Why do you need to pay a deposit?

Renting a car has been quite popular nowadays. Especially in situations when you need to replace your own car for some reason. It can be a trip to abroad by plane where you cannot take your car with or due to an accident after which your car is in the garage waiting to be repaired. Renting a car is not free of course. There are costs such as deposit, which needs to be paid in advance before you take the car.

What is a deposit for?

Just as in all other cases, deposit is useful when during the rental period something happens to the car. The amount of deposit is to cover the expenses of such damage. Of course, in case of a big crash the deposit will not cover the expenses, but in case of small scratches it does. Deposit is a sort of guarantee for the rental company that the rentee is going to take care of the car since it is also his interest to take the car back without damage. If no damage is caused on the car, the amount of the deposit is paid back when you take the car back at the end of the rental period

How big an amount?

It depends on the rental company, and the category of the car. The bigger the car, the higher the deposit since the repair costs of an expensive car is higher than that of a small car.