Hire a car in Madeira without the nasty surprises
Most visitors hire a car here, and the stories that go wrong keep coming back to the same four things: the deposit, the cover, a late flight and a car too weak for the hills. Here is what it costs and how to avoid all four.
The short version
Book online a few weeks ahead, collect the car at the airport, take full cover and bring a credit card. Not sure you need a car at all? Start with do you need a car in Madeira.
- Pick up
- Madeira Airport, 20 to 25 minutes from Funchal
- Tolls
- None, on any expressway or main road
- UK licence
- A photocard licence is enough
- Bring
- A physical credit card in the driver’s name
What a week will cost you
A typical small manual car for 7 days from the airport, and the same with full cover, so a scratch does not end up costing you.
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Quiet months
November and early December
€170 with full cover
Car alone: €107
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Winter and spring
Mid-January to early March
€202 with full cover
Car alone: €147
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Christmas and Easter
The week before Christmas, and Easter week
€300 with full cover
Car alone: €238
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Summer
July and August
€382 with full cover
Car alone: €304
Typical prices from our Madeira car hire price study (23 October 2026). Automatics cost about 31% more. Fuel is extra; there are no tolls.
Prices for the next few weeks
Travelling soon? This is what a week costs right now if you collect the car on one of these Saturdays.
| Pick up on | Small manual | Small automatic | Manual with full cover |
|---|---|---|---|
| Sat 7 Nov | €108 | €163 | €171 |
| Sat 14 Nov | €107 | €161 | €170 |
| Sat 21 Nov | €109 | €161 | €172 |
| Sat 28 Nov | €107 | €154 | €170 |
| Sat 5 Dec | €112 | €152 | €168 |
| Sat 12 Dec | €114 | €152 | €170 |
Typical price for 7 days from Madeira Airport, checked on 23 October 2026. Prices move every day, so treat these as a guide and compare before you book. See today’s prices on DiscoverCars.
The four things that go wrong, and how to avoid them
These come up again and again in travellers’ stories online. Each one has a simple fix.
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A big sum blocked on your card
Most companies block a deposit on your card at the desk. On small cars it is usually around €1,000, held for up to 30 days. 72% of offers only accept a credit card for it, and a debit card at the desk often means paying for the company’s own insurance on the spot.
What to do: Bring a physical credit card in the main driver’s name, with enough limit. If you do not have one, filter for “no deposit” or “debit card accepted” before you book.
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Being charged for damage
If the car comes back with a scratch, you pay up to the excess: around €1,365 on a small car, more on bigger ones. Most arguments are about damage that was already there, or about tyres, glass and mirrors that basic cover leaves out.
What to do: Take full cover, so the excess comes back to you. Film the whole car, wheels and roof included, when you collect it and when you return it.
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No car when you land
If your flight is late, 67% of offers only hold the car for an hour after the booked time. In busy summers, some small companies also cancel the cheapest bookings.
What to do: Give your flight number when you book, check how long the car is held, choose a company rated 8 or more, and keep free cancellation.
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A car that struggles on the hills
The cheapest cars have small engines. With four adults on the climbs to the mountains, they crawl, and hill starts with a clutch on steep junctions put many visitors off driving.
What to do: Pick a compact rather than the smallest class if you will drive to the peaks. If you are not used to hill starts, an automatic is worth the extra (about 31% at the median).
Three words that confuse everyone
Every booking site uses them. Once these are clear, the rest of the small print is easy.
- Deposit
- Money blocked on your card at the desk and released after you return the car. You do not pay it, unless something goes wrong.
- Excess
- The most you pay if the car is damaged or stolen. A no-deposit offer can still have one.
- Full cover
- Insurance that pays back the excess. Sold by the booking site (cheaper, you claim the money back) or by the hire company (dearer, nothing to claim and often no deposit).
How I would book it
Five steps, in this order.
Compare online, three or more weeks ahead
An aggregator shows local and international companies together, with the deposit, the excess and the card needed before you pay. Book as soon as your flights are fixed for Christmas, Easter and summer.
Filter before you look at prices
Customer rating 8 or more, full to full fuel, free cancellation, and the card you actually have.
Choose the car for the hills
Two people and light luggage: a small car is fine. Four people or mountain drives: a compact or small SUV. Not confident with a clutch: automatic.
Decide how you want to handle damage
Either take the booking site’s full cover and keep the deposit on your card, or pay more for the company’s no-deposit, no-excess option. Both are fine; doing neither is the risk.
At the desk
Give your flight number, say no to extra insurance if you already have full cover, and film the car all the way round before you drive off.
I compare on DiscoverCars because it lists the local and international companies side by side, with the deposit, excess, card and rating before you pay. Affiliate link: if you book, we may earn a commission at no extra cost to you. How we make money.
Local company or a big name?
Madeira has dozens of local rental companies alongside the international brands. The local firms are usually cheaper and many meet you in the car park or deliver to your hotel; the big names usually have a desk in the terminal and longer opening hours. Quality varies a lot among the small ones, so I look at the customer rating before the price.
