Key points
  • Car hire in Australia can look cheap upfront, but extra costs like insurances, bonds, and excess kilometre fees can significantly increase the final price.
  • Renters generally need to hold a valid driver's licence, meet age rules, and provide a credit or debit card for a security bond.
  • Understanding insurance cover, excesses, and alternative rental options can help travellers avoid surprises and choose the most cost-effective way to get around.

Renting a car is usually pretty easy in Australia. It’s normally a simple matter of booking online or turning up on the day. Car hire can be as little as $30 or more than $100 per day.

How much does it cost to rent a car in Australia?

Aside from a nominal base rate, which varies based on factors like the car, your age, and the provider, there are other charges that could see the cost of your car rental skyrocket. Still, some add-ons can be very important.

  1. Savings.com.au’s two cents

Travelling across our big brown land without a car is a hard ask, and renting a vehicle is an easy way to get acquainted with the country.

When contemplating a car rental, it's important to consider your insurance options, including any excesses you’d need to pay should you be involved in an accident. Overall, the online advertised price on car hire is usually only half the equation - be aware of the other costs when shopping around for a good deal.

Additional costs you might have to account for could include:

  • Car rental excess insurance
    This protects the leaser in the event the car is damaged in their care and allows them to simply hand it back without paying an insurance excess, which is often hundreds or thousands of dollars.
  • A one way fee
    This may apply if you pick your car up in one location and drop it off in another, as it's generally an inconvenience for the rental company. 
  • Baby seats
    Some agencies allow you to rent a car seat for a nominal fee per day, and this convenience can be worth it as you’re not lugging around your own seat when on holiday.
  • Mileage excess
    Some rentals include a capped number of kilometres per booking, often amounting to 100 kilometres per day, and charge per kilometre over the limit. Often, the charge is a few cents per kilometre, which can add up fast in a country as large as Australia.
  • Late charges
    Of course, if you’re late in returning your car, you can expect to be slugged, sometimes even at the full day rate if you’re only a few hours late.
  • Fuel fee
    Rental agencies like you to fill up before returning the car, otherwise they’ll do you the (dis)service of filling it up for you, often at a much-inflated rate. 
  • Toll fee
    Rental agencies may allow you to pre-purchase a toll pass if you know you’ll be running through some tolls in your time. However, if you decline this option and run through a few tolls, the rental agency may tack on an extra margin.
  • Remote area fees
    If you plan to drive a rental car into a remote location, perhaps across the Nullarbor, into Central Australia, or up Cape York, be prepared to pay extra. This cost often covers the risk an agency faces if the vehicle were to crash or break down beyond the reach of normal recovery services. 

Requirements to rent a car in Australia

Have a driver's licence 

For starters, you'll need a valid driver's licence to rent a car in Australia, and that licence must allow you to drive the class of vehicle you're renting. Some rental agencies may be stricter than others.

If your overseas licence is in English, you can generally drive legally without extra documents. If it’s not in English, you may need to carry either:

  • an International Driving Permit (IDP)
  • or an official English translation

Be aged 21 years or over

Generally, the minimum age for car hire in Australia is 21 across the major rental agencies. That's also when many Australian states allow younger drivers to transition from a ‘provisional’ (restricted) licence to an unrestricted driver's licence.

While 21 is the minimum age with many, there are also likely to be extra fees if you’re under 25. On the flipside, most agencies don’t have a maximum age limit when it comes to renting a car, though some may require a medical certificate if you're over 75.

Hold a valid credit or debit card in your name

Most rental companies will place a security bond on your credit or debit card when you collect the car. Bonds typically range from $200 to more than $2,000, depending on the vehicle and insurance chosen. Some insurance options see the need for a bond waived.

The card on which the bond is placed often has to be in the name of the main driver and match their ID.

Typically, the bond is held, not charged, but this still reduces your available funds for the period you're renting a car. It’s usually released days or weeks after the car is returned, so it's worth planning for.

Insurance when renting a car in Australia

Car rental companies generally have their own insurance covering their entire fleet, so you won’t have to take out a full insurance policy for a car you’re only renting. However, if the car is damaged or stolen while you’re renting it, you’ll typically be liable to pay a damage excess to the car rental company.

Most car rental companies offer car rental excess insurance to protect customers from needing to pay the excess if anything were to happen, but this typically comes at an extra cost. Declining rental excess cover doesn’t mean you’re uninsured - it just means you’ll be liable for the excess if something goes wrong.

Many travel insurance policies and credit cards offer coverage for rental car excess up to a certain amount, so check your product disclosure statement (PDS) to see if you’re already covered for this risk.

What car rental agencies operate in Australia?

Popular car rental companies in Australia include:

  • Avis Car Rental
  • Thrifty Car Rental
  • Hertz Car Rental
  • Europcar Car Rental
  • Budget Car Rental

Van and truck hire agencies operating in Australia

If you're looking for a campervan or the likes, these rental agencies might be able to help you:

  • Wicked Campers
    Wicked Campers are favourites with backpackers, offering cars, campervans, and vehicles equipped with rooftop tents.
  • Jucy 
    Jucy specialises in camper-type vehicles. 
  • Go With The Gecko
    Offers car and truck hire, with vehicles often unlocked via an app, allowing for a flexible renting experience.

Alternatives to traditional car hire agencies operating in Australia

Several rent-to-own, car subscription, car-to-go, and peer-to-peer car rental services have popped up in Australia recently, most notably in capital cities, including:

  • GoGet
  • Car Next Door
  • Turo

These sites are a handy way to rent away from hire agencies, either as a means to toot around town, or to test drive a car more thoroughly before purchasing. They also allow you to take a look at more interesting vehicles, like luxury or quirky cars. However, it's worth reading the fine print to ensure you're getting a good deal suitable for your needs.