Quick Summary:
- Adding LDW can reduce excess, but may raise the card hold.
- SLI usually changes total charges, and can affect required pre-authorisation.
- Ask to see the updated estimated charges and deposit before signing.
- Check your banking app for a new pending amount, then confirm it.
Picking up a car hire in New York often involves a pre-authorisation, a temporary card hold taken at the start of the rental. The confusing part is that the hold you expected when you arrived can change at the counter if you add optional cover like SLI or LDW. Sometimes the hold goes up, sometimes it stays the same, and occasionally it can even go down, depending on what the rental company is actually securing on your card.
This article explains why adding SLI (Supplemental Liability Insurance) or LDW (Loss Damage Waiver) can change the pre-authorisation amount, what to look for on the paperwork or terminal before you sign, and how to spot a revised hold in your banking app. The aim is simple, understand the numbers before you agree to anything.
What the “deposit” really is at New York rental counters
In everyday speech, people call it a deposit, but with most car hire pickups in New York it is a pre-authorisation. That means your card is checked for funds and a set amount is ringfenced. The money does not leave your account as a completed payment, but it reduces your available balance until it is released.
The amount is typically made up of two parts. First, the rental company wants security for the vehicle and any damage responsibility you might have. Second, they may add an amount to cover anticipated extras such as fuel, toll programmes, young driver fees, one-way fees, or an additional driver. Some companies also include a buffer for taxes or for a longer rental if you extend.
In New York, pickups at major airports can involve higher holds because of premium location charges, higher daily rates, and more common one-way itineraries. If you are collecting around JFK, it helps to review location guidance and typical processes on pages like car rental New York JFK or the UK-facing airport overview car hire airport New York JFK.
SLI vs LDW, and why they affect the hold differently
SLI and LDW are often offered together in the same conversation, but they protect against different risks, and counters may treat them differently when calculating the card hold.
SLI (Supplemental Liability Insurance) increases liability cover for damage or injury you cause to others. It does not reduce the amount you might owe for damage to the rental car itself. Because the rental company is not reducing its exposure on the vehicle, adding SLI often changes the daily price but does not always reduce the security they want on the card. However, some locations include the cost of add-ons within the authorisation, which can make the hold larger even if the “risk” side is unchanged.
LDW (Loss Damage Waiver) generally reduces or waives what you pay if the rental car is damaged or stolen, subject to the terms. Because LDW can lower your financial responsibility for the vehicle, it can reduce the risk-related part of the hold. At the same time, LDW increases the rental cost, and if the location authorises for estimated charges plus a buffer, the total authorisation can rise. So LDW can either decrease or increase the pre-authorisation, depending on how that branch calculates it.
That apparent contradiction is why travellers are surprised. You add cover to feel safer, but see a bigger pending amount. The key is to understand what the branch is securing: risk, charges, or both.
Common ways coverage choices change the pre-authorisation
Here are the most frequent patterns seen at New York counters. The exact names and amounts vary by supplier, vehicle group, and payment method.
1) Hold based mainly on excess or damage liability. If the branch sets the hold to cover your potential damage responsibility, adding LDW can lower that exposure, so the hold may reduce. This is most likely when LDW meaningfully reduces the excess, and when the branch does not add all optional items into the authorisation.
2) Hold based on estimated rental charges plus a fixed buffer. If the branch authorises for the rental total plus, say, an extra amount for incidentals, then adding LDW or SLI increases the estimated total and the authorisation increases accordingly. In this setup, the “deposit” is not really about damage risk, it is about ensuring the final bill will clear.
3) Hold based on a hybrid calculation. Some branches combine a damage-security figure with a charges buffer. Adding LDW might reduce one part but increase the other. Depending on which component is larger, the net hold could go either direction.
4) Different holds for debit cards vs credit cards. If you are using a debit card, some suppliers apply higher holds, more restrictive cover requirements, or both. Adding cover might be required, but it can also increase the authorised amount because the supplier wants more certainty. If you are unsure which card types are accepted at your pickup point, it can be useful to review the specific airport or supplier page, for example Thrifty car hire New York JFK, because terms can be location-specific.
How to spot the revised hold before you sign
The most reliable protection is to treat the pre-authorisation as a number you should see, understand, and accept before the agreement is finalised. In a busy New York pickup hall, it is easy to focus on the queue and miss the line items.
Ask to see the updated estimate. When you add SLI or LDW, request a refreshed breakdown that shows the new daily rate, the total estimated charges, and the deposit or authorisation amount. If the staff member mentions “only a small hold”, ask for the exact figure.
