may drive

Hardly any US state sets a minimum rental age – the companies do. And anyone under 25 pays a surcharge per day almost everywhere.

• Usually 20 or 21: Hertz states 20 years for most US locations, 19 for Alabama and Nebraska.
• New York is the exception with an actual statute: a company may not refuse anyone aged 18 or over on grounds of age alone, as long as insurance for that age group is available – and may pass on only the actual extra insurance cost (General Business Law § 391-g). It is expensive nonetheless: Avis quotes $84 per day for ages 18–20 in New York and $35 for 21–24.
• In Michigan the large companies also rent from 18 (Avis: $41 per day for 18–20, $28 for 21–24). The underlying statute could not be retrieved – this rests on the rental terms alone.
• Additional drivers cost $13 per day at Avis and Budget in most states, $15 at Enterprise, Alamo and National. Spouses and domestic partners are free if they meet the age and licence requirements (Enterprise, Alamo, National, Budget; Avis also names colleagues on a business trip).
• In California this is law: no additional-driver fee may be charged for a spouse, child, ward, sibling, parent or grandparent, nor for an employer or coworker (Civil Code § 1939.19(d), version effective 1 Jan 2026). Age-based surcharges remain permitted.
• In New York the additional-driver fee is capped: at most $5 per driver per rental day, and from 30 June 2028 at most $3 (General Business Law § 396-z(10)(d)). A spouse there counts as an authorised driver by law.

Sources: NY Senate: GBS § 391-g (Mindestalter) · NY Senate: GBS § 396-z (Zusatzfahrer) · California Civil Code §§ 1939.01–1939.39 · Avis: Age Requirements · Avis: Additional Driver · Hertz: Age Restrictions · Enterprise: Additional Driver

Liability: the mandatory limits are low

The rate includes only the state’s statutory minimum liability. By European standards that is very low – a serious crash exceeds it easily, and the driver owes the rest.

• California (since 1 Jan 2025): $30,000 per injured person, $60,000 per accident, $15,000 property damage – previously $15,000 / $30,000 / $5,000.
• Texas: $30,000 per person, $60,000 per accident, $25,000 property damage (Transportation Code § 601.072, since 1 Jan 2011).
• New York: $25,000 per injured person ($50,000 for death), $50,000 for two or more people ($100,000 for death), $10,000 property damage.
• Florida is a no-fault state: $10,000 personal injury protection and $10,000 property damage liability are mandatory – bodily injury liability towards third parties is not part of the mandatory cover (Florida Statutes 627.736 and 324.022).
• In Canada the limits are higher: in Ontario every vehicle must carry at least CAD 200,000 third-party liability, and in British Columbia ICBC’s basic insurance likewise includes CAD 200,000.
• Hence the one place where saving rarely pays: supplemental liability (called “SLI”, “LIS” or “ALI” in the contract). It is the counterpart to European third-party cover – not the damage waiver for the rental vehicle.

Sources: California DMV: Insurance Requirements · California Dept. of Insurance: Änderungen 2025 · Texas Transportation Code § 601.072 · NYS DMV: Insurance Requirements · Florida Statutes 627.736 (PIP) · Florida Statutes 324.022 (PDL) · Ontario: Register and insure a vehicle · ICBC: Basic insurance

CDW, LDW and the deposit

What Europe calls “comprehensive cover” is something else in North America: a waiver by the rental company, not insurance.

• Avis states in its US rental terms: “LDW and PDW are not insurance” – the waiver does not affect third-party claims against you. Enterprise likewise describes its Damage Waiver as a contractual waiver, expressly not insurance.
• The waiver is optional: “Loss Damage Waiver (LDW) is not insurance and not mandatory” (Avis).
• Instead of an excess, the US terms work with exclusions: the waiver falls away for driving under the influence, racing, an unauthorised driver, driving off paved roads, towing, and failing to file an accident or theft report (Avis).
• A named residual amount is documented only for Canada: there a “non-waivable amount” can remain despite LDW – per Avis currently up to CAD 5,000, stated in the rental contract.
• Deposit: the company may block the estimated charges plus the deposit amount posted at the location on your credit card (Avis). Enterprise only confirms that a deposit is required and varies by location – no terms name fixed amounts.
• There is no reliable source for US excess levels or dollar deposit amounts – the figures circulating online appear in no rental terms. Ask at the counter and have them shown in the contract.

Sources: Avis: Rental Terms and Conditions · Avis: Loss Damage Waiver · Enterprise: Car Rental Insurance · Enterprise: Deposit · Budget: Rental Terms

One-way rentals

Pick up in Las Vegas, drop off in San Francisco: normal for a road trip – and it almost always costs extra.

