Security deposits are a standard part of renting a car in Saudi Arabia. Essentially, the deposit is a hold of funds on a credit card that covers any unexpected costs during the hire period. You pay it at the start, and it is released or refunded when you return the vehicle in the same condition as when you received it. Understanding how this works is crucial for planning your budget. Keep reading to know how car rental security deposit works in Saudi Arabia.
A security deposit for a car rental is a refundable sum held as part of the rental agreement. It’s not an extra fee but a guarantee that the vehicle will be returned in the condition you received it. In practice, the deposit is placed as a pre-authorisation (a “hold”) on your credit card. For example, if you rent a car with a SAR 2,000 deposit, the car hire company checks that your card has at least that much available. This hold covers items such as accidental damage or unpaid charges. If the car returns clean and without issues, the full deposit is refunded to you.
The deposit is only charged if an issue arises. For instance, if there is a scratch or dent, the cost to fix it is taken from the deposit. If the damage repair costs less than the deposit, you get the balance back. In short, the deposit is your security. It protects the company against loss, but since it’s refundable, you essentially pay nothing extra if all goes well.
Rental companies require a deposit for much the same reasons everywhere, and car rental deposit rules are similar. Primarily, it protects them against costs they might incur if the car is damaged or if they incur extra fees. For example, if the vehicle has a dent or scratch, the deposit covers the repair bill. If you don’t fill the tank, it pays for fuel. If there are unpaid fines (such as a speed or parking ticket) or toll charges, the deposit also covers those. Even if you return the car late, the company can use part of the deposit to cover extra rental time or late fees.
When you pick up your rental car, the staff will ask for your deposit. Typically, this is done via a credit card pre-authorisation. That means the rental company checks your card for a certain amount (for example, SAR 1,000) but doesn’t actually charge it unless needed. The hold stays in place until you return the car. In Saudi Arabia, as in many countries, a credit card in your name is usually required. Some companies may accept debit cards, but this is less common and typically only for specific vehicle types.
The amount is held for the whole rental period. Ultimately, if there are no issues, the hold is lifted. In most Saudi car rental deposit rules, most rental companies require a credit card with enough limit to cover the deposit. This is a pre-authorisation, meaning no money leaves your account unless deductions are actually made.
If you return the car with damage, the car rental deposit process will be activated. First, the rental company will inspect the car. If there’s new damage, they will calculate the repair cost. Your deposit is used to cover the cost of those repairs, up to the amount of your deposit. For example, if your deposit was SAR 1,000 and you have a small scratch costing SAR 300 to fix, the company deducts SAR 300 from your deposit and refunds the remaining SAR 700.
If repair costs exceed the deposit, you may owe more, depending on your insurance and coverage. However, in many cases, rental insurance means you only pay up to the deposit amount, with the rest covered by the insurance. To protect yourself, scrutinize the car, take photos of the vehicle’s condition before and after, and ensure any existing damage is noted in the rental agreement.
The refund time depends on the company and your payment method. If paid by credit card, the hold is typically released within 7 to 21 business days after the return. Some companies take longer if there are pending fines or fuel charges. Debit card and cash refunds often take 10 to 20 business days. In practice, allow a few weeks and keep an eye on your bank statement. If you have had no accidents, fines, or fuel charges, most of that deposit should be released promptly.
If your credit limit is too low, the transaction may be declined during pre-authorisation. This means the rental agent cannot place the required hold on your card, and the booking may not proceed. For example, if the deposit is SAR 1,500 and your available credit is only SAR 1,000, the system will automatically reject the hold.
The easiest solution is to use another credit card with a higher limit or request a temporary limit increase from your bank before your trip. Some agencies may accept a debit card or a cash deposit, but this is rare and typically limited to local renters or specific car types. Be aware that cash or debit transactions often require a higher security deposit in Saudi car rental and take longer to refund.
Another solution is to choose a smaller vehicle category or a short-term rental, which may reduce the required deposit amount. You can also buy full coverage insurance, often called zero-excess or complete protection. In all cases, you should check the deposit policy before confirming your booking. Always ask the rental company how much will be held on your card and when it will be released.
The car rental deposit in Saudi Arabia varies depending on the vehicle type, insurance coverage, and the rental company. Paying by credit card typically results in lower deposits compared to paying with cash or debit cards. For economy cars, deposits usually range from SAR 150 to 200. For mid-size sedans, expect around SAR 200 to 350. SUVs and luxury cars may require deposits ranging from SAR 350 to 1,000 or more.
After understanding all this, you can see that deposits aren’t something to stress about. Once you know how the process works, it becomes easy to plan, book, and drive confidently. It’s all about being prepared and mindful. So, where should you start when you’re ready to rent a car?
Booking a car in Saudi Arabia with Final Rentals is simple. You can choose pick-up and drop-off locations, including major airports, and select from a wide range of vehicles for your travel plans. The process is quick, confirmation is instant, and there are no hidden fees or cancellation charges. For extra convenience, you can also download the Final Rentals app on Google Play and the App Store.
