Australia is a vast country, making car rental a great way to visit various attractions. Sydney, Melbourne, Brisbane, Tasmania, and Perth etc are all perfect destinations for a self-drive holiday.
Today, I'll share some practical car rental tips for Australia, including rental conditions, company introductions, costs, insurance, car rental procedures, and self-driving experiences to help make your Australian car rental experience smoother.
(Renting a car and self-driving are highly recommended for transportation in Australia, unless you only stay within the big city centers of Sydney, Melbourne, Brisbane, and Perth, etc. Otherwise, renting a car definitely offers you much more flexibility.)
1. Car Rental Conditions in Australia
Renting a car in Australia is quite simple, as long as you are at least 21 years old and have held a driver's license for more than a year. Of course, the necessary documents must be in English. For non-English-speaking tourists, you'll need an International Driving Permit or an officially certified English translation (such as a NAATI translation) to rent a car.
At the rental location, you'll need to present your national driver's license, and your International Driving Permit (if required). You cannot use just the International Driving Permit, and although a passport is not usually required, foreigners are advised to carry one just in case.
(Note: Some Australian states have stricter requirements for driver age and experience. For example, in Tasmania, you must have held a driver's license for at least 3 years to rent a car. Additionally, drivers aged 21-25 normally incur additional fees, leading some car rental companies to simply set a minimum rental age of 25.)
2. Car Rental Companies in Australia
There are many car rental companies in Australia, including international chains such as Hertz, Budget, Avis, Europcar, National, Alamo, Thrifty, Enterprise, Dollar, and SIXT, as well as local companies like Jucy, Apex, Redspot, Firefly, Apollo, Alpha, and East Coast.
The main differences are that international brands usually have more branches (including airport counters), easier pick-up and drop-off, better insurance coverage, and higher service and vehicle quality. As a result, brands like Avis, Budget, and Hertz are very popular and mainstream choices for tourists in Australia. On the other hand, local Australian car rental companies tend to be cheaper but may have fewer locations, fewer vehicle options, and lower quality and coverage.
Regarding car rental company locations, most tourists prefer to pick up their cars at the airport. Below is a list of car rental companies at Australia's three major airports:
| Sydney Airport | Melbourne Airport | Brisbane Airport | |
| Car Rental Companies | Hertz* Avis Budget Europcar Thrifty Enterprise* SIXT Dollar* |
Hertz* Avis Budget Europcar Thrifty Enterprise* SIXT Dollar |
Hertz* Avis Budget Europcar Thrifty Enterprise* SIXT Dollar* |
| Counter Locations | T1 International T2 Domestic T3 Domestic |
Airport Map | International Domestic |
| Notes | 1. Hertz also partners with Firefly and Apollo, cars can be picked up at the same counter 2. Enterprise also partners with Redspot, Alamo, and National, cars can be picked up at the same counter 3. All three major airports in Australia have both domestic and international terminals. Except for Dollar, which only has counters at domestic terminals in Sydney and Brisbane, other companies have counters at both domestic and international terminals. |
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As you can see from the table, the companies with their own counters at the airports are almost all international brands. Australian local brands mostly share counters with them or have separate locations near the airport. For example, Apex, Firefly, and Alpha have branches near airports, but you'll need to make your own way to their locations. This is an example of the convenience differences between international and local companies.
In addition, other Australian city airports, such as Perth, Adelaide, Tasmania, and Cairns, have a similar situation, with mainly international car rental companies having counters and fewer local companies having branches outside of major cities.
If you prefer to pick up your car in the city rather than at the airport, keep in mind that the city branches of car rental companies may not always be in convenient locations, so you'll need to research how to get there by public transportation.
(Car rental company airport counters in Australia are generally located near the exit, whether in Sydney, Melbourne, Brisbane, or other cities, and for both international and domestic flights.)
Next, you may want to know which car rental company is the best or most recommended? In Australia, there is a consumer review platform called "Canstar Blue," which is a fairly credible third-party platform. Below is their evaluation of the top 5 international car rental companies based on satisfaction, service, price transparency, value for money, vehicle variety, and quantity. You can refer to these ratings for guidance:
(From the chart, it's clear that overall, Avis, Thrifty, and Europcar have higher ratings in various categories. However, in my personal opinion, the differences among the mainstream international car rental companies are relatively small, and they generally offer many more advantages compared to local Australian companies.)
(The airport branches of Australian car rental companies usually have long operating hours, from around 5 or 6 a.m. until midnight, basically in line with flight schedules. Therefore, there's no need to worry about not being able to pick up or return a car. However, if you plan to pick up or return a car at a city branch, the operating hours are usually from 9 a.m. to 6 p.m., and they may only be open until noon on weekends.)
(Most Australian car rental companies offer a variety of Japanese and Korean brand vehicles. Some companies, like Jucy, specialize in renting campervans.)
3. Car Rental Costs and Comparisons in Australia
After getting familiar with Australian car rental companies, you naturally want to know which one is more affordable. Each company's pricing structure is different, but it generally consists of the rental fee plus miscellaneous charges, such as administrative fees, taxes, location fees, and vehicle registration fees. However, excluding insurance, the total price for a standard sedan is roughly AUD 70-130 per day, and for a seven-seater, it's about AUD 130-220 per day. The type of vehicle, peak or off-peak season, and rental duration can all affect the average price (the more days you rent, the cheaper the daily rate).
