Renting A Car In The Algarve In 2025: Prices + Tips

People come to the Algarve for delicious seafood, gorgeous scenery, and fabulous sandy beaches. There’s so much amazing coastline, that figuring out your favourite beaches becomes a problem of Einsteinian proportions. And the only way you can hope to see a good chunk of them is by renting a car in the Algarve.

We had a great time in the Algarve, so much so that we actually wish that we had organised a longer vacation! That way, we would have had more time to enjoy the incredible natural beauty, from hiking around Sagres to the soothing drive along the Estrada de Praia.

Hiring a car in the Algarve is super easy and quite affordable. While it is possible to rely on public transportation, as we’ll touch on in this post, a vehicle opened up a lot of the coast that would have been unreachable by bus or train. 

#1 Our Experience Of Driving In The Algarve

We had a vehicle from start to finish, which allowed us to book cheaper and better accommodation outside of Lagos, which is one of the region’s busiest town centres. Sure, it’s not necessarily a bad thing to be in the middle of the buzz, but we opted for somewhere a little quieter, with the bonus of saving money.

Renting a car in Algarve also gave us the flexibility to fiddle about with our itinerary whenever we needed to. For example, we had one very bad day where it rained from morning to night, so we decided to stay in our apartment and chill rather than confront the weather. The next day, we just added a few more places to the schedule, which was easy to do with a car.

If we’d been reliant on public transport, we’d either have had to skip a few destinations or get drenched seeing them. Considering visiting Algarve is mostly about the nature, bad weather can really put a dampener on the holiday!

Aside from the convenience, we were impressed with the roads. All of them were in really good condition and well-marked, so driving was super easy. There wasn’t much traffic when we visited either, which was a plus, but that was in October. If you’re planning to visit in summer, we’d expect a few more holidayers on the roads.

#2 Is It Safe To Drive In The Algarve?

Portugal generally is one of the safest countries we’ve ever driven in. The only part of driving in Algarve that is dangerous is how relaxing the whole thing is! 

The Portuguese are very competent behind the wheel, so we never felt unsafe. No aggressive overtaking, no tailgating, no getting honked at for obeying the speed limit. It’s the highway version of heaven.

Admittedly, the Portuguese drivers don’t use their indicators as much as they probably should, but in general they are nowhere near as reckless as, for example, the Italians. (Sorry, Italy!)

As we’ve already mentioned, most roads are in very good condition and well-marked, which just rounds out the pleasant experience. 

#3 Do You Need A Car In The Algarve?

We would say yes! It is possible to get to places with buses and trains, but you will lose a lot of time waiting for transport to arrive and making connections to get to less-accessible destinations.

At first glance, the regional train service looks very handy, running all along the coast, from Lagos in the west to Vila Real de San Antonio. However, unless you’re just riding a couple of stops, it’s a very slow way to get about because it stops EVERYWHERE. Just by way of comparison, going from Faro to Lagos takes about 1 hour and 45 minutes by train, but just 1 hour by car.

That’s not the only downside. It’s also quite infrequent – the regional train seemed to be about every two hours when we visited in October. This is occasionally interspersed with the (also infrequent) Intercidades route, which runs between Lisbon and Faro. 

Speaking of Faro, most regional trains terminate here. So if, for example, you’re trying to get from Lagos to Tavira, you’ll most likely have to get off at the Faro train station and hang about for an hour while you wait for your connection. 

Having said that, travelling by train can be very scenic. If you don’t mind a bit of slow travel, it’s a very relaxing way to get about. It’s just not particularly efficient if you want to pack in a lot of sightseeing in a relatively short amount of time.

Buses tend to be more regular and cover a lot more ground than trains, although they aren’t as strict in terms of sticking to a schedule. There are quite a few bus operators, some offering intercity routes, others doing smaller towns like Caroveiro and Ferragudo.

It’s certainly cheap, but it’s also time consuming. Getting from Lagos to Sagres – one of our fav places we visited in the Algarve that is not on the train line – takes about an hour by bus versus 35 minutes in the car.

Opting for car rentals in the Algarve just means a lot less hanging around and a lot more exploring.

#4 Where & How To Rent A Car In The Algarve?

We rented our car in Porto, as we visited the Algarve as part of a road trip through the whole of Portugal.

If you are flying directly into the Algarve, 1️⃣ we’d suggest you rent a car in Faro Airport. That way, you don’t have to stress about getting a bus or taxi into town. Just pick up the vehicle once you get off the flight and return it right before you jet off at the end of your vacay. It’s the most convenient option, and there aren’t really any reasons we can think of to pick it your car later.

2️⃣ If you are flying into Lisbon, you can pick your car at that airport immediately or take the Intercidades train down to Faro and get your vehicle downtown there.

If for whatever reason you want to 3️⃣ arrange for car hire in the town where you are staying, both international brands like Europcar and more local outfits have set up shop in several Algarve cities, including Lagos, Portimao, Albufeira, and Sagres.

We found the best car rental in the Algarve through DiscoverCars, which is our third-party booking site of choice. They are basically a broker that has deals with all kinds of hire vehicle companies, from big multinationals to brands that only operate in Portugal. 

