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Madeira guide
This is the question that comes up most often before a trip to Madeira. Here's an honest answer, depending on the type of trip, with real prices, insurance pitfalls and alternatives if you'd rather not drive.
The island's finest spots sit at the end of roads that neither buses nor organised tours reach: levada trailheads, northern villages, sunrise viewpoints. Without a car, you either give up half the itinerary or stack up organised tours, which cost more by the end of the week.
Three or four nights in Funchal, a few museums, the cable car, the market and two guided excursions: a car becomes an expense and a parking headache. Taxis and shuttles are more than enough.
Two or three car-free days in Funchal at the start of the trip, then a car picked up in town for the mountain and northern section. You pay for fewer rental days and avoid city-centre parking.
Prices observed at Funchal airport, excluding last-minute promotions.
The most convenient option when you arrive and are staying outside Funchal. Rental desks are a few minutes' walk from the terminal or served by a free shuttle. Allow 20 to 40 minutes for paperwork on a busy day, and avoid planning a hike on the day you land.
The smart option if you start your trip in the city: two days on foot around Funchal, then pick up the car from an agency on the third morning. You save on rental days and parking nights, often €60 to €100 over the week.
A driving licence held for more than a year, ID, and a credit card in the driver's name for the deposit, usually held between €800 and €1,500 if you don't take the excess waiver. Debit or prepaid cards are often refused.
Watch out for old roads signposted as off-limits to rental vehicles, particularly some coastal stretches in the north: damage on these roads is never covered by insurance.
For a week-long trip combining hikes, viewpoints and villages, yes: a car remains the simplest and cheapest way to get around. For a short stay based entirely in Funchal, it's unnecessary. A well-planned trip can also use a car for only part of the days.
The roads are in excellent condition and the tunnels have removed most of the intimidating stretches. What comes as a surprise are the very steep slopes in the villages and hill starts. A small car, a gentle driving style and an automatic gearbox if you're unsure are enough to make the experience very comfortable.
An automatic costs €10 to €20 more a day but genuinely improves comfort on the 20% slopes, especially around Câmara de Lobos, Curral das Freiras and the northern villages. For a driver not fully confident on hills, it's the most worthwhile extra of the trip.
Expect around €150 to €220 a week outside high season for a city car with basic insurance, and more like €300 to €450 in July-August. You'll sometimes see teaser offers of €12 or €15 a day, but they almost always climb once insurance, an automatic gearbox or a second driver are added. Add fuel (€40 to €70) and, if your accommodation is in central Funchal, parking.
Yes, provided you accept a different pace: public buses to the main towns, private transfers, guided day trips for the levadas and Pico do Arieiro. It's an itinerary in its own right, one I regularly build for travellers who would rather not drive.
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