Renting a car in Australia – The full guide

Alright, first things first, do you actually need to rent a car in Australia? My answer is a resounding yes, absolutely!.

While it’s true you can visit major cities like Melbourne, Sydney, Brisbane, or the Gold Coast by flight or public transport, you’d be missing out on one of the most important reasons to visit Australia: its incredible nature, really the best part of the country.

Ok, now that you are convinced (that was easy), let’s dive into all the most important things you should know before actually booking your car, because this can save you future headaches, scams and money too!

Before You Hit the Road: Essential Driving Know-How

Driving in Australia is a unique experience, and being prepared is half the battle!

Driving Licence Requirements

Your driving licence will generally work here in Australia if it’s written in Latin letters. So, if you’re coming from the US or Europe, no worries.

However, if your licence uses non-Latin characters, like Chinese, you’ll need an International Driving Permit (IDP). This handy document translates your domestic licence into English, which is super important if the police stop you. 

You can usually sort out an IDP through your local automobile association back home. It’s an easy process, usually takes a few business days, and costs between USD20 and USD40 (worth of your local currency). 

If you are far from an automobile association, you can also apply online through the International Drivers Association, and you will receive the IDP at home in no time.

Important: Always carry both your IDP and your domestic licence when driving.

Driving Side: Get on the Left!

This is a big one for many travellers: we drive on the left side of the road here in Australia. This means the steering wheel is on the right side of the car, just like in the UK.

If you’re from the UK, you’ll adapt like a duck to water. But if you’re from pretty much anywhere else in Europe or the US, you’ll probably need a couple of days to get the hang of it.

My hot tips for adjusting:

• Rent an automatic car: This will make your life much easier, as you won’t have to worry about shifting gears with your “unfamiliar” left hand. While they can be a bit pricier, the reduced stress is worth it.
• Patience and practice: Give yourself time to adapt. Start on less busy roads or in a car park to build confidence.
• Follow other cars: Especially for the first day or two, try to follow other vehicles rather than leading or overtaking. This helps your brain adjust to the new flow.
• Stay alert: Pay extra attention to road signs, roundabouts, and junctions where it’s easy to revert to old habits.
• Limit driving at sunset and avoid driving at night: This isn’t just for adapting to the left-hand drive, but also for safety, as I’ll explain next.

Watch Out for Wildlife!

Australia is brimming with amazing wildlife, and you’ll see signs like this one (pointing to a kangaroo and emu, usually) pretty much everywhere, especially in the countryside. This is your cue to slow down, particularly around sunset.

I cannot stress this enough: try to limit driving at sunset and completely avoid driving at night. This is when most wildlife, including kangaroos that can be as tall as 2 metres, come out, and an accident can be incredibly damaging.

I’m still waiting to see a dinosaur on the road (see my photo below), but I’ve certainly encountered every other animal on those signs!

Picking Your Ride: Where & What to Rent

Finding the right car and rental company can make or break your trip.

Where to Rent: On-site, Off-site, or Comparison Sites?

You’ve got three main options when it comes to where to rent your car.

First you have Global Operators, think Hertz or Europcar. These guys are usually right on-site at the airport, making pick-up super straightforward. They often have newer cars, which is always a great way to kick off your holiday, and some are even linked to airline loyalty programs, letting you rack up those precious miles.

Then you have Local Providers. These companies are typically off-site. Don’t fret, they usually offer a free shuttle service to take you from the airport gate to their office, usually a quick 5-10 minute drive.

While their cars might not be the absolute newest on the market, they often tend to be cheaper than the global giants.

Finally, the Comparison Websites. This is my favourite solution, hands down.

For the last 7 years, I have been using a comparative website called DiscoverCars that not only compares the best prices but also ranks every single car provider from five to ten stars, based on real customer feedback.

I always filter for providers with 8-star ratings or above to ensure I’m dealing with trusted companies, like I would do with Airbnb bookings and highly rated hosts. I then book the best price from the shortlist, as easy as that!

What Size Car Do You Need?

The size of your car really depends on your travel plans:

• Group Travel & Luggage: If you’re travelling with friends or family, a bigger car helps a lot to stash all your luggage.
• Long Distances: Planning an epic journey like the East Coast of Australia, which can involve driving 4,000 km? You’ll definitely want a big, comfortable car.
• Four-Wheel Drive (4WD): Do you really need one? Probably not, unless you’re venturing into the desert or the outback of Australia. In those cases, a 4WD is genuinely helpful, especially if you plan to tackle some dune driving. For most sealed roads, even in rural areas, an SUV or mid-size car will do the trick. Just make sure the car has high clearance.

Navigating Aussie Roads: What to Expect

Let’s discuss the practical aspects of driving on Australian roads.

Speed Limits: Keep Your Eyes Peeled!

Speed limits in Australia are pretty standard compared to most of the world.

• Cities, Villages & Towns: Expect to drive up to 50 km/h. Sometimes, this drops to 40 km/h or even 30 km/h in built-up areas.
• Secondary Roads & Highways: Here, the speed limits can go up to 80 km/h or even 100 km/h.
• Outback: This is usually the highest speed you’ll encounter, at around 130 km/h.

Speed limits are strictly enforced, with many speed cameras around. Just take it easy and stick to the limits.

Road Quality: Smooth Sailing!

Honestly, Australian roads are some of the best in the world. They’re wide, easy to drive on, and traffic is usually pretty limited, except for peak business hours in and out of cities. Plus, they’re generally very well maintained, so you won’t encounter too many potholes.

