Renting a Car in Madeira: All You Need to Know

How to rent a car in Madeira

Only a 90-minute flight from Portugal’s Lisbon, in the North Atlantic Ocean, lies Madeira, the country’s tropical cousin.

This incredible island is made up of nature’s very best, from lush green mountains, deep valleys, and dramatic cliffs to misty forests like Fanal and plunging waterfalls. Although tours and public transport can get you around, the very best way to marvel at Madeira’s beauty is by renting a car. 

As you go, every new corner reveals another incredible view. Additionally, it’s the most flexible and convenient way to get around the island, allowing you to make up your own route and schedule. Plus, a car gets you to some of the best hikes in Madeira!

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Although, it’s not all fun and games, as driving in Madeira can be challenging at times. This guide will tell you exactly how to rent a car in Madeira and what it’s like to drive there.

What do you need to rent a car in Madeira?

When you rent a car in Madeira, you’ll need to bring the following documents:

• Your driver’s license from your home country
• Your ID (passport)
• Valid Credit Card in your name

Note: If you’re under the age of 25 (21-24), you’ll have to pay an additional ‘young driver’ fee which you’ll find in the conditions of your rental contract. An International Driver’s Permit (IDP) is only necessary if your drivers license is not in the Roman script.

Rental car insurance in Madeira

When renting a car in Madeira, you must have basic third-party liability insurance. With most companies, this is already in the price of your car rental in the form of a Collision Damage Waiver (CDW). It is important to note that this often comes with a high deductible on your credit card, so make sure you’ve got enough available credit on there for the rental agency to hold.

Tip: It’s mandatory to have your credit card with you when you pick up a rental car in Madeira. This credit card must be in the name of the main driver; credit cards with another name won’t be accepted for the damage deposit.

Full insurance is not mandatory; however, it’s recommended (better to be safe than sorry!). If you decide to add this coverage, make sure to arrange it in your initial booking, as the prices are best when booked like this. You can also check if your credit card policy covers car rental insurance in Madeira.

Is it easy to drive in Madeira?

Driving in Madeira is an incredible journey, though it can be equally challenging as beautiful. As it’s an island mostly of mountains, the roads are steep and turn sharp. Luckily, most people drive very well on the roads, which are generally in good condition.

Roads & Speed Limits

Madeira’s roads offer one of the most unique driving experiences, blending its well-maintained infrastructure with the island’s lush, rugged terrain. While the main highways are great, weaving through the green hills and cutting through mountains via tunnels, always stay vigilant for unexpected situations and potholes. 

These scenic routes, with waterfalls cascading onto the roads, demand your full attention. Roads can be narrow, especially one-way streets that hug the cliffsides, so make sure to slow down. Despite the island’s compact size, driving from one point to another can sometimes take longer than you think, though everything is very well connected. 

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The main road encircles the island, and a central highway cuts through, linking the busier south with the quieter north. Unless otherwise specified, the speed limits are generally 50 km/h in urban areas like Funchal and 90 km/h on open roads.

Driving in the Mountains

Given that Madeira is made up almost entirely of rugged mountains, the island is extremely picturesque to drive through. It’s also the only way to access the trailheads of stunning hikes like Pico do Ariero. However, these roads can be challenging at times, so they should not be underestimated.

Funchal is connected with other villages on the north and south sides of the island by a gently flowing highway. But, take a turn into the hills, and you’re immediately faced with mountain roads that can sometimes be as steep as 45% (angle). This is important to consider when renting a car in Madeira, Portugal, as it requires some self-confidence in your driving. 

During your Madeira itinerary, keep in mind that the island’s weather changes due to its many microclimates. This diversity means that on the same day, you can drive from sunny coastal towns and pools to misty forests and mountain passes high above the clouds. Note: If you end up driving in the mist, drive slowly, as herds of cows can try to cross the roads.

