Planning on renting a car in Australia? Excellent choice! We think Australia is best explored by road-tripping, as it means you can explore at your own pace and venture off the beaten path. And if flexibility is important to you (like it is to us), then it’s the way to go – as you can create your own itinerary.
That said, before you rent a vehicle and start driving in Australia, you probably have a few questions you want answered. Well, that’s where I come in. I’ve lived in Sydney for a couple of years and have rented a car on many occasions. So, I know the rules of the road here, the best road trips to take, and the best (and cheapest) car rental companies in Australia!
So, below, you will find an extensive list of 12 things you should know before renting a car in Australia. Hopefully, it will make the process much easier for you.
P.S. We tend to always book our rental car through Discover Cars – which is a search engine for rental cars and allows you to filter by price if you’re on a budget or by vehicle type if there’s a specific car you’re after. I’ve tried many times to rent direct with the companies, and it took me a long time to filter through each company.
What you need to know about car rental in Australia:
1. Is it worth renting a car in Australia?
Yes, it is 100% worth renting a car in Australia. And although it can be expensive to do so, you will be able to go wherever you want, whenever you want, without being constrained by a timetable. Like you would if you were to do a guided tour.
But, let’s get this straight first – Australia is HUGE! And therefore, it would be foolish to expect to see all of Australia in a couple of weeks of driving. The distances in Australia are lengthy, and the next town might well be hundreds of miles away.
There are not many short drives here. So, instead when renting a car in Australia, focus on seeing a couple of places.
Australia is known as one of the most uniquely beautiful countries in the world. And the best way to get to its hidden gem spots is by hiring a car. Public transport in Australia is limited to its off-the-beaten-path gems. I’ve lived in Sydney for a couple of years and I’ve been on heaps of road trips here and have realized that there is just so much you can’t see without a car!
Aside from transportation, having access to rental cars also provides you with a place to store your belongings. This means you won’t have to lug luggage around everywhere.
Search for where to stay on your drive through Australia, here –
2. What are the best drives in Australia?
If you have a rental car in Australia, it is fair to say that you can see a hell of a lot, provided time is on your side. Australia is renowned for its scenic driving routes. And there are loads of epic drives that you can embark on that showcase the country’s incredible natural beauty.
However, it’s so important to keep the size of the country at the forefront of your mind when planning your road trips in Australia. Australia is about 32 times bigger than the UK. To put this into perspective, it will take a minimum of 41 hours to drive to Sydney on the East Coast from Perth on the West Coast.
That’s why we recommend focusing on either the East Coast or the West Coast for your Australian road trip!
My favorite road trips in Australia:
- Great Ocean Road – one of the most scenic and famous drives in Australia
- Red Centre Way – passes by iconic Uluru and through King’s Canyon
- East Coast Road Trip – from Sydney to Melbourne, it’s super-popular for good reason
The Great Ocean Road in Victoria (243 km long) is one of the most famous drives in Australia, it winds along the stunning coastline with highlights like the Twelve Apostles and picturesque towns such as Lorne and Apollo Bay.
Another favorite drive of mine is the Pacific Coast Touring Route in Queensland (1,000 km long). It takes you from Brisbane to Cairns and offers a mix of beaches, rainforests, and the chance to swim in the Great Barrier Reef.
If you’re after a more rugged adventure, the Gibb River Road in Western Australia (660 km long) winds through the Kimberley region and features gorges, waterfalls, and unique wildlife. It’s definitely an off-the-beaten-path drive and that’s what we loved about it!
And I can’t forget the Red Centre Way in the Northern Territory (835 km long), which offers an iconic outback experience. It goes through Uluru (Ayers Rock), Kings Canyon, and the MacDonnell Ranges.
Finally, the East Coast road trip from Sydney to Melbourne (1,189 km long) combines cityscapes, scenic coastal views, and charming countryside. And we did this many times when we lived in Sydney!
Related Read: Check out my guide on how to spend 3 days in Sydney!
