How does a car rental deposit work?

Should you pay a deposit when renting a car? Do you need more information about the deposit on a rental car? To dispel all your doubts, we suggest you read our article, which deals with the most important questions about how a car rental deposit works.

When renting a car for a certain period, tenants often worry about the deposit question. Is it possible to rent a car without a deposit amount? Do I have to give the rental company my money as a guarantee? Exactly how much will have to be paid? Are there certain guarantees for the renter that they will get their money back?

What is a deposit when renting a car, and why is it needed?

A deposit when renting a vehicle means leaving a certain amount of money with the company to secure the company's property if something goes wrong. In simple terms: if you take the car and scratch it, smash it, stain the interior, or any other mishap occurs, this amount will cover the costs of restoring the original condition in which you received the car at the beginning of the rent.

This way, the company gets a guarantee from you that it will get compensation if the property is damaged. However, if everything is fine with the car at the end of the rental period, the deposit is fully refunded to the renter.

How do I make a rental car deposit?

The rent of a car deposit is calculated based on an individual form of a certain company. Most often, the amount is based on the class of the car, how many days rented, the renter's age, and the city.

Practical example: you want to rent a luxury Maserati in Dubai at 26 years old. The deposit will be much higher in this situation than renting an economy car at age 40. It makes perfect sense. The higher the risk for the company, the more money they want to have financial security if something goes wrong.

After I return the car to the company, how quickly will I be paid back the deposit I left behind?

The payment presented is often made within 10-20 business days - this time frame is relevant if the deposit needs to be returned to a credit card. The main rule is that the rental company will hold your money if you use the vehicle. However, paying your money back in full will begin if the car is returned to them in complete order. In Dubai, the rental deposit refunds usually are delayed for 30 days after car drop-off.

Can I rent a car without a security deposit?

The practice presented is not supported, except for Evolve. Our company has already launched an innovative service for the car rental field. On the Evolve online platform, you can choose and rent a car without a deposit. For now, most renters don't like it, as a deposit is like some guarantee that the car will be returned in satisfactory condition. It makes sense: the company gets a cash guarantee, though the emergence of alternatives is just a matter of time as the car rental industry is moving forward and actively developing.