The online interface makes it to super easy see what all our options are, so that we can get the cheapest deal. Well, the cheapest deal with a hire car shop that has good reviews!

Book online in advance, especially in the summer, as the supply does run low, with the prices going up accordingly. 

We always add on DiscoverCars’ full coverage. This can come in handy not just in case of an accident, but also if we have disputes with the local rental office over scratches and dings. We’ve had an incident like this in the past, and DiscoverCars refunded us the money for the alleged damage. 

#5 Is Renting A Car In The Algarve Safe?

Yes, renting a car in the Algarve is safe, at least from our experience. Of course, it’s always important to go through the terms and conditions of your hire contract, but we had a pretty positive experience with Drivalia in Portugal.

One thing we always do before confirming a car rental online is to look up the reviews of the place we’re planning to go with. Obviously, we want to get the best deal, but we also crosscheck DiscoverCars’ search results against comments on Google Maps and Trustpilot.

We’re not talking about reviews of a brand generally, but the specific office where we are planning to pick up the vehicle. We’ve rented cars in a lot of different cities, airports, and islands around Europe, and you’d be surprised at the difference in professionalism and honesty between two locations ostensibly operated by the same company.

There’s always going to be the odd bad review, but we try to minimise our risk by carefully weighing up a place’s overall rep. That’s not always going to save you from a bad experience – we all know that even the most reliable brand occasionally messes up – but it does provide a level of reassurance.

As an added level of security, we also take out full coverage with DiscoverCars, which means we can claim back cash on any charges associated with damage to the vehicle. It is an added cost, but it’s worthwhile for peace of mind.

#6 Car Rental In Algarve: Requirements

If you’re renting a car in the Algarve, requirements are fairly standard and in line with the rest of Portugal. You’ll need:

✅ A valid driver’s licence. People from the EU, UK, US, and several other nations don’t need any additional documentation like an International Driving Permit (IDP). On the other hand, if your licence isn’t in the Roman alphabet, you probably will need an IDP.

✅ A second form of ID. This can be a passport or a national identity card, just to confirm that you really are who you say you are.

✅ A credit card. This is to guarantee your security deposit, in case of any damage to the vehicle. Some companies will let you put down a debit card, but it does limit your car hire options. 

✅ To be at least 21. You only need to be 18 to drive in Portugal, but renting a car isn’t possible until you’re 21. Even then, most companies charge an additional fee to rent to anybody under the age of 25.

#7 Cost Of Hiring A Car In The Algarve?

We paid €31 to hire a Volkswagen Polo for 7 days in October. Considering we got it last minute, we were super happy with the deal, though in general it’s always more sensible to book as far in advance as possible. 

The cost of our full coverage was actually twice as much as the car. It was €64 for 7 days, which is about average for what we’ve paid elsewhere in Europe.

In total, the price of hiring a car in Algarve was €95 for a week. This was in October, so not the most expensive or the cheapest time of year. 

By way of comparison, we had a look at prices in May, which is a more popular (but not the most popular) time of year. It’s about 50% more expensive, costing approximately €150 to rent a small car with insurance for a week, picking it up from Faro Airport. If you rent from Portimao, Sagres, Lagos, or Albufeira, the price is a bit higher at around €25/30 per day.

Make sure you don’t forget to budget for the security deposit. Ours was €1,500, which is smack bang in the middle of the range that we would expect. This is not taken out of your account, just placed on hold, then released about a week after the car is returned.

We recommend booking as soon as you know your travel plans for the cheapest deal, especially if you’re travelling in the summer. DiscoverCars offers a generous cancellation policy, so you can usually cancel up to 48 hours before picking up the vehicle without incurring a charge.

There are a few other costs associated with renting a car for which you should budget: petrol, parking, and tolls. Petrol obviously depends on distance travelled and the model of car, and parking we’ll cover a bit further down.

#8 Tolls In Algarve

As for tolls, there’s one main highway that runs through the Algarve, the A22, aka the Via do Infante. It links cities like Faro, Lagos, and Portimao together, as well as connecting with the highway to Lisbon. Tolls are reasonable and charged according to distance travelled. If you drove the whole way from one end to the other, for example, it would cost €4.65.

The A22 wasn’t built as a toll road, so it wasn’t designed for booths. Because of that, the whole system is digital, which means you don’t pay as you go. Instead, there are two ways to handle tolls.

First, you can get an electronic transponder when you rent your vehicle. This usually entails an additional charge but is the more convenient option. You load it up with cash, which is deducted when you pass through the scanners.

The other option is to pay after the fact. This can be done in person at a post office or Payshop, but realistically for tourists it’s much easier to go online and pay on the Via Livre website. Just note that charges don’t usually show up for 48 hours.

We should also mention that you don’t have to take the A22. There’s a free national road, N125, that covers the same stretch of the Algarve. It’s just not as time efficient, and given the minimal cost of tolls, we didn’t think it was worth the savings.

#8 What Kind Of Car Is Recommended?

Whatever car you feel like! Roads are really good, and you won’t be going offroad much. 

