How to avoid unexpected car hire charges overseas

Hiring a car is one of the best ways to explore a destination, and for most people the experience is straightforward. However, in some cases travellers can end up paying unexpected additional charges they didn’t realise they had agreed to, such as being charged for a higher-category vehicle after the car they originally booked was unavailable.

If you’re hiring a car on your next trip, it’s worth taking a few simple precautions to help avoid any surprises when you return home.

Here are five ways to avoid additional car hire costs overseas.

1. Read your rental agreement before signing

If the vehicle category you booked is unavailable, the rental company should provide a comparable or higher-category vehicle at no additional cost. This should be clearly reflected in your rental agreement. 

If you’re offered an upgrade at the counter, don’t assume it’s complimentary. Ask whether there is an additional charge and ensure any costs are clearly explained before signing the agreement. 

Additional products, such as upgraded vehicles, excess reduction or insurance options, are generally optional and will usually incur an extra charge. These costs should be clearly shown on the rental agreement. 

Always read the rental agreement carefully before signing. If you’re not expecting to pay more because your booked vehicle isn’t available, ask the staff member to confirm in writing that the replacement vehicle is being provided at no extra cost. Once you sign the agreement, it can be much more difficult to dispute charges later. 

2. Inspect the vehicle

Before driving away, inspect the vehicle thoroughly. 

Take clear photos of:

• the exterior from all sides

• any existing damage

• the interior (if appropriate)

• the fuel gauge

• the odometer

Repeat this process when returning the vehicle. Having time-stamped photos can help if you’re later charged for damage, cleaning or fuel. 

3. Watch for additional fees

Rental costs can increase quickly through optional fees and location-specific charges. 

Be aware of possible charges for:

• crossing state or international borders

• returning the vehicle to a different location

• airport or premium location surcharges

• additional drivers

• young driver fees

If you’ve already purchased travel insurance or excess cover that includes rental vehicle excess, you may not need to buy the rental company’s additional insurance. Check your policy before travelling so you know what’s already covered. 

4. Let the rental company know if you're delayed

If your flight is delayed or you’ll be late collecting your vehicle, contact both the rental company and the collection depot as soon as possible. 

Most companies will only hold your vehicle for a limited time unless they’re aware of your delay or have your flight details. 

5. Carry an International Driver's Permit

Many countries require visitors to carry an International Driver’s Permit (IDP) alongside their Australian driver’s licence. 

Before travelling, check the requirements for your destination. In Western Australia, RAC Travel is the authorised issuer of International Driver’s Permits.

The bottom line 

Before signing any paperwork, ask whether the replacement vehicle is being provided as a complimentary substitute or as a paid upgrade, and ensure any additional charges are clearly explained and documented.

Taking a few extra minutes at the rental counter could save you hundreds of dollars and make it much easier to resolve any issues if they arise.