Look for the authorisation line on the rental agreement. Many agreements show an “estimated total charges” and a separate “deposit” or “authorisation” figure. Do not assume the deposit is unchanged just because the daily price changed, verify both.
Check the card terminal display. Before you tap, insert, or sign, the terminal often shows the authorised amount. If it is higher than expected, pause and ask what it includes. If the terminal only shows a partial figure, ask the agent to confirm the full amount being authorised.
Use your banking app to confirm the pending transaction. In many cases, the pending authorisation appears quickly. If you have data coverage, check for a new pending amount while you are still at the desk. If you see two pending holds, ask which one will be voided. It is common for an old authorisation to remain pending temporarily after a new one replaces it.
Match the names of products to what you intended. LDW may appear under slightly different labels, and SLI might be bundled with other liability products. If you only wanted one add-on, ensure the agreement reflects that, because bundles can increase both the total charges and the hold.
Why you might see two holds after adding cover
It is not unusual to see two pending amounts on your account on pickup day. This can happen if the desk initially ran an authorisation, then recalculated after you added SLI or LDW, and ran a second authorisation. The first hold is typically voided, but banks can take time to release it.
If you are watching your budget closely, this matters because your available balance may temporarily reflect both holds. If that would cause inconvenience, ask the agent if they can void the first authorisation immediately and provide confirmation on the receipt. Even then, the release timing is controlled by your card issuer.
New York specifics that can interact with the deposit
Several New York area factors can influence the authorisation alongside SLI or LDW.
Tolls and toll programmes. New York area driving often involves cashless tolling. If you opt into a toll programme, it may increase the estimated charges and therefore the authorisation, even if the “deposit” line looks the same.
One-way rentals and cross-state returns. Driving from New York to New Jersey, or returning to a different airport, can add one-way fees. If those fees are added at the counter, the authorisation can rise. For travellers comparing pickup points, see car rental New Jersey EWR for Newark context and possible cross-river itineraries.
Vehicle category. Larger vehicles can mean higher daily rates, which increases estimated charges and can increase the hold. If you are collecting a people carrier, review the category page such as minivan rental Newark EWR to align your expectations on pricing and eligibility.
A simple checklist to keep the hold predictable
When you want optional cover but also want to avoid surprises, keep the process structured.
Decide what you need before reaching the desk. If you are likely to add LDW or SLI, assume the authorisation might be recalculated and ensure your credit limit can absorb a higher pending amount.
Ask one direct question. “What will the total pre-authorisation be on my card if I add this cover?” This keeps the answer focused on the number that matters.
Confirm whether the authorisation includes estimated charges. If it does, ask what buffer they add and what items can change it, such as toll products or fuel options.
Keep a copy of the agreement. If there is a dispute later about what was authorised or sold, the signed agreement is your primary reference.
Understand the release timing. Even if everything is correct, holds can take several business days to drop off after return. Plan your travel spending accordingly, especially if you are using the same card for hotels.
Does adding SLI or LDW “increase the deposit” in practice?
In practice, it can. Adding SLI or LDW can increase the pre-authorisation in New York when the rental company authorises for the estimated rental charges plus a buffer, because your estimated charges rise when you add coverage. LDW can sometimes reduce the risk portion of the hold, but that reduction may be outweighed by the higher estimated total, or not apply at all if the location’s policy is charges-based.
The best way to avoid a surprise is to treat the authorisation as part of the product you are agreeing to. Ask for the revised amount, check it on the terminal, and verify the pending figure on your account before you sign.
FAQ
Will adding LDW always increase my car hire deposit in New York? No. LDW can increase the pending amount when authorisation is based on total charges, but it can reduce it when the hold is based mainly on damage liability.
Does SLI change the pre-authorisation amount or only the price? It always changes the price, and it may change the pre-authorisation if the branch includes optional items in the authorised total, or recalculates the buffer.
How can I confirm the revised hold before I sign the agreement? Ask for the exact pre-authorisation figure, check the amount shown on the card terminal, and then verify the pending transaction amount in your banking app while still at the counter.
Why do I see two pending holds after adding coverage? The first authorisation may have been replaced by a recalculated one. The earlier hold is usually voided, but your bank may take time to release it.
How long does the deposit hold take to release after returning the car? Release timing varies by bank and card type. Many holds drop within a few days, but it can take longer, so budget for the temporary reduction in available funds.
