Renting A Car in Australia Explained: A Complete Guide

Renting a car is a cost-effective and excellent way to make your travel experience more comfortable and convenient. It can make getting around the city much easier, mainly when residing in an area where public transport is less frequent.

You will also find that renting a car gives you more flexibility, freedom, and a feeling of security. It lets you work night shifts or plan road trips to discover various parts of Australia.

Here, we have a complete guide to help you learn about car rentals in Australia. This guide will provide various tips on renting a car in Australia and the best car rentals. 

Also, it will introduce you to Australia's traffic and rental laws to book and pick your car hire.

1. How To Rent A Car In Australia?

The process is simple if you choose to rent a car in Australia. All you need to do is follow the steps below, and you will be ready to hire a car:

Step 1: Make Arrangements In Advance

It is always better to book your car online before you arrive in Australia rather than waiting to go to an enterprise car rental in Australia. Renting a car on the phone or online through a rental company is usually less expensive.

Also, if you wait to rent a car until you arrive, you may find out that the rental companies have sold out the cars of your choice, and there is no vehicle left for you that is within your price range. So try to make all the arrangements ahead to avoid high rental rates.

Step 2: Look For A Car Rental Company

There are several car rental companies through which you can rent a car either online, in person, or via phone. Most well-known car rental companies have offices at the airport or in Australian cities where you can pick up your car.

Some popular local car hire companies include Sixt, Budget, Thrifty car rental Australia, and more. The Australian Travel and Tourism Network can also help you to a fine of the companies, depending on where you need the car.

Here are a few things you should consider when searching for a car rental company:

• When searching for the best car insurance or hiring a car, you first need to check the rental prices of different locations. Also, consider that hiring a vehicle in the city is cheaper in Australia than renting it at the airport.

• The major car rental companies have websites with a portal to make reservations. You can also use travel websites like Kayak or Expedia to compare the rates of different car hire companies on one platform.

• If you want more information on car rental companies, you can check travel reviews of people renting cars in Australia. Tripadvisor is the best place to find reviews — it will give you an overview of which company has the best prices and policies.

Step 3: Compare Offers

Once you have explored some car rental companies, compare their policies and prices. Remember, prices may significantly vary from one company to the other, so consider various other options. 

Make sure you know the rental contract's specific terms and conditions, including administrative fees, insurance policies, and mileage limits.

2. What Is The Minimum Age Requirement For Renting A Car in Australia?

The rules vary between different car rental companies in Australia. Generally, most companies require you to be at least 21 years of age to rent a car. A few companies may charge you extra fees if you are under 25. 

And some even have a maximum age limit of 75 years. Additionally, you need to hold a driver's license for a minimum of one year or an open license to hire a car in Australia.

3. Can You Rent a Car In Australia With a US or UK License?

Most car companies in Australia accept all English language driving licenses. However, you will require an international driving permit if your license is not in English but in another language. 

Remember, car rental companies in Australia do not approve photocopies of learner licenses or provisional licenses.

4. Do You Need Auto Insurance To Rent a Car?

Yes, you need rental car insurance in Australia to rent a car. Usually, most companies require you to have two policies:

• Theft Insurance: It covers the loss of the vehicle, but it doesn't cover any of your belongings inside the car. For that, you can opt for other policies for personal effects and personal accidents. You can get more information on this from your car rental company.

• Collision Damage Waiver: It covers you in case of an accident or damage to your rental car. The cost of the waiver entirely depends on the type of rental car you hire and the city where you will drive the vehicle. Generally, it may cost you between $10 to $30 per day.

Not having rental car insurance in Australia may be extremely risky and expensive, particularly if you encounter an accident or a collision.

If you are responsible for the accident, you must pay the car rental company the total cost of the damage. You also have to cover the cost of any other property or vehicle damage during the collision. If someone gets hurt, you must also pay for medical expenses.

5. How Much Do You Need To Pay When Renting A Car in Australia?

The car rental rates depend on the supplier you hire your car from and the time of the year. It may also vary based on the type of car you choose to hire and the location from where you rent your vehicle. 

For instance, if you have booked a car hire at Brisbane airport, it will involve an extra daily surcharge.

6. Where To Pick Up Your Rental Car?

There are many places where you can pick up your rental car. Most rental companies in Australia have depots in metropolitan cities like Sydney, Melbourne, and Brisbane.

However, if you are flying to Australia, you can pick up your car from the airport. Organising your rental car insurance and booking your car hire before arriving in Australia is highly recommended.

Hiring a vehicle ahead of arrival is always better as it allows you to get the best car rental in Australia deals at a cheaper rate.

