Car Hire in Portugal — Madeira

Driving in Madeira: Essential Rules

Madeira follows Portuguese road law and the standard European driving code. The roads are generally well-maintained, but the island's mountainous terrain, narrow lanes, and steep gradients demand full attention — particularly outside the main coastal corridor.

• Side of the road: Drive on the right. Overtaking is on the left. Priority at unmarked junctions goes to vehicles approaching from the right, unless signs indicate otherwise. At roundabouts, vehicles already on the roundabout have right of way.
• Mandatory equipment: All vehicles must carry a reflective warning triangle — to be placed behind the vehicle in the event of a breakdown or accident. A hi-vis vest must be worn by anyone exiting the vehicle on a road or hard shoulder in an emergency. Hire cars in Madeira are supplied with this equipment as standard — confirm this with your supplier at collection.
• Seat belts: Mandatory for all occupants. Children under 12 years old or shorter than 135 cm must use an appropriate child restraint system and are not permitted to sit in the front seat.
• Mobile phones: Use of a mobile phone while driving without a hands-free system is prohibited and carries significant fines.
• Alcohol limit: The legal blood alcohol limit is 0.05% (0.5 g/l). For drivers who have held a licence for fewer than three years, the limit is stricter at 0.02% (0.2 g/l). Violations carry heavy fines, licence suspension, and potential imprisonment.
• Radar detectors: Illegal in Portugal and Madeira, whether connected or not. Do not carry one.
• Toll roads: There are no toll roads on Madeira. The island's tunnel network and main roads are free to use.
• Speed cameras: Fixed and mobile speed cameras operate across the island. Unmarked police vehicles are also used for enforcement. Fines can be collected on the spot from visitors.
• Mountain and rural roads: Many roads outside the main tunnel network are narrow, steep, and winding with tight hairpin bends. On hills, the vehicle travelling uphill has priority over the one descending. On very narrow roads, the smaller or lighter vehicle should pull in or reverse to allow the other to pass. Use engine braking on long descents to avoid brake overheating — do not ride the brake pedal continuously on steep downhill sections.
• No low emission zones: Madeira has no LEZ, congestion charge, or restricted driving zones for private hire vehicles.

Madeira Car Hire Insurance and Island Rules

Every car hire listed on eCarBookers includes collision damage waiver cover built directly into the supplier's price — not sold as an optional extra or through a third-party insurer. The protection comes from the hire company itself, meaning that if minor damage occurs to the main body of the vehicle during your hire, there is no excess to pay and no claim to submit.

It is worth being aware that tyres, glass, and underbody damage are typically excluded from standard CDW cover across the car hire industry. Madeira's mountain roads and uneven surfaces in rural areas make tyre and underbody awareness particularly relevant — these situations are uncommon in normal driving, but it is good practice to check your booking confirmation for the specific cover terms applicable to your hire, as scope can vary by supplier. The price you see on eCarBookers is the total price you pay — arrive, drive, enjoy.

Porto Santo and inter-island travel: Madeira and Porto Santo are sister islands, connected by a two-hour ferry crossing operated by Porto Santo Line. However, the vast majority of car hire suppliers in Madeira do not permit their vehicles to be taken on the ferry to Porto Santo. Taking a hire vehicle on the ferry without explicit written authorisation from your supplier constitutes a breach of contract and will void your insurance cover entirely. If you wish to visit Porto Santo, the recommended approach is to leave your hire car in Funchal — affordable long-stay parking is available near the port — and hire a separate vehicle on Porto Santo island directly. Always confirm inter-island travel restrictions with your supplier at the time of booking.

Mainland Portugal and other countries: Vehicles hired in Madeira are not authorised for travel to mainland Portugal or any other country. Madeira is an island — ferry crossings with hire vehicles are not permitted under standard rental contracts. Your hire is valid on Madeira island only, unless your supplier has provided explicit written authorisation to the contrary.

Popular Car Hire Locations in Madeira

The following locations are the main pick-up points for car hire in Madeira through eCarBookers. Each links to its dedicated page with full pick-up details, local driving information, and day-trip guides.