The car rental deposit topic is one of the biggest pain points for both the rentals and their clients. While the latter tend to think that the security deposit is an attempt to gouge them for more money, rental companies just need some reassurance that the car will be returned safe and sound. Where is the truth? We discuss it in our article.

What is a car rental deposit?

A rental deposit serves as financial protection for the rental company in case the car is returned with any kind of damage that is not covered by the insurance. Those usually include fixing internal and external cosmetic damage, such as stains or scratches, or covering additional costs caused by careless or even sloppy handling of the rented car.

How does a car rental deposit work?

Security deposits vary from company to company. It’s normally calculated based on the car’s characteristics, such as its year of manufacture, basic or advanced equipment,model uniqueness. Other factors that influence the amount of the security deposit include rental duration, the type of insurance (basic or CDW), and the time and area of renting. High-demand areas and high peak seasons respectively charge higher deposits. Sometimes, a company has its own risk assessment criteria that define deposit amounts.