The Situation with Deposits
The Situation with Deposits - Clearing the Confusion
There is much confusion surrounding the subject of Vehicle Rental Deposits. Many people believe that the Deposit is only taken in event of vehicle damage, and can be paid back immediately the vehicle is returned.
In fact, the situation is much more complicated;
For damage purposes, the Insurance Company insist on a minimum deposit from the temporarily insured (covered) driver of any hire vehicle, and the amount is determined by the age of the driver, as with any other type of vehicle insurance.
But the deposit also has to cover any fines, penalty notices, fixed notices, parking fines, bus lane fines, vehicle seizures, clampings and numerous other eventualities.
Often these offences are captured automatically, by CCTV, number-plate recognition cameras, speed cameras and all manner of similar devices that are planted all over London and indeed the UK.
Many times, the driver may not even be aware they have committed an offence, until they receive some form of notification sometimes several weeks after the event.
Unfortunately, many, many times, after we have been informed of the notice, paid it, and passed the notification on to the hirer, the hirer does not understand they have to pay, or even refuses to pay, so we are left to pick up the bill. Whilst a large company like Avis or Budget may be able to absorb some of these costs, or hire firms of solicitors to pursue such non-payment, the more personal and local vehicle rental company is in a much more fragile position.
Following guidance from the BVRLA, vehicle hire companies in the UK are advised to take steps to ensure they can continue in business and not be swallowed up by an inundation in traffic violations and fines. The only practicle way to achieve this is through a deposit, retained for a period of time such that any official notifications will have been received.
Since it takes the average council 5-14 working days to send out any charges, fines or notifications, UK hire companies will hold the deposit for that period.
We hope this makes clear the position on deposits and helps clear up any confusion our customers may have on the matter.
Thankyou.
Further Information on this Website:
- Our Vehicle Rental Charter
- Security Deposits - Our Policy
- Security Deposits - The Situation with Deposits - Clearing the Confusion
- Administration Fees - Why we have no choice but to charge them
- Things a Camera might automatically see you doing!
- Standard Terms and Conditions [Web Version]
