Car Rental in Australia – an Honest Guide to Prices and Safety Tips


    If you have made up your mind to visit Australia, the best way to see all its beauty is to travel by car. The country is spread over a huge territory; therefore, getting to remote areas is not always easy. 

    However, the overall length of its highways is more than 500,000 miles, and you can easily develop your own itinerary and reach any place you like.

    How to Rent a Car in Australia?

    It is elementary to rent a car here as many international and local rental companies are ready to provide you with this service. You must be 21 years old and have the following documents:

    • Australian residents require a driver’s license, passport, and proof of address.
    • For EU residents, the list includes a driver’s license, passport, proof of address, and travel history.
    • Non-EU residents need an International Driving Permit, passport, proof of address, and travel history.

    You also need a valid credit card to book a deposit for the time of your rent. Some rental agencies apply an additional fee for all drivers younger than 25. So make sure to check it in advance.

    Is It Expensive to Rent a Car in Australia?

    Rent rates can differ if you compare deals from different rent providers. Often, prices depend on the time of the year and the type of vehicle. 

    Roughly, a daily rent starts from $25 and can reach even $150 per day if you opt for a premium car. 

    If you want to find the most budget option, use the online comparator you will find on many travel sites.

    What Insurance Do You Need for a Rental Car?

    Rental companies usually cover their vehicle fleet with a basic insurance policy. There is an obligatory and optional policy when you take a car for temporary use. 

    The compulsory policy includes Collision Damage Waiver (CDW) and Theft Protection. Besides, it is mandatory to have third-party insurance when you drive a rented car in Australia.

    There is no fixed price for insurance as it depends on many factors – rental company, vehicle type. As a rule, these basic policies are already included in a daily rent price. 

    However, if your rental car is damaged or stolen, you remain responsible for the excess amount, which may be several hundred dollars and even reach several thousand dollars, depending on the car model. 

    Also, note that CDW usually does not cover glass elements, tires, underbody, and other car parts that are most susceptible to damage.

    You can always buy additional or optional coverage when you rent a car. It can protect your personal items inside the rental car. 

    This is where car hire excess insurance Australia comes into place. The rental company will estimate the cost of necessary repairs and charge your credit card up to your excess if the automobile is damaged while it is in your possession. Excess waiver insurance reimburses you for your excess liability. Moreover, in most cases, car hire excess insurance also covers roof and undercarriage damage, auto glass and widescreen damage, towing expenses, misfuelling, loss of car key and tire damage, which as mentioned above, are generally excluded from the basic CDW coverage. 

    What Is Car Hire Excess Insurance?

    As we mentioned, you can always purchase additional insurance to cover the deductible and insure other parts of the rented car. Such a policy, when offered by the rental company, is known as Super CDW and when offered by another 3rd party is called Car Rental Excess Insurance. Such insurance has a zero deductible, so you don’t have to pay anything when an insured event occurs. 

    Of course, you will need to pay additionally for this full protection. As in the case with basic policies, there is no fixed price for Car Hire Excess insurance, but it may double your daily rent price or cost even more.

    Whichever insurance option you choose, always remember to recheck the action plan in the case of an accident and the list of documents you need to provide for the compensation.

    Useful Tips

    Even if you are an active traveler, some things in Australia may become quite new for you. So, it is better to know these in advance.

    • Some rental companies have travel restrictions and do not allow you to drive to sparsely populated areas in a rented car. These territories often include Tasmania and Western Australia.
    • Distances in this country are impressive, and sometimes, you may need one-way rental between certain locations.
    • When booking a car from a particular rental provider, check if the daily rent includes road tolls.
    • Recheck the fuel policy. It can be very tricky sometimes, so check whether you need to return the car with the tank full or empty.

    You can travel comfortably only when you travel safely. So plan your trip thoroughly in advance, think over the insurance options, book the car and enjoy your new adventure!


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