Rent A Car With No Or Low Security Deposit?

Security deposits and authorization holds are the two payment mechanisms renters encounter. A security deposit is an upfront sum that protects the company against damage, theft, or contractual breaches, while an authorization hold temporarily freezes a specified amount on a credit or debit card without transferring funds. In 2023‑2024 data, the hold often sits between $150 and $300 for standard cars, climbing to $500‑$1,000 for luxury models (see 2024 rental car security deposit averages).

The goal is to ensure vehicle return in acceptable condition and cover any unforeseen costs.

Enterprise typically places a $150 authorization hold on economy rentals, Hertz may block $200‑$300 for midsize vehicles, and Avis often reserves $250 for popular compact cars; National can exceed $300 when a premium model is selected. Using a debit card sometimes reduces the hold to a flat $100, though the issuing bank may extend the hold duration. Prepaying the reservation can bypass the hold entirely, a strategy examined later in the 'prepay rentals to skip holds' section.

• Enterprise - authorization hold generally $200‑$400 on credit cards, $500‑$800 on debit cards; low‑deposit option caps the hold at $100 Enterprise deposit policy.
• Hertz - typical hold $250‑$500, premium models may reach $700; pre‑paying often eliminates the hold entirely Hertz hold information.
• Avis - standard authorization $300‑$600; weekend rentals frequently sit near $250; opting for upfront payment removes the temporary block Avis security deposit details.
• Budget - usual hold $200‑$350 for economy cars, $150 for basic models; debit cards sometimes trigger $600 Budget hold policy.
• Alamo / National - combined average hold $250‑$550; corporate accounts may waive it; low‑deposit program limits the hold to $150 Alamo deposit FAQ.

Low‑deposit rentals exist, mainly from mainstream brands that cap the authorization hold at $200  -  $300 when a credit card is presented. As we covered above, the security deposit differs from an authorization hold, which temporarily blocks funds on the card.

• Enterprise low‑hold policy: $200 credit‑card hold; debit cards may trigger a $500 hold, but locations in the U.S. often accept a $0 pre‑authorization with a paid insurance add‑on.
• Hertz reduced authorization: $250 credit‑card hold; debit cards sometimes limited to $300 in major airports.
• Avis 'no‑deposit' program: $0 hold for members using the Avis Preferred credit card; standard credit‑card hold $150‑$200.
• Budget low‑deposit option: $150 credit‑card hold; debit cards may incur a $400 hold unless a prepaid insurance package is purchased.
• National 'low‑hold' tier: $200 hold on credit cards; debit cards often limited to $300 with a credit‑card backup.
• Sixt minimal hold: $100 credit‑card hold in European markets; U.S. locations typically $200, with debit alternatives at $350.
• Zipcar 'no‑security‑deposit' model: membership fees replace any hold; works on debit cards via direct billing.

These firms consistently keep the authorization hold low, especially for credit cards, making them the go‑to choices when a hefty security deposit is undesirable.

Peer-to-peer car sharing lets renters sidestep the hefty security deposits typical of traditional agencies. As we covered above, a lower‑cost hold hinges on the platform's own policies rather than the rental company's.

1. Pick platforms that specialize in private‑owner fleets. Turo, Getaround, and HyreCar operate on a true peer‑to‑peer model, meaning individuals list their personal vehicles instead of a corporate fleet. (Unlike ShareNow, which runs a company‑owned fleet.)
2. Scrutinize each service's authorization‑hold structure. Turo often places a $250‑$1,000 hold depending on vehicle class and driver age; Getaround may limit the hold to $200 for most cars, while HyreCar typically caps it at $300 for rideshare‑specific listings. Verify exact amounts on the provider's support page before booking.
3. Leverage optional low‑deposit add‑ons or insurance bundles. Some hosts offer a 'no‑hold' package that swaps the block for a modest daily fee; others bundle supplemental insurance that reduces the required hold. Review the details in the platform's insurance FAQ.
4. Read host reviews for hidden fees. A low hold can be offset by unexpected cleaning charges or mileage penalties. Filtering for five‑star hosts with clear fee breakdowns helps avoid surprise costs.
5. Calculate the total out‑of‑pocket expense. Include the authorization hold, any low‑deposit add‑on, estimated fuel, and per‑mile rates. Comparing this sum across platforms reveals the true cheapest option, ready for the next step of prepaying rentals to skip holds.

Turo's security‑deposit policy, Getaround's authorization‑hold guidelines, and HyreCar's insurance and deposit information provide up‑to‑date details for each service.

Prepaying the full rental amount often removes the need for an authorization hold, because the insurer already has the funds secured. Major brands such as Enterprise, Hertz, and Alamo list prepay options on their booking pages, and in many cases the card is not blocked at all (see Enterprise prepay rental policy). Exceptions exist; some companies still place a reduced hold to cover potential damages, so confirming the exact terms before confirming the reservation is essential.

