Renting a Car in Madeira: Ultimate Guide (Is It Worth It?)

Madeira is an island with huge mountains, steep cliffs and seriously breathtaking scenery, but this also results in winding roads, sharp inclines and a public transport that doesn’t reach everywhere. Renting a car in Madeira can make getting around much easier, but it isn’t always as straightforward as people expect.

As I explain in my Madeira travel tips, Madeira’s roads are nothing like mainland Europe. There’s one really fast motorway that circles most of the island, but also narrow cobbled streets in Funchal and steep, twisty mountain roads with very little room for error.

Having rented a car myself and explored without one, I’ve come to realise that renting a car is incredibly helpful, but it’s far from essential. The right choice really comes down to your confidence, your itinerary, and where you’re staying.

This guide isn’t about how to drive in Madeira. It’s about whether it’s actually worth doing in the first place.

Do You Actually Need a Car in Madeira?

When A Car Makes Sense

Getting around Madeira doesn’t always require a car. You can easily explore the capital, Funchal, on foot and by bus. Funchal’s buses can also take you further afield to places like Machico, Ponta do Sol, the Valley of the Nuns and parts of the north coast.

The thing is, these aren’t like the buses of London or Berlin, where services run every few minutes. Most routes outside Funchal depart every couple of hours, and some stop running surprisingly early in the day.

On top of that, many of Madeira’s hiking trails aren’t connected to public transport. That leaves you with just two realistic alternatives: renting a car or booking a hiking tour or transfer with pick-up and drop-off included. Here’s the catch: most hiking tours and transfers will only take you from Funchal.

Renting a car is therefore essential if you’re staying somewhere rural or well outside of Funchal, or if you want the freedom to reach trailheads that aren’t served by buses or tours. It also makes sense if you plan to hike early in the morning or finish later in the day.

If hiking is a big part of your trip, renting a car in Madeira will also work out far cheaper than relying on organised tours.

Tours and transfers are priced per person, whereas car rental is per vehicle – this makes a big difference if you’re travelling as a couple, family or group.

I really like a hybrid approach to car rental in Madeira. On my first trip to Madeira, I relied on buses and tours most of the time and rented a car for just one day to explore the north coast and inner valleys.

Who Should Not Rent A Car?

Renting a car isn’t for everyone, and that’s completely fine.

You probably shouldn’t rent a car if you’re not confident driving abroad. In Madeira, you’ll need to drive on the right-hand side of the road and handle fast motorways without hard shoulders, narrow mountain roads and cobbled streets.

If driving sounds more stressful than exciting, you can stick to exploring Madeira without a car. There’s still plenty to see and do by bus, tour or transfer without the pressure of navigating unfamiliar roads.

You may also want to skip renting a car if:

• You’re not planning to hike or you only want to do a couple of Madeira’s most popular trails, which are well served by tours and hiking transfers.
• You’re happy relying on tours to visit places like the Porto Moniz natural pools or the traditional houses in Santana.
• You plan to stay in Funchal and build your itinerary entirely around buses, walking and guided tours. (If you’re planning to base yourself in Funchal, my Funchal neighbourhood guide may help you decide where to stay.)

From a practical point of view, renting a car in Madeira also requires a valid driving licence. Requirements vary depending on your home country, but for most European tourists, a standard licence and passport is sufficient, sometimes alongside an international driving permit.

What It’s Like to Drive in Madeira

• The local driving style is fast and fairly aggressive, so you’ll fare well if you’re decisive and confident.
• Hill starts are very common, especially on steep city streets and mountain roads.
• The higher you drive, the more likely you are to encounter narrow roads, occasional obstacles like fallen rocks, and sudden weather changes like mist and rain.
• Motorways are smooth and well-maintained, but most don’t have a hard shoulder.
• When joining the VR1 motorway, you’ll sometimes need to come to a complete stop before merging, something that caught me by surprise.

For a detailed breakdown of what driving is really like, you can read my blog post on driving in Madeira.

How to Choose the Right Car for Madeira

Manual VS automatic

One of the most important decisions you’ll make is picking between a manual and an automatic. As a rule of thumb, it’s always best to stick to the type of car you’re comfortable driving at home.

That being said, automatic cars are noticeably easier to drive in Madeira. When you take on the steep hills and traffic in towns, you don’t need to worry about finding the biting point or changing gears.

