Most US car rental operators allow you to drive anywhere in the main part
of the USA, except perhaps in Manhattan Island (in New York City).
Most car rental companies include clauses in their rental agreements forbidding you from driving their vehicles on unpaved roads, although in road construction (road works) areas you cannot possibly avoid doing this.
Most car rental operators allow you to drive into Canada and back again, but you do need to check this since some do not allow it. I believe that Dollar may not allow it. We have taken a rental car from the USA into Canada and back into America on several occasions without any problems.
None of the car rental operators allow you to take their cars into Mexico.
Some may not allow you to drive into Yukon Territory, Northwest Territories,
Nunavut and/or Alaska. US and Canadian
citizens who wish to take their own cars into Mexico have to make special
arrangements with insurance brokers in the southwest of the USA; this is
the main reason why car rental companies won't let you take their cars
into Mexico. (Attention car rental companies! Please correct us if this
rule does not apply to YOUR company).
If you pick up a rental car from one location and return it to another then the company will normally impose a "drop-off" charge. This will depend on the distance between the two places, and can be a considerable sum. In some cases there is no drop-off charge made between two places in the same state, especially within Florida and between Los Angeles and San Francisco, but you would need to check this carefully.
Companies who rent RV's (recreational vehicles, motorhomes) often impose more restrictions regarding where their vehicles can be driven. For example, many prohibit taking their vehicles through Death Valley.
There's a lot more information on the Car Hire page.
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