Should You Rent a Car in Madeira? Honest Tips, Costs, and Best Rent-a-Cars
Renting a car in Madeira can completely change your experience of the island. It gives you access to places that are difficult or impossible to reach otherwise, especially in the mountains and along the north coast.
That said, it is not something to do blindly.
Madeira is not an easy place to drive. Roads can be steep, narrow and unpredictable. On top of that, car rental policies can vary a lot, and not all companies offer the same level of service.
As you may guess, locals don’t often have to rent. My goal here is to help you make an informed decision, calculate how much it will cost you, and find a reliable car rental in Madeira.
First, Should You Rent a Car in Madeira?
You should rent a car in Madeira if:
You’re comfortable driving on steep, winding roads
You want to explore beyond Funchal and reach remote areas
You’re staying outside Funchal (then, it’s absolutely a must)
You’re travelling with others and can split the cost of renting a car
You prefer flexibility over guided tours to visit Madeira
You should not rent a car if:
You feel unsure about driving in unknown, mountainous roads
You only want to visit the main highlights with guided tours
You’re staying mostly in Funchal, and only making a few day trips
You’re travelling solo on a tight budget
You’re happy joining group tours or shared transport
How Much Does It Cost to Rent a Car in Madeira?
Car rental prices in Madeira vary a lot depending on the season, how far in advance you book, the type of car you choose and whether you need an automatic car.
The cheapest daily rates on Uber Car Hires in Madeira start at around €19 per day in low season. But that usually applies to small, manual cars collected at the airport.
In spring and summer, prices can rise quickly. As a rough guideline, expect these prices for car rentals in Madeira:
Low season: from around €19 to €35 per day
Mid season: often around €35 to €50 per day
High season: often €40 to €90 per day (automatic and larger vehicles are on the higher end of the scale)
Plus, you need to factor in insurance upgrades, deposit, extra driver fees (sometimes), out of hours pick up charges (sometimes), and fuel fees.
Best Rent-a-Cars in Madeira Without a Deposit
Again, I want to make one thing clear: I’m not endorsing any car rentals in Madeira. I do not earn any commission, and I do not have a commercial relationship with any of these businesses.
However, if you spend any time reading reviews on Booking and other large platforms, you will quickly notice that many of the best-known rental companies also attract a surprising number of bad reviews.
Complaints usually revolve around deposits, insurance, unexpected charges or stressful pick-up experiences. On the other hand, local rent-a-cars in Madeira have much better reviews.
Local companies often seem to offer a smoother experience, especially when it comes to flexibility, communication and deposits. Here are some rent a cars in Madeira that seem to be reliable:
AutoCanhas
AutoCanhas has no deposit fees and accepts payment on pick-up by cash, debit card or credit card. It also advertises airport delivery, with fees depending on rental length. Autocanhas currently has a 4.5 rating on Google Maps, and has several locations throughout the island.
Carwave
Another local rent a car in Madeira, Carwave says clearly on their website that they ask for no deposit, as long as you take full insurance. No credit card is needed, and they currently have an impressive 5 stars on Google Maps (with over 600 reviews) and 4.6 on Trustpilot (26 reviews).
Stone Rent a Car
Stone is another car rental who advertises no deposit or credit card needed, since payment can be made on delivery by card or cash. The head office ranks an impressive 5 stars on Google Maps with over 1300 reviews, and it’s often mentioned on travel forums.
Madpoint
Madpoint seems like another good option, with very good reviews (4.8 on Google Maps with 600 reviews), but it does require a deposit if you’re only taking out basic insurance. I’ve seen it mentioned on Reddit /Madeira several times with positive reviews, so it’s worth checking out.
Automatic-only option
If you only drive automatic, it is worth knowing that Automatic Rental Cars Madeira specialises in automatic vehicles only. You have to pay a security deposit if you only take out basic insurance, but they waiver it with premium insurance.
A Note on Deposits when renting a car in Madeira
Deposits are one of the biggest pain points when renting a car. Some companies require a large credit card hold or cash deposits. If something feels excessive, walk away. There are many rental companies in Madeira, and you have options.
Policies, insurance terms and deposit rules can change at any time, so always check the company’s own website before booking rather than relying only on third-party platforms or older reviews.
which type of car should you rent in Madeira?
Avoid the cheapest option
Let’s put it this way: I don’t know a single local who owns a Fiat Panda. Whenever we see one, we know it’s a rental. So here’s your first tip: avoid the smallest, cheapest car available.
If you plan to visit places like Pico do Arieiro, Fanal, or mountain viewpoints, you want at least a group B car or equivalent to travel comfortably.
Manual Gear Vs Automatic
As elsewhere in Europe, manual cars are more common and cheaper. But if you’re used to automatic, rent automatic. Most rental cars have a few options available, especially if you rent beforehand.
Driving in Madeira already requires focus. Adding manual gear shifting on steep inclines can quickly become stressful if you’re not used to it. Plus, you may need to practice engine braking as well.
Driving Tips in Madeira
Don’t trust Google Maps blindly
When driving in Madeira, use your common sense instead of following GPS, Google Maps or Apple Maps blindly. Google Maps may suggest roads that are quite narrow or very steep just to “save” a couple of minutes, while Apple Maps is completely outdated.
Take photos of the car
Before driving out with your car, photograph all scratches and dents, check fuel level, and report anything suspicious to the car rental staff. This avoids any issues when returning the car.
Be patient
With the current influx of tourists, each renting their own car, there are traffic jams in Pico Ruivo, Ponta de S. Lourenço, Funchal, Caniço, and even between Ribeira Brava and Ponta do Sol.
The alternative is driving through the old roads, but I don’t recommend it for those who’re not familiar with it. So, be patient, and wait on the main road before choosing (literally) the road less travelled.
Prepare for parking
Parking is limited, so you’d do well to look up a parking spot before you arrive to your final location. If you’re doing a levada or visiting a popular spot, you may need to park a little further away.
But don’t stress over things like parking! You’re on holidays and NOT on a schedule. Another tip: keep some coins around, because they come in handy when you need to pay for your parking spot.
Expect changing weather
The weather in Madeira can change suddenly. It won’t always be bright and sunny. In fact, just going from the seaside to the mountains will come with a temperature drop, fog, and more humidity.
Take this into consideration when you pack (bring layers!), but also when you drive. If you feel uncomfortable as the weather changes, turn back. Don’t risk it, especially if you’re not driving on the Via Rápida.
Plan Before You Rent a Car
A car is one of the biggest expenses of your trip. Instead of renting for your entire stay, plan your itinerary first and rent only for those days. You can optimise your stay to need it only for 2-3 days.
Unless, of course, you’re staying outside of Funchal and Câmara de Lobos. In smaller cities, even if you’re paying less for your accommodation, you’ll likely need a car even just to go to the supermarket.
Renting a Car in Madeira: yes, but With caveats
Renting a car in Madeira can be one of the best decisions you make, or one of the most stressful. Choose the right company, pick a car you’re comfortable with, and use Google Maps to know what to expect when you finally get to driving.
If you plan your itinerary, you’ll have plenty of time to explore the island at your own pace. But, if you’re not comfortable driving, there are always tours, transfers, and other ways to experience Madeira without the stress of driving.