If I had to find one drawback, it’s that even on the best highways with three or four lanes, the speed limit is often only 110 km/h, which can feel a bit low. So, just relax and follow the signs.

Parking Your Wheels: Read the Signs!

Finding parking in Australia is generally straightforward, and the parking spaces are quite wide, so even a big car usually isn’t a problem. You might face a bit more hassle in city centres like Melbourne, Brisbane, or Sydney, of course.

My main advice? Always read the signs next to the parking spots. Rules can change from one street to the next. For instance, a sign might say “2 hours parking between 8 am and midnight,” meaning you can park all night without worry, but only 2 hours during the day and till midnight.

You’ll also encounter “permit zones,” where you absolutely cannot park without a special permit – not even for five minutes, or you’ll get fined.

Parking meters are generally easy to use and accept credit cards, so no need for a pocket full of coins. Alternatively, you can often pay via an app connected to your credit card, which is super handy.

Remember, apps like EasyPark are great for paying only for the time you’ve parked, and can be used to extend or cut short your stay.

Fueling Up: Plan Ahead, Especially in the Outback!

Petrol stations are pretty much everywhere in urban areas in Australia. Google Maps is your best friend for finding nearby stations and even comparing prices. I’ve noticed that petrol prices can vary quite a lot day-to-day and from station to station, typically ranging from $1.60 to $2.20 AUD per litre, which can save you $10-$20 on a fill-up.

However, if you’re driving in the outback, things get a bit more serious and require more planning. If you’re heading to places like Alice Springs or Uluru, petrol stations can be 150-200 kilometres apart, so missing one could be critical.

All stations are typically “service” stations – you pump your own fuel and then pay inside the shop.

Insurance: Your Peace of Mind Down Under

Let’s talk about the crucial stuff: insurance.

First up, third-party liability insurance (TPL) is mandatory in Australia and is included with your rental cost. This covers you if you damage someone else’s property or injure them while driving.

More often than not, rental companies also include a Collision Damage Waiver (CDW), sometimes called a Loss Damage Waiver (LDW), in the price. While not technically insurance, it limits your financial responsibility if the rental car gets damaged and you’re at fault.

The catch? This CDW usually comes with an excess, which can range from $3000 to a hefty $7,000 AUD. This is the amount you’ll be out of pocket in case of an accident.

Roadside assistance and theft protection might also be included. I personally consider roadside assistance a must-have, especially if you’re venturing into the outback. Breaking down there without it could cost you several thousand dollars.

My personal suggestion? Always add full insurance to cover the excess of the CDW and ensure you have roadside assistance.

On my favourite comparison website, you can get this for about $14-$15 AUD a day (around 8 USD/Euro a day), which is an absolute bargain for the peace of mind it offers. This means if there’s any accident or damage, you won’t have any extra costs.

Avoiding Unexpected Fees & Common Headaches

Nobody likes an unexpected charge. Here’s how to dodge a few common ones.

Cleaning Fees: A Quick Wash Saves Big!

If you return your car “too dirty,” you might be hit with a cleaning fee that could be as high as $70-$80 AUD.

My simple solution? The day before dropping off the car, I always give it a quick clean. A car wash typically costs only $10-$15, and a couple of dollars on a vacuum cleaner (usually found at petrol stations) for the inside will do the trick.

This little effort easily helps you avoid that much larger fee.

Petty Crime: Lock it or Lose it!

You’ll see “Lock it or lose it” signs, which is pretty straightforward advice, isn’t it?. But seriously, I’d never suggest leaving valuables in the car, especially if they’re visible – think laptops, cameras, or your mobile on the back seat.

Honestly, it’s very rare for someone to break into your car in Australia, and if it does happen, it’s more likely in the city than in the countryside. It’s also a good habit to ensure you don’t open your boot to store bags after you’ve parked, as this can alert onlookers to potential valuables.

Driving in City Centres (CBDs): Park Outside!

Is it a good idea to drive into Australia’s capital city centres (the CBDs)?

You can drive through them, no worries at all. However, be aware that parking can cost you an arm and a leg, sometimes $40 or more for just a few hours. Traffic can also be unbearable, particularly during morning and late afternoon rush hours.

My personal strategy is to park a little bit outside the CBD and then walk in or take public transportation.

For example, in Melbourne, public transport within the CBD is actually free of charge, so you really don’t need a car for that.

Overall, I’d suggest renting a car once you’re leaving the capital cities to explore areas like the Great Ocean Road, Port Stephens, or the Gold Coast – that’s where the car truly shines.

Renting vs. Buying: The Big Question

If you’re wondering whether to rent or actually buy a car for your Australian adventure, here’s the lowdown:

• Renting: If you’re thinking of driving around Australia for 2-3 weeks, then renting a car is definitely the better option. It’s hassle-free and perfect for shorter trips.
• Buying: If you’re planning to stay in Australia for 2-3 months or even longer, then buying a car becomes a viable option. However, it’s a more demanding process, as you’ll need to register the car, ensure it has a roadworthy certificate, and then, of course, sell it at the end of your stay with a new roadworthy certificate. This topic is a bit too extensive for this guide, but let me know in the comments area if you need more info on it!

Wrapping It Up

There you have it, folks! Australia is an incredible country best explored on four wheels, and with these tips in your back pocket, you’re well on your way to a stress-free and unforgettable journey.

From understanding the driving rules and insurance options to knowing where and what to rent, being informed is your best defence against any unexpected surprises.