What is a deposit and why do we take it before starting car rental?
Most people who want to use the car rental service have some fears of the amount of the deposit. Many of them worry: what will happen to their money if something happens to the car? Other customers are interested: if your cars are insured, why should we leave a deposit?
If you prefer video format, you can see our short video about deposit below (in Russian).
Why is a deposit required?
We advise all our clients before the start of the rental and say that the deposit is their maximum financial responsibility for the period of using a car. In other words, if the amount of loss is greater than the amount of the deposit, then the client does not pay anything except the deposit amount. Vice versa, if the amount of loss is less than the amount of the deposit, then compensation for repair is withheld from a client, and the difference is returned.
The main requirement for this condition to work is the strict following the clauses of the rental agreement, especially informing us, as the lessor, within half an hour after the incident by telephone hotline (067 521 7877, 044 531 7877).
The term “deposit” can be explained in terms of car insurance. In fact, a deposit is an unconditional franchise, or the amount that is not covered by the insurance company when an insurance case occurs. For example, if the amount of loss is $ 1,000, and a franchise is $ 400, then the insurance company will pay $ 1,000 – $ 400 = $ 600. It is also important to note here that insurance companies usually do not insure commercial vehicles with a zero franchise, therefore the risks of paying a franchise are passed on to the client.
A deposit can also be used to cover other uninsured events, namely:
- lack of fuel when returning a car;
- car dry cleaning;
- rims and tires repair or replacement in case of damage by a customer;
- any significant damage of the car interior.
In what form can I leave a deposit?
The deposit can be left both in cash and non-cash (means block of funds on the client’s bank card).
Blocking funds (or preauthorization) is essentially a temporary (no more than 30 days) suspension of the ability to use a certain amount of money on a client’s card. This money is not debited as payment, but only blocked for a maximum period of 30 days. And this means that on the 31st day the money is unlocked and you can use it again.
In the case of cash payment, you will receive a deposit on the day you return the car (you even will get the same bills that you left).
The client may not receive a deposit immediately after returning a car in such cases:
- if there are serious damage to the car that require a more detailed inspection at the service station;
- if the car is very dirty and the client does not have time to wait until we wash it.
How to reduce the amount of a deposit?
Many people ask how to reduce their responsibility or to rent a car without any deposit. We have a service such as supplementary insurance, which allows the client to significantly reduce their liability. It applies to all classes of cars, except for premium cars.
The cost of such a service is from $ 6 per day. This option will make it possible to reduce liability by more than 5 times: for example, from 500 to 80 dollars for an economy class.
The insurance does not work in case of damage to the wheels or tires, in case of theft of the wipers or the damage of glass parts.
Clients who have reached the age of 25 years and have a driving experience of more than 5 years can take advantage of additional insurance. The rental period must be more than 3 days.
We hope this article has been helpful to you. We wish you a good trip and wonderful mood!