Car Rental in Portugal: Your Essential Guide to Seamless Exploration

Unique nature, colorful and well-maintained cities, vivid islands and rich culture and gastronomy. This is Portugal, a beautiful country with numerous things to offer to its visitor. With car hire in Portugal, you can explore this amazing destination time-effectively, discover as many points of interest as possible and find hidden gems that give you an off-the-beaten-path perspective of the Atlantic country.

Read further the ultimate car rental guide for Portugal and get familiar with everything you need to know.

Renting a car in Portugal has many advantages, especially if you rent a car in large cities, like Lisbon, or on islands like Madeira, where you have to drive around to see the unmissable spots.

The pros of renting a car in Portugal are:

• Flexibility to travel at your own pace and see as many points of interest as you want.
• Convenience and avoidance of overcrowded public transportation, especially in the high season.
• Opportunity to travel easily and conveniently with kids, pets etc. as well as carry equipment for outdoor activities.
• Exploration of off-the-track-path places that are not accessible by public transportation.

The cons of renting a car in Portugal are:

• Heavy traffic in rush hours in tourist destinations and major cities, like Lisbon and Porto.
• Expensive parking
• Stressful driving style
• High travel cost (including car rental, fuel and insurance).

However, keep in mind that Abbycar is one of the most affordable car rental companies in Portugal and offers many deals and discounts to find the best car according to your budget.

Other transportation options you have:

• Public transportation: Major cities, such as Lisbon, have a good public transportation network, including buses, trams and metro lines. This is true also for touristic destinations, like Madeira, where you will find a comprehensive bus network. However, as expected, public transport does not cover all areas and has specific routes and schedules. So, if you want to explore the wider area at your own pace, your own vehicle is necessary.
• Taxis and rideshare services: Taxis and rideshares services are easily available and convenient, but they are not the most cost-effective mode of transport in Portugal, especially if you do many routes and long distances per day.
• Biking: In touristic destinations, you can rent a bike at low price. However, you should be very careful, as the traffic is heavy and Portuguese driving style is stressful. 

For personal experience and testimonials you can find more information here.

Car hire in Portugal is a simple procedure. To have an overview of the rental process please consider the following:

1. Choose from Abbycar’s easy platform or in person in one of our rental locations the car type that meets your criteria according to your needs, travel plan and budget.
2. Provide a valid driving license, passport or ID and credit card.
3. A deposit amount will be blocked in your credit card, but not charged. This deposit will be charged only in case of damage.
4. You take the car after inspecting its situation and take photos to prove the existence of any pre-existing damage. You should also check the mileage and gas mileage.
5. You return the car at the drop-off point.

The required documents you need to rent a car in Portugal are:

• Driving license (International Driving Permit for foreign non-EU drivers)
• Passport or ID
• Credit card under the main driver’s name.

The most useful tips for a smooth rental experience in Portugal are:

• Obtain an International Driving Permit: It is required along with your national license if you are a foreign driver outside EU.
• Book in advance: Make the reservation early, especially in high season.
• Choose the right car: A small car to easily find parking is the best option. Otherwise, if you want to do long road trips, a compact car or an SUV is ideal.
• Best insurance: There are many options for car rental insurance in Portugal. It is wiser to choose an insurance with wide coverage and low deductible, including theft protection.
• Check the car before pick-up: Inspect the rental car for damages before taking it. Take photos to prove its prior condition.
• Fill up the tank: The tank must be full before returning the car to avoid extra charges. The most common policy is “same to same”, meaning you should return the car with the same amount of fuel as when you took it.
• Understand the rental agreement: Read thoroughly the Terms & Conditions and keep the contract.

Some of the most important travel tips for Portugal are:

• Go off-the-beaten-path: Major cities like Lisbon and Porto are very popular, but we recommend you visit smaller towns like Évora, Coimbra and the Douro Valley. These places offer rich history, beautiful landscapes and fewer tourists.
• Be prepared for the weather conditions: Portugal has a Mediterranean climate. Summers can be hot, especially in the south, while winters are mild and rainy. Avoid doing outdoor activities after 11 a.m. and 6 p.m. because there is high danger of heat- or sunstroke.
• Shops are closed in the afternoon: Many shops and businesses close for a few hours in the afternoon, usually from 1 pm to 3 p.m. You can plan your activities around this cultural norm to avoid inconvenience.
• Explore the Portuguese rich gastronomy: Traditional Portuguese dishes are famous all over the world. Don’t miss the culinary experience of tasting the unique cuisine of Portugal.
• Respect local customs: Portugal is a catholic country and its churches and religious sites are popular. It is required for the visitors to dress modestly when visiting them.