Just take note that automatic cars are more limited and slightly more expensive to rent in Madeira, especially in the high season.

Engine Size and Hill Power

It bears repeating: Madeira is steep. The bigger the engine, the more power your rental car will have. Cars with very small engines often struggle on steep hills, particularly if you have several passengers. When you’re choosing a rental car in Madeira, you’ll want a car with reasonable engine power but not unnecessarily large.

Car Size

In Madeira, the smaller the car, the better. Roads get very narrow in the mountains and inner city, so a small car is easier to squeeze through tight gaps and fit into small parking spaces.

As long as the car has enough room for your passengers (and any luggage), it’ll do.

Do You Need a Four-Wheel Drive in Madeira?

A four-wheel drive isn’t necessary in Madeira, as the roads are mostly well-maintained and car rental companies will not cover you if you go off the road.

If you really want to experience off-road-driving in Madeira, you can book onto the popular full-day jeep tour with The Big Adventure.

What’s The Cost of Renting a Car in Madeira?

Renting a car in Madeira is surprisingly affordable, especially outside of the high season. Prices range from €10 – €25 per day depending on the type of car, whether you’re booking in advance, and the time of year.

The cost rises in summer (June to August) and around school holidays. Availability is also more limited during these busy periods.

Insurance Costs

Most car rental companies charge extra for full-coverage insurance. This ranges from €8 to €25 per day, again depending on the type of car.

This is one of the reasons I usually book through DiscoverCars. Instead of paying a high daily insurance rate at a car rental desk, I can add on full-coverage insurance online for around €7 per day. It’s less stressful and cost-effective.

Deposits

Deposits for Madeira car rentals are steep, typically ranging from €1,000 – €3,000 , depending on the car. The deposit is, of course, returned to you after you return the car, as long as there’s no damage.

If you’re visiting Madeira on a budget, the deposit is worth factoring in. You need to have enough funds in your bank account to cover the duration of the rental.

Things to Watch Out For With Madeira Car Rentals

• It’s always good practice to check for damage before you drive the car. I always take a full video of the car and note down any scratches or dents, so that they can’t be attributed to me later on.
• Clarify what’s included in your insurance, especially if you’re buying the insurance directly from the rental desk. Is there an excess that needs to be paid? Are tyres and glass covered?
• Check whether you need to return the car with a full tank of fuel. Some cars can be returned without a full tank, but most companies require you to fully fill it up before you return the vehicle. You don’t want to be overcharged for fuel.

Where Renting a Car Makes the Biggest Difference

Renting a car really makes a difference if you want to explore past the main towns in Madeira. It’s especially helpful for reaching the best hikes in Madeira, especially those that aren’t connected to public transport, and for visiting the north coast, where buses are infrequent.

Some of my favourite hikes that are tricky (or impossible) to get to by bus are Pico Grande, Pináculo e Folhadal (PR17) and Vereda do Larano.

You’ll also find having a car handy for reaching Santana, best known for its traditional Madeiran houses, and the best natural pools in Seixal and Porto Moniz.

You can get to these places without a car, but driving gives you far more flexibility, especially if you want to get there early to avoid the crowds.

Car vs Tours vs Public Transport

There are so many ways of getting around Madeira, and if there’s any message I want people to take away from my blog, it’s that you can absolutely visit Madeira without a car.

It’s not always as cost-effective, particularly for groups, but it’s doable – and you’ll often have more energy to spend on your hikes without spending hours at the wheel.

Renting a car	Tours/transfers	Buses
€35+ (including insurance) per vehicle	€30 – €35 per person	€2 – €4 per person
+ Cheapest option for groups	+ Expensive for groups/couples	+ Great for the budget
+ The ultimate flexibility	+ Less thinking involved	– More time-consuming
– It can feel tiring and challenging	– No control over your itinerary	– Limited routes and timings

My Honest Recommendation

If you’re a confident driver and travelling with a group, the best way to explore Madeira is by renting a car. You can visit absolutely any trail you please, without worrying about bus timetables or tour availability.

If you’re not keen on the idea of driving in Madeira, don’t risk it. You can easily see the island without a car, if you carefully pick your bus routes and tours/transfers. My blog is full of first-hand recommendations.

If you’re unsure about renting a car, perhaps you can try one day of car rental and dedicate the rest of your time to exploring Madeira without a car.

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