Hiring a car in Madeira: what to know before you book
Do you need a car in Madeira? Which car to choose for steep roads, how insurance and excess work, age rules, automatics, and tips for picking up at the airport.
You can enjoy Madeira without a car, using buses, taxis and tours. But if you want to walk the levadas, explore the north coast and stop wherever you like, a car makes a huge difference.
Do you need one?
- Staying in Funchal for a short trip: probably not. Use buses, taxis and a tour or two.
- A week or more, or staying outside Funchal: yes. Many trailheads and viewpoints have no useful bus.
- Mixed plan: rent for two or three days in the middle of your stay, and spend the rest in Funchal on foot.
Which car?
Madeira’s roads are good but steep. Some streets climb at gradients you rarely see elsewhere in Europe, and roads to villages and holiday homes can be narrow with tight hairpins.
- Small but not underpowered. A compact car with a decent engine (a 1.0 turbo or bigger) is the sweet spot: easy to park, strong enough for hills with four people.
- Automatic or manual? Manuals are cheaper and more common. If you are not confident doing hill starts on steep slopes, pay for an automatic and book early, as they run out in busy seasons.
- Electric cars work well on Madeira: distances are short and there are chargers around the island. Regenerative braking helps on the long descents.
Age and licence
Most companies require drivers to be at least 21 to 23 and to have held a licence for one or two years, with a young driver fee under 25. EU and UK licences are accepted. Drivers from some other countries may need an International Driving Permit; check with the rental company.
Insurance and excess
The headline price usually includes basic insurance with a high excess, often more than €1,000, blocked on your credit card. You can reduce it to zero with the company’s own cover at the desk, or buy separate excess insurance before you travel and decline theirs. Either way:
- Photograph and film the car all round, including wheels and roof, before you leave the car park.
- Check what is excluded. Tyres, glass and the underside are often not covered by basic policies.
- Return with the agreed fuel level and keep the receipt.
Picking up
Most companies have desks or meeting points at the airport. Some smaller local firms deliver to your hotel or apartment, which is handy if you only want the car for part of your stay.
Driving
Read our driving in Madeira guide for roads, tunnels, roundabouts, parking and fuel.
When it is cheapest
Prices are lowest from mid-January to March and in November, and highest in August, at Easter and over Christmas and New Year, when cars can sell out. Book as soon as your flights are fixed.