RENTING A CAR IN MADEIRA: EASY TIPS TO FOLLOW

a car parked by the pavement lined with palm trees

Renting a car in Madeira is the best way to explore this beautiful island. From stunning mountain landscapes, charming villages, sandy beaches, natural lava pools, and great scenic roads, Madeira, is ripe for exploring.

Here is our complete guide on how to rent a car in Madeira, in which we cover:

which type of car is best for your needs
deciding which car rental companies are best for you
vehicle insurance recommendations
rules and regulations you need to know to avoid getting fined

Follow this guide so that you will feel confident renting a car in Madeira. Because let’s face it, you want freedom, flexibility, and to be able to explore the island independently.

What You’ll Find In This Article:

DO YOU NEED A RENTAL CAR IN MADEIRA?
IS IT SAFE TO DRIVE ON MADEIRA'S ROADS?
PRACTICAL INFORMATION FOR MADEIRA CAR HIRE
WHAT YOU NEED TO RENT A CAR IN MADEIRA
BEST CAR RENTAL COMPANIES WHEN RENTING A CAR IN MADEIRA?
WHERE ARE THE BEST CAR RENTAL LOCATIONS?
WHAT DO YOU NEED TO CONSIDER WHEN RENTING A CAR IN MADEIRA?
DO YOU NEED TO BOOK ANY EXTRAS?
IMPORTANCE OF INSURANCE WHEN RENTING A CAR IN MADEIRA
HOW MUCH DOES RENTING A CAR IN MADEIRA COST?
WAYS TO SAVE MONEY ON CAR RENTAL MADEIRA
PICKING UP YOUR RENTAL CAR IN MADEIRA
KNOW THE RULES OF THE ROADS & ANYTHING TO BE AWARE OF
OTHER CONSIDERATIONS WHEN RENTING A CAR IN MADEIRA
RETURNING YOUR RENTAL CAR
MORE POSTS ON MADEIRA

DO YOU NEED A RENTAL CAR IN MADEIRA?

a road cutting through mountains — Renting a car in Madeira to drive this road!

I’m guessing that you want the freedom to visit different locations and towns during your madeira trip. While public transport is great, and choices of excursions from Madeira plentiful, you don’t want to limit yourself to others timetables.

Renting a car in Madeira enables you to:

have the greatest flexibility to go anywhere
have the ability to discover some Madeira hidden gems such as stunning beaches and viewpoints
possess ultimate freedom to independently plan your own road trip

Can you visit Madeira without a car? Yes of course you can. It wouldn’t be as much fun though.

With your own car, you can explore all the things to do in Funchal, drive past some of the best Madeira viewpoints, and finish the day in Machico, lounging on one of the golden sand beaches in Madeira.

By driving yourself, you don’t have to miss the natural swimming pools in Porto Moniz, visiting Ponta do Garajau, or hiking along Lourenço Hiking Trail which traverses the peninsula.

Plus, hiring a car in Madeira is easy, inexpensive and reliable. Roads and motorways are in excellent condition and the scenery you will encounter is amazing.

You may feel wary about car rental on Madeira. What are the roads like in Madeira? Is it safe to drive in Madeira? Don’t worry, we will answer all your questions.

IS IT SAFE TO DRIVE ON MADEIRA’S ROADS?

Yes! The main traffic areas are around Funchal, and other areas reatively quite. The main issue is the narrow, steep roads. However, as long as you drive sensibly and slow down around corners, you will have no problems.

Locals are very patient and rarely beep their horns. Roads are well maintained with good signage.

PRACTICAL INFORMATION FOR MADEIRA CAR HIRE

The booking platform that we use regularly is Discovercars.com which we find very competitive in price. They include all the top rental companies (Avis, Hertz, Thrifty, Budget etc) in their search results and the interface is very clear and easy to use.

WHAT YOU NEED TO RENT A CAR IN MADEIRA

The following elements are required when renting a car in Madeira:

1. A VALID DRIVER’S LICENSE

You do not need an international driving permit (IDP) to drive in the EU, if you have a photocard driving licence issued in the UK.

2. A VALID CREDIT CARD

When you pick up your car rental, the rental company require a valid credit card to hold a deposit amount. This will not be required if you taken out full insurance coverage directly with the rental company. The credit card will need to be in the same name as the person renting the vehicle.

This will cover such things as damage to the vehicle, and returning the vehicle with less fuel than was specified.

When using Discovercars.com, you can click on “Rental Conditions”, to find out the security deposit requirements.

3. YOU MUST BE AT LEAST 21 YEARS OF AGE

Be aware that some rental companies impose a minimum age of 25 years to rent a vehicle.

they will require you to have held a license in your home country for a year or more.
may add charges, if you are under 25 years, or over a certain age.

