• Rental companies may require deposits as a guarantee against damages or theft, with the amount varying based on the type of vehicle and rental period. 
• Methods, such as using credit cards or prepaying, are available for customers to avoid the need for a deposit when renting a car. 
• Traditional car rental companies often require a security deposit, but alternatives like FINN offer deposit-free car subscriptions that include maintenance, insurance, and other perks.

Car rental companies need a deposit from you for security. It acts as a guarantee if damages or theft occurs when you are renting a vehicle. This deposit amount can vary depending on the company you choose to rent from, the type of car you’re renting, and the rental period. But typically it comes in at a few hundred dollars.

You can rent out your next car and not have to pay a deposit in many ways. To ensure you are prepared for your next road trip, read the next sections carefully, and find out what works best for your situation. 

Option 1: Use a credit card

A credit card is ideal in this scenario as it does not take money directly from your account. Instead, the transaction is put on file but only charged at the end of the rental period, and only if there are damages or losses. 

Having a credit card is particularly useful anyway as it helps build and improve your credit score in the US. Be wary that credit cards are not “free money” and make sure to pay off all the balance when it is due, otherwise, credit card debt will build and cost you a lot in interest fees, lowering your credit score.

Your security deposit is refunded to your account when you return the vehicle. While debit cards and other means of payment are possible, a credit card deposit is the easiest method of securing your next rental car. Plus, it involves a lot less hassle between you and the rental car company.

Option 2: Choose a zero-deposit rental car company 

While it is common for suppliers to charge a security deposit on your next rental, some companies do not require any deposit. Stressfreecarrental is set up to filter by “zero deposits” when browsing their inventory. And Zipcar is a membership-based model and does not require a deposit before pick up. Be sure to check the terms of the rental with these suppliers, as you are still responsible for any fees if damage or losses occur during your rental. 

Option 3: Prepay for your rental 

Some car rental companies allow you to pay the total amount in advance to secure your next rental. Depending on the terms, these companies may not require a security deposit and will only charge you at the end of the rental if there are any losses or damages.

Option 4: Third-party insurance

Certain car rental suppliers will accept a third-party insurance policy instead of a deposit as a form of security. As long as the policy covers damage and liability for your rental car. If you can provide the necessary proof to them, you may be able to bypass the security deposit. Turo is an example where your third-party insurance comes in handy when hiring your next car.

Most companies require a security deposit. But thinking outside the box, some companies bypass this and make it tailored to you as a renter. You can also contact rental car companies and explain your full situation and they may also accept certain terms that are not part of their standard rental agreements.

1. Zipcar

• Deposit amount: $0 (Instead, there's a monthly membership)

Zipcar's unique approach allows you to become a member without paying a deposit. With Zipcar, there is a monthly subscription to pay and then an additional fee to rent the vehicle. Zipcar offers a low barrier of entry, particularly suitable for first-time car renters who are unfamiliar with the traditional security deposit process. Moreover, Zipcar is an excellent option for individuals who need to rent a car for an hour or a single trip.

The next rental car companies require a deposit, but they are ranked from lowest to highest.

2. Getaround

• Deposit amount: $150

As a car-sharing platform, Getaround is not a traditional car rental service. They do offer the lowest security deposit at just $150 though. As you are dealing with car owners directly, you can expect much better customer service, a wide range of vehicles, and options more suited to your needs. Plus the deposit will be refunded within 14 days of your trip ending, provided there are no issues.

3. Sixt

• Deposit amount: $200

For a more traditional car rental platform, Sixt has some of the lowest security deposits out there. Be expected to pay more than the $200 deposit for larger, more luxury vehicles, however. Sixt will also return your refund in just 24 hours - ideal for those who need their cash quickly.

4. Dollar, Thrifty, Hertz

• Deposit amount: $200 for credit, $500 for debit cards.

The Hertz brand owns Dollar and Thrifty under one umbrella, therefore you can also expect similar security deposits. Using a credit card will save you at least $300 in headaches as the hefty $500 debit card fee is not something everyone can afford. The Hertz brand also offers the best payment options, with most major card types accepted. 

It is difficult to rent a car with no deposit, but it is possible to land your next rental without a credit check. If you use a larger payment or show proof of a return airline ticket at the check-in desk. Also showing and handing in your ID (including your passport) is another method where you do not need to undergo a credit check. Be sure to check with each rental car company before going ahead.

Yes. When renting a car, it is common for car rental companies to require a security deposit to cover potential damages not covered by insurance. Deposits are typically placed as holds on debit or credit cards.

Most major car rental companies accept debit cards. They include Avis, Budget, Dollar, Enterprise, Europcar, Hertz, Thrifty and Goldcar. However, some will charge a higher amount when choosing to pay with a debit card instead of a credit card.

After reading this comprehensive guide, you are now equipped with the knowledge and strategies to secure a car rental without the burden of hefty deposits. By utilizing options like using a credit card wisely, choosing zero-deposit rental car companies, prepaying for your rental, or exploring third-party insurance alternatives, you can enjoy the freedom of renting a car without breaking the bank. 

As an alternative to car rentals, check out FINN subscription-based cars – no deposits, no worries, just the perfect ride delivered right to your doorstep for complete peace of mind.