Why Do Car Hire Companies Require A Deposit?
When hiring a car ALL car hire companies require a deposit. The amount of this can vary which we will come on to, but the sole reason for the deposit is to protect themselves against loss.
When I say loss it would be one of many reasons. If you return the vehicle late they can deduct the additional rental cost from your deposit before refunding it or if the vehicle is returned damaged they can deduct the amount of the insurance excess.
How Much Is The Deposit?
Generally the deposit for car hire in the UK can vary between £500 to £2000, sometimes even more than that. In very rare cases you might find a supplier who only charges a fuel deposit of lets say between £100 to £150. The amount of the deposit usually reflects the amount of the insurance excess on your agreement, the excess is the amount you are liable for in case the vehicle is damaged. You can read more about insurance excess here.
How Do I Pay The Deposit?
Most suppliers will block the deposit amount on your credit card, this means they are not actually taking anything but freezing an amount on the car until the need arises for them to take it. Much like checking into a hotel or setting up a tab in a fancy restaurant.
If you do not hold a credit card then there are suppliers who will allow you to hire a vehicle with a debit card, click here to see more. if you use a debit card, the supplier cannot freeze the money therefore it will leave your account and be refunded to you when the vehicle is returned, providing there is no need for them to charge you an amount of it.
When Will The Deposit Be Refunded?
The deposit should be refunded as soon as the agreement ends, obviously give them a little leeway for processing paperwork ect. This doesn’t mean that the amount will show back in your account immediately.
Sometimes banks can take time to process these transactions. A few days should be ample time but we have known it take up to 2 weeks. Be assured that it is on its way back to you, if you do require any clarification, the customer service team of any rental company will be able to tell you when the hold was released and your bank should be able to see that also.
Can You Avoid A High Deposit?
Yes, you have a couple of options here. As mentioned above there are suppliers who only take a fuel deposit for their cars. This basically means charging you for a full tank of fuel and returning it full. This deposit will then be returned to you.
Your other option with some suppliers is to reduce the amount of your excess liability. If you take their zero excess option which will incur a daily charge, they will not need a deposit to cover themselves because you wont have to pay should the vehicle be damaged. Obviously this is on the basis that you have stayed within the limitations of your terms and conditions.
If you have any questions regarding why car hire companies require a deposit or insurance excess then please contact our reservations and customer service team, we are here to help!