Australia is one of the world’s greatest backpacking destinations—a place where long coastal roads, tropical rainforests, red-desert horizons, and easy-going towns across thousands of kilometres blend into the road trip of a lifetime. While buses and trains connect major cities, nothing gives you true freedom like renting a car in Australia. For backpackers, especially those travelling on a budget or exploring off the beaten path, a rental car can unlock experiences you’d never reach otherwise.

Whether you’re planning a drive from Cairns to Cape Tribulation, a loop through the Outback, or a surf trip from Brisbane to Adelaide, this guide is designed to help you rent with confidence. We’ll cover everything—from licensing and insurance to budgeting, safety, and choosing the right vehicle for your trip. Throughout the guide, we’ll also reference reliable rental options such as Trend Rentals (https://www.trendrentals.com.au), known for affordable long-term rentals, mine-spec vehicles, and backpacker-friendly customer service.

Let’s hit the road.

infographic The Backpacker’s Guide to Renting a Car in Australia

Why Renting a Car is Perfect for Backpackers in Australia

Backpackers travel differently—they chase experiences, not schedules. Renting a car gives you:

1. Total Freedom of Movement

You choose when to leave, where to stop, and how long to linger. Want to stay an extra day at Mission Beach? Easy. Want to drive four hours inland to find a secret swimming hole the locals mentioned? No buses needed.

Total Freedom of Movement

2. Affordable Travel—Especially When Shared

Unlike buses that charge per seat, car rental becomes dramatically cheaper when split between multiple travellers—common among backpackers who meet in hostels or share group itineraries.

Affordable Travel—Especially When Shared

3. Access to Remote Natural Attractions

Public transport rarely reaches Australia’s best natural sites, including:

  • Waterfalls in the Atherton Tablelands
  • Outback gorges and national parks
  • Surf beaches off the tourist trail
  • 4WD-only tracks in Queensland and the NT
  • Quiet rural campgrounds

A rental car lets you explore places tour groups don’t go.

Access to Remote Natural Attractions cairns beach

4. More Comfortable for Long Distances

Australia is big. Really big. A flexible, air-conditioned rental car beats a crowded long-haul bus almost every time.

More Comfortable for Long Distances

Do Backpackers Need an International Driving Permit in Australia?

In most cases:

  • If your foreign licence is in English, you can use it.
  • If it’s not in English, you will need an International Driving Permit (IDP) and your original licence.
  • You must be 18 or older, but many rental companies require 21+.

Check with your rental provider. At Trend Rentals (https://www.trendrentals.com.au), all drivers must hold a valid licence for the vehicle type and meet age requirements for insurance.


Understanding Australia’s Road Rules (Backpacker Edition)

Australia’s road rules are simple once you’re familiar with them, but newcomers need to note:

We drive on the left.

If you’re from mainland Europe, the US, Canada, or parts of Asia—this will feel unusual at first. Most backpackers adapt within an hour.

Seatbelts are mandatory everywhere.

Even on short drives.

Speeding fines are very expensive.

Some states issue fines over $1000, and speed cameras are everywhere.

You must stop for wildlife if safe.

Kangaroos, wallabies, emus, cassowaries, and even camels can appear suddenly—especially at dawn and dusk.

No alcohol while driving.

Australia has strict drink-driving laws. The legal limit is 0.05 BAC.

Distances can be enormous.

Driving six hours in Australia is common—even between neighbouring towns.


Choosing the Right Rental Car for Backpacking

Different road trips require different cars. Here’s a quick guide.


🚗 1. Small Compact Cars

Best for: Budget travellers, city-to-city routes, sealed roads
Pros: cheap, fuel-efficient, easy to park
Cons: limited space, not suitable for rough terrain

Great for driving between Cairns, Townsville, Brisbane, Sydney, Melbourne, Adelaide, and similar routes.

small toyota hatchback

🚙 2. SUVs / Crossovers

Best for: Groups of 3–5, long highway drives, mixed terrain
Pros: more luggage space, better visibility, smoother ride
Cons: higher fuel cost

A popular choice for backpackers who want comfort but don’t need 4WD.

SUVs / Crossovers

🛻 3. 4WD / 4×4 Rentals

Best for: Outback travel, off-road adventures, remote national parks
Pros: access to beaches, gorges, remote tracks
Cons: must follow rental company guidelines

For rugged trips—e.g., Cape York, NT, Gibb River Road—Trend Rentals offers mine-spec 4WDs often used in tough work environments, making them extremely reliable for adventure.

Explore their range here: https://www.trendrentals.com.au

4WD / 4×4 Rentals

🚐 4. Vans & Campers

Best for: Backpackers wanting to sleep inside their vehicle
Pros: accommodation + transport in one package
Cons: restricted in some national parks, not as cheap as cars

Vans & Campers to hire

How to Choose the Cheapest Rental Deal

Australia can be expensive—but car rental doesn’t have to be. Here’s how to save big:


1. Book Early

Last-minute rentals can cost double during peak season (June–October in northern Australia). Booking ahead lets you compare prices and increase your chance of scoring a deal.


2. Consider Off-Airport Rentals

Airport counters charge extra fees. Off-airport companies—like Trend Rentals—offer more budget-friendly rates and free or low-cost transfers.

Learn more: https://www.trendrentals.com.au


3. Share the Car With Other Backpackers

Hostels are full of travellers heading the same way. Splitting a rental:

  • reduces cost
  • rotates driving
  • makes the trip more fun

4. Check the Insurance Options Carefully

Usually you’ll choose between:

  • Basic Cover – cheapest upfront, highest excess
  • Reduced Excess – middle option, affordable for backpackers
  • Full Protection – higher cost, peace of mind

Backpackers often choose Reduced Excess to balance risk and price.


