Hiring a motor vehicle

The following tips will help you avoid some of the traps of hiring a car that can ruin your well-earned holiday.

• Before choosing a hire company
• Watch out for hidden fees and charges
• Ask about insurance cover and exclusions
• Ask about charges to your credit card
• Before you sign the agreement and drive away
• During the hire period
• When you drop off a hire vehicle
• Where to go for help

Before choosing a hire company

• Shop around and get quotes from a number of companies well in advance of travelling. 
• Some websites allow you to compare offers from a number of car rental providers.
  
• Ask for a copy of the hire contract in advance and check it carefully.
• Watch out for terms and exclusions hidden in the fine print. 
  
• Check any restrictions on distances travelled. 
• Some companies include a limited number of kilometres as part of the advertised hire rate. 
  
• Check the price charged for booking in advance against the price to hire if you simply turn up at a rental outlet. 
• There will be price variations depending on the company, the type of car you hire and the time of year.
• Sometimes it is cheaper to make a booking over the internet than in person.
  
• Check who is permitted to drive the vehicle.
• Extra charges may apply to additional drivers and they may not be covered if they have an accident.
  
• Ask whether you are entitled to a refund if you return the car early.
  
• Check if the company has outlets that are convenient for you to pick up and drop off the vehicle. 
  
• Confirm all details of the rental agreement in writing before you book.

Watch out for hidden fees and charges

You may have to pay additional charges for some items on top of the quoted hire charge such as:

• cleaning charges
• excess kilometre charges
  
• surcharges for one-way trips 
  
• equipment or accessory hire (such as roof racks, navigation systems and child safety seats)
  
• airport recovery concession or premium location charges—if you pick up or drop off the vehicle at an airport
  
• penalty fees and extra daily charges for late return
  
• insurance charges and charges to increase cover or reduce excesses 
  
• surcharges for additional drivers or those under the age of 25
  
• fuel penalties—when you don’t return the car with a full tank of fuel.

Ask about all of the fees and charges that apply when you are organising quotes and before you book.

Ask about insurance cover and exclusions

• Many companies exclude insurance cover for damage that occurs from:
• reversing 
  
• single vehicle accidents
• driving on gravel or dirt roads 
  
• driving after consuming any alcohol
• hail, falling trees or other acts of God 
  
• drivers that are not listed on the hire agreement
• damage to headlights, windscreens, tyres, the roof or under body of the vehicle.   
  
• Check other options for extra insurance cover for your hire car 
• your own motor vehicle insurer
• motor vehicle associations (such as NRMA, RACQ and RACV)
• travel insurance packages.
• Ask about the excess that applies if you have an accident.
• Insurance excesses can range from $2000 to $5500.
• Costs to reduce excesses can be up to $30 per day or more and can dramatically increase the cost of hiring the vehicle. 
• Check whether the excess will be refunded if an accident occurs and how long you will have to wait to receive it. 
• Some companies will retain the excess even if the accident was not your fault.

Ask about charges to your credit card

• Many contracts include unconditional authorisations that allow the hire company to charge unlimited amounts to your credit card without warning you.
  
• Agreements may also give the hire company permission to deduct the following charges from your credit card:
  
• a security deposit—this is normally refunded if there is no damage to the vehicle when you return it; however, you should check how long this will take
  
• an insurance excess in the event of an accident 
  
• a predetermined amount for damage without the need to determine the actual cost—refunds are usually only provided once the repairs are carried out
  
• the full replacement cost of the vehicle in extreme cases—if you have not taken out appropriate insurance cover or have an accident that is not covered by the insurance provided.

Before you sign the agreement and drive away

• Inspect the interior and exterior of the car thoroughly for any existing damage.
  
• Have a representative from the hire company check the vehicle with you.
  
• Take photos of any damage you find.
  
• Have any damage recorded on the hire contract and countersigned by the representative before you sign it and take possession of the car.
  
• Check that all mechanical and electrical components and accessories work properly.
  
• Ensure the fuel tank is full before you leave.
  
• Ask about the procedures you should follow in the event of accident or break down.

During the hire period

• Before driving the vehicle, ensure all equipment is working properly.
• If the car breaks down or requires any repairs, contact the hire company before any repairs are carried out.
  
• Avoid dirt and gravel roads unless approved by the hire company.

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When you drop off a hire vehicle

• Fill the fuel tank at a petrol station close to the drop-off point. 
• Most hire companies will charge you premium or penalty rates for fuel if they have to fill it.
  
• Return the car to the hire company’s outlet during operating hours.
  
• If you leave the car elsewhere for collection by the hire company, you will be responsible for any damage to the car before they collect it.
  
• Have a representative prepare a traders agreement noting that the car was returned undamaged. 
  
• Reach agreement with the hire company about any damage before you leave the premises.

Where to go for help

Visit our Making a complaint page for information on how to make a complaint and where to go for help if you are unable to resolve a problem with a car rental provider.