Franchise And Deposit When Renting A Car
We explain the differences between the excess and the deposit when renting a car. This process can be somewhat complicated in terms of administrative procedures, so it is important to know the details well to avoid problems and added costs.
What is the franchise when renting a car?
The excess on a rental car is the maximum amount that you will have to pay in case the car suffers an accident, theft or great damage.
The total amount of the excess on a rental car ranges from a few hundred euros to thousands of euros. This figure will vary depending on the car rental company and the category of the rental car.
When the customer returns the car, the company checks that there is no damage to the vehicle, and that it is in the same condition in which it was delivered to you. If everything is correct, they will not charge you anything to majors.
Otherwise, the company will charge you the corresponding part of the franchise amount, but never more than that cost. The excess is the maximum amount that you will have to pay in the event of damage to the vehicle, and it depends on the type of insurance coverage you have contracted.
Limitations of franchises
Rental car insurance reduces the amount you have to pay in case of problems, but has certain limitations. This is because there are events that are not covered.
In these cases, as the franchise is not valid, the customer will have to pay the full amount of the repair. Some of these limitations are common to all car rental companies, but others are company-specific. Therefore, before starting the procedures, it will be important to know the details of the vehicle rental contract.
As a general rule, no insurance covers repairs if the damage was caused by the negligence of the driver.
This type of negligence is, for example, an excess of the alcohol level, driving in the opposite direction or misuse of the gearbox in manual vehicles. It will be in these cases when the franchise will not be valid, and the client will have to bear all the expenses.
What is the deposit when renting a car?
When renting a car, another type of procedure that the company will carry out will be the deposit. This will be a retention that the company will make to the client as a deposit.
A few years ago, most car rental companies withheld the full amount of the excess as a lock. However, this is a practice that is being discontinued.
In addition, you will also find a few companies that do not withhold anything from you when you pick up the rental car, although it is very likely that, by contracting the highest category insurance without excess, the amount withheld will be reduced or even not withheld at all.
How to rent a car without excess?
Comprehensive insurance without excess is the coverage with which you can eliminate the amount of the excess when renting a car. The price is somewhat higher, but the coverage will take care of all the repairs in the event of an accident and they will retain a lock on your card or a much lower deposit in most cases.
On the other hand, taking out comprehensive insurance without excess does not necessarily mean that they will not block anything on your credit card. Typically, the total amount they block is significantly lowered. However, there are some car rental companies that do leave the lock to zero if you choose insurance without excess.
Due to this, you can assess whether it is worth it, based on your accident history, to take out insurance without excess. If you have more than one part a year in your usual insurance, the excess is usually not profitable. Also, remember that your accident rate increases with a rental car and when driving in cities that you do not know.
As we mentioned at the beginning, the procedures when renting a car can be somewhat complex. In short, it is best to have all the information possible to be able to choose the most economical option.
