Planning a holiday in Australia? Hiring a rental car is one of the best ways to explore this vast and beautiful country at your own pace. From coastal drives and national parks to outback adventures, having your own vehicle gives you the freedom to go beyond the usual tourist spots.
This guide covers everything you need to know about renting a car in Australia — including requirements, insurance, costs, and practical tips.
Australia is a large country with incredible destinations spread across long distances. While major cities have good public transport, many of the best experiences are only accessible by car.
Hiring a car allows you to:
• Explore scenic coastal drives like the Great Ocean Road
• Visit national parks and beaches at your own pace
• Travel between towns and regional areas easily
• Add flexibility to your itinerary
If you're planning a self-drive holiday, a rental car is essential.
In Australia, some of the most well-known and trusted car rental providers include Europcar, Budget, Hertz, Avis, Thrifty, and Sixt. These companies offer a wide range of vehicles and have locations across major cities, airports, and regional areas, making them a popular choice for both domestic and international travellers.
Alternatively, a service such as VroomVroomVroom can make booking a rental car easier and more cost-effective. Instead of checking multiple rental companies individually, you can compare a wide range of vehicles and prices from leading suppliers all in one place. This saves time, helps you quickly find the best deal for your travel dates, and gives you a clear overview of available options, from budget cars to larger SUVs and 4WDs. It also makes it easier to compare inclusions, insurance options, and pickup locations, so you can choose the rental that best suits your itinerary without the hassle of searching multiple websites.
To hire a car in Australia, you'll generally need:
• A valid driver's licence
• To be at least 21 years old (some companies require 25+)
• A credit card in the driver's name
International Visitors
If your licence is not in English, you'll need an International Driving Permit (IDP). If it is in English, you can usually drive with your home licence.
Young Drivers
Drivers under 25 may need to pay a young driver surcharge, and vehicle options may be limited.
Rental companies in Australia offer a wide range of vehicles to suit different travel styles:
• Economy & Compact Cars - Ideal for city travel and short trips
• Sedans & Family Cars - Comfortable for longer journeys
• SUVs & 4WDs - Best for regional areas or rougher terrain
• Campervans & Motorhomes - Perfect for road trip holidays
• Luxury Vehicles - For premium travel experiences
Choosing the right vehicle depends on your itinerary and the type of roads you'll be driving on.
This is one of the most important aspects of hiring a car in Australia.
Standard Cover
Most rentals include basic insurance, but this comes with a high excess (the amount you pay if the car is damaged), often between $3,000 and $6,000+.
Reducing Your Excess
You can reduce this excess by:
• Purchasing excess reduction cover from the rental company
• Using travel insurance that covers rental car excess
Security Bond
A bond (pre-authorisation) will be held on your credit card for the excess amount during the rental.
Typically Included:
• Basic insurance
• GST (tax)
• Standard kilometres (often unlimited)
Additional Costs May Include:
• Extra drivers
• Child seats
• GPS hire
• One-way rental fees
• Airport surcharges
• Young driver fees
• Premium insurance upgrades
Understanding these costs upfront helps avoid surprises.
Most rental companies in Australia operate on a full-to-full policy:
• You collect the car with a full tank
• You return it full
If you return the car without refuelling, you may be charged a higher fuel rate.
Rental cars can be collected from:
• Airports (most convenient for travellers)
• City locations
What You'll Need:
• Driver's licence
• Credit card
• Booking confirmation
One-Way Rentals
You can often pick up your car in one city and drop it off in another, though one-way fees may apply.
Driving in Australia is generally straightforward, but there are a few key things to know:
• Drive on the left-hand side of the road
• Speed limits are in kilometres per hour (km/h)
• Seatbelts are compulsory
• Strict drink-driving laws apply
Road Conditions
• Highways are well maintained
• Rural roads may be unsealed
• Distances between towns can be long
Wildlife Hazards
Watch for animals like kangaroos, especially at dawn and dusk.
If you're planning to visit remote or off-road areas, a 4WD vehicle may be required.
Important considerations:
• Many rental agreements exclude unsealed roads
• Some regions (like Fraser Island or Cape York) require special approval
• Insurance may not cover remote area damage
Always check your rental terms before heading off-road.
Tolls
Some cities (Sydney, Melbourne, Brisbane) have electronic toll roads.
• There are no toll booths
• Tolls are charged automatically via number plate recognition
• Rental companies usually offer toll packages or charge admin fees
Parking & Fines
Parking rules are strictly enforced in Australia.
• Follow signage carefully
• Pay for metered parking where required
• Avoid no-stopping and clearway zones
Any fines incurred during your rental will be charged to you.
• Book early for the best rates
• Compare airport vs city pick-up locations
• Avoid unnecessary extras
• Check your travel insurance coverage
• Consider package deals with flights and accommodation
Australia is perfect for self-drive holidays. Some popular routes include:
• Great Ocean Road (Victoria) - Stunning coastal scenery
• Tasmania Loop - Nature, wildlife, and food experiences
• Sydney to Brisbane Coastal Drive - Beaches and seaside towns
• Red Centre (Uluru & Outback) - Iconic Australian landscapes
Do I need an international driver's licence in Australia?
• Only if your licence is not in English.
Can I drive between states?
• Yes, most rental companies allow interstate travel.
Are kilometres unlimited?
• Often yes, but always confirm when booking.
What happens if the car is damaged?
• You'll be liable up to the excess amount unless you have reduced it.
Can I take a rental car on a ferry?
• Some companies allow this (e.g. to Tasmania), but approval is required.