1st i'm hearing about this under 21...
+1 big news if it's true. Please report back.
@OP, there's no such thing as higher priced insurance for rental cars. It is a all a flat rate.
They do have an underage surcharge, but this isn't 'more expensive insurance'.
The big companies won't rent at all to people under 21, witht the exception of NY state and MI, where stats law requires them to rent to anyone over 18. They do impose a hefty surcharge, the least of which is $40/day at hertz (national is $80/day).
USAA bank has an agreement with hertz, so their clients can rent anywhere in the US if they are 18+, with no surcharges.
OT, but how do companies legally bar 18-21 from renting certain car classes in NY/MI?