Car hire rates in Australia vary depending on demand, location and vehicle type.

As a rough guide, economy cars can start from around $40-80 per day in quieter periods, but prices can climb significantly during school holidays, long weekends and peak summer months.

Airport locations, weekend pickups and popular destinations usually cost more. Add-ons such as excess reduction, additional drivers or GPS will also increase the total price.

Getting the best deal comes down to timing and smart choices:

• Book 3–4 weeks ahead in off-peak periods

• Book 2–3 months ahead for school holidays and peak season

• Choose the smallest car that comfortably fits your needs

• Compare airport vs off-airport pickup locations

• Consider third-party excess insurance instead of the hire company’s premium cover

• Decline unnecessary add-ons like GPS (your phone works fine)

• Stick to one driver if possible

• Photograph the car at pickup and return to avoid unfair damage claims

A little prep can save hundreds on longer road trips.

You don’t need personal car insurance to hire a vehicle in Australia.

All rentals include basic cover (liability insurance and a Collision Damage Waiver), but this usually comes with a high excess — often $3,000–$5,000 or more.

You can reduce this excess by:

• Purchasing the hire company’s excess reduction cover

• Buying third-party excess insurance (often cheaper)

• Using a credit card that includes rental vehicle excess cover (check your policy carefully)

Always read the Product Disclosure Statement (PDS) before relying on external cover.

When you collect your vehicle, the hire company places a pre-authorisation hold on your credit card. This is usually:

• The estimated rental cost

• Plus a security deposit (often $200–$500, sometimes higher)

The hold covers potential damage, fuel discrepancies, tolls, cleaning fees or late returns.

If you use a debit card, the deposit is typically deducted upfront and refunded after return — sometimes taking several business days to reappear in your account.

Many Australian hire companies accept debit cards, but restrictions may apply.

You may face:

• Higher security deposits

• Additional ID or documentation requirements

• Fewer vehicle category options

• A mandatory excess reduction purchase

Funds are usually deducted (not just held), meaning you’ll wait for a refund after the hire ends.

An additional driver fee allows a second person to legally drive the vehicle. In Australia, this is typically charged per day (often $5–$15 per driver per day), though some companies waive the fee for spouses or domestic partners. If the additional driver is under 25, a young driver surcharge may also apply. Always list all drivers whenever you hire a car, unregistered drivers may not be covered by insurance.