Traffic in Madeira

The traffic rules in Madeira are pretty straightforward, with one exception: driving onto the highway. The merge lanes are often very short, and cars that are already on the highway have the right of way. This means you need to let them pass before merging. 

You’ll also notice that the locals are used to the sharp bends of the road, but don’t let that rush you! Take your time, and if you do notice a line of cars gathering behind you on a one-lane road, see if there’s a spot next to the road where you could stop for a moment to let them pass. Generally, though, the locals are very patient, so there’s no need to worry. 

Is Driving in Madeira Safe?

Despite its landscape, Madeira is a relatively safe place to drive. There’s not much traffic, with the exception of rush hour in its bustling capital, Funchal. The roads and tunnels are all well-maintained, and drivers rarely drive aggressively. 

In case you do end up in an accident, call the traffic police to file a report. After that, make sure to call your rental company so you can fill in the claims. The emergency number in Madeira, Portugal, is 112.

Top Tips for Renting a Car in Madeira

1. Do a walk-around when picking up the car

When you collect your rental car, make sure to inspect it thoroughly before starting on your journey. Together with the agent, do a walk-around and log any existing damages, no matter how small. Additionally, you can take photos or a video of the damages to have extra ‘proof’ if necessary. 

Do the same with the inside of the car and check whether you have a full tank of gas. Most companies are reliable and trustworthy, but it’s important to note the damages so you’re not held responsible when returning the car.  

2. Pay attention when getting gas

When renting a car in Madeira, it’s important to have enough gas. Winding through the steep roads requires significantly more fuel than driving through the city. You’ll find gas stations along the main highways but not on the mountain routes, so make sure to fuel up beforehand. 

Google Maps and other navigation services typically show you which one is nearest to you. Portugal is among the countries with the most expensive fuel, with an average price of 2,04 EUR per liter (5,00 EUR per gallon). Pay extra attention to getting the right fuel type when filling up, as they sound very (!) similar. You can either get diesel (gasoleo) or unleaded petrol 95 and 98 (gasolina).

Tip: If you’re ever in doubt about which type of fuel you need, try to find the sticker in your rental car that provides that information. This can usually be found on the car key, on the dashboard, or on the fuel door.

3. Be mindful of where you park

Parking is an important factor to remember when renting a car in Madeira, especially if you’re staying in Funchal. While parking across the island is generally free and easy, Funchal presents more of a challenge due to limited space. Public parking is scarce, and most free spots are reserved for residents. 

Because of this, you’ll likely need to park in one of the city’s parking garages. These can be pricey, often around 10 EUR per day. Some garages, like Parking Santa Luzia, offer more affordable rates, like 4 EUR for 24 hours. However, be aware that some parking garages close at midnight, which can be an issue if you’re planning an early start for sunrise adventures. 

How much does a car rental in Madeira cost?

Overall, renting a car in Madeira, Portugal, is quite affordable. The price typically depends on a few things: the time of year you’re visiting, the duration of your trip, and the time you book in advance. To get the best deal on car rentals in Madeira, try to book your car as soon as you confirm your flights.

Note: Get a flexible car policy. Sometimes, due to the weather, flights can’t land at Madeira Airport and will return to the mainland to try again later. If you miss your car rental appointment because of this, it’s good to have a flexible solution.

Getting the right vehicle

Opt for a smaller car; they’re more affordable and fuel-efficient, perfect for navigating Madeira’s narrow roads. They’re also great for parking! If you’re heading into the mountains, we recommend booking an automatic or modern car with automatic braking to tackle the really steep slopes (it’s worth the extra fee). You won’t need a 4×4 to do this.

Where do I Rent a Car in Madeira?

For the best car rental experience in Madeira, we recommend picking up your rental directly at the airport. It’s just 20 minutes from Funchal, but you’ll save nearly 80 EUR on taxi fares by avoiding a trip into the city center. Plus, most car rental companies are conveniently located at the airport, making both pick-up and drop-off a breeze.