Hiring a car can make domestic travel easier and more flexible, particularly when visiting regional Australia where public transport is limited. But before picking up the keys, it’s important to understand the rules, costs and common pitfalls that can catch travellers off guard. Here’s what to keep in mind before your next car hire.
Understand licence and age requirements
A valid driver’s licence is essential, and it must be in English.
If your licence is from overseas or not written in English, you will need an International Driving Permit (IDP) or an accredited translation. Most major rental companies in Australia require drivers to be at least 21 years old, with additional fees often charged for drivers under 25. Some premium vehicle categories may have a minimum age of 30.
Check the insurance cover carefully
Basic insurance is included in all Australian car hire contracts, but the excess – the amount you must pay if the vehicle is damaged – can be surprisingly high.
It is not uncommon for excesses to exceed $4,000 for standard vehicles and significantly more for SUVs or luxury cars.
Travellers can purchase excess reduction from the rental company, but it often comes at a premium. As an alternative, many travellers use travel insurance policies that include excess cover, which may be more cost-effective. It’s important to read the fine print; exclusions often apply for water damage, single-vehicle accidents, or driving on unsealed roads.
Be aware of hidden charges
Beyond the daily hire rate, several extra costs can appear on a final bill. These may include fees for additional drivers, premium location surcharges at airports, late returns, toll road charges, and fuel refuelling fees if the tank isn’t full when the car is returned.
Child seats, GPS units and roadside assistance upgrades also come at an additional cost. Asking for a complete quote upfront helps avoid surprise charges at the counter.
Know where you are permitted to drive
Most rental agreements in Australia restrict driving on unsealed or remote roads unless the vehicle is specifically designed for those conditions. Travellers planning to visit outback areas, national parks, or islands such as K’gari (Fraser Island) need to confirm whether the hire car is permitted in those locations. Driving outside of allowed areas can void insurance and leave travellers liable for all damage costs.
Understand fuel policies
Fuel policies vary between companies. The most common is “return full,” meaning you must refill the tank before dropping off the vehicle. Some companies offer pre-purchased fuel options, but these are rarely cost-effective unless you expect to return the car almost empty. Always keep fuel receipts and return the car with a full tank to avoid high refuelling fees.
Inspect the vehicle before you leave the lot
Before driving away, it’s essential to inspect the car inside and out and ensure any existing scratches, dents or interior marks are recorded on the rental report. Taking photos or videos during the inspection provides additional protection. When the vehicle is returned, ask for a printed or emailed confirmation that it has been checked in without new damage.
Plan ahead during peak periods
Car hire availability can become limited during school holidays, long weekends and the Christmas–New Year period.
Booking early ensures better choice and more competitive pricing.
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