On Discovercars.com, click the small blue circle, to check for limitations and additional fees.

BEST CAR RENTAL COMPANIES WHEN RENTING A CAR IN MADEIRA?

You will find most of the big-name car rental companies throughout Madeira, such as Avis, Hertz, Sixt, Budget and Europcar.

If you want to help support the local economy you can hire your vehicle through local companies such as MadeiraRent.

THINGS TO CONSIDER BERFORE CHOOSING CAR RENTAL DEALS

What are the cancellation fees? Discovercars.com offer free cancellation.
Is the pick-up location favourable to your needs? Some companies use a shuttle service.
What if any, are the geographical restrictions?
What is the mileage allowance? Restricted or unlimited?

We use Discover Cars to find the best competitive car hire prices when booking a trip. The comparison site searches all the best car rental companies at once, using any filters that you apply.

Each of the companies are reviewed out of a score of ten, by their customers, which is easy to check.

WHERE ARE THE BEST CAR RENTAL LOCATIONS?

When arriving on Madeira Island, the easiest and most practical place to pick up your rental is from Madeira airport. All the main car rental companies have booths here, and the best choice of vehicles.

Plus the cost of a taxi is more than a single day car rental if you have booked online.

Be mindful if picking up your vehicle from other rental locations. The office opening times will be more limited than at the airport. This could require an overnight stay at the start of your trip and an extra days hire at the end.

TOP TIP: You do not require a car to explore Funchal, which is easy to walk around. Stay in Funchal at the end of your trip. Return your vehicle to the airport, and return to the town by the airport shuttle which is €6.00 per person.

WHAT DO YOU NEED TO CONSIDER WHEN RENTING A CAR IN MADEIRA?

If this is your first time renting a car, Madeira is a great place to start.

1. YOU NEED TO BOOK YOUR CAR IN ADVANCE

Madeira is a very popular destination year-round, especially during the summer months.

You get the widest choice of vehicles at the best prices, usually with free cancellation.

Don’t leave booking till the last minute as demand is very high in Madeira. You can’t go on an epic road trip with no car!

2. WHAT TYPE OF CAR SHOULD YOU CHOOSE?

While this ultimately depends on the number of passengers, the amount of luggage you have and your budget, here are some considerations to bear in mind.

Manual versus Automatic transmission – Most car rentals come with manual transmission. Roads can be narrow and steep, so if you usually drive an automatic, this may be a better option. This must be booked in advance though!
Diesel, Petrol or Electric? – The majority of hire cars are unleaded (gasolina sem chumbo).
Size And Model – The best vehicle for driving around the city center and the island, is one that is small and has a good powerful engine to get up hills and steep roads. Parking can be difficult, and roads narrow. Madeira is NOT the place for a large SUV.

DO YOU NEED TO BOOK ANY EXTRAS?

When you are booking your car, you will be able to book some additional features including the following. Here are our tips on whether these are required.

1. ADDITIONAL DRIVERS

This can be a good idea, especially if the extra charge is minimal.

2. GPS

You will certainly need some way of navigating your way from one hotspot to another around the island, and especially to those off the beaten-track places. You have several options.

Use Your Phone – Download maps beforehand so that you can navigate without wifi. Be aware that roaming charges abroad can be very expensive.
Use Your Own GPS – This is by far our favourite way to navigate. We are used to using the device and can also pre-enter several destinations beforehand which is ideal.
Use the inbuilt GPS in your vehicle.

3. CHILD SEATS

To comply with EU legislation, children under the age of 12 or shorter than 1.35m must use a booster seat.

4. ROADSIDE ASSISTANCE

Not actually insurance and included by some rental agreements, coverage can include things such as:

Flat tyre
loss or damage of car keys
rental vehicle failing to start

IMPORTANCE OF INSURANCE WHEN RENTING A CAR IN MADEIRA

Included in the car rental price is unlimited Third-Party Liability Insurance, which is required by law in Portugal.

As to what extras you might need, it is up to you. However, we definitely recommend that you pay the extra for full coverage insurance or rent a car where full coverage is already included in the rental price.

It can be extremely confusing understanding the wording when it comes to insurance, so here is a general guide.

Theft Protection (TP) – This waiver limits your liability up to the vehicle’s deductible/excess amount in the event the car is stolen. You usually need to provide the police report as well as the car keys. TP is frequently included in the car rental price.
Third Party Liability (TPL) – Covers things like personal and material damage caused to other people’s vehicles, medical expenses and more.
Collision Damage Waiver (CDW) -This waiver limits the customer’s responsibility during the rental period and sets the maximum amount of money the customer will have to pay for potential damages. This is the cover we always take out for peace of mind.

Whether a CDW is included in your rental agreement or not depends on the type of car you select and in which country you rent the car. To see if a CDW is included, check the Rental Conditions section or refer to the list next to the picture of the car.

