Renting a car in the Algarve

After living in the Algarve for five years, I’ve discovered that the most convenient way to navigate this region is by renting a car. Public transportation between cities can be complex, and many of the most breathtaking beaches are only accessible by car. If you find yourself without one, I highly recommend considering a car rental. However, the world of car rentals is not always straightforward, often hiding unexpected costs. Making the wrong choice can easily spoil your holiday. In this guide, I’ll share essential insights on what to consider and which rental companies to approach with caution.

Questions to ask yourself when renting a car

Car rental processes are often deliberately opaque, with some companies offering low daily rates but compensating with high insurance costs. To simplify your decision-making, ask yourself the following questions when renting a car in the Algarve:

• Is the car rental company reputable? If not, exercise caution.
• Where is the company located? Some claim to serve Faro Airport but are situated in the town of Faro.
• What type of car suits your needs?
• What is the daily rate? Typically, rates decrease with longer rental durations.
• What are the charges for damage or theft?
• Do you require insurance? If so, what are the associated costs?
• Are there any unusual conditions in the insurance terms?
• Is there a security deposit? If yes, how much?
• What is included in the rental?
  • A second driver?
  • A baby seat (if needed)?
  • Can you cross the border into Spain?
• What is the fuel policy? Typically, a full-to-full policy is the best option.
• What is the cancellation policy?
• Is there a maximum mileage limit?
• How are the reviews? Pay attention to negative feedback.
• What is the minimum age requirement for drivers?

Booking Online and Picking Up at Faro Airport

My strong recommendation is to book your car online before your trip. This not only provides peace of mind knowing your car is ready upon arrival but can also result in a better online deal. Upon landing at Faro Airport, follow the car hire signs, and you’ll find various rental companies outside the terminal. Head to your reserved company, and they’ll expedite your journey onto the road.

10 Tips Before Renting a Car in the Algarve

1. Ensure Legal Driving Eligibility

The legal driving age in Portugal is 18. Rental companies usually require a minimum age of 21 with a valid driver’s license, so always carry your license and passport.

2. Familiarize Yourself with Local Driving

Driving in the Algarve is straightforward, similar to most EU countries and the US. The driving style is on the right side of the road, and you can choose between manual and automatic vehicles.

3. Consider Duration of Stay

For shorter stays, renting a car may be more cost-effective than roundtrip transportation. Discounts are often available for week-long rentals.

4. Plan Your Algarve Destinations

If staying in a limited area, public transport may suffice. However, for exploring various beaches and villages, renting a car in the Algarve is convenient.

5. Compare Costs with Transfers

Private transfers from Faro Airport to Lagos cost around €78 each way. Renting a car might be more economical, especially when splitting costs.

6. Understand Rental Costs

Car rental prices range from €11 to €80 per day, with peak prices in summer. Keep in mind that automatic vehicles are pricier to rent.

7. Review Rental Inclusions

Examine your rental agreement for added value. Check for insurance coverage, additional drivers, toll expenses, and mileage limitations.

8. Understand Terms and Conditions

Be aware of security deposit requirements, fuel policies, border-crossing possibilities, and procedures for vehicle damage.

9. Know the Cancellation Policy

Review cancellation terms; some companies offer no fees, but understand the specifics, as refunds may be in the form of credits for rebooking.

10. Explore Alternative Transportation

If car rental isn’t your preference, public transport, private transfers, and ride-sharing services like Uber or Bolt are viable options for getting around the Algarve.

Is Car Insurance Necessary?

Opting for a car rental without insurance might lead to unexpected expenses for damages or theft. Even a minor scratch is considered damage, and rental companies can charge a hefty sum for it. Instances of being billed for pre-existing scratches are not uncommon. Rental companies thrive on charging for damages, so it’s crucial to document the car thoroughly upon receiving it. Take photos or a close-up video to have evidence of the car’s condition, especially for existing scratches.

To avoid potential hassles, obtaining car insurance is advisable. While it incurs additional costs, the peace of mind it provides is worth the investment. Rental companies tend to scrutinize for damages during the car return, particularly if they know you lack insurance.

Where to Rent a Car in the Algarve

Most travelers choose to arrive at Faro Airport (Aeroporto de Faro), the primary airport in the Algarve. Car rental desks are conveniently located inside the exit gate and just outside the airport. The process of picking up and dropping off rental cars at Faro Airport is straightforward.

If you’re already in the Algarve, larger cities like Lagos, Albufeira, or Portimão offer several rental options.

Using Toll Roads in the Algarve

Traveling on the A22 highway involves electronic toll payment. Most rental cars are equipped with a small device that signals when passing toll points, registering the payable amount. Ensure your rental agreement clarifies the toll payment method, and if your car lacks the device, obtain it at the post office.

Finding the Nearest Petrol Station

A Cepsa petrol station near Faro Airport, just one minute away by car, eliminates concerns about refueling when returning your rental.

When contemplating a trip to Portugal, evaluating whether renting a car in the Algarve is worthwhile is essential. While car rental enhances mobility, it’s not the sole means of exploration.

The critical factor in deciding on car hire revolves around your planned activities and destinations. Given the Algarve’s popularity, numerous options for public or private transfers between cities are available.

This post aims to assist you in determining if renting a car in Algarve Portugal is the right choice for you. You’ll find insights into the best car hire options at Faro Airport, considerations before renting, and valuable tips for car hire in 2023.

Car Rental Companies in the Algarve

When selecting a car rental, numerous options abound, ranging from different companies to car models and insurance choices. While some companies are well-known, others may be unfamiliar. It’s generally advisable to avoid booking with unknown companies. We’ve ranked car rental companies at Faro Airport based on our experience, providing valuable insights into what each company offers.

