• Aug 18, 2023
• / by admin

How Much Is A Deposit For A Rental Car?

Nowadays, everyone is aware of car rentals, and they have been famous for quite some time. It is not just providing us convenience, but if we look for the right rates, it is affordable as well. When we face an emergency, the best option is to rent a car when we can not borrow from someone else. Moreover, car rental services provide you with freedom, luxury, and comfort that you can't get with public transportation. 

When we look for a rental car, rental companies offer plenty of options and generally have different actual and security deposit costs. Many people are aware of the actual cost, but some aren't aware of the security cost. A security cost is a deposit that the rental company takes as a guaranteed fee before we pick up the car. The car rental takes this deposit because if any damage or loss happens to the car in the rental period, they can incur that cost from the security deposit.

But, the common question that comes to every renter's mind is how much is the deposit for a rental car? And it is, of course, a valid question because knowing the security deposit of a car rental company saves time and money. This blog has provided a simple guide in which you will get all your answers.  

Understanding The Car Rental Deposit 

When you rent a car from a car rental company, they require you to submit a security deposit as a guarantee, so if any damage or loss happens during the rental period, they can incur the security deposit cost. The security deposit amount depends on company to company and the type of car you rent. However, usually, the cost of the deposit is a few hundred dollars. 

From your credit card, the deposit is held as a security deposit and will not be charged unless there is any damage or loss during the rental period. The security deposit will get back to you after you return the car. But, it is essential to remember there should not be any damage or loss to the car when you return it. 

How Much Is A Deposit For A Rental Car?

The amount of the car rental deposit can be around $200/$250 to $3000/$3500 in some cases. However, the amount of rental cars depends on the location, type of car and the car rental company. 

The security deposit is similar to the actual amount, and you have to pay when any repair or replacement is required if the car gets stolen or damaged. 

How Do You Have To Pay The Deposit?

The car rental companies provide you with various methods through which you can pay the payment:

Debit Card 

Many car rental companies accept payment through debit cards, but you have to follow some restrictions:

Card Type: Many car rental companies have restrictions on the type of card they accept. 

Car Type: Some car rental companies only allow debit cards on specific cars, such as passenger vans and luxury cars.

Other Restrictions: Some rental companies to be more sure they check the renter's credit score while renting the car on a debit card. Also, they may ask you to submit multiple identification proofs, such as a utility bill and a passport.  

You must confirm with the car rental company whether they accept debit cards. 

Maybe a debit card is the best option for those who don't have a credit card. But ensure that if you're renting a car with a debit card, you have enough balance in your bank account.

Also Read: How Do I Choose a Good Car Rental in Bloomington, MN?

Credit Card 

Many car rental companies prefer to take payments from credit cards because it helps them easily check the renter's available credit. Moreover, it helps them hold the estimated rental cost and security deposit without any problem. Payments through credit cards benefit the renters in many ways, like they get reward points and travel insurance. 

Insurance: Many known cards, like the United Club Infinite Card, Chase sapphire reserve credit card and Capital One Venture X rewards credit card, will provide insurance between $75,000 and $150,000 per rental car. 

Reward Points: Credit cards such as the Chase Sapphire preferred® card, U.S. Bank altitude® reserve visa infinite® card, The platinum card® from American Express, and Capital one venture X rewards credit cards offer the renter reward points on each dollar that they spend on the rental car. 

Cash

At the beginning of the transaction or at the time you pick up a rental car, the car rental company generally does not accept a security deposit in cash. That is why you have to pay the payment online at that time. But, still, they will accept the cash payment when you return the car. Thus, you should contact them before you go to the car rental location and understand their cash payment policies. 

When You Will Get Back The Deposit?

Generally, the car rental takes 10 to 20 business days to return the deposit to your credit card balance. Whatever the estimated cost, the car rental company will keep the money until you don't return the car. When you return the car, the car rental company thoroughly checks it first, and if it is in perfect condition, they will return the full deposit. 

How Does The Car Rental Company Calculate Deposit? 

The car rental deposit calculation depends on where you are renting the car, and according to them, they will calculate the amount. 

Generally, the deposit is calculated based on the car type, rental days, location, age, and where you will return the car if it is a one-way rental only. 

For example: If you have booked a luxury car, and your age is 24, you will likely have to pay more, but if you have booked a small economy car and your age is 34, you will have to pay less. Understood? The car rental company is taking a bigger risk on you, with more possibility of loss. In this way, they calculate the deposit.

Can You Reduce The Deposit?

You can shift to another car rental company if you choose a car and think the deposit is too high. Moreover, if you get the same car from another rental company, the deposit may be less than that. 

Usually, companies at the counter offer you a reduction in deposit if you buy extra insurance or cover from them. However, before buying the extra cover, carefully read the paperwork and confirm the price. 

How To Avoid Paying A Deposit?

Some car rental companies will reduce the deposit and the actual cost to zero if you purchase the extra insurance or cover. But, if you buy cover or insurance to reduce your actual cost to zero, you might still have to pay a deposit to cover extra things like a child seat, fuel or GPS device