HOW TO PURCHASE INSURANCE

Purchase When Booking Your Car – This is the easiest way to ensure the best price paid. Discovercars.com have an option for Full Collision Damage Waiver when you book a vehicle.
At The Rental Company Counter – This should be your last resort as you will definitely pay a higher price. However, this is still a viable option if you havn’t already bought full insurance cover.
Travel Insurance Policy or Your Personal Car Insurance – Always check and read the fine print to establish what if any cover for rental vehicles is included.

CHOOSING AN INSURANCE POLICY WITH A DEDUCTIBLE

A deductible is the maximum amount of money you are liable to pay in the event your rental car is damaged or stolen as long as you follow the conditions of your rental agreement.

The rental company may block an amount equal to this deductible plus the cost of a tank of fuel onto your credit card. This could be 1,000 euros or more.

To get around this, purchase full coverage insurance with a zero excess, or use a different credit card for the hold charge.

HOW MUCH DOES RENTING A CAR IN MADEIRA COST?

Car rental prices will fluctuate depending on the season you are visiting Madeira. Low season prices will be a less than high season and holiday season. As a general guide expect to pay from £35 per day in late September.

Check prices from Discovercars.com, to give you a clearer idea.

WAYS TO SAVE MONEY ON CAR RENTAL MADEIRA

Book early!
Hire a smaller vehicle
Pick up and drop off at the same location
Make a booking with limited mileage

PICKING UP YOUR RENTAL CAR IN MADEIRA

diagram of a hire car with pointers of where to check for any damage

Pick up is usually smooth and straight forward, however it pays to be mindful of a few things, namely:

Make sure that a thorough check has been made of the exterior of the vehicle. Whether the rental company employee does this with you, look out for dents and scratches on the roof and the whole of the vehicle.
Check the state of tyres, bumpers, mirrors etc.
Make a note of the mileage and fuel level.
Be sure that there is a spare wheel, tools, 2 warning triangles, and reflective vest inside the vehicle.

Ask for a map to show how to get to the nearest motorway and whether there are any toll roads or roads you are not permitted to drive on.

Keep your rental agreement in a safe place.

KNOW THE RULES OF THE ROADS & ANYTHING TO BE AWARE OF

road covered in fog — Slow down as fog can appear quickly in the mountains

Driving is on the right-hand side of the road.
Wearing a seatbelt is obligatory.
Speed limit is 50km/hr in towns, 90km/hr on country roads and 100km/hr on the via rapida.
Speed limits on other roads varies from 60 to 90km/hr
Legal blood alcohol limit is 0.5g/litre.

Watch out for cattle and sheep on roads in central Madeira that may be crossing, or generally just relaxing.

Be aware that on some main roads, the joining lane is very short, so you have to actually stop and wait for a gap in the traffic.

OTHER CONSIDERATIONS WHEN RENTING A CAR IN MADEIRA

WHAT TO DO IN THE EVENT OF A PROBLEM

Your rental agreement will have details of the steps to take in the event of an issue with the vehicle. There will be a number for breakdown assistance and with your car rental company will advise how to access a replacement vehicle.

BEING ISSUED WITH A PARKING OR SPEEDING FINE

If you are stopped and fined for a traffic offence, you will have to pay on the spot.

If however, you are unaware of the fine, the car rental company will be notified and it can take several weeks for them to notify you. They should sent you proof of the fine, the amount to be paid and sometimes an administration fee is added on top.

KNOW WHAT THE RETURN POLICY IS FOR FUEL

Make sure you know what the policy is regarding the fuel tank of your vehicle. Is it “same for same” or “full to full”. Keep an eye on your fuel consumption so that you don’t return your vehicle with too little or too much fuel.

TOP TIP: Top up most of the fuel a few miles out from the airport, as fuel prices will be more expensive the closer to the airport you travel.

WHAT TO DO IN THE EVENT OF YOU DAMAGING THE CAR

Okay, so you have damaged your rental car. What should you do? The first port of call is to notify the car rental company.

You will be responsible for damages up to your “deductible amount” if you only have basic insurance. Not a good idea!
If your booking was through Discovercars.com, contact them and provide all details within 28 days of returning the vehicle.

RETURNING YOUR RENTAL CAR

Apart from making sure you drop off the vehicle at the specified location, at the specified timeline and will the fuel level correct, be sure to:

Check the exterior and interior of the vehicle with the car company representative for any damage and get signed documentation from them of the state of the vehicle.
Leave yourself plenty of time to drop off your vehicle before your flight so you are not rushed. Take detailed pictures if you wish to.

Madeira car rental is cost-effective, convenient and more comfortable than other travel options. If you’ve followed this guide, chosen a reputable company and follow the rules of the road, your trip will be stress-free!