Security deposits on credit cards are a common requirement among rental companies, with varying maximum amounts for theft or damage claims. Opting for insurance offers peace of mind, covering any (minor) damages or theft.

Below, you’ll find a comprehensive list of car rental companies in the Algarve, ranked from best to worst based on our experiences.

Explore Alamo

Alamo is a US-based car rental company with a founding date in 1974. While their prices are on the higher side, the positive customer reviews on Rentalcars.com, scoring 8.1 out of 10, indicate a reliable service.

• Security deposit: € 600
• Maximum charge for damage: € 1180.80
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Discover Avis

Avis is a well-known American car rental company, and though their prices are higher, it ensures a trustworthy service. With a review score of 7.6 out of 10 based on over 2000 reviews, Avis maintains a good reputation.

• Security deposit: € 300
• Maximum charge for damage: € 1599
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Experience Centauro

Centauro is a Spanish car hire company in operation since 1973. While their prices are above average, customer reviews, scoring 7.0 out of 10 based on over 2000 reviews, reveal concerns about hidden costs. Caution is advised; consider alternatives.

• Security deposit: € 1050
• Maximum charge for damage: € 1050
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Try Dollar

Dollar offers car rental services, but with a notably high security deposit. There’s a mileage limit of 60 kilometers per rental. Despite this, with a positive review score of 7.8 out of 10 based on over 500 reviews, it remains a good option.

• Security deposit: € 1537.50
• Maximum charge for damage: € 1537.50
• Fuel policy: Full to Full
• Maximum # of kilometers: 60 kilometers per rental

Consider Drive on Holidays

Drive on Holidays is a Portuguese car rental company established in 2011. Despite their relatively low prices, the review score of 6.8 out of 10 suggests caution. Potential hidden costs not disclosed during the booking process have been mentioned in reviews. Approach with care.

• Security deposit: € 880
• Maximum charge for damage: € 880
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Explore Enterprise

Enterprise stands out as a prominent car rental company from the United States, in operation since 1957. While their prices lean towards the higher side, the exceptional customer satisfaction rating of 8.1 out of 10 adds credibility to their service.

• Security deposit: € 600
• Maximum charge for damage: € 1180.80
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Discover Europcar

Europcar, a well-known French car rental company with a widespread presence in Europe, offers reasonably priced services. With a good score of 7.7 out of 10 based on over 1000 reviews, Europcar ensures a positive rental experience.

• Security deposit: € 300
• Maximum charge for damage: € 950
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Experience Firefly

Firefly, a budget-friendly car hire company under the Hertz umbrella, offers economical prices. However, be mindful of the high security deposit and the 60-kilometer limit per rental. Despite this, the positive customer ratings of 7.9 out of 10 make it a viable option.

• Security deposit: € 1537.50
• Maximum charge for damage: € 1537.50
• Fuel policy: Full to Full
• Maximum # of kilometers: 60 kilometers per rental

Try Goldcar

Goldcar, a Spanish car rental giant, is one of the largest in Spain. While their score of 7.2 out of 10 based on over 10,000 reviews seems decent, caution is advised. Some customers have complained about unexpected damage costs for minor scratches, emphasizing the importance of securing insurance when opting for Goldcar. Exercise discretion when considering this company.

• Security deposit: € 1200
• Maximum charge for damage: € 1200
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Explore Guerin

Guerin, a Portuguese car hire company established in 1989, operates exclusively in Portugal. With reasonable prices and favorable reviews, scoring 8.4 out of 10, Guerin offers a reliable and pleasant rental experience.

• Security deposit: € 1180.80
• Maximum charge for damage: € 1180.80
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Discover Hertz

Hertz, a renowned car rental company from the United States, is known for its professionalism and friendly staff. While their prices may be on the higher side, the ease of on-site paperwork and hassle-free car drop-offs justify the extra cost. With a customer satisfaction score of 7.9 out of 10, the service is deemed worth it.

• Security deposit: € 3075
• Maximum charge for damage: € 3075
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Explore Interrent

Interrent, a budget-friendly car rental brand under the Europcar group, operates in over 40 countries globally. Despite their claim of being low cost, prices are not remarkably cheap, and their review score stands at an average 6.6 out of 10.

• Security deposit: € 1200
• Maximum charge for damage: € 1200
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Experience Sixt

Sixt, a well-established car rental giant originating from Germany in 1912, now boasts a significant international presence. With one of the lowest required security deposits in the Algarve and an outstanding customer satisfaction rating of 8.2 out of 10 based on over 2000 reviews, Sixt is undoubtedly one of our top choices when it comes to renting a car in the Algarve.

• Security deposit: € 300
• Maximum charge for damage: € 960
• Fuel policy: Full to Full
• Maximum # of kilometers: Unlimited

Reserve Your Rental Car

For the broadest selection of car rental brands and competitive prices, we recommend using Rentalcars.com. All the brands mentioned above can be found on their platform. Simply use the search box to book your rental car now.

Final Thoughts

Renting a car in the Algarve is essential, but navigating the complex world of car rentals can be challenging. Personally, opting for a well-respected brand with positive reviews, such as Sixt, Avis, or Enterprise, is our recommendation. Avoid Goldcar and Centauro. Keep in mind the crucial decision of whether to opt for insurance (we suggest you do, despite the extra cost). We hope the insights provided in this article assist you in making an informed choice. Enjoy your exploration of the Algarve!