No-deposit car rental, explained

A no-deposit rental means nothing is frozen on your card. You see the all-in price up front, insurance is included, and you settle at pickup — every car DriveCars lists is offered this way.

In this guide

• What a security deposit is
• Why the hold is a hassle
• How no-deposit rental works
• Does no deposit mean less protection?

A security deposit is one of the most misunderstood parts of renting a car. Here is what it actually is, why most companies ask for one, and how a no-deposit rental works instead.

What a security deposit is

A deposit is an amount the rental company holds against your card for the length of the rental, as cover against damage, fuel or fines. It is not usually charged — it is 'frozen', meaning that part of your spending limit is unavailable until the car is returned and the hold is released. On premium cars the hold can be large.

Why the hold is a hassle

• It ties up hundreds of euros or more during your trip
• It can take days to release after you return the car
• It eats into the card limit you wanted for hotels, dining and shopping
• Currency conversion on the hold and release can cost you

How no-deposit rental works

With a no-deposit rental, nothing is frozen on your card. You book, you see the all-in price up front, and you settle the balance at pickup — there is no pre-authorisation hold hanging over your account. Every car on the DriveCars fleet is offered this way.

Does no deposit mean less protection?

No. Insurance is included with every booking regardless of the no-deposit policy, and bookings come with free cancellation if your plans change. You get the cover without the hold.

If you have ever watched a big deposit sit frozen on your card for a week after a trip, the appeal is simple: keep your limit free for the holiday, not the paperwork.