Why Drivers under the Age of 25 Struggle with Car Rentals

Why Drivers under the Age of 25 Struggle with Car Rentals – Have you ever tried renting a car while under the age of 25?  Chances are that the car rental company either declined you or charged you at a premium to make up for the additional risks.

At Pace we get asked this question often and decided to share some insights into the reasoning behind making it difficult for drivers under the age of 25 to rent a car.

Studies have showed that young drivers are at a much higher risk of being involved in a car accident than older drivers.  Car accidents are one of the biggest killers of young people worldwide.  This is the biggest reason why insurance companies and car rental companies either refuse young drivers or charge them at a higher rate.

The research data showed that:

  • An 18 year old is 3 times as likely to be involved in a car accident as a 48 year old.
  • One in five new drivers has a car accident within 6 months of passing their tests.
  • Young males have much higher accident rates than young female drivers.
  • Young drivers between the ages of 18 and 20 are 7 times more at risk of being involved in car accidents than all other drivers, but between the hours of 2AM and 5AM their risk is 17 times higher.

Research also shows that the reason young drivers are at a higher risk is a combination of inexperience and youth.  Their inexperience makes them less likely to positively identify any potential hazards.  Their youth makes them more likely to drink and drive, speed and take other driving risks that get them in trouble.

With the above statistics it is understandable that car rental and insurance companies are sceptical of taking the risks associated with young drivers.