3. What are the rules for renting a car in Australia?
The most important thing you will need if renting a vehicle in Australia is a valid driver’s license. No company will allow you to do so without one.
And if you are traveling from a non-English-speaking country (i.e., your license is in another language), you might want to get an international driver’s license to make the rental process easier.
Drivers typically need to be at least 21 years old to rent a car in Australia, though some companies might require a minimum age of 25. Young drivers under 25 may incur a surcharge. Similarly, some companies may have age restrictions for senior drivers (usually for those over 70 years).
Each company has different terms and conditions, so you should be fully aware of them. Additionally, you might also need a valid credit card if you don’t take out full coverage car insurance with the rental company. Rental companies will want to keep a credit card on file as a holding deposit.
If you have a debit card, you will be charged a holding fee. Please note that some companies do not accept a debit card.
Do you need an international driver’s permit to rent a car in Australia?
As I said, if you are traveling from a non-English country, you might want to get an international driver’s license to make the rental process easier.
4. How to reduce costs when renting a car in Australia
The cost of renting a car in Australia can be expensive. However, there are some ways you can save money. We tend to always book our rental car through Discover Cars. This is a search engine for rental cars and allows you to filter by price if you’re on a budget or by vehicle type if there’s a specific car you’re after.
You should try to rent your car from the city depot, not the airport, as prices are higher at the airport. And it will also be cheaper to pick up and drop off your rental car at the same location as otherwise you will likely be charged a relocation fee.
As you would expect, hiring a car in the quieter winter months (June to August) will be cheaper than if you book one in the height of the Australian summer, between December and February.
5. What is the average cost ot renting a car in Australia?
The cost of renting a car in Australia can vary based on several factors, including the type of car, the duration of the rental, and the location you’re renting from.
On average, you can expect to pay between $30 to $100 AUD per day for a standard car.
Larger cars like SUVs or vans will cost more, typically ranging from $100 to $300 AUD per day.
Prices will also vary depending on the time of year, you will notice higher rates during peak tourist periods (like from, December to February). Additionally, extras such as insurance, GPS navigation, and child seats may incur additional costs.
Overall, the longer you choose to rent a vehicle, the more cost-effective it will be for you. Therefore, it is a good idea to plan one big road trip.
We tend to always book our rental car through Discover Cars – which is a search engine for rental cars and allows you to filter by price if you’re on a budget or by vehicle type if there’s a specific car you’re after. I’ve tried many times to rent direct with the companies, and it took me a long time to filter through each company.
6. My top tips for driving in Australia
Just like in the UK, Ireland, Japan, and New Zealand, they drive on the left-hand side in Australia. So, that means that the steering wheel sits on the right-hand side of the car. Don’t be surprised if you try to get into the wrong door for much of the first day!
Most of the roads in Australia that link the cities are in good condition, so you should find them easy to drive. However, in more remote areas, you may need to drive on dirt roads or tracks.
Speed limits are generally lower in urban areas, typically around 50 km/h, while highways can range up to 110 km/h. It’s also crucial for drivers to be vigilant about wildlife, particularly in rural areas, as kangaroos and other animals often cross roads. These occurrences typically happen at sunrise and after sunset.
Drivers should also be aware of the vast distances between destinations, so please ensure your car is properly serviced and fueled up before driving into remote areas.
If you decide to rent an electric vehicle, there are plenty of charge points throughout the country. They are most commonly found at gas stations or in car parks.
7. Do I need extra insurance when renting a car in Australia?
When renting a car in Australia, we highly recommend upgrading to fully comprehensive car insurance. And while basic insurance is typically included, it often comes with a high excess. Therefore, comprehensive coverage will give you peace of mind, especially if you plan on driving long distances.
The car rental staff will often try to upsell you to higher insurance when you get to the counter to collect your car. Because we selected the highest coverage available when we booked, we chose to only upgrade to glass and tire cover, which was a minimal extra.
Will your credit card cover you for Australia?
But before you purchase insurance, it is a good idea to check if your credit card already covers you. There are limited credit cards that offer rental car coverage in Australia. So, you will need to check your credit card’s terms and conditions or contact them on the phone to confirm if they offer any coverage for car rentals in Australia.