5. Avoid One-Way Drop-Off Fees If Possible

Driving from Cairns to Melbourne? Expect a one-way fee. If you want to avoid it:

  • Do a loop route
  • Drop the car in the same city
  • Travel halfway and use transport for the rest

Some companies waive fees during low season—always ask.


6. Choose Unlimited Kilometres

Australia is too big for per-kilometre charges. Trend Rentals offers unlimited kilometre options across many vehicles—ideal for backpackers who drive far.


7. Understand Fuel Policies

Best option: Full to Full
Worst option: Pre-purchase fuel (almost always more expensive)


Backpacker-Friendly Car Rental Locations

Backpackers usually rent cars in:

Cairns – Tropical North Queensland’s adventure capital

Perfect for reef trips, waterfalls, rainforests, and Cape Tribulation.
👉 See Cairns rental options: https://www.trendrentals.com.au

Brisbane / Gold Coast – East Coast road trip hub

Great for surf routes, Byron Bay, NSW coast.

Sydney Starting point for the coastal or inland south-east loop

Melbourne Road to the Great Ocean Road, Tasmania flights

Adelaide Excellent for wine regions, Outback routes, WA trips

DarwinBest for Top End national parks (Litchfield, Kakadu)

PerthWestern Australia’s epic coastline


Costs Backpackers Should Expect When Renting a Car in Australia

Below is an average cost breakdown (per day):

ItemEstimated Cost
Compact Car Rental$35–$80
SUV Rental$70–$130
4WD Rental$100–$200
Fuel$1.80–$2.40 per litre
Bond / Security Deposit$200–$1200
Extra DriverOften free with Trend Rentals
Insurance Reduction$20–$45 per day

Prices vary by season, state, and location.


Tips for Backpackers Driving Long Distances

Australia’s long drives can feel endless—but beautiful.

✔ Bring extra water

Especially in far north or desert regions.

✔ Take breaks every 2 hours

Fatigue is one of Australia’s biggest road hazards.

✔ Never drive at dusk/night in wildlife-prone areas

Kangaroos can jump directly in front of the car.

✔ Download offline maps

Many rural areas have no phone signal.

✔ Keep your fuel tank above 50%

Outback fuel stops can be 250–350 km apart.

Tips for Backpackers Driving Long Distances

Where Backpackers Usually Sleep on Road Trips

🏕 Free Camps

Found in most regions but not allowed everywhere.

🏞 National Parks

Usually $5–$10 per night; require advance booking.

🛏 Paid Caravan Parks

Popular for hot showers, kitchens, laundry.

🚫 Sleeping in Your Car

Illegal in many city areas—check signs.


Backpacker Car Insurance Explained Simply

You will often see a giant “EXCESS” number in your rental contract.

What is Excess?

The maximum amount you pay if the car is damaged.

Example: If your excess is $4000 and damage costs $5000 → you pay $4000, insurance covers the rest.

How to Reduce Excess

  • Buy reduced-excess insurance from the rental company
  • Use third-party rental insurance (but companies may still charge bond upfront)

Trend Rentals offers simple, backpacker-friendly insurance explanations here:
👉 https://www.trendrentals.com.au

Backpacker Car Insurance Explained Simply

What to Do If You Have an Accident

Stay calm and follow these steps:

  1. Make sure everyone is safe
  2. Call emergency services if needed (000 in Australia)
  3. Notify the rental company immediately
  4. Take photos of damage and location
  5. Exchange details with any other drivers

Most rental companies, including Trend Rentals, provide 24/7 roadside assistance with many vehicles.

What to Do If You Have an Accident

Best Road Trip Routes for Backpackers in Australia

Here are iconic trips perfect for first-time travellers:


🌴 1. Cairns → Cape Tribulation → Atherton Tablelands (3–7 Days)

Waterfalls, rainforests, stunning beaches—this is classic backpacker Australia.

Atherton Tablelands

🐠 2. Cairns → Airlie Beach → Brisbane (1–3 Weeks)

The most famous backpacker trail on the east coast.

Airlie Beach qld australia

🏄 3. Brisbane → Sydney → Melbourne (2–4 Weeks)

Surf towns, national parks, coastlines, wildlife.

Sydney harbour bridge

🍷 4. Adelaide → Melbourne via the Great Ocean Road (5–10 Days)

World-class scenery.

wine region adelaide

🔥 5. Northern Territory: Darwin → Litchfield → Katherine → Kakadu (1–2 Weeks)

Epic waterfalls and tropical adventure.

Kakadu australia

🚙 6. Perth → Exmouth Route (10–20 Days)

Turquoise waters, whale sharks, and untouched beaches.

Perth → Exmouth Route (10–20 Days)


Conclusion: Renting a Car Is the Best Way to See Australia

For backpackers craving freedom, value, and adventure, renting a car is one of the smartest choices you can make while travelling through Australia. Whether you’re exploring the tropics of North Queensland, the rugged Outback, the charm of small coastal towns, or the endless beaches stretching across the country, having your own vehicle gives you control over your experience.

If you’re looking for reliable, affordable, flexible backpacker-friendly rentals in Queensland and beyond, Trend Rentals is a trusted choice with transparent pricing, unlimited kilometre options, and well-maintained vehicles ideal for long-distance travel.

👉 Explore options at: https://www.trendrentals.com.au