The most popular car rental locations in Portugal are:

• Car rental Lisbon (airport and downtown)
• Car rental Portov
• Car rental Albufeira
• Car rental Madeira (Airport and Funchal)
• Car rental Azores (Ponta Delgada airport, downtown and port)
• Car rental Faro (airport).

If you are looking for the best car rental deals in Portugal, consider the following tips:

• Travel in the low or mid-season and avoid July and August.
• Book in advance.
• Check for online deals and discounts.
• Choose the same pick-up and drop-off point.
• Read the rental agreement to avoid hidden fees.
• Rent a small economy car.

The vehicle rental insurance in Portugal is mandatory and you can choose wider coverage according to your needs.

The insurance options for car hire in Portugal and their coverage details are:

• Collision Damage Waiver: This type covers the financial liability for damage to the rental car, but it includes a deductible. This is the amount, which is blocked in your credit card.
• Theft Protection: It covers the rental car in case of theft.
• Third-Party Liability Insurance: It covers damage to other people’s property and injuries to others.
• Personal Accident Insurance: It covers medical expenses for the driver and passengers in case of an accident.
• Super Collision Damage Waiver: This type covers all damages to rental car and others, so it reduces or eliminates the deductible. If it eliminates the deductible, you are not obliged to provide a credit card, as no security amount is blocked.
• Roadside Assistance: Road assistance provides help 24/7 in case of emergency.

These types of insurance can be offered both individually and in packages. The mandatory basic coverage includes Third-Party Liability Insurance and Collision Damage Waiver. Additional coverage is not mandatory, but you may find it useful, especially if you drive in a place you are not familiar with or you are an inexperienced driver.

The minimum age is 22 - 25 years, but you can be as young as 20 years (for car groups with a minimum age of 22) and 23 years old (for car groups with a minimum age of 23) if you pay an additional young driver fee. The maximum age is 75 years, but you can be as old as 80 years if you pay an additional senior driver fee.

The car rental payment options in Portugal are:

• Cash
• Debit card
• Credit card.

However, keep in mind that there are some terms and conditions for car rental without debit card in Portugal. The most important are:

• Age restrictions: There are car rental age restrictions in Portugal. It is mandatory to meet a minimum age requirement, often 21 or 25, with a valid driver’s license to rent a car without credit card.
• Insurance coverage: Most rental companies require insurance with full coverage to pay with debit card or cash.
• Geographic restrictions: Driving the rental car outside a specified area or country might be prohibited or require additional fees and permissions, especially with no credit card.

Navigating Portuguese roads can be difficult if you are inexperienced driver. Especially in mountainous places, you may meet fog or rainy weather conditions, so you should be careful. The Portuguese road safety is high, especially in major cities and highways, but in smaller destinations and on the islands, roads are not very well-maintained, are steep and narrow.

For your maximum safety, please remember the following tips:

• Speed Limits: Speed limits are typically 50 km/h in urban areas, 90 km/h on rural roads and 120 km/h on highways. Look out for signs as limits can vary.
• Fuel: Gas stations are numerous in touristic areas, but in rural areas, they can be sparse. Plan your fuel stops accordingly.
• Use navigation app: As the cost to use your mobile phone for internet data may be high, you can ask for GPS from the rental company.
• Seat Belts: Wearing seat belts is mandatory for all passengers. There are strict fines for non-compliance.
• Emergency Number: In case of an emergency, dial 112, the general emergency number in EU.
• Alcohol limit: The legal blood alcohol limit is 0.05%. It's best to avoid drinking if you plan to drive.
• Necessary documentation: Always carry your driver’s license, passport, rental agreement and insurance documents.

Rent a car in Portugal with Abbycar and take advantage of our special offers and discounts all year long to explore this wonderful country!