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Although your security deposit is refunded to you after your return a rental car, it can still be inconvenient to have to pay a security deposit upfront before you can rent a car. This minimizes the risk of allowing customers to drive off in a vehicle that could end up lost, damaged, or stolen.

Car hire without deposit

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In the majority of cases, a deposit is required if you want to hire a car. This deposit is used to cover any insurance excess that you might need to pay if the car is damaged during the car hire period. In very few cases, the deposit might be reduced or waived if you take on the car hire excess insurance policy offered by the car hire company itself.

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How does a car rental deposit work?

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The car rental deposit is a determined sum of money asked by the rental company just to be safe while you’re with their car. If the car is returned very dirty or with scratches, for example, the rental company may use some of the money to repair the car.

It is simply a guarantee to the rental company in the not so odd chance that something goes wrong during your reservation. Accidents happen, we know. If nothing’s wrong when you return the car, the amount will be returned fully.

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How is the deposit calculated?

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It usually accounts for the type/category of the car you’re renting, the number of days in your reservation, your age and where you’re booking.

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How long does it take for the rental company to return my deposit?

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It usually takes between 10 and 20 business days for the rental company to return the deposit directly into your credit card balance.

Whatever the amount is, the rental company is only holding onto this money while you’re with the car. When you return it and the rental company evaluates that the car is perfectly fine, they will return the full amount.

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Is there a delay in the return of the deposit?

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sometimes it requires serious cleaning or even repair. Refunds may be delayed for the period of vehicle inspection, repair work at the service station.

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Is it possible to avoid paying a deposit?

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Unfortunately, no. We know it’s sometimes not ideal, but think about it this way: the rental company is trusting you with something very valuable, that’s why it’s mandatory. It only makes sense that they hold onto a deposit while you enjoy the ride!

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What is the mode of payment you can use to pay the deposit amount?

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The car rental deposit money is often done by credit cards or debit cards. The majority of people use their credit card to settle the deposit amount. But people also can use their debit cards in rental deposits. Some companies might accept cash deposits and cheques too.

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Are there any car rentals that don’t require deposit?

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Most car rentals require a rental car deposit. In some cases, it is possible to book a rental car without a deposit. This depends on the specific offer, the car rental company, and the country. Such offers are very rare.

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Reducing your Security Deposit

Usually, car rental firms have strict policies in place on car rental deposits which are non-negotiable. At the same time, depending on your past relationship with the car rental firm, your overall profile, as well as the duration for which you are renting, you can expect some leeway on the deposit amount. Do not hesitate to negotiate on this front.

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.

Remember

A rental deposit is taken as a safe guard by the rental supplier in case of any damage. It is also used by the rental company for any possible refueling or cleaning charges. As you are renting a vehicle worth thousands of pounds, companies use the deposit as financial protection and assurance they won’t be out of pocket if something goes wrong.

Conclusion

Car rental deposits concern customers but are a necessary component for car rental firms to secure themselves.

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