Funchal is the easiest place to rent a car in Madeira – thirty operators concentrate at Funchal airport (FNC) plus city offices. Daily rates start at 19 euros (about 21 USD) in low season and 38 euros in July-August. Madeira has zero motorway tolls and fuel at 1.62 euros / litre. This 2026 guide pulls live rates from Discover Cars, Trustpilot and the Madeira Tourism Board.
Madeira rentals are 25-40% pricier than mainland Portugal due to inter-island car shipping costs. Local operators (Ilha Verde, Magic Islands, Atlas) undercut the international chains by 25-40%.
Funchal airport (FNC) handles 80% of Madeira rentals plus city offices.
Rental hall after exit doors. Walk 2 minutes from arrivals to desks (Avis, Hertz, Sixt, Europcar, Ilha Verde, Atlas, Magic Islands, Goldcar). Add 8% airport surcharge.
Most local operators have a city office in the Lido tourist district. Bus 30 from FNC, 1.95 euros, 25 minutes. Saves airport surcharge.
Many local operators offer free delivery to central Funchal hotels with 24h notice.
Madeira has clear tier hierarchy: 4 strong locals + 5 major chains + 3 bargain-bin operators with poor Trustpilot.
Largest Madeira operator, family-owned since 1968. Trustpilot 4.5 / 5 from 2200+ reviews. Free child seats.
Mid-size local with newer fleet. English/French/German speakers. 4.4 / 5 Trustpilot.
Newest cars (Mercedes A, Renault Captur). 40-60% pricier than locals.
Smaller local, 80 cars. Trustpilot 4.3 / 5 from 280 reviews.
Headline rate vanishes once excess waiver added. Trustpilot 1.7 / 5.
Aggressive low rates plus 1500 euros deposit. Trustpilot 1.9 / 5.
Counter zero-excess waivers run 12-22 euros / day at Funchal. Standalone third-party from RentalCover is much cheaper.
CDW with 700-1500 euros excess. Tyres, undercarriage, windscreen excluded.
Local operators 12-14 euros / day; international chains 16-22 euros / day.
RentalCover or iCarhireinsurance from 4-7 euros / day. Identical coverage.
Madeira fleet is finite (no easy way to ferry extra cars). July-August sells out across all operators.
Compares all 30+ Madeira operators in one search.
Most fleet is manual. Automatic adds 7-10 euros / day.
Save 50-100 euros / week with standalone.
Saves 8% airport surcharge.
Refuel at Galp before drop-off, photograph receipt and gauge.
Madeira's 57 km length makes day trips easy from any Funchal base.
Europe's second-highest sea cliff with glass skywalk. 25 minutes from Funchal.
Drive to Madeira's highest peaks above the clouds. Allow 2-3 hours.
Natural lava rock pools at the northwest. 2-hour drive each way.
Underground volcanic caves plus dramatic north coast roads.
Colorful triangular thatched A-frame houses on the north coast.
Economy daily rates start at 19 euros low season, 38-55 euros July-August. No motorway tolls in Madeira.
Ilha Verde at 4.5 / 5 Trustpilot from 2200+ reviews. Atlas (4.4) and Magic Islands (4.3) are strong alternatives.
Yes, with 24h notice and 35 euros admin fee for the inter-island ferry.
Yes, but mountain switchbacks and rockfalls require slow driving. Include tyre/undercarriage in standalone insurance.
Off-airport at Lido saves 8% airport surcharge but adds 25 min bus ride. Worth it for week+ rentals.
Skip counter Super Cover at 12-22 euros/day. Buy standalone from RentalCover or iCarhireinsurance at 4-7 euros/day. Include tyre/undercarriage.
Petrol about 1.62 euros / litre, diesel 1.50 – cheaper than UK and France, slightly above mainland Spain.
Disclosure: Auto Jardim earns a commission when readers book through DiscoverCars. We never accept payment in exchange for a positive review.
Fact-checked: Rates and operator ratings verified 25 April 2026 against DiscoverCars, Trustpilot, and Madeira Tourism Board.
Primary sources: DiscoverCars, KAYAK, Trustpilot, Madeira Tourism Board (visitmadeira.com), individual operator websites, on-site verification April 2026.
Not exactly! Actually, it depends on where you are traveling. The roads are well-maintained and road signs are easy to read. However, if you are going to drive on extremely steep roads then just ensure that you rent a car with enough power. Other than that, driving on the mountainous area as well as tunnels that are frequently visited by tourists is easy.
If you are charged with a traffic offense such as speeding, parking the car in a non-parking area, using a phone while driving, skipping a red light, etc. then you need to pay the fine in spite of driving a rented car. During such circumstances, the car rental company may also add an additional fee at the time of returning the vehicle. However, if you are being penalized for an expired vehicle inspection then it is the car rental company who is responsible to pay the fine.
As on 22 June 2022, the average price of Diesel is Euros 2.085/l and Unleaded 95 petrol is Euros 2.200/l.
The prices starts just from 3$ a day which is absolutely cheap compared to other destinations. However the average price is about 20$/day and it is still considered pretty cheap.
In motorways, the speed is 120 KM/H (74 MPH), 80 KM/H on the main roads it’s like in the most Europe countries, 50 KM/H in built-up areas, and 25 KM/H on school roads.
It’s absolutely a great idea to rent a car in Funchal. By doing this you’ll be able to explore the whole island conveniently.
There is Europcar, Alamo, Enterprise, MasterKings, Avis, Budget, Centauro and Sixt. However, you can also find others just a few kilometers away. They usually offer a free pickup.
