People visiting UAE will want to maximize the benefits of car rental. Firms providing automobiles on rent charge their customers with car rental deposits. The amount is charged to everyone who rents a car for their family vacations and business trips.
In this article, we discuss car rental security deposits. We also share what affects the security deposit for car rentals.
What is a Car Rental Security Deposit?
The car rental companies usually charge their customers with a car rental deposit. It’s the amount they will hold onto for making sure there are no damages to their rented out property. The company might withhold your deposit for Dubai car rentals if you return the car in a damaged or dirty condition. Returning the vehicle late will also result in a certain portion of your car rental security deposits being held back.
At what point is the Security Deposit required to be submitted?
When you are picking up the care, you need to pay the deposit for car rental. Usually it is required at the time of booking your vehicle. The car rental company will be placing a temporary hold on your credit card. It will be for an estimated amount of your deposit. The funds will be released to your account after you return them the car.
How Much Is the Car Rental Security Deposit?
There is no fixed amount for car rental deposits. It is impacted by several things. It includes the type of car you want to rent. Luxury and high performance cars of course will be requiring a higher car rental deposit. There will be varying deposit policies among different car rental companies.
If I purchase insurance, am I still required to pay the deposit?
The insurance covers specific damages and losses. While the security deposit acts as a guarantee you will be returning the vehicle. It assures that you will be paying any additional charges and fines resulting from it too. So the answer is yes. Even if you have purchased the additional insurance, you will need to pay the security deposit for your car rental in UAE.
Elements Influencing the Security Deposit for Car Rentals
For car rentals, there are quite a few elements that affect the car rental deposit. The type of car will influence the amount majorly. Sports cars, vehicles with high horsepower and higher end cars are going to charge you a larger deposit with their higher value and potential repair costs.
Longer rental periods will translate to a higher security deposit. This will be for covering any potential risks posed to the vehicle during the extended duration. Among car rental companies and their internal policies as well as risk assessment, there will be different car rental deposits.
Mileage Limits
There are mileage limits imposed by most car rental companies on their rental. This means you are going to be charge extra if you exceed the agreed upon mileage during your rental period. For this, make sure to check your rental agreement. The limit will be specified in it.
If you choose an unlimited mileage option, you will be paying a higher security deposit. This will cover potential for increased wear and tear. With limited mileage and staying in the specified limit, you can maybe negotiate a lower security deposit.
Condition of the Car
The security deposit will be influenced by the condition of your car. If the car has visible scratches, dents and damages, there will be a higher amount charged. The cars with known mechanical problems and issues will also lead to a greater deposit to rent a car. Rental vehicles showing signs of excessive wear and tear and damaged interior will require a higher deposit.
Failure to Return on Time
Impacting your security deposit heavily will be the failure to return the rented out car on time. If you are returning it late, the company is going to charge you an additional fee. They will hold on to the deposit for a longer period.
Late return is going to affect you as there might a late fee charged per day the vehicle was overdue. A late return increases the risk of accidents and other issues too. This can even lead to a claim against your security deposit to rent a car.
Understanding Credit Card Holds for Car Rentals in the UAE
Holding credit cards is a common practice among rental car companies in the UAE. These temporary reservations of funds on your credit card are for covering likely costs associated with the rental. These include rental fees and fuel charges.
There will be rental fee as in the base cost of you renting the car. If the company has not included fuel charges in the rental price, it will be deducted from the card. Optional services of insurance, GPS and child seats will be charged.
The credit card holds work this way:
- When you rent a car, the rental company will be placing an authorization hold on your credit card.
- This is a temporary reservation of funds. It’s not a charge.
- The hold is released back to your account within a few days after you return the car.
Car Rental Credit Card Policies You Need to Know in the UAE
When renting a car in the UAE, there are some credit card policies that you need to take into account. The credit card is going to be required by most car rental companies. The company can charge additional fee for additional drivers on the rental agreement. Most car rental companies include third party liability insurance.
You will need to purchase coverages including collision damage waiver and theft protection. There might be a policy in some companies where you need to return the car with full tank of fuel. And if you do not return the car full, it will cost you a refueling fee.
What happens if there are Fines on the Rented Car?
Incurring fines while driving the car means you will be paying them. That too on top of your deposit for Dubai car rentals. The company for your car rental will notify you about the fines. You will be then charged the amount of fine along with administrative fee.
Conclusion
It’s important to know about the car rental deposit. Being careful in managing the vehicle with proper care and returning on time will save the amount from being deducted. Car rental companies use this as a preventive measure against any damage occurring to their rental property.
Avail the benefits of car rental and make your business trips a smooth experience. Contact IZI rent a car for our services.
FAQs
What is the deposit for most rental cars?
The model of your car rental and your selection of rent a car will affect the amount.
What is the best deposit for a car in UAE?
The type and model of car will play its part in the best package.
Do rental car companies put a hold on credit cards?
They will have an authorization hold on your card. It is a temporary reservation of funds for covering potential charges.