Moreover, car rentals in Australia operate on a daily, 24-hour basis. For example, if you start renting at 8 am on the first day and return the car before 8 am on the third day, you'll be charged for two days. But if you return the car at 9 am on the third day, you'll be charged for three days, so pay attention to your itinerary.
Lastly, while you can check prices on each rental company's official website, it's recommended to use "Rentalcars.com" in Australia for comparing prices among major car rental companies. It is the most mainstream and convenient platform in Australia. Other large travel websites, such as Booking.com, Agoda, and Expedia, also use Rentalcars.com's comparison engine, so it's highly recommended.
(As mentioned in a previous "Car Rental Comparison" article, Rentalcars.com allows you to compare prices from major international and local car rental companies, with a user-friendly interface that clearly displays rental locations, individual prices, and total prices. Some rentals even support free cancellation, which is very convenient.)
4. Types and Costs of Car Rental Insurance in Australia
Australian car rentals usually include third-party liability insurance, collision damage waiver (CDW), and theft protection. These cover claims for injuries to third parties in accidents, as well as vehicle collision and theft (excluding glass/tires/personal property).
Both CDW and theft protection typically come with a deductible, meaning that if the claim exceeds the insurance coverage, the rental company can require you to pay a certain amount. Depending on the vehicle type and rental company, this amount usually ranges from AUD 4,500 to 5,500. Additional fees for damage assessment and compensation for lost revenue may also apply.
In addition to the basic insurance mentioned above, you can also purchase additional coverage, such as zero deductible (comprehensive insurance), tire and window damage waiver, roadside assistance and towing, and reduced deductible insurance. These can usually be booked online or at the rental counter, though on-site rates tend to be higher.
Furthermore, if you book through "Rentalcars.com," the insurance fees are often lower than those offered by the rental company itself. The difference is that in the event of an accident, you need to compensate the rental company first and then apply for reimbursement from Rentalcars.com. You can also purchase insurance from third-party websites like RentalCover, which is generally cheaper than the rental company's rates.
(Australian car rental companies themselves offer "comprehensive insurance" that covers all basic and additional insurance. This is a recommended option since insurance is meant to protect against unforeseen events. If an accident occurs, there can be many hassles to deal with, and comprehensive insurance simplifies the process by even waiving the deductible.)
5. Car Rental Process in Australia
In the article below, I will share my real experience with the car rental process in Australia. I booked an Avis vehicle through "Rentalcars.com," but I believe the process is quite similar for other companies. This information should be helpful for tourists planning to rent a car in Australia.
(Upon arriving at the counter, you will need to provide your confirmation email (if you booked online), your domestic driver's license, an international driver's license or translated version (if required), and a credit card. The credit card is used for the "deposit," which covers the deductible or any additional fees incurred during the rental period (such as tolls). The amount of the deposit varies depending on the insurance coverage. For comprehensive insurance, it's usually around 100-200 AUD. If you only have basic insurance or use third-party insurance, a higher deposit is required. The deposit will be refunded upon returning the car.)
(If you haven't purchased insurance yet, you can still buy it on-site (though it's more expensive than online). You can also add on GPS, but I think Google Maps works quite well in Australia for navigation and locating parking spaces, so there's not much need for a separate GPS.)
(After confirming everything, the rental company staff will ask you to do a final inspection. Any pre-existing damages will be noted on the contract. If you have any disputes, raise them immediately, and they will be updated on the contract. After this, you can start driving.)
(Australia has right-hand drive, which might take some getting used to for some foreign tourists. Apart from busier city areas, many roads are easy to drive on, especially in suburban areas where there are fewer cars. Driving rules are similar to those in Asia (refer to government road signs). Speed limits are quite high; country roads usually allow speeds up to 110 km/h. Australia is genuinely vast!)
(Most Australian highways do not have tolls, with only "Toll Roads" requiring payment. Electronic payment systems are used based on distance traveled. Rental companies typically install tags on the cars, and they will pay the tolls and later charge the driver (deducting from the deposit). To learn about Toll Road routes and fees, you can refer to the official websites for Sydney Toll Road, Melbourne Toll Road, and Brisbane Toll Road.)
(Australian petrol stations are self-service. Clear instructions are displayed on signs. The process is simple: park, choose the fuel nozzle, fill up, and note the pump number. Then, go to the adjacent convenience store to pay. To find out the average fuel prices in various Australian cities, you can refer to "FuelPrice Australia.")
(When returning the car, the company usually checks the fuel gauge, car condition, and collects the key. Most rental companies require a full tank of gas when returning the car (so keep your final fuel receipt). Some companies, like Hertz, offer additional services, such as returning the car without refueling.)
That's an overview of renting a car in Australia. There are many great cities to explore, like Sydney, Melbourne, Brisbane, Gold Coast, Cairns, Perth, Tasmania, and the Whitsunday Islands, among others. Renting a car allows for a more flexible itinerary, letting you dive deeper into the wonders of Australia!