How to Avoid Deposit on Rental Car?
Almost every leading car rental operator asks for security deposits to financially secure the assets. However, it is possible to avoid or minimize it. For this, one can opt for the comprehensive rental car insurance coverage. This is the most preferred way to avoid deposit charges on a rental car.
Besides, some alternative methods are available to reduce or evade the rental car’s deposits. Knowing them and other aspects, such as the reason behind security deposits, average charges, and tips, can make the rental car experience smooth.
How to Avoid or Reduce Security Deposits?
All providers of car rental require security deposits. Nonetheless, there are certain ways to reduce or avoid the amount charged.
Credit Cards: To avoid extra charges, use credit cards. In this, a specific amount is held, not directly taken from the bank account.
Pre-Payment: To save on the security deposits, choose the ‘prepay’ option while reserving a rental car.
Insurance Coverage: Some auto insurance or rental car insurance policies provide coverage for this. By getting the same, the entire deposit amount can be skipped.
Choose a Company with “no to low” Deposits: There are some operators that provide low to zero deposit car rental services. Find them to avoid hefty deposits.
Why Do Rental Car Companies Ask for Security Deposits?
Every leading rental car service provider asks for security deposits. They do this to provide their vehicles with financial shields against potential and unexpected costs. These deposits usually cover:
Traffic fines
Missing fuel
Tolls
Late returns
Cleaning fees
Besides, the rental companies do not want to take any liability for these. Thus, deposits are required to guarantee the renter’s responsibility. This amount is usually released when the car is returned safely. From the company’s viewpoint, a security deposit is mandatory for:
Damage Protection: With this deposit, minor dents, scratches, and damages are managed, which are not typically fully covered by a rental car/auto insurance.
Additional Fees: To cover extra fees, such as parking tickets, tolls, cleaning fees (when the car is returned dirty), and fuel charges (when the car has less gas while returning), deposits are necessary.
Safety of the Vehicles: Although car rental insurance can provide proper coverage, most service providers charge this amount to have an assurance against theft or failure to get the car back.
Mitigating Risks: Generally, the security deposit is from USD 200 to USD 500 or more. This secures the car rental company against any financial loss when giving an expensive asset to renters.
Important: The security deposits are kept as a ‘pre-authorization’ fund. This means it is reserved but released within 5-10 working days after getting the car back in intact condition.
How to Pay the Security Deposits for a Rental Car?
Even though credit cards are the most preferred mode of payment accepted, some companies offer alternative ways to pay the security deposit. So, check the same with the chosen car company to avoid further issues.
Credit cards: As said before, it is the most preferred method; one can even get some discounts. It is also a safer option, as it does not give the service provider access to the renter’s bank account.
Debit cards: There are a few companies that allow renters to pay the security deposits through debit cards. However, the policies, additional charges, and more rules might be there.
Prepaid cards: These are not the same as credit cards. Instead, car rental companies consider these cards as cash. It is advised to contact the rental company beforehand if planning to use a prepaid card of MasterCard, Visa, or American Express.
Cash: When a renter does not have a debit or credit card, they can choose to pay via cash. Companies, such as Hertz, Thrifty, and Dollar, let the renters deposit the amount in cash. Remember, they have certain rules for this. So, go through the same beforehand.
How Much Do Security Deposits Cost?
There is no fixed amount of security deposits, as they heavily depend on the car rental company in Los Angeles, the age of the primary driver, vehicle type chosen, and more. However, in regions such as San Diego, security deposits can be:
Ace: USD 300 to USD 500
Dollar: USD 200 to USD 500+
SIXT: USD 200 and more
Budget: USD 200 (for credit cards) and USD 250 (for debit cards)
Thrifty: USD 200 to USD 500
Avis: USD 200 (for credit cards) and USD 250 (for debit cards)
Note: These are just indicative fees charged by car rental companies as a security deposit. Connect with the service provider for the exact amount.
Is Security Deposit Refundable?
Absolutely yes. The car rental companies refund the security deposits once the renter returns the car in good condition. However, the time for refunding the amount varies from one service provider to another.
Thrifty: 5-10 working days
Budget: 5-10 working days
Avis: 48 hours
Dollar: 24-48 hours
SIXT: 24 hours
Remember: This time period completely depends on the condition of the vehicle. If the car is returned with dents, damage, or dirt, it may take longer to proceed with the refund of security deposits.
How to Protect Security Deposits?
As mentioned, the company will deduct the amount from the deposits if there is any damage. To get the full deposit amount back, keep the following in mind:
Drive Carefully and Responsibly: This is the most obvious method to save on security deposits. Always abide by the traffic rules, practice safe driving, and avoid speeding.
Park Safely: While parking a rental car, be mindful of the surroundings. Stay away from a tight spot and park in the well-lit ones.
Keep the Car Neat: Every company charges extra for returning the car dirty and levies a cleaning fee. Additionally, avoid smoking inside the car to avoid penalties and save deposits.
Drive on Approved Roads: When this is not followed, it will put the security deposits at greater risk. So, read the rental agreement carefully to know the unpaved roads.
Report Issues Instantly: If a renter encounters a problem in the rental car while driving, contact the service provider immediately. Be it accidental damages, mechanical issues, or other issues, prompt actions can go in the favour of renters.
Is there Any Car Rental that Does Not Require a Deposit?
Although all major rental car operators require security deposits, some small market players are offering ‘no deposit’ or low deposits. However, it is good to verify the list before booking directly:
Zipcar
Flex car
Luc Auto
Get Around
Rent Car FY
Conclusion
There are some local or small car rental companies available that don't require a deposit. It is recommended to go through the security deposit rules and other relevant aspects. Besides, verify the methods to avoid or save on the deposits with leading operators, such as Budget and Enterprise.
