Security Bond
A rental car security bond is a deposit or pre-authorisation hold placed on your credit card by a car rental company. It's used as security for the rental agreement, covering potential additional charges that may arise during your rental period, such as:
- Damage to the car
- Late return fees
- Traffic fines or toll charges
- Fuel charges if the tank isn’t returned full
Once you arrive at the rental car counter for collection of the vehicle, the rental car company will discuss the options when it comes to liability and a security bond. Rental car companies will require you to leave a security bond, which may be frozen on your credit card and providing there is no damage to the vehicle upon return your return, the bond will be released back to the same card.
The amount of the bond varies depending on the rental company, the location, and the type of car you're renting. This bond is typically refunded when you return the car in the same condition as when you received it and in accordance with the rental terms. It can take a few days or weeks for the refund to process, depending on the company and your bank.
Some rental agencies also offer an option to purchase insurance coverage that reduces or eliminates the need for a bond or the amount of the bond. Always check the terms of your rental agreement to understand the exact details regarding the security bond.
Other Things to Consider
When Picking Up Your Car
- Airport Pick-ups
- Charges at Pick-Up
- Different Vehicle Than Expected
- Late Pickups or Delayed Flight
- Required Documents for Pick-Up
- Vehicle Inspection
- What To Take When Collecting Your Car Rental