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

When traveling outside of large cities, where public transportation may not be readily available, renting a car is sometimes the most cost-effective and practical option. Due to its many advantages, renting a car in the USA is becoming more and more popular among tourists. Above all, it gives people a sense of freedom and flexibility, enabling them to go whenever they choose and find hidden treasures. This option is convenient because it eliminates the need for costly cabs or public transportation timetables. Additionally, it gives passengers the ability to customize their trips, allowing for spontaneous stops and picturesque detours. Families or groups can also save money by using it instead of paying for multiple transit fares. All things considered, hiring a car enhances vacations by creating enduring memories and allowing for true immersion in the places seen.

According to our most recent research, 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 car rental 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.

USA Sees a Slight 6% Decline in 2025

Price Drops in Most Major Cities

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

• More competitive pricing strategies among major rental brands

But Not Everywhere: Dallas Prices Jumped

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.

Average Prices in 2025

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.

Avis NYC – 1 week rental price

Dollar NYC – 1 week rental price

How to Save on Rental Cars in 2025

Although renting a car has a price, there are a lot of other factors that could make the cost of the rental even higher for the week.

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.

Smart travelers can still find savings by:

• Booking early — prices often rise closer to travel dates

• Comparing rental companies — rates vary widely by provider

• Avoiding unnecessary extras — GPS devices, insurance markups, and other add-ons can inflate costs

• Using standalone rental car insurance — protect yourself without paying high daily insurance fees at the counter

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.