Car Rental Prices USA 2025: Signs of Relief After Years of Surges

The average price of renting a car in some of the most popular locations in the United States has gone down by 6% since 2024.

LONDON, UNITED KINGDOM, May 7, 2025 /EINPresswire.com/ -- The average price of renting a car in some of the most popular locations in the United States has gone down by 6% since 2024. In 2023, there was a 22% increase followed by an additional 5% increase in 2024. This was not the largest price increase the public has witnessed in recent years, asa the 2023-2024 increase followed a 50% price hike following the Covid-19 outbreak.

The study by CarInsuRent, a leading provider of stand-alone rental car insurance, looked at the cost of hiring a large car (Toyota Camry or similar large car) for a week, from August 1st – 7th 2025, in seven destinations in ten destinations (Charlotte, Chicago, Dallas, Denver, Las Vegas, Los Angeles, New-York, Orlando, Phoenix, and Seattle) with six rental companies, Avis, Budget, Dollar, Enterprise, Sixt and Thrifty, and compared these to the same week in 2024.

The study revealed that the average cost to hire a full-sized hatchback this August will be around US$ 670 for a week. For the same type of vehicle in August 2024, the average price for a week was US$ 709.

Charlotte saw the largest price decrease of 32% – where prices went down by $ 222 (from $ 761 to $ 539) – followed by NY which saw a 21% decrease in 2025. Other large markets, including Miami and Chicago, also saw modest reductions.

This broad-based cooling is due to: Better fleet availability, stabilized demand from leisure and business travelers and more competitive pricing strategies among major rental brands.

While many cities saw decreases, not all followed the trend. Dallas/Fort Worth International Airport (DFW) recorded a 12% increase in rental prices. This comes after a brief dip in 2024 and suggests local demand may be rebounding faster than supply. Travelers renting at Dallas airports should budget carefully — especially when comparing airport vs. downtown pickup locations.

It is pretty obvious that not all car rentals are born equal, and that the cost of living (and car rental) may differ from one place to another. Nevertheless, recent data on car rental prices in the USA has revealed exorbitant rates, with Avis at JFK Airport topping the list at a jaw-dropping $ 2,054 per 1-week rental. Customers should compare and shop around, as the same type of vehicle can be rented from Dollar or Thrifty for as low as $ 494.

According to the survey, “extras” bought at the rental desk can drive up expenses, and they have increased by 2% over the past 12 months. In 2025, drivers will typically pay US$ 255 (!!!) for excess waiver insurance, which includes super damage waiver and tire and windscreen excess, US$ 27 for an extra driver, and US$ 85 for a child’s car seat.

One of the biggest expenditures for tourists at the rental counter is typically the additional waiver insurance, which protects drivers from this additional liability. Excess liability is the sum due even if the renter is not at fault if the rental car is stolen or wiped out. According to CarInsuRent, the average extra liability for theft and damage was US$ 2,000. Many car rental companies offer various policies, including a super damage waiver (average cost: US$ 196) and tire and windscreen cover, with a combined average cost in this study of US$ 255 per week in the USA. This is five times more expensive than a policy from a specialist insurance provider, like CarInsuRent, which charges only US$ 54.90 for a week’s policy that covers damage, theft, tires, and windscreen cover. With CarInsuRent annual car hire excess insurance policies start at US$ 94.90.

Gil Farkash, the CEO and founder of CarInsuRent, expressed his concern about the ongoing increase in rental car insurance prices. "Our study found that several rental car companies offer very low prices and offer rental vehicles for as low as EUR 1.5 per day. Clients are unaware of this “trap” and if they don’t take out the insurance offered by these “low-cost” rental car companies, they might end up with an inflated bill for damage that they weren’t aware of when they picked up the rental vehicle". Gil goes on to say: “It is crucial to guarantee that customers have access to reasonable and competitive rates by improving transparency and consistency within the vehicle rental industry.”

It really pays to compare prices, as they can differ between rental agencies. Verifying the price of any extras you might need is also crucial to avoid any unforeseen large charges when you pick up the rental car. Buying rental car excess insurance from a specialist insurance provider like CarInsuRent may save a lot of money when compared to the excess waivers provided at the rental counter.

Gil Farkash
CarInsuRent
+44 20 7048 7590
email us here
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