Planning a trip to Madeira and wondering what you’ll actually pay for a rental car? Prices have shifted noticeably compared to previous years. This guide breaks down real 2026 market rates, explains what drives costs, and gives you practical tips to pay less.
Average Car Rental Prices in Madeira (2026)
Prices below reflect typical market rates at Funchal Airport (FNC) and downtown Funchal for standard online bookings:
| Car Category | Daily Rate (low season) | Daily Rate (peak season) | Weekly Avg. |
|---|---|---|---|
| Economy (Fiat 500, VW Up) | from 18 EUR | from 32 EUR | from 140 EUR |
| Compact (VW Polo, Seat Ibiza) | from 24 EUR | from 42 EUR | from 185 EUR |
| Mid-size (VW Golf, Skoda Octavia) | from 32 EUR | from 55 EUR | from 240 EUR |
| SUV / 4×4 (Seat Arona, Kia Sportage) | from 45 EUR | from 75 EUR | from 320 EUR |
| Minivan (7+ seats) | from 65 EUR | from 110 EUR | from 450 EUR |
Peak season covers July, August, December 20 to January 5, and Easter week. Prices jump 40-70% during these periods, especially around Funchal’s New Year fireworks festival.
What Affects the Final Price
The base rate is rarely the full story. Here is what gets added on top:
- Insurance excess waiver. Full coverage without an excess typically adds 8-15 EUR/day but removes the risk of a large deposit hold on your card.
- Credit card deposit. Most big-brand agencies hold 500-1500 EUR on your card. Some local companies in Madeira now offer rentals with no deposit and no credit card required, which is useful if you travel with a debit card or simply prefer to keep your credit limit free.
- Airport surcharge. Funchal Airport rentals usually add 5-10% compared to in-city pickup.
- Child seats and extras. Child seat: 5-8 EUR/day. GPS: 5-8 EUR/day (though most people just use a phone mount).
- One-way fee. Picking up in Funchal and dropping off in Porto Moniz or Caniçal can trigger a one-way surcharge of 30-60 EUR.
No Deposit, No Credit Card Options
This is one of the most searched questions among travelers heading to Madeira. Several local rental companies now accept debit cards and do not block a security deposit on your account. This option typically costs slightly more per day but saves you from freezing a large chunk of your credit limit for 2-3 weeks.
If this matters to you, confirm the policy in writing before you book. RosCar Madeira, for example, offers this kind of flexibility: you can learn more about their current terms and available vehicles on their website.
Money-Saving Tips That Actually Work
- Book 3-6 weeks ahead. Last-minute availability on Madeira is thin, and prices for the remaining cars spike fast.
- Pick up in the city, not the airport. A short taxi from the airport to a downtown office can save you 15-25 EUR on a week-long rental.
- Go with a local company. International chains have higher overheads. Local agencies often charge less and are more flexible with policies.
- Check what your bank card covers. Some premium Visa and Mastercard debit/credit cards include basic collision coverage. If yours does, you may be able to skip the agency’s insurance add-on.
- Avoid prepaid fuel options. Unless you plan to return the car on empty, you’ll usually pay more than if you fill it up yourself at a local station.
- Choose the right car size. Madeira’s mountain roads are narrow. A compact or small SUV handles them better than a full-size sedan and costs less.
Is a Car Worth Renting in Madeira?
Short answer: yes, for most trips. Public buses cover the main routes but run infrequently outside Funchal. The island’s best scenery including Fanal forest, Ponta de Sao Lourenco, and the western coast villages is only accessible comfortably by car. Taxis and rideshare add up quickly if you plan more than two or three excursions.
A compact car for 7 days at low-season rates comes to roughly 170-210 EUR all-in with full coverage. For a couple splitting the cost, that is well under 20 EUR per person per day for unlimited freedom to explore.
Quick Checklist Before You Book
- Driver’s license valid in Portugal (EU licenses accepted; others may need an IDP)
- Minimum age confirmed (most companies require 21+, some 25+ for larger cars)
- Deposit policy clarified (credit card hold vs. no deposit option)
- Insurance coverage understood (what excess applies if something happens)
- Pickup and drop-off times noted (late returns often incur extra day charges)
Myself Aditya and I am from Mumbai, India. As an intern, I joined the local news agency in Mumbai named “The Mumbai News”. Now I am working with various News Agencies and I provide them reports from Mumbai and other parts of India.