7. Where To Drop Off Your Rental Vehicle?

Before dropping off your vehicle, you must schedule a time with the car hire company. If required, you can also extend the date for dropping off the rental car. Also, it is necessary to leave the vehicle at the exact location where you picked it up.

You can even drop it off at a different destination, including another state. This is called a one-way rental. So, for instance, if you book a car hire in Sydney, you can return it in a car hire in Melbourne without any inconvenience. 

However, there is one condition; you must drop off the vehicle at the agency mentioned in your car rental agreement.

The fee for a one-way car rental in Australia mostly depends on the destination where you want to return your vehicle. Before you choose where to end your trip, compare the drop-off rates in different cities. 

You may pay a lower one-way fee by driving an extra hour and dropping off your car in a different city.

8. What Happens if You Get A Speeding Ticket When Driving A Rental Car in Australia?

In Australia, you will see speed cameras installed everywhere, so you always need to stay alert when it comes to speed. The car rental company will receive your speeding fine if you get caught on camera.

There are different speed limits in Australia. Therefore, always keep your eyes on the signs because speeds can change immediately, depending on the roadworks, road conditions, etc. 

During school hours, the speed limit is 40 km/hr in school zones, and in South Australia, it's 25 km/hr. Besides, cities and other developed areas have a speed of 50 to 60 km/hr.

9. Hidden Car Rental Charges

You need to be aware of the several hidden car hire fees added to the total cost of your rental bill. Some of these rental charges include the following:

• Additional Mileage: A few car rental companies limit how many kilometres you can travel daily. So read the terms and conditions properly before renting a car.

• Refuelling Fee: If you do not return the car with a full tank or choose a pre-paid option, the car rental company will charge you the premium fuel price.

• Late Pick-up: If you run late picking up your car, you might pay for the late pick-up fees. Hence, if you are flying to Australia, fill in the correct flight details when renting your car. If you are picking up the vehicle directly from the agency, make sure to reach on time and if there are any delays, inform them in advance.

• Late Drop-off: Most car rental companies in Australia start charging an hourly rate after 30 minutes if you return the car after the due date. Therefore, ensure you are not running late to drop off your vehicle.

• Young Driver Fee: Student car rental in Australia may lead to extra charges. So if you are under the age of 25, you may be charged an additional fee by your car rental company.

• Administrative Fee: It is common for rental car firms in Australia to charge you an administrative fee of up to 3.5%. So, you can hardly do anything about it.

10. Common Requirements For Renting A Car in Australia

• You need to have a valid driver's license, either international or Australian.

• You must be 21 years of age. 

• You require auto insurance to rent a car, so you are covered.

• You pay a damage deposit in advance when you pick up the vehicle.

• You are not allowed to take your rental car on ferries. 

• You should have your credit card when paying for your rental at pick-up.

11. Consider The Basic Road Rules For Driving In Australia

• When driving in Australia, seat belts are mandatory both in the front and back seats of the car.

• In Australia, you drive on the left side of the road, and the steering wheel is on the right side. It can be tricky for people who belong to the United States or other countries where the rule is to drive on the right side. Before arriving in Australia, you can watch some YouTube videos to get tips on driving. And once you arrive in Australia, you should start driving on smaller roads to get comfortable with the change.

• Throughout Australia, the blood alcohol limit is .05%. Provisional drivers or learners cannot have alcohol running in their system while driving. Remember, there is no tolerance for drunk driving in Australia.

• Making a left-hand turn is illegal unless there is a signpost at the red signal.

• If you break any road rules in Australia, your car hire company will receive a notification.

12. Top Tips When Renting a Car in Australia

• Take a close look at your rental terms and conditions, and do not hesitate to ask any questions when you pick up your car. 

• Make sure you carefully inspect the vehicle before you leave and check for any damage, no matter how minor. Examine your car in front of the sales assistant.

• Take photos of the car at the beginning and end of the hire. 

• Double-check to confirm that the vehicle you picked is the same model you booked. If not, the car hire company may upgrade your car.

• Research how you can pay a toll when you're going to big cities in your rental car.

• If you have an accident or the car breaks down during the rental, follow the procedures of the rental company. Do not repair the vehicle without approval.

Useful Links to Explore:

• English Language Requirements for Australia
• Cultural differences you may experience in Australia
• How to find Part-Time work as a Student in Australia
• Seven Tips for Students on a Budget in Australia
• How to get a Scholarship to Study in Australia
• Driving in Australia as an International Student
• How to change your Course or Institute in Australia
• The Benefits of a Professional Year Program (PYP)
• A Complete Guide to Study in Australia
• Types of Education in Australia 
• What to Study in Australia?