What the ACCC does

  • We educate consumers and businesses about their rights and responsibilities under the Australian Consumer Law.
  • We accept reports where people consider a business is doing something it shouldn’t do. We use those reports to inform our education, compliance and enforcement work.
  • If a business breaches law, we can investigate and may take some form of compliance or enforcement action. See our compliance and enforcement policy and priorities.

What the ACCC can't do

  • We don't resolve individual disputes about car hire.

On this page

Hiring a car

Consumer rights and car hire

Most consumer guarantees apply when you hire a car, except those related to ownership.

It's important to shop around and read the car hire contract carefully before signing. The contract explains your responsibilities as a hirer, the cost of hiring, who can drive the vehicle, what happens if there is a collision or breakdown, and whether you are covered for any liability.

The contract will usually state you will not be covered for certain types of damage to the hire car, or you have to pay extra to be covered. Some travel insurance policies and credit cards may include hire car excess cover.

Some car hire contracts may include you agreeing to unlimited charges on your credit card. It’s important to find out in what circumstances this might occur and the amounts.

Before hiring a car

Consider the following questions when hiring a car:

  • What is the total cost, including liability coverage and all extra costs? Are rates cheaper online or elsewhere?
  • Is there a deposit? Are there any circumstances where the deposit will be forfeited?
  • Are there any gaps in the liability coverage? For example, single car accidents are sometimes not covered. If so, is this covered by the consumer’s travel insurance?
  • Who is permitted to drive the car?
  • If the car is returned early, is there an entitlement to a partial refund?
  • If necessary, can the car be picked up in one location and returned to another? Is there an extra cost for this?
  • In what circumstances will the hire company make charges to the consumer's credit card? What amounts can be charged in each circumstance? When will the company refund the security deposit?

Before signing a contract for a hire car

Take the following steps before signing a contract:

  1. Inspect inside and outside of the car for damage with a representative from the company. Take photos of the car, particularly any existing damage.
  2. Make sure any damage found is recorded in the contract and countersigned by the representative.
  3. Check that all mechanical and electrical components work.
  4. Make sure there is a full tank of fuel.
  5. Understand the procedures in the contract that must be followed if the car breaks down or is in an accident.
  6. Understand all contract requirements for returning the car, such as the time, place and refilling of the fuel tank.

Returning a hire car

Consumers should take the following steps when returning a car:

  1. Make sure everything that is required under the contract is done.
  2. Take photos of the car again to have a record of the condition of the car when you returned it.
  3. If there was no damage to the car while hiring it, ask for a written agreement from the company noting that the car was returned undamaged.
  4. If there was damage to the car during the hire, make sure a written agreement is made with the company before leaving the premises. The agreement should detail the costs and procedures for fixing the damage. Also review your insurance policy to check if the cost of the damage is covered.

Businesses offering car hire

If you’re a business offering car hire, you must:

  • include all mandatory fees in the advertised headline price
  • not hide any costs in the fine print of a contract
  • be transparent about the method of calculating any fees based on usage
  • make sure car hire contracts do not contain unfair contract terms.

Businesses do not have to include optional charges and extras in the advertised price.

Businesses should clearly explain the liability coverage and its limitations in the contract. Any exclusions from liability coverage must be clearly stated and not buried in the fine print of the contract.

Laws protect consumers from unfair contract terms in standard form contracts. These laws apply to most car hire contracts.

See also

New and second-hand cars

Consumer rights and guarantees

Contracts