Car Rental Guide for Australians During the Holiday Season

The Australian holiday season—stretching across Christmas, New Year, and the peak of summer—is one of the most exciting times to hit the road and explore. From coastal drives in New South Wales to outback adventures in the Northern Territory, hiring a car gives you the freedom to travel on your own terms.

Whether you’re a local planning a family getaway or a visitor escaping the northern winter, this guide will help you navigate everything you need to know about renting a car in Australia during the festive season.

Why Rent a Car in Australia During Holidays?

Australia is vast—roughly the same size as the continental United States—and many of its most beautiful destinations aren’t accessible by public transport. During the holidays, domestic travel spikes as Australians take time off to enjoy beaches, wine regions, national parks, and remote towns. Here’s why a rental car can be the best choice:

• Freedom and Flexibility: Visit off-the-beaten-path destinations and travel on your own schedule.
• Cost-Effective for Groups: If you’re travelling with friends or family, splitting the cost of a rental car can be cheaper than booking multiple train or plane tickets.
• Luggage and Comfort: Have space for your gear—whether it’s surfboards, camping equipment, or Christmas presents.

Renting a car gives you access to regions where public transport is limited or nonexistent. This is especially important during the holidays when services may be reduced.

Tips for Booking a Car Rental During Peak Travel Times

Holiday rentals are in high demand, and prices can surge weeks before Christmas. Use these tips to avoid the stress and score the best deals:

1. Book Early

Reserve your car at least 6–8 weeks in advance for holiday travel. The earlier you book, the more options you’ll have, especially for popular categories like SUVs, 7-seaters, and hybrid vehicles.

2. Compare Prices

Use aggregator websites like Rentalcars.com or VroomVroomVroom to compare rental companies and get an idea of price trends.

3. Avoid Airport Premiums

While airport pick-ups are convenient, they often come with added surcharges. Consider renting from a downtown location instead.

4. Know Your Mileage Limits

Check if your rental includes unlimited kilometres. If not, understand the per-kilometre charge—especially important if you plan to drive long distances.

5. Check for Holiday Operating Hours

Some rental offices close or operate on reduced hours around Christmas and New Year’s. Confirm pick-up and drop-off times before booking.

Understanding Insurance & Road Safety for Holiday Driving

Driving during the holidays can mean busier roads, longer travel times, and more distractions. Here’s how to stay safe and protected:

Insurance Essentials

Most car rental companies offer basic insurance included in the rental price, but it usually comes with a high excess (the amount you pay out of pocket if you damage the car). You can:

• Purchase Excess Reduction through the rental company.
• Buy Standalone Insurance from third-party providers like RentalCover for often cheaper rates.

Make sure you’re covered for:

• Accidents
• Windscreen and tyre damage
• Theft
• Single vehicle accidents (especially common on rural roads)

Holiday Road Safety Tips

• Drive on the Left: Australians drive on the left-hand side of the road.
• Watch for Wildlife: Kangaroos and other animals are most active at dawn and dusk.
• Plan for Heat: If you’re driving in remote or desert areas, carry extra water and let someone know your route.
• Be Patient: Traffic builds up during holiday periods. Allow extra time and take regular breaks.

How to Avoid Hidden Fees and Get the Best Car Rental Deals

Even seasoned travellers can fall victim to hidden charges. Here’s how to keep your rental bill in check:

1. Refuel Before Returning

Most rental agreements require a full tank on return. If you return the car with less fuel, you’ll be charged at inflated rates per litre.

2. Avoid Toll Road Surprises

Ask if your car includes a toll tag or if you need to register your trip online. Many holiday destinations involve toll roads (e.g., Sydney motorways or Melbourne’s CityLink).

3. Inspect the Vehicle

Before driving off, take photos of the car’s exterior and interior to document any pre-existing damage. This helps avoid disputes later.

4. Understand Additional Driver Fees

If you plan to share the driving, check whether there’s an extra cost to add another driver.

5. Read the Fine Print

Some budget deals exclude vital features like insurance or air conditioning, so check what’s included in the price.

Conclusion

Renting a car in Australia over the holiday season is one of the best ways to unlock the country’s full potential. From pristine beaches to rugged bushlands, the open road beckons. Just be sure to plan ahead, understand your insurance, and read the fine print. Whether you’re exploring the coast, heading to a music festival, or visiting family across the country, a rental car puts the best of Australia within reach.

If you are looking for information about renting a car in New Zealand, make sure you check out RaD Car Hire, one of New Zealand’s leading car rental agencies where you can learn more about New Zealand.

For more inspiration on how to time your adventures and destinations worth adding to your itinerary, be sure to read this article: Where to Travel Every Month of the Year

Frequently Asked Questions

Can I rent a car with a debit card in Australia?

Yes, many rental companies accept debit cards, but there are conditions. Typically:

• You must present a physical card (not a digital wallet).
• You may be subject to a credit check or a larger bond.
• Some providers require a credit card for certain vehicle classes.

Always check with your rental company ahead of time.

What is the minimum age to rent a car in Australia?

The standard minimum age is 21, but some companies allow rentals for drivers aged 18 or 19 with additional surcharges. Drivers under 25 often incur a “young driver fee.”

Also, minimum licence-holding periods may apply (e.g., must have held a full licence for at least 12 months).

What side of the road do Australians drive on?

Australians drive on the left-hand side of the road. That means:

• Overtake on the right.
• Roundabouts are navigated clockwise.
• Left turns at red lights are not allowed unless signposted.

If you’re unfamiliar, take time to adjust—especially when pulling out of driveways or navigating intersections.

Planning a summer holiday road trip? Take the stress out of your travel plans by booking your rental car early and exploring Australia’s hidden gems at your own pace. Whether it’s a spontaneous weekend trip or a cross-state Christmas journey, a rental car is your passport to holiday freedom.

Let the open road lead you into adventure! If you’re looking for inspiration for other destinations to explore, check out this recent post on top vacation destinations.