Renting a Car in Madeira (2025): The Ultimate Guide

Renting a car in Madeira is one of the best ways to explore the island at your own pace. The island’s stunning landscapes and hidden spots are easier to reach when you have your own wheels.

In this guide, I’ll share everything you need to know about renting a car in Madeira—from costs and requirements to driving tips and where to book. Whether you’re planning a short visit or a longer stay, this info will help you get the most out of your trip.

Renting a car in Madeira – Quick Overview

Airport pickup is the most common option, with almost every company offering a free shuttle to their office. Book early to secure the best prices and a wide range of car choices.

When renting a car in Madeira, drivers usually need to be at least 21, with extra fees for those under 25. Prices start around €20–€30 per day during high season.

Roads are well-maintained but often steep and narrow, so we recommend a smaller, strong car for easier driving.

Full insurance coverage is recommended when renting a car in Madeira, and it’s often more affordable when booked online. We highly recommend using Discover Cars to compare deals from multiple providers, enjoy free cancellation, and benefit from excellent customer support.

Don’t forget to download offline maps since there’s limited signal in some areas.

Do You Really Need a Car in Madeira?

If you want to explore beyond Funchal and visit remote viewpoints, hiking trails, or hidden beaches, renting a car in Madeira is by far the best option.

Public transport exists but is limited, especially outside the capital and on weekends. Group tours can cover some highlights, but they don’t offer the same freedom or flexibility.

With your own car, you can explore at your own pace, avoid crowds by going early, and reach places buses simply don’t go. That said, if you’re staying only in Funchal or prefer organized trips, you can manage without one, but you’ll miss a lot.

Car Rental Requirements

When renting a car in Madeira, most companies accept licenses from the EU, UK, USA, and many other countries without an International Driving Permit (IDP), but it’s best to double-check in advance.

The minimum age for renting a car in Madeira is 18, but only a few companies rent to drivers that young. If you’re 21 or older, you’ll find more options. Renting is easiest if you’re 25 or older. Keep in mind that drivers under 25 may need to pay a young driver fee.

A credit card in the main driver’s name is usually required for the deposit, and you’ll also need your passport or national ID for identification.

We had some trouble using Juraj’s credit card and asked if we could use mine instead. The company said it was possible but would cost around €35 per day, which isn’t really worth it—so it’s important to sort out your payment method in advance.

If you’d like to include additional drivers, it’s usually possible for a fee, depending on the rental company.

What are the prices in 2025?

During the high season, renting a car in Madeira starts at around €20/day for a small car, €27 for a medium, and €32 for a larger vehicle.

If you’re renting for more days, the daily rate is usually slightly lower. During the shoulder and low seasons, prices drop significantly, sometimes by as much as half.

Unlike in many other countries, airport pick-up in Madeira doesn’t come with an extra fee. We found that downtown pick-up was more expensive, which is why we decided to rent from the airport.

We were picked up by a free shuttle and taken to the rental office nearby. From what we saw, most car rentals in Madeira operate this way.

We booked with International Car through Discover Cars and paid €290 for 12 days in July for an Opel Corsa, including full coverage. Not bad for peak season!

Driving in Madeira – Our Experience

Road conditions

When we first looked at Madeira on the map, we weren’t sure what to expect about the road quality. We thought there might be old roads with potholes. To our surprise, most roads were new and very well maintained. We didn’t see a single pothole.

Some towns are connected by wide roads, but in many places, the roads are narrow, steep, and winding. Often, there were no guardrails, which felt a bit intimidating. Honestly, we had never driven on roads this steep before.

Madeira’s hilly terrain means there are many tunnels and bridges. These make traveling around the island much faster. If you prefer, you can skip the tunnels and take the scenic mountain routes, which offer great viewpoints along the way.

Overall, you need to be a confident and skilled driver to handle Madeira’s roads comfortably.

Traffic and Driving Culture

Most of the traffic in Madeira is concentrated around Funchal and the south coast. Outside of these areas, the roads are usually calm, and driving feels easy and pleasant. Madeira has many roundabouts, but they’re generally straightforward to navigate.

From our experience, locals drive normally and are careful enough, though we occasionally came across some impatient drivers who seemed a bit too confident.

On the other hand, we also noticed that many tourists who were renting a car in Madeira tended to drive too slowly, especially on steep or narrow roads, which sometimes made the drive feel longer than necessary.

Using GPS

Like most travelers nowadays, we relied on Google Maps for all our navigation around Madeira. It worked well in most cases and rarely sent us somewhere we couldn’t drive.

The only issue we ran into was inside tunnels—Google Maps often froze or lost signal, which led to a few confusing moments when we exited straight into a roundabout and weren’t sure which exit to take.

We highly recommend downloading offline maps in advance if you plan to rent a car in Madeira, as mobile signal isn’t available everywhere on the island.

Weather

As we learned during our trip, Madeira’s weather can change fast. One moment you’re enjoying clear skies and sunshine, and five minutes later, you’re surrounded by thick fog with almost no visibility.

The northwestern part of the island was often windy and cloudy during our stay, while the central areas were frequently covered in fog.

When renting a car in Madeira, these sudden changes can make driving more difficult, especially on narrow or steep roads, so it’s best to stay alert and drive carefully in changing conditions.

Choosing the right car

When renting a car in Madeira, we highly recommend paying attention to the engine strength, car size, and whether it’s manual or automatic.

The island is full of steep roads, and if you’re traveling with more passengers or luggage, a more powerful engine will make a big difference.