Hire it only for the days you need
If your first two days are in Funchal, you do not need a car for them. Parking in the centre costs money and time. Start the hire on the morning of your first day out, or have it delivered to the hotel.
Driving in Madeira: the rules locals follow
Easy on the main roads, slow and steep everywhere else. These are the things I tell every friend who hires a car here.
Roundabouts: the inside lane is for going round
Use the outer lane only if you are taking the first exit. For later exits, keep to the inner lane and move out just before yours. Many visitors stay on the outside the whole way, and that is where the near misses happen.
Slip roads are short: stop and wait
Many Via Rápida slip roads are too short to build up speed. It is normal to stop at the end and wait for a gap. Lorries on the main road often move to the left lane to let you in; if you see one signalling, give it room.
On a narrow road, the car going uphill has priority
In practice, whoever has a place to pull in does so, and the bigger vehicle usually gets its way. If a bus comes the other way, be ready to reverse to the last wide spot.
Do not trust the GPS on shortcuts
Google Maps sends you down the shortest road, and in Madeira that can be a ramp too steep to see over. If a turning looks wrong, stay on the main road. It is rarely more than a few minutes longer.
Keep your speed on the Via Rápida
The limit is 90 km/h, and 100 km/h only where signed and on a dry road. Madeirans drive it fast; slowing down to look at the view or the planes landing is how people get rear-ended. Use the viewpoints instead.
Watch for parked cars and forgotten indicators
Locals park along the edge of narrow roads, so you will often have to wait for a gap. And plenty of drivers leave an indicator on: do not pull out until the car actually turns.
Fog changes the mountain roads
The road up to Pico do Arieiro can go from clear to thick cloud in minutes. Check the Arieiro webcam before a sunrise drive and slow right down in fog. Do not drive up into the mountains in heavy rain: stones fall onto the road. More in our Pico do Arieiro guide.
Parking runs on colours
White lines are free, blue lines are paid Monday to Friday 8am–8pm and Saturday 8am–2pm at the meter or in the iPark Driver app, and yellow lines mean no parking. The full rundown is in getting around Madeira.
Parking: Visit Madeira: How to move around. Speed limits: DNoticias: speed limits on the Via Rápida. UK licence: GOV.UK: Portugal travel advice, driving.
Where the car earns its money
The days out that are hard work by bus and easy by car.
Porto Moniz and Seixal
About 50 minutes from Funchal, with the north coast pools and black sand on the same day.
Pico do Arieiro at sunrise
Leave in the dark for the sunrise, with the car waiting for you after your walk.
Paúl do Mar for sunset
The far west, where the buses are few and the drive back after dark is short with a car.
All of these are laid out day by day in our Madeira itineraries.
Questions about car hire in Madeira
How much does it cost to hire a car in Madeira?
A typical small manual car for a week from Madeira Airport costs about €107 in November and €304 in August. With full cover, budget about €170 and €382. Figures from our price study, searched on 23 October 2026.
Is an automatic much more expensive in Madeira?
Through a comparison site, a typical small automatic cost about 31% more than a manual for the same week in our study. Booking direct with a big brand can cost far more. Automatics go first in summer and at Christmas, so book early.
Can I hire a car in Madeira with a debit card?
Sometimes. 72% of the offers we checked needed a credit card for the deposit, 28% accepted a debit card and 6% needed no card at all. Filter by card type before you book, because a refused card at the desk usually means paying for the company’s own insurance on the spot.
Does no deposit mean I pay nothing if the car is damaged?
No. No deposit means nothing is blocked on your card at pick-up. The excess can still apply and be charged after the rental if there is damage. Only full cover or a zero-excess offer removes that.
What happens if my flight is delayed?
Give your flight number when you book: many companies track it. Check how long the car is held after the booked time, because 67% of offers only hold it for an hour. If you will be later than that, call the company.
Do I need an international driving permit to hire a car in Madeira?
Not with a UK photocard driving licence: GOV.UK says it is enough to drive in Portugal, and Madeira is part of Portugal. If you still have an old paper licence you may need an international driving permit. Drivers from outside the UK and EU should check their own government’s advice and the hire company’s terms.
Are there tolls in Madeira?
No. Visit Madeira confirms that all expressways and main roads in Madeira are free for residents and visitors, including the Via Rápida along the south coast and its tunnels.
Is driving in Madeira difficult?
On the main roads, no. The Via Rápida is a modern expressway with a 90 km/h limit, rising to 100 km/h only where signed and when the road is dry. The mountain and village roads are steep, narrow and full of bends, so drive them slowly. An automatic makes the hill starts much easier.
Plan the days around the car
Put the long drives on the days you have the car, and the Funchal days on the days you do not. A personal plan from our family is €149 for up to 5 days (€199 for 6 to 8), ready in 48 hours.