July 15

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5 Things to Take Note When Renting a Car in Australia

By Money Saving Daddy


If you've been itching to explore somewhere new, a road trip in Australia should be at the top of your list. 

There's a lot to consider when renting a car for the first time in Australia. Where will you pick up the car? What size car do you need? How much will it cost? To buy insurance a not?

This guide will help you understand the process and what to expect. 

Where to Pick Up the Car?

You will need to decide where you're going to pick up the car.

There are 3 options available, including 

  • airports
  • city locations
  • rental companies. 

Each option has its own set of pros and cons, so it's important to decide what's best for you. Here's a quick rundown of the different options:

Airports

Most major airports have rental car counters, which can be a convenient option if you're flying into Australia. However, keep in mind that airport locations often have higher rates than other locations.

Airport Car Rental Companies

These are the companies that do not have a counter at the airport. You may need to take a shuttle to their location which is 5-10mins drive away.

They may have a cheaper rate, but sometimes it is the hassle of picking up and returning the car. Especially when you have kids in tow and a few luggages.

City locations

You can  also pick up your car at a city location. Sydney, Melbourne, Brisbane, and Canberra all have city rental car locations.

These can be a good choice if you want to save money on your rental.

What Size Car do You need?

There is no definitive answer to this question as it depends on a number of factors, such as how many people you need to transport, how much luggage you need to carry, and the terrain you'll be driving on.

If you're uncertain, it's best toerr on the side of caution and choose a larger car. 

How much will it cost to rent a car in Australia?

The average cost of renting a car in Australia is $165 per day. However, prices may vary depending on the make and model of the car as well as the location.

There are things to note as well.

  • Are you picking up and returning at the same location? If not there is a one way charge.
  • Are you renting from a premium location? If not there is location fee.
  • Insurance Coverage
  • Add-ons

One Way Fees

Car rental fees can be confusing, but one way fees are relatively simple.

A one way fee is a charge assessed by the rental car company when you pick up your car at one location and return it to a different location.

One way fees can be expensive, so it's important to factor them into your budget when you're planning a trip.  

Location Fee

Hertz Location Fee

If you're renting a car, you may be wondering what a "location fee" is. 

Location fees are simply a charge that the rental car company imposes for renting their vehicles at a particular location.

These fees can vary depending on the company and the location. Some charge by a % of the base fee, some charge by per day.

Purchasing Insurance Coverage on your rental car

If you're planning on renting a car during your next trip to Australia, you'll need to make sure you're properly insured.

While your travel insurance might provide some coverage for overseas rentals, it's usually not enough.

That's why it's a good idea to purchase additional insurance coverage specifically for your rental car.

There are a few different options available, but the two most popular are Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW). CDW covers damage to the rental car itself, while LDW covers any damage or theft of personal belongings that are stored in the car.

You can purchase coverage from the rental car company, 

What is Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW) is insurance that covers damage to a rental car resulting from a collision.  CDW is usually included with rentals but it is important to note what the coverage is and whether or not it fits your needs.

What is Loss Damage Waiver (LDW)

LDW is a waiver that is typically offered by rental car companies in order to provide protection from damages that may occur to the rental car. This waiver typically costs an additional fee and may not be included in the base rental price. 

Excess Cover

Basically, excess is the amount of money that you, the renter, are responsible for paying in the event of damage to or theft of the rental vehicle. The amount of excess varies depending on the rental company and the vehicle being rented, but it is typically $2500 - $5000+.

If you do damage the rental car, you'll need to pay the excess in addition to any other repairs or replacement costs. And if the car is stolen, you'll be on the hook for the full value of the vehicle.

ps: As much as possible, just purchase this excess coverage to avoid any mishaps. We encounter a hailstorm once and we bought a third party coverage from Rentalcover that only covers excess. However, a hailstorm damage has unlimited liability.

But still luckily, it is covered by them as the damage is less than the excess.

Purchasing Add-Ons

If you're renting a car, you may be considering purchasing one or more add-ons. Common add-ons include insurance, GPS navigation, and child safety seats.

While some of these add-ons can be helpful, be sure to consider whether you really need them before making a purchase.

Additional Driver

There are many reasons you might need to add an additional driver to your car rental.

Maybe you're going on a long trip and need someone to help with the driving, or maybe you just need someone to help you out for a day or two.

Whatever the reason, it's easy to add an additional driver to your rental car. Just make sure you have their driver's license and insurance information handy. 

You should add any drivers of your car to the insurance purchased so that damages from accidents are covered.

Baby/Child Seat

If you're planning to rent a car while traveling with a baby, you may be wondering if you need to bring along a car seat or if you can rent one from the car rental company. 

The answer depends on the car rental company's policies and the laws of the state where you'll be renting the car. 

In Australia, kids under the age of 7 require a car seat.

GPS

If you're planning a road trip, you might be wondering if it's necessary to rent a GPS unit from the car rental company.

After all, you've probably got a GPS app on your phone. However, there are some advantages to using a car rental company's GPS unit.

For one thing, you don't have to worry about your phone's battery dying. However, you can bring along a mobile car charger for your mobile so that your mobile gets charged on the go and you have GPS.

But you will need a sim card for internet connectivity.

When is the best time to rent a car in Australia?

Depending on the time of year and your specific location, rental prices can fluctuate greatly. In general, however, rental prices are usually cheaper during weekdays as opposed to weekends. 

Additionally, many rental companies offer discounts and promotions throughout the year, so it is important to do your research in advance in order to find the best deal. 

Conclusion

Renting a car for the first time in Australia can be a daunting task, but it doesn't have to be. With a little research and planning, you can easily find a reputable rental company and get a great deal on your car.

Plus, you'll have the freedom to explore all that Australia has to offer. So what are you waiting for? Get out there and start planning your Australian road trip today! 

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Money Saving Daddy

About the author

Hello Everyone! This is Don, sharing my journey here to find the most value buy. Not the cheapest, but making the best value of your dollar. :)

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