We drove an Opel Corsa with manual transmission — it was just right for the two of us and a baby, but we definitely felt it on steeper climbs and had to go slow at times.

We wouldn’t recommend renting a big car. Many streets, especially in smaller towns or mountain villages, are narrow and hard to navigate. Meeting another car in a tight spot can get stressful fast.

Also, keep in mind that you’ll often have to start driving on a steep incline, so if you’re not 100% confident with a manual, go for an automatic when renting a car in Madeira. It makes the whole driving experience in Madeira way easier and less stressful.

Where to rent a car in Madeira

There are a few ways to book a rental car in Madeira, but the best option is to book online in advance. That way, you’ll get better prices, more car options, and you can pick up your car directly at the airport without extra hassle.

We always use Discover Cars, a platform that lets you easily compare offers from both international and local providers. It’s not just for comparing — you actually book through them, which keeps everything simple and clear.

Their full coverage is much cheaper than what rental counters usually offer, and they provide free cancellation up to 48 hours before pickup. We’ve had great experiences with their support, and booking through them always felt safe and smooth.

Insurance & Coverage Explained

When renting a car in Madeira, you’ll be offered several types of insurance — and it’s important to understand what’s actually needed.

Basic insurance is usually included in the rental price, but it comes with a high excess (the amount you’re responsible for if anything goes wrong). That’s why most people opt for full coverage.

If you book through Discover Cars, you can easily add full coverage during the booking process. It’s much cheaper than what rental desks offer (we’re talking about €8–€10 per day vs. €20–€30). It covers damage, theft, flat tires, lost keys, misfueling, and more.

In case anything happens, you pay the rental company first, then file a refund claim with Discover Cars — we’ve read good things about their claims process.

Pick-up checklist when renting a car in Madeira

1. Check the car for damage
Walk around the car and take photos or videos of any existing scratches, dents, or other issues. Make sure they’re all noted in the rental agreement and the company is aware of them.

2. Ask about fuel policy
Most rentals come with a full-to-full policy, meaning you return the car with the same fuel level. Make sure to confirm this so you’re not charged extra.

3. Verify what’s included
Double-check what’s included in your rental — especially insurance coverage, extra driver, and mileage limits, if any. If there are other islands you can visit by a car ferry, ask about that, too.

4. Understand the deposit and payment
Make sure you know how much will be blocked on your credit card and when it will be released. If you paid for full coverage via a platform like Discover Cars, clarify how to handle damages.

5. Get contact details
Ask for a phone number you can call in case of emergencies or issues during your rental.

6. Inspect basic functions
Check that everything works: lights, AC, windows, wipers, GPS if included. Also look at the tire condition and make sure there’s a spare tire or repair kit.

7. Ask about tolls & road rules
Madeira doesn’t have toll roads, but it’s still good to ask if there are any local driving tips or rules to know.

Parking Tips

Parking in Madeira can be challenging in some areas, especially near popular attractions, where the only available options are along very steep roads – not ideal if you’re not comfortable with hill starts.

Another complication is the number of tourists. Many car parks fill up completely, leaving no free spaces. This is very common at the start of PR6 Levada das 25 Fontes for example.

Around the island, there are numerous public parking lots, and many of them are available for free. If a lot is paid, there’s usually a ticket machine nearby (most accept only coins). If you don’t see a machine, it’s most likely free.

Be careful not to park in spots marked “moradores” — those are reserved for residents.

In Funchal, we often struggled to find parking, but in other parts of the island, it was more manageable, though still busy at times. It’s common to see both locals and tourists parked along the main road, especially in smaller towns or rural areas.

One more thing to keep in mind: not all hotels are properly equipped with parking lots. Many offer free parking, but the capacity is often very limited. If you arrive late in the evening, finding a spot can be tough.

Some hotels may offer a larger garage for an additional cost, or you may need to rely on nearby paid public parking.

We’ve also visited a few attractions that had very limited parking, such as Miradouro da Garganta Funda.

Toll & Road Fees

Good news — there are no toll roads in Madeira. You can drive all around the island without worrying about any road fees, vignettes, or toll booths.

Child Seats: What You Need to Know

Legal Requirements

In Madeira, children under 12 years old or shorter than 135 cm must use an appropriate child seat: either a rear-facing or forward-facing seat for toddlers, or a booster seat for older kids. It’s your legal responsibility to ensure the seat fits their weight and height.

Renting vs. Bringing Your Own

Most car rental companies offer child seats and booster seats at an extra fee (5-10€ per day). When using Discover Cars, you have the option to add a child seat (or other extras) in the first step.

While convenient, prices add up, and seats may not be the newest or crisply clean. Bringing your own seat ensures comfort, familiarity, and hygiene for your child.

We flew with Wizzair from Budapest and were allowed to bring two baby items for free—a stroller and a child seat. Most airlines offer a similar policy, allowing one or two baby items in checked baggage at no extra cost.

However, always double-check your airline’s baggage policy to avoid surprises.

Alternative Transport for Non-Drivers

Madeira does have public transport, but it’s not very reliable and doesn’t reach all the popular spots you’ll likely want to visit. Taxis are available across the island, but relying on them too much can quickly increase your travel costs.

If you’re comfortable riding a scooter, this can be a fun and flexible way to explore Madeira, especially on narrow or steep roads where cars might feel bulky.

For those who prefer hassle-free travel, joining guided tours is a great option. Tours take you to must-see places that public transport doesn’t cover and provide local insights you won’t get otherwise.

Below, we’ve listed some of the best-reviewed Madeira tours to help you make the most of your trip.