The only time we hit dirt tracks was when we were ambling along the scenic Estrada da Praia. Even though it’s not tarmacked, it’s well maintained and doesn’t require a 4×4.

We rented a manual Volkswagen Polo, and that was comfortable for driving everywhere.

#9 Before You Drive Away…

Here are a few general tips to bear in mind when renting a car in the Algarve:

✅ Check the type of petrol and petrol level. Remember to top after just before returning the car to avoid paying a penalty.

✅ Record all scratches and dents on your phone. We always take a video recording of all the imperfections. Funnily enough, this came in handy when we were in Lisbon, where we rented an expensive Mercedes. When we returned our car, the staff member checking the vehicle tried to blame us for scraping one of the alloy wheels. Unfortunately for them (and luckily for us), we had a clear pic where you could see the damage was already there when we picked up the car.

✅ Make sure you have all the emergency contacts written down, especially for things like roadside assistance, etc.

✅ Download offline maps. One of our top driving in the Algarve tips is to have the Google Map (or similar) for the area saved to your phone. Coverage isn’t complete in this part of Portugal, and we lost the network a few times while navigating.

#10 Gas Stations

You never have to worry about running out of petrol when you rent a car in Algarve, because there are tons of gas stations all over the region. 

It’s all self-service, but with the niggling annoyance that you must pay for the fuel first. This is standard in most petrol stations in Portugal, but you can imagine how irritating it is when, a) you don’t know how much petrol will go into your rental vehicle; and b) you need to work out how that capacity translates into euros. 

Apparently, this system is in place because there have been a lot of cases of drivers zooming away without paying for the petrol, but it’s hard to imagine this isn’t a concern in other places, so… Just chalk it up to quaint country quirks!

As a rough guide, standard petrol was about €1.7 per litre when we visited Portugal, but obviously these things fluctuate significantly.

#11 Parking In The Algarve

Parking is the biggest downside to getting hire a car in the Algarve – but not because of the price.

Most parking lots that are near beaches and tourist attractions are free. Even in towns like Albufeira, Lagos, and Portimao, the paid parking garages cost around 1 euro per hour, which is a good deal. On Sundays, parking is often completely free of charge on the street.

However, finding a parking spot can be very hard. We visited in October, and the parking lots were often filled up. In the summer, we can only imagine how much worse it gets.

You can improve your chances of getting a good spot by arriving at the most popular destinations in the early morning or late afternoon. The most important thing is to come armed with a bit of patience. 

#12 Awesome Places To Visit With A Car

Hiring a car in the Algarve means you can pack in the maximum number of stop-offs in the minimum amount of time. Here are a few of the best places we visited on our trip to get you started:

📍 Estrada da Praia

No Algarve itinerary with a car would be complete without lots of scenic drives. One of our favs was the Estrada de Praia, a dirt road that runs along the cliffs beside the Atlantic Ocean.

The route has 10 specified viewing points along its length, labelled from A to J, but the whole way is charmingly chill. It’s sandwiched by a couple of lovely sandy beaches, the Praia do Amado and the Praia da Bordeira, both popular with surfers.

📍 Sagres

Another prime spot for surfers is Sagres, located right at the southwestern tip of the Algarve. In fact, from here you can hike or drive to the Cabo de Sao Vicente, the southwesternmost point of mainland Europe!

Should I rent a car in the Algarve and skip over Sagres just because it’s relatively far away? Absolutely not! For sun worshippers, the area is dotted with lovely beaches, while the town itself is home to several adorable cafes and restaurants.

📍 Albufeira

Albufeira is where people come to party. This resort town is filled with bars and clubs, complemented by miles of sandy beaches that are right on the doorstep.

While the buzzy beaches, lively nightlife, and bountiful facilities are the main attractions, Albufeira also has an appealing old town composed of photogenic whitewashed houses. 

📍 Carvoeiro

Another resort town mainstay on the Algarve trail, Carvoeiro has its own set of beautiful beaches and whitewashed houses, as well as some gorgeous clifftop views.

Quite a bit of the Algarve coast is served by boardwalks that improve accessibility to the seaside vistas. The Carvoeiro boardwalk is one of the prettiest, with plenty of caves and rock formations to explore along the way. 

📍 Benagil Caves

The Benagil Caves are one of the most photographed places in the Algarve – and for good reason. The dramatic mixture of sea, sand, and sky is a natural wonder, the light filtering in through the hole in the top creating a magical setting.

Small motorboats visit the caves, but the only way to explore in detail is to rent a standup paddleboard or Kayak.

📍 Ferragudo

Just up the coast a little way from Carvoeiro, Ferragudo offers a slightly less-developed seaside experience. The former fishing village sits right at the mouth of an estuary, across the way from Portimao.

There are many sandy coves to choose from around here, including the Praia da Angrinha, which is watched over by the striking, 19th-century Castelo de Ferragudo.

Renting A Car In The Algarve: Final Word

Hopefully, you’ve found our guide to renting a car in the Algarve useful. We’ve tried to include as much info as possible in as short a post as possible, but if we could distil it all down into one sentence it would be: getting a car in the Algarve is cheap, convenient, and totally worth it!