Why is a Security Deposit Held With a Car Rental?

If you’re going on a foreign trip, renting a car is a great way to get around. A rental car enables you to drive your own car instead of waiting for the metro, buses, or taxis. However, it is mandatory to let the rental car companies hold an advance deposit or security, and that amount is usually between 85% and 150%.

The deposit amount is blocked on your credit card and will be released within 30 days after you return the rented vehicle. The collateral (deposit) is blocked, not debited. Continue reading to find out the reasons and explanations why companies need to charge double or triple the amount of rental as security.

They Help Incentivize Renters to Return Cars on Time

The deposit encourages renters to return vehicles on time, which is a major benefit for car rental companies in Dubai. A deposit ensures that customers remember to return the rented vehicle. In many cases, the late return fee is deducted from the deposit.

The sharing-economy transportation model becomes unstable if customers cannot be trusted with only temporarily available vehicles. And it is the deposit that makes this model stable and reliable, as well as safe for the companies that offer you their vehicle in your possession.

The Deposit Can Cover the Damage

Accidents are quite common on the road for which rental company offers insurance for the renters. However, not everything is covered by basic insurance. If the renter, by any chance, gets into an accident and damages the vehicle, they need a way to pay for the repair cost.

In those cases, the rental companies will deduct that accident repair cost from your deposit. They need advance assurance that they can charge you if you damage their vehicle.

Protection Against Any Potential Scam

A rental vehicle is the company’s property, and they must ensure its safety and security. The security deposit allows them to have a guarantee against the stealth of their car.


The main purpose of car rental businesses is to protect their property and ensure that they get their money back if there are any damages or issues with the car when it is returned. This doesn’t mean you shouldn’t rent from them; make sure you take care of the rental vehicle.

You May Also Like To Rent A Car

21% OFF
  • 1600 AED / Month 1250 AED / Month
  • 73 AED / Day 50 AED / Day
46% OFF
  • 2800 AED / Month 1500 AED / Month
  • 170 AED / Day 65 AED / Day
25% OFF
  • 2800 AED / Month 2100 AED / Month
  • 110 AED / Day 82 AED / Day
23% OFF
  • 4999 AED / Month 3800 AED / Month
  • 370 AED / Day 220 AED / Day

You May Also Like


Rent a Car for AED 1000 per Month


Why UAE celebrates union day ?


Driving a rental car from Dubai to Oman

Request Call
Chat on WhatsApp Inquire icon Inquire 042935333