Car Hire Tips

Transport

Hiring a car is the most flexible way to explore the Algarve, providing access to beaches, villages, mountain areas and attractions that are difficult to reach by public transport. The region's compact size means that even the most distant points are within a two-hour drive, and the road network is generally good. However, there are practical considerations that can save money, avoid stress and ensure a smooth rental experience.

Booking in advance is strongly recommended, particularly during the summer months (June to September) when demand peaks. Pre-booking through comparison websites or directly with rental companies typically offers better rates than walk-up rentals at the airport. The major international brands (Hertz, Avis, Europcar, Sixt, Enterprise, Budget) all have desks at Faro Airport, alongside Portuguese and local operators (Guerin, Goldcar, Centauro and others).

Insurance is the area that causes most confusion and expense. Basic rental rates typically include third-party liability insurance and collision damage waiver (CDW) with an excess (franquia) that can range from 800 to 2,000 euros. This means you are liable for damage up to that amount. Rental companies will offer to sell you additional cover to reduce or eliminate the excess, often at significant daily cost. An alternative is to purchase standalone excess insurance from a third-party provider before your trip, which is typically much cheaper.

Credit cards are almost always required for car hire in Portugal. The rental company will place a hold (pre-authorisation) on your credit card for the excess amount, which can tie up a significant sum for the duration of the rental. Debit cards are not accepted by most companies for this purpose.

Fuel policy varies between companies. Most operate a full-to-full policy, where you collect the car with a full tank and return it full. Some budget operators use a full-to-empty policy, where you pay for a full tank at collection and can return the car empty. The full-to-full policy is generally more cost-effective.

Driving in the Algarve is generally straightforward. Roads are well-maintained, signposting is adequate and traffic outside the summer peak is manageable. Parking in the larger towns can be challenging during summer, with paid parking (parquimetros) operating in most town centres. Free parking is usually available on the outskirts of towns and near beaches outside the main season.

Automatic transmission vehicles are available but cost more than manual. If you require an automatic, book early as availability is more limited. Child car seats, GPS navigation units and additional drivers can be added to rentals for supplementary fees, and booking these in advance is advisable.

Petrol stations are found throughout the Algarve, with the major chains (Galp, Repsol, Cepsa, BP) operating on the EN125 and near the A22 junctions. Supermarket fuel stations (Pingo Doce, Continente, Intermarche) typically offer the lowest prices.