Madeira is one of those islands where having a car not only makes your journey more comfortable, but opens up a completely different level of experience. Thanks to having a car, we were able to see most places where public transport either doesn’t go or runs so rarely that you can lose half a day just waiting for a bus.
If you are planning a trip to Madeira and have a driver’s license, my advice is simple — rent a car. Yes, driving here has its own peculiarities, but after a day or two you get used to the local roads and start to really enjoy the trips.
Here’s what you should know before getting behind the wheel on this incredible island.
Recommended reading: Madeira – 7-day itinerary
Do you need a car in Madeira?
If you only plan to walk around Funchal and relax by your hotel pool, or explore Madeira on group tours, you will probably not need a car.
But if you want to see the real Madeira — Ponta de São Lourenço, the natural pools of Porto Moniz, Veu da Noiva waterfall, dozens of viewpoints, lava coastlines, mountain roads and popular hiking trailheads — it will be difficult without a car.
There are buses on the island, but some routes require several transfers. A car lets you build your itinerary to suit you, rather than adapting to the transport schedule.
What documents are needed to rent a car in Madeira
To rent a car in Madeira, you’ll need the standard documents:
- international passport;
- plastic driver’s license;
- credit card in the main driver’s name;
- usually at least one or two years’ driving experience.
I never once needed an international driving permit. New model Ukrainian plastic licenses were readily accepted by all rental companies.
Where to look for a car
I have been searching for cars for many years through DiscoverCars. It’s convenient, as you can quickly compare prices, rental conditions, deposit amount, and reviews of rental companies.
In Madeira, it’s most convenient to pick up your car right at the airport. When booking, just enter your flight number and arrival time — if the plane is delayed, the rental company will know.
Keep in mind that most rental companies without an airport office include a charge for car delivery to the airport. This costs 15 euros (almost the same as the bus from the airport to Funchal), so there’s no point in taking the bus to town first.
Which car is best to rent in Madeira
Many tourists try to save as much as possible and choose the smallest and cheapest car. In Madeira, I wouldn’t do this.
The island is very mountainous. There are constant steep climbs, long descents and switchbacks. A weak engine quickly makes itself known.
We rented a Smart ForFour with an automatic transmission and a 0.9-liter turbo engine. Despite the small volume, the car handled even very steep climbs perfectly. It gripped the road confidently, and the automatic transmission made trips much more comfortable. Especially on steep hills.
If I were to choose a car again now, I would still recommend:
- car no lower than class B (or if two people — class A with a turbo engine);
- engine with enough power;
- automatic transmission.
In Madeira, an automatic is not a luxury but a real help for the driver. Constantly working a manual gearbox on steep slopes is quite tiring.
How much does it cost to rent a car in Madeira
We were on the island in winter. For seven days we paid:
- 320 euros for the car rental with full insurance;
- about 65 euros for fuel, having driven about 500 kilometers.
In high season, prices can be higher, so it’s better to book your car a few months before your trip.
Why I recommend full insurance
It was in Madeira that I first took out full insurance coverage without hesitation. The reason is simple — without it, the deposit can be 1,100–1,500 euros. Personally, I didn’t want such an amount to be blocked on my card during the vacation.
In addition, local roads are quite challenging:
- narrow streets;
- steep switchbacks;
- tight parking lots;
- high curbs.
Full insurance lets you enjoy your trip much more calmly, without worrying about every scratch.
What are the roads like in Madeira
What surprised me most was the quality of the roads. Almost the entire island is connected by a modern ring highway with numerous tunnels, bridges and overpasses. All roads are free.
But even on the new highways, you need to pay attention.
In Madeira you’ll encounter:
- very steep climbs;
- sharp turns;
- narrow local roads;
- wavy terrain.
Some streets in towns are so steep it feels as if the car is driving almost vertically.
Peculiarities of local driving
Locals drive very confidently, but not aggressively. They know the roads very well, take the switchbacks quickly and do not always change lanes to let a car from a side road onto the main road.
