Car rental deposits are required by most firms when you rent a car. Even if it is for a day or two. This can be a drag, especially if you are only renting for a couple of days. In this blog post, you will learn why you usually have to pay a car rental deposit, how much it cost, when you will get it back and tips you can use to pay little or no deposits at all.
Why Do you pay a car rental deposit?
A deposit is funds that a car rental company holds on to while you use their car. This gives them some level of security in case you bring back a car late, it got stolen or you damaged the vehicle while it is in your possession. If any of these does happen, they will charge you from the deposit you left. If nothing occurs then you will get back your deposit in full.
How much is a deposit and how is the payment made?
How much a deposit cost is based on the car type being rented, the company and the country. It usually ranges widely from about USD$300 to USD$4000. Most companies take credit or debit card. If you use your credit card, depending on the company, you will not be charged. Rather the deposit amount will be blocked from your spending limit. If you use a debit card the funds will probably get withdrawn from your account and you’ll see a bank statement. Hummingbird Car Rental takes deposits through PayPal payments online which is connected to any of your cards or in cash.
Why is a deposit necessary if I paid for car rental insurance?
Rental insurance doesn’t cover everything. Late returns, getting back a dirty car, tyre loss or damage are all examples of things that can happen that are not covered by a company’s policy.
Also, you will often find that your own insurance or the rental coverage you purchased from the company has a deductible. This is the excess you have to pay before an insurance coverage kicks in if something does happen during your rental. This excess is most times included in the deposit.
When do you get back your deposit?
It usually takes around 5-15 days after your rental has ended before you get your deposit back. With Hummingbird, you get your deposit back immediately after the rental.
Is it possible to pay little or no deposit?
This is the question you might be itching to find out. The answer is YES! There are a few ways to do this:
- While very rare in the US, UK and Canada, there are companies who rent out cars without a deposit. This is more than likely to an old, well-used car.
- Some companies will not take a deposit if you get extra insurance.
- Book with Hummingbird! It’s that simple. We have the lowest deposit of all our competitors. We charge only USD$200 which is nowhere near our deductible. And if you are a loyal customer with a clean record… NO DEPOSIT IS REQUIRED. Another reason to book with us.