Deposit vs no-deposit rentals: Which option should you choose?
Most traditional rental companies require a deposit, but certain services, such as Careem and Yango -offer deposit-free options.
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Best for short rentals: No-deposit platforms are ideal if you need a car for only a few days and prefer not to have funds blocked on your card.
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Best for long-term rentals: If you plan to rent for several weeks or drive long distances, a deposit-based rental is typically more economical. The daily rate is usually lower because the deposit reduces the company’s financial risk.
What is a security deposit?
A security deposit is an amount held by the rental company to cover:
The deposit amount varies by company and vehicle type. You usually do not need to pay it in cash, most companies place a temporary block on your credit card instead of deducting the amount.
When renting, always confirm that your deposit is blocked, not charged, and that the company clearly states how long the hold will remain.
According to the Dubai Corporation for Consumer Protection and Fair Trade (DCCPFT) under Dubai Department of Economy and Tourism (DET), car rental companies are required to release the deposit with a maximum of 30 days, provided there are no outstanding charges.
How to ensure you get your deposit back
1. Return the car on time – Late returns may lead to extra charges that can be deducted from your deposit.
2. Keep the vehicle clean and undamaged – The car should be returned in the same condition you received it.
3. Avoid traffic fines and exceeding mileage limits – Fines and mileage penalties may take time to process, which can delay your refund.
4. Document everything – Take photos or videos during pickup and drop-off, including the odometer, existing scratches, fuel level and interior.
5. Follow up if needed – Rental companies sometimes wait for fines to be posted, which can take several weeks. If delays go beyond 30 days:
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Contact the rental company directly
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Dispute the charge with your bank if the deposit was taken instead of blocked
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File a complaint with consumer protection authorities if the company is unresponsive
What to do if your deposit is not returned
If you returned the car without any damage, fines or violations and still haven’t received the deposit within 30 days, you can file a consumer complaint with the Commercial Compliance and Consumer Protection Sector at DET.
Note: Complaints can only be filed against Dubai-based companies that hold a valid trade licence from DET.