Likewise, your travel insurance provider might safeguard you. Therefore, you should refer to them to see what you are already protected for.
This is how we find the best travel insurance for our trip, it’s a search engine for travel insurance companies, so you can find the best travel insurance for your trip. On their site, you can compare the plans side by side so you can get the best insurance for your particular trip! As I always say, no trip is the same, so your travel insurance shouldn’t be either!
8. Take photos of the car before driving off
Before renting a car, most rental companies will do an inspection of it with you, but you should also take photos of the vehicle yourself and do a thorough once-over so you are aware of all the scratches, marks, and bumps it currently has.
By doing this, you will be able to prove that they were already on the vehicle when you hired it, if they try to charge you for them.
It is also a good idea to take a photo of the mileage meter if you are driving a petrol car to make sure it matches the records you are given by the company.
Before driving away, too, you should get familiar with the company’s fuel policy (e.g., full-to-full) and check the fuel gauge before driving away. If it’s a “full-to-full” policy, yu should fill up the tank before returning. As otherwise, you will be charged a refueling fee.
9. What are the road rules in Australia?
Australia has some strict road rules in place. Therefore, you should take the time to familiarise yourself with some of them to ensure you don’t break any rules that might cause you to be stopped by the police.
Speed limits are in kilometers, with 50 km/h typically being the limit in urban areas and 100 km/h in rural areas. You should always check the speed limit signs when driving here. Seatbelts are mandatory for all passengers in the vehicle, including those in the backseats.
You are strongly recommended not to drink any alcohol and then drive. The limit is a BAC of 0.05. This means 50 milligrams of alcohol per 100 milliliters of blood.
Using mobile phones while you drive is also illegal, so if you need to make a call, use the hands-free function.
10. Are there toll roads in Australia?
Yes, Australia has several toll roads, primarily located in major cities such as Sydney, Melbourne, and Brisbane.
In Sydney, for instance, you’ll find toll roads like the M2 Hills Motorway, the M5 South-West Motorway, and the Sydney Harbour Bridge and Tunnel. Melbourne features tollways such as CityLink and EastLink, while Brisbane includes the Gateway Motorway and Clem Jones Tunnel.
Tolls can typically be paid electronically via e-tags or online payment systems, and fees vary depending on the specific road and vehicle type.
Car hire companies are not obliged to remind you about paying the toll charges, though most will give you a courtesy heads-up.
11. What extras can you get with a rental car in Australia?
There are some optional extras you might want to consider when renting a car in Australia.
Those extras include child seats and GPS (many cars do come equipped with GPS).
You can also add on additional drivers, which might be something for you to consider – if you fancy being a passenger and taking in the scenery for a while. Another reason I use DiscoverCars is that it has a filter to see prices based on the number of drivers.
12. What happens if you get in an accident?
If you get in an accident, the first thing you should do is remain calm and not panic.
Should the accident be a minor one, try to move to a safe part of the road or parking area. Then, if the other person is not being aggressive or intimidating, exchange details with them, including their name, phone number, and car registration. Once you have done that, you will be able to continue on your way. However, you should notify your car hire company immediately to keep them in the loop.
Should the accident be more serious and require emergency services like the police or ambulance to be called, then you should phone 000 or 112 immediately. You should also let your rental company know as soon as possible, as they will be able to advise you on what you will need to do next. It will differ between companies.
The most popular guided tours in Australia:
Thanks for Reading!
To summarize, renting a car in Australia is a great way to see this vast and diverse country. With its wide-open spaces and remote spots, having your own wheels lets you explore at your own pace and check out places away from the usual tourist track.
So, whether you’re cruising through the lively streets of Sydney, taking a scenic drive along the Great Ocean Road, or tackling the rugged outback, a rental car gives you the freedom to dive into Australia’s stunning landscapes.
While you’re here why not check out my most popular blog posts, some of my favorites include:
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Last Updated on April 25, 2025 by snaphappytravel