Have you ever wondered about safety deposits by car rental companies? Let’s uncover the secret behind leaving a deposit while you are hiring a car and how to pay for it.
Need for deposit:
Car rental agencies require a deposit when you rent their car. They have set their standard to ensure that they would not suffer any loss if there are any issues throughout your car rental. They are authorized to hold on some money for the safety of their car as there is a chance you might damage it.
Amount of car rental deposit:
Car hire deposit amount can be anything as it depends on the kind of car, the country you are renting in and the car rental agency. The deposit is generally just about the same amount as the surplus on your car’s Collision Damage Waiver and Theft security policies. The extra amount is what you would have to compensate for repairing or replacing the car if it got scratched or stolen. This blog will explain you in detail.
Methods of paying the deposit
The majority of companies will block the deposit on the main driver’s credit card. You would not be able to make use of anyone else’s card. ‘Blocking’ the deposit signifies that even as the money is not taken from the card thus it would not show on your bill, you might not be able to expend it until it is unblocked. Therefore, it counts for your spending limit.
Some rental agencies will also allow a debit card in the main driver’s name. If you give your deposit with a debit card, the money will in fact be transferred from your bank account, and you will be able to see it on a bank statement. Some rental companies allow cash or checks. They are likely to be local companies with a few cars each.
Getting back your deposit:
It generally takes 15 working days to have your deposit back once you give back the rental car. Big companies with improved systems are nearer to the five-day mark, mainly if you rent out at quieter times. It can take some extra time during summer vacations or at some festival days.
Reduce your deposit:
If you are intensely interested about a particular car however you believe. The deposit is also high; you may perhaps search for a car from a different rental company. As if the two cars are alike, the other company may involve a lot minor deposit. Companies generally offer to decrease the deposit and surplus if you acquire insurance from them. Understand the paperwork vigilantly and be alert about the price earlier than you commit to have extra cover.
Learn to avoid a deposit:
Some rental agencies will cut your deposit to zero if you buy extra cover at the counter. But, if you purchase insurance to decrease your surplus to zero, you may have to leave a deposit to cover up fuel and extra charges.