Which rental companies waive deposits and what they ask for instead

Most major car rental chains still require a deposit — usually a hold on your credit card for $200 to $500 — but a few do not. Enterprise, Hertz, and Budget have removed deposit requirements at many locations, though the policy varies by branch and rental type. Instead of a deposit, they verify your driver's license, check your insurance, and place a temporary authorization on your card that clears after you return the vehicle undamaged.

The catch is that "no deposit" does not mean "no hold." The rental company still places a temporary charge on your card to cover potential damage or fuel costs. That hold typically releases within 3 to 5 business days after you return the car, but the money is not available to you during the rental period. If you are working with a tight budget or low credit limit, this distinction matters.

Smaller regional chains and peer-to-peer rental platforms like Turo and Zipcar handle deposits differently. Some require upfront payment into an account; others use damage waivers instead. The terms depend on your location, the vehicle type, and your rental history with that company.

Key Takeaways

  • Enterprise, Hertz, and Budget have removed deposit requirements at many locations, but a temporary card authorization still occurs and may take 3 to 5 days to clear after return.
  • A "no deposit" policy means no separate upfront payment, but rental companies still place a hold on your card to cover damage, fuel, or tolls during the rental.
  • Peer-to-peer platforms like Turo require damage waivers or security deposits that work differently than traditional rental company holds.
  • Your actual deposit requirement depends on your location, the specific rental branch, vehicle class, and whether you carry your own insurance or purchase theirs.

How the card hold works when there is no deposit

When you rent without a deposit, the rental company authorizes a charge on your credit or debit card. This authorization is not a charge — it is a temporary hold that reduces your available credit or account balance. The amount varies: $200 to $300 is typical for a standard sedan, but luxury vehicles or longer rentals can trigger holds of $500 or more.

The hold covers three things: damage to the vehicle, fuel if you return it less than full, and tolls or parking violations incurred during your rental. If you return the car on time, in the same condition, and with a full tank, the hold disappears. Most companies release the authorization within 3 to 5 business days, though some take up to 10 days depending on your bank.

On a debit card, a hold can be more painful than on a credit card. If you have $1,500 in your checking account and the rental company places a $300 hold, you effectively have $1,200 available — even though you have not actually paid anything. Budget-conscious renters should use a credit card if possible, or call the rental location before booking to ask about the exact hold amount.

Which companies have dropped deposit requirements and where

Enterprise removed deposit requirements at most U.S. locations in 2021, though some airport and resort branches may still require one. You need a valid driver's license, proof of insurance (yours or theirs), and a credit or debit card for the authorization hold. Call your local Enterprise branch to confirm the policy before booking, because requirements vary by location.

Hertz offers deposit-free rentals through its Gold Plus Rewards program and at select locations nationwide. Non-members may still face a deposit requirement depending on the branch. Hertz also offers a "Deposit Waiver" add-on at checkout for renters who prefer to avoid the hold entirely, though this costs extra.

Budget has waived deposits at many locations but maintains the policy inconsistently. Budget franchises are independently operated, so a Budget in one city may require a deposit while another does not. Check the specific rental location's terms when you book, or call ahead to confirm.

Smaller chains like Alamo, National, and Avis have not made blanket deposit waivers but may negotiate on a case-by-case basis, especially for longer rentals or returning customers. Regional companies vary widely — some require deposits, others do not. Always check the rental agreement before you commit.

Peer-to-peer and alternative rental platforms

Turo, the largest peer-to-peer car rental platform, requires a damage waiver rather than a traditional deposit. You pay a percentage of the rental cost upfront (typically 15% to 50%, depending on the coverage level you choose) to cover potential damage. This is a non-refundable fee, not a hold. If the car is returned undamaged, you keep the protection; if damage occurs, the waiver covers it up to a limit.

Zipcar charges a membership fee ($25 to $35 per month or $70 to $100 per year) but does not require a separate deposit. The membership fee covers insurance and damage protection. You pay only for the time you use the car, with no hold placed on your card beyond the rental cost itself.

Getaround, another peer-to-peer platform, requires a damage deposit that varies by vehicle and host. Some hosts set deposits as low as $0; others require $500 or more. The deposit is held during the rental and released after the car is returned undamaged. Check the individual listing to see what deposit the host requires before booking.

What you need to bring to avoid deposit surprises

Bring your driver's license, proof of insurance, and a credit card — not a debit card if you can avoid it. The rental company will ask for all three, and each one affects whether they waive or reduce the deposit hold.

Proof of insurance is critical. If you carry your own auto insurance that covers rentals, show that policy. If you do not, the rental company will sell you their coverage (usually $15 to $30 per day), and this may trigger a larger deposit hold because the company assumes higher risk. Some credit cards include rental car coverage; if yours does, bring documentation of that coverage to the counter.

A credit card is preferable to a debit card because the hold does not reduce your actual available funds — it only reduces your available credit limit. If you must use a debit card, ask the rental agent for the exact hold amount before you finalize the booking. Some companies will reduce the hold if you pay a damage waiver fee upfront.

When you might still face a deposit even at no-deposit companies

Age matters. Renters under 25 typically face higher deposits or deposit requirements even at companies that waive them for older drivers. Some locations charge an additional daily fee ($15 to $25) for drivers under 25 and may require a deposit regardless of the company's standard policy.

Rental type affects the deposit. Luxury vehicles, SUVs, and trucks often require larger holds than economy cars. A sports car or premium sedan might trigger a $500 to $1,000 hold even at a no-deposit company. If you are renting a high-value vehicle, ask about the hold amount when you book.

International driver's licenses, out-of-state IDs, or a thin credit history can also result in a deposit requirement. Some companies require a deposit from first-time renters or from customers with no rental history. If you have rented before and have a good record with the company, you are more likely to avoid a deposit on your next rental.

Airport and resort locations often have stricter policies than neighborhood branches. If you are renting at an airport, call the specific location to ask about their deposit policy rather than relying on the company's general website information.

Frequently Asked Questions

Does the card hold count against my credit limit?

Yes, on a credit card the hold reduces your available credit but does not appear as a charge on your bill. On a debit card, the hold reduces your available account balance. The hold releases after you return the car, usually within 3 to 5 business days, though some banks take longer.

Can I use a debit card if the company waives deposits?

Yes, but the temporary hold is more painful on a debit card because it reduces your actual available funds. If you have limited cash flow, use a credit card instead. Call the rental location before booking to ask the exact hold amount so you know what to expect.

What happens if I return the car with damage?

The rental company documents the damage, takes photos, and may charge you for repairs. If you purchased their damage waiver, the waiver covers it up to a limit. If you did not, the charge comes out of the hold or is billed to your card separately. Always inspect the car before you drive away and report any existing damage to the agent.

Do I have to buy the rental company's insurance if there is no deposit?

No. If you carry your own auto insurance that covers rentals, you can decline their coverage. Show your insurance card or policy at the counter. If your credit card includes rental coverage, that may also be enough. Only buy the rental company's insurance if you have no other coverage.

How long does the hold take to release after I return the car?

Most companies release the hold within 3 to 5 business days, but it can take up to 10 days depending on your bank and the rental company's processing speed. If the hold has not released after 10 days, contact the rental company's customer service with your confirmation number and ask them to investigate.