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Car rental security deposit: what is it and why is it needed?

Car rental has become a popular service that allows you to quickly and on favorable terms to get a vehicle for use. A car is an opportunity to travel, to quickly solve business or everyday problems. But companies that provide such a service present some conditions to the client, including a pledge. It is a certain guarantee of safety for the property of the company, and also stimulates the tenant to handle the car responsibly and carefully, to comply with traffic rules.

What is a car rental deposit?

Before booking a car, you must pay the amount of the deposit set by the rental company. It may depend on the make of the car, the rental period, and other circumstances. The driver has a question, what is a deposit and what is it for. The deposit is the financial responsibility of the renter, driver, required for the rental period.

If the car gets into an accident, the insurance company will reimburse the owner for a certain amount of the loss. But, as a rule, insurance does not cover all the costs of property restoration. Therefore, we need a deposit that will fill the missing amount.

Insurers, to whom lessors turn for services, pay attention to the presence of a deposit in the rentals terms. And they do not agree to insure cars without this condition.

What tasks does the pledge solve?

In addition to the fact that the deposit is needed for car insurance, it has other purposes.

  • The security deposit can be paid for the dry cleaning of the salon if the client handed over the car in an improper form.
  • Also, the missing amount of fuel is replenished after an operation.
  • Repair is carried out if the car is damaged through the fault of the tenant.

The driver who left the funds to the lessor will not need to look for them to repair or replace tires and disks. All expenses will be deducted from the deposit.

If no unforeseen accidents have occurred with the car, the renter gets his money back. This condition increases the attention to the condition of the vehicle from the driver's side.

What is included in the deposit amount?

Standard insurance is sometimes not enough to completely repair a car in the event of an accident. The missing amount will be withdrawn from the security deposit. In addition to body repair or replacement of components, money can be spent on an additional payment in the event of a lease extension, and compensation for violation of the contract.

What does the deposit include?

  • VAT and other taxes.
  • Insurance premium.
  • Fuel costs.
  • Franchise costs.

Is there a cheap rental without collateral

The driver may doubt the safety of his money and look for options for renting a car without a deposit. But the rental company will use other ways to protect their property. Rent may be raised due to additional fees. It is also possible to increase the amount of insurance to cover the cost of repairs in the event of damage to the car.

We must not forget about such a concept as “franchise”. It provides for the payment of certain funds by the client upon the occurrence of an insured event. The amount must be indicated in the rental agreement.

Is it possible to reduce the amount of the deposit

The amount of the deposit does not always suit the driver, in which case the company may offer him additional insurance. Its amount is calculated taking into account the number of rental days.

Attention. Additional insurance is not applied when renting a premium car.

This service is not for all drivers, at least 5 years of driving experience is required. The age limit is also set - from 25 years.

This insurance will reduce the deposit, but it is not applied to indemnify for damages in case of damage to tires, glass parts.

Is it worth renting a car without a deposit

The driver can choose between a deposit or additional insurance. It is possible to avoid blocking the deposit if the tenant offers “super insurance”. But such a condition can be beneficial only to those who do not currently have the required amount for a deposit on the card.

It should be noted that the deposit will be refunded when the contract is closed (if the car is not damaged while driving), and the sum insured is not refundable.

Attention. The offer of car rental without a deposit and additional insurance cannot but be alarming.

A company that values its property and works professionally in the service market must have guarantees of safe car operation or compensation for its repair by the client.

In what form can you leave a deposit and how it is blocked

For the convenience of clients, it is possible to leave a deposit both in cash and by bank transfer.

  • In the first case, the client leaves cash and receives a corresponding receipt. He must keep this document for the entire lease term. To receive his money, he will need to present a document as proof.
  • For non-cash pledge, the pledge amount is blocked on the bank card. The money is not withdrawn from the account, it will simply be temporarily blocked and unavailable for use. The lock usually expires in a month. Then the amount will be available again.

Is there a delay in the return of the deposit?

It is not always renters who rent a vehicle in order, sometimes it requires serious cleaning or even repair. Refunds may be delayed for the period of vehicle inspection, repair work at the service station.

Are there risks associated with a security deposit when renting a car?

A cash deposit is drawn up in the appropriate document, like a car rental. Therefore, a driver who deals with a reputable, responsible company does not risk his funds in any way. It is enough to use the car carefully, return it clean, without damage, with the required amount of fuel.

The security deposit is also secure. According to the terms, the client does not transfer funds to the lessor, only the required amount is blocked on his account for a limited period. When the lease is closed, the deposit will be available again.

Attention. To unlock successfully, you must meet the rental conditions.

Depositing a car is a condition that many lessors set for their clients. To be sure of the safety of your money, you should choose a reliable company and sign an agreement with it.