To use this trick, select 'pay now' during the online reservation, verify that the price shown includes taxes and fees, and note the stated security deposit requirement. If the confirmation email mentions 'no hold' or a lowered amount, the prepay worked as intended. Double‑check the rental contract at the counter; a mismatched policy can trigger an unexpected hold. As we covered earlier, understanding the difference between a security deposit and an authorization hold helps you spot these nuances, and the upcoming debit‑card section will show another way to keep holds low.

Debit cards seldom shrink the authorization hold; most rental firms treat them like credit cards and may even increase the block.

Rental companies often impose a higher hold on a debit because they can't pull a credit line, and the amount usually mirrors the credit‑card rate (often 30‑50 % of the estimated rental cost plus potential fees). A few niche firms advertise 'lower debit holds,' but they are exceptions rather than the rule (see debit card rental hold policies).

What to expect when using a debit card

• Standard hold range - 30 % to 50 % of the rental total, plus any optional insurance or fuel pre‑authorizations.
• Potential cash‑back lock - the same amount sits in your bank account until the car is returned and inspected, which can tie up funds for several days.
• Limited fraud protection - debit cards lack the robust dispute mechanisms of credit cards, so any erroneous charge may affect your checking balance directly.
• Pre‑authorization vs. security deposit - the hold is temporary; a separate upfront security deposit is rarely required when a debit is accepted.

If the higher hold is unacceptable, consider switching to a credit card, pre‑paying the rental, or hunting for low‑deposit rental companies as outlined earlier.

Buy third‑party insurance wisely by confirming the rental company accepts it and by matching the policy limits to the expected authorization hold. As we explained earlier, the hold replaces the upfront security deposit, so a plan that covers the full hold amount can shrink the block on the card. In some cases, renters still face a reduced hold even with external coverage, so the policy should at least meet the minimum amount the agency requires. Verify that the coverage includes collision‑damage waiver, theft protection, and liability before booking.

Check the rental agency's website or call the reservation desk to ask whether the third‑party insurance will lower the authorization hold and what the minimum security deposit will be. Compare at least two policies, focusing on deductible size, excluded countries, and proof‑of‑coverage format that the agency accepts. Keep a digital copy of the declaration page handy for the counter; presenting it can smooth the negotiation discussed next.

For a reliable source on what insurers typically cover, see The Credit People guide to rental car insurance.

Ask the desk clerk to lower the authorization hold and waive the security deposit before the contract prints, citing your reservation details and any loyalty tier.

Leverage these talking points while the agent reviews your file:

• loyalty program level - members often receive reduced holds;
• proof of prepayment - a prepaid invoice signals lower risk;
• recent average‑deposit data from industry reports show typical holds by brand;
• willingness to split the hold between a credit card and cash, which can convince the agent to cut the total.

Confirm the revised numbers on the paperwork, sign, and proceed to the next hurdle of international rentals without lingering doubts.

International rentals succeed when paperwork, payment method, and local rules line up before the car rolls out. Carry a passport, an International Driving Permit where required, and the credit‑card statement showing your name; most agencies reject mismatched IDs. Some countries, like Japan, demand a local driver's license copy, so scan it ahead and email the branch.

Security deposits abroad often exceed domestic amounts, and authorization holds may freeze 30‑50 % of the card's limit. Credit cards with high credit lines usually survive the block, while debit cards can trigger larger, longer‑lasting holds that eat into daily cash flow. Prepaying the entire rental eliminates the hold in many European firms, and converting the reservation price to the local currency at the time of booking avoids surprise exchange‑rate spikes how authorization holds work on credit cards.

Local insurance mandates differ: Italy and Brazil often require mandatory CDW, whereas Mexico may accept a third‑party policy if it meets the agency's minimum coverage. Verify that your personal policy or a reputable add‑on satisfies those thresholds to dodge extra charges at return. Keeping a digital copy of the signed agreement helps dispute unexpected fees once the car is back in the lot rental car insurance requirements by country.

No‑deposit rentals aren't free; they still require a security deposit or an authorization hold. The 'no deposit' claim usually means the hold is lower or processed differently, not that you escape payment entirely (as we covered in the deposit basics).

One common myth says a zero‑deposit ad guarantees no charge at the counter. In reality, most firms place an authorization hold on a credit card, often matching the estimated rental cost plus a buffer for fuel or damage. The amount may appear after checkout, and if the hold exceeds the advertised figure, it can temporarily reduce your available credit.

Another myth argues that a low security deposit signals an old car or hidden fees. Many reputable companies now offer modern fleets with holds as low as $50, especially when you prepay or provide a debit card. However, ancillary costs - insurance add‑ons, mileage overages, or toll tags - can still raise the final bill, so the low hold alone doesn't guarantee a cheaper rental. Understanding how car rental deposits work