• Returning elsewhere requires permission. Avis expressly reserves the right to refuse it or to apply different rates and extra charges – if you change plans en route, call before the agreed return time.
• The fee is called a “drop charge” or “inter-city fee” and is a one-off charge on top of the rate. It depends on pick-up location, return location and season; it is disclosed when booking and paid at pick-up (Alamo).
• Between two airport locations there is typically no drop charge (National). The rate itself can also be higher one-way than for the same period returned to the pick-up point (Alamo).
• Even returning within the same city to a different branch can trigger a drop charge, a mileage charge or a higher rate (Alamo).
• The terms name no fixed amounts. Figures from comparison sites are deliberately absent here – what counts is the amount shown at booking.

Sources: Avis: Rental Terms and Conditions · Alamo: One-Way Policy · National: Drop Charge

Fuelling and your licence

Two small things that surprise people on the ground: at some pumps you are not allowed to fuel the car yourself – and whether your home licence alone is enough is decided by the state or province, not by Washington.

• New Jersey: only an attendant may dispense gasoline; fuelling your own car is prohibited (N.J.S.A. 34:3A-6). Diesel, marine and aircraft fuelling are among the exceptions – so “you may never pump your own fuel in New Jersey” is too sweeping. Motorcyclists must dismount while fuelling.
• Oregon relaxed its rule in 2023, but not everywhere alike: in 20 rural counties you may fuel at any pump at any time, in the other 16 (including Multnomah with Portland, Lane, Deschutes, Jackson) at half the pumps at most; the other half stays attended. The price is the same, motorcyclists may always fuel their own machine, and where staff are present they must assist customers with disabilities.
• A self-service ban in other states could not be documented officially – only New Jersey and Oregon are confirmed.
• Licences in the USA: there is no nationwide rule, the states decide. New York explicitly says a valid foreign licence is enough and an international permit is not required (“but it is helpful”). The German Federal Foreign Office notes that some states do require the international permit, alongside the national one. In practice: carry both – it costs little and is only a translation.
• Licences in Canada: in Ontario your home licence is enough for up to three months, beyond that an international permit is required – and you must have it before you arrive, as it cannot be obtained in Ontario. British Columbia allows six months, Alberta up to one year (an international permit is strongly recommended for a non-English licence).

Sources: NJ Dept. of Labor: Gasoline Act · Oregon State Fire Marshal: Self-Serve Fueling · NYS DMV: Drivers from other countries · Ontario: Drive in Ontario as a visitor · ICBC: Tourists · Alberta: Non-Alberta licences · Auswärtiges Amt: USA · Auswärtiges Amt: Kanada

Tolls

The big toll roads are cashless. Drive through unaware and the bill arrives months later through your rental company, with its surcharge.

• Florida: the electronic toll points take no cash; without a transponder you are billed by licence plate (“TOLL-BY-PLATE”, $2.50 administrative fee per invoice). Note: “The TOLL-BY-PLATE payment option is not available for customers in rental cars” – the invoice goes to the registered owner, i.e. the rental company.
• California: the Golden Gate Bridge no longer takes cash either, and tolls are charged southbound into San Francisco only. Rental cars have three options: the rental company’s toll programme, your own FasTrak tag, or a Short-Term License Plate Account – usable up to 30 days before or 48 hours after the crossing.
• New York: the Thruway is entirely cashless; without E-ZPass the bill reaches the registered owner 30 to 45 days later. Unpaid bills add a $5 late fee, then $50 per violation notice.
• Pennsylvania: the Turnpike went cashless in 2020. E-ZPass customers pay up to 50 % less than Toll By Plate. For rentals the rule is explicit: the invoice goes to the registered owner – but you may add the rental vehicle to your own E-ZPass account with start and end times.
• Ontario, Highway 407: no booths, no cash. Without a transponder a camera charge applies per trip – CAD 5.30 for light vehicles (rate from 1 Jan 2026), plus an account fee. For rentals 407 ETR bills the rental company, whose invoice may arrive “a few months after travelling”, with its own fees added.
• In practice: ask about the rental company’s toll programme before pick-up – and whether you have to opt in or opt out. Most programmes charge a daily fee, including on days without tolls.

Sources: Florida’s Turnpike: TOLL-BY-PLATE · Florida’s Turnpike: Rental Vehicles · Bay Area FasTrak: Rental Vehicles · Golden Gate Bridge: Tolls & Payment · NYS Thruway: Tolls by Mail · PA Turnpike: Rental Vehicles · 407 ETR: Rental Car · 407 ETR: Rate Chart Light Vehicles

More for your trip

• USA trip checklist
• Route 66
• RV USA & Canada
• When to go