If you are on Madeira for the first time, don’t try to keep up with the locals. It’s better to drive calmly, take your time and don’t hesitate to let faster cars pass.
After a day or two, you’ll adapt naturally.
Gas stations and fuel
Refueling in Madeira is very easy. You can pay by card or cash. At many gas stations there are attendants.
Approximate prices for 2026:
- petrol (Gasolina)— about 1.9 € per liter;
- diesel (Gasoleo)— around 1.77 € per liter.
The only thing — pay close attention to what fuel you’re pumping. Don’t mix up the Portuguese names Gasolina and Gasoleo.
Parking in Madeira
Near most natural attractions, viewpoints, and hiking trailheads, parking is free. But the parking areas are often small.
If there aren’t enough spaces, locals often leave their cars along the road as long as they don’t block the traffic.
In cities the situation is different — here parking is paid, and in the old districts and the center, it is extremely scarce. So I suggest looking for accommodation with private parking.
Parking in Funchal
It is in the capital that finding a spot can be most difficult.
Here:
- narrow streets;
- few parking spaces;
- most parking is paid.
That’s why I specifically booked accommodation with parking. If you plan to stay in Funchal for a few days, I highly recommend paying attention to this when choosing an apartment.
Travellers Pearl by Storytellers – an aparthotel in the historical center of Funchal, where we stayed for several nights. Convenient self-check-in and access by code. I chose this place for its private parking and the possibility to prepare breakfast or dinner – there’s a kitchen and all necessary utensils, as well as a washing machine. Parking in the center of Funchal is a very important option for travelers with a rented car.
Recommended reading: Where to stay in Madeira – places and types of vacation, advice from personal experience
Navigation
I used several apps at once:
- Google Maps – didn’t always show the correct road, especially in Funchal.
- Waze – works great on the island throughout;
- Maps.cz — especially convenient for hiking routes.
If your car supports Android Auto or Apple CarPlay, using navigation is even more comfortable. Make sure to check for this when choosing a car to rent.
Fines and traffic rules
In Portugal, traffic violations are not taken lightly. There are many speed cameras on the roads, and fines can range from 150 to 2,500 euros.
If the car is rented, the fine first goes to the rental company, after which the money is withdrawn from your card along with an administrative fee. So it’s definitely not worth experimenting with speed.
We were pulled over by the police once, who were randomly checking driver documents. They checked everything: the contract with the rental company, the car registration, the driver’s license, and even my passport. Why? No idea, but everything was fine – I hadn’t broken any rules.
A few tips from personal experience
After a week of driving around the island, I came to a few conclusions:
- book your car in advance — there will be much more choice;
- don’t skimp on engine power;
- automatic transmission really makes traveling easier;
- full insurance in Madeira is really worth the money;
- if you plan to stay in Funchal, choose a hotel or apartment with parking;
- don’t rush on switchbacks and don’t try to drive as fast as the locals.
Conclusion
After our trip, I can say one thing: Madeira is exactly the island best discovered behind the wheel of a car.
Yes, at first the steep climbs and switchbacks can seem a bit intimidating. But after a few hours, you realize that the roads here are excellent, the traffic is calm, and the car gives you the main thing — freedom.
It was thanks to having a car that we saw dozens of places we would hardly have reached by bus. We watched sunrises from viewpoints, stopped at waterfalls, explored small fishing villages, and could change our route at any moment.
For me, a car became one of the main factors that made the trip to Madeira so unforgettable.
Useful articles and links:
- Top 10 in Madeira – for those planning their first trip
- Going to Madeira – island guide
- Funchal – a guide to Madeira’s capital
- Madeira VS Mallorca – which island to choose for your next trip
Car rental – affordable options are always on the DiscoverCars
Medical insurance – online at HotlineFinance
Hotel and apartment bookings – Booking.com
