Expect €25-€45 per day off-peak (Nov-Mar) and €55-€90 per day in August for a compact petrol with full insurance. Pick up at Funchal airport (FNC) — every major company has a desk on the arrivals level. Choose petrol over diesel for short trips, take Super Cover (or pay the excess on your credit card), and decline the GPS — your phone works fine.
Typical prices (per day, including insurance)
| Booking window | Compact petrol | Automatic | SUV / 7-seat |
|---|---|---|---|
| Nov-Mar (off-peak) | €25-€40 | €40-€60 | €55-€80 |
| Apr-Jun / Sep-Oct | €35-€55 | €55-€80 | €75-€110 |
| Jul-Aug (peak) | €55-€90 | €80-€130 | €110-€180 |
| Christmas / NYE week | €80-€140 | €120-€200 | €160-€260 |
Prices are real averages we see at FNC pickup for 7-day rentals booked 4-6 weeks ahead.
Who hires cars at Funchal airport
On-airport desk, fleet skews newer, decent app.
On-airport, reliable, often pricier than locals.
On-airport, big fleet, watch the fuel policy.
On-airport, frequent loyalty deals.
On-airport, cheapest headline rates, aggressive insurance upsell.
Local Madeira company, no airport desk (free shuttle), very competitive.
Local, family-run, will deliver to your hotel.
8 things every first-timer gets wrong
- 1Book 4-8 weeks ahead — last-minute peak-season bookings can triple in price.
- 2Use a comparison site (DiscoverCars, Rentalcars, Skyscanner) first, then check the supplier's own site — sometimes it is cheaper direct.
- 3Take Super Cover / Full Protection at booking, OR cover the excess via your own credit-card or annual policy. Skipping insurance and paying the desk's daily excess waiver is the most expensive option.
- 4Petrol is fine for 90% of trips. Take an automatic only if you genuinely cannot drive manual — Madeira's 18% gradients are easier in stick.
- 5Decline the GPS upsell. Google Maps and Waze work everywhere on the island; download an offline map for the levada drives.
- 6Fuel policy: 'full to full' is cheapest. Avoid 'full to empty' (you pay for unused fuel).
- 7Bring your driving licence + the credit card the booking is on. Debit cards are often refused at pickup.
- 8Photograph the car all around before driving off. Damage disputes on return are the #1 complaint.
FAQ — Madeira car hire
Do I need a car in Madeira?
If you are staying longer than 2 days or want to leave Funchal, yes. Public buses cover the main towns but not the trailheads, the north coast back roads or most viewpoints. Taxis between regions cost €40-€90 each way.
Is driving in Madeira difficult?
Roads are excellent (mostly built in the last 20 years), the VE1 expressway loops the island with long tunnels, and signage is clear. The challenge is the gradient — some village roads hit 18-20% and a few old north-coast roads are single-lane. Take it slow and brake-test downhill in low gear.
Manual or automatic?
Manual is cheaper and easier on hills. Take automatic only if you genuinely cannot drive manual — there is a €15-€30/day premium and limited availability.
What insurance do I need?
The basic CDW that comes with every rental leaves a €1,000-€2,500 excess. Either pay for Super Cover / Full Protection at booking, or cover the excess with a third-party policy (RentalCover, iCarHireInsurance, Amex annual). Never decline cover entirely.
Where do I park in Funchal?
Use Anadia, Almirante Reis or Marina car parks — €1-€1.50/hour, capped at €10-€14/day. On-street zones are pay-and-display 09:00-19:00 Mon-Sat. Hotels usually charge €10-€20/day for valet parking.
Can I take a rental car to Porto Santo?
Most rental companies do not allow it. The Lobo Marinho ferry takes cars (€100-€150 return) but you need written permission. Easier: fly or ferry as a foot passenger and hire a separate car on Porto Santo (€20-€30/day).
Is there toll on Madeira roads?
No. All Madeira motorways and expressways are toll-free.
What is the speed limit in Madeira?
120 km/h on motorways (VE1), 90 km/h on rural roads, 50 km/h in towns. Speed cameras are rare but fines are issued at airport pickup if you have an unpaid ticket.