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Driving in Madeira is an adventure. Cliffs, stunning ocean views, and winding mountain roads characterize the island. Driving in Madeira is not for the faint of heart—but it’s one of the best ways to explore this fantastic island.

After two years on the island, I’ve rented cars on Madeira over 20 times. We’ve had some great experiences, some poor experiences, and one accident. Here’s everything you need to know before renting a car on Madeira.

🚗 We use Discover Cars to rent cars on Madeira. They have the best prices and no hidden fees.

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Is Driving in Madeira Difficult?

Short answer? Yes.

Madeira’s roads are steep, narrow, and full of hairpin turns. Locals zip around the road, recklessly passing tourists who inch along the highway in second gear.

Long answer? Driving in Madeira can be challenging, but it is doable.

If you’re accustomed to wide highways, flat terrain, and minimal traffic, allow yourself time to adjust. Avoid long driving days when you first arrive on the island, and steer clear of driving in downtown Funchal. Drive slowly at first, pull over to enjoy the views, and let locals pass you! Madeirans are friendly, excellent drivers, and used to visitors gawking at their island.

If you’re comfortable driving a manual transmission (stick shift), you can take advantage of DiscoverCars discounted rates. If you’re not, reserve an automatic transmission as soon as you can – these cars go fast!

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Renting a Car in Madeira

Public transport in Madeira is great for traveling in the south and circumnavigating the island to Porto Moniz. Still, if you want to explore waterfalls, secluded villages, and secret viewpoints, you’ll need to rent a car or hire a private driver.

What You Need To Rent a Car in Madeira:

• A valid driver’s license (I highly recommend bringing an International Driver’s Permit)
• A credit card for the deposit in the driver’s name
• Car Seat (rental companies offer car seats for an additional charge)

Car Type:
Choose the smallest car possible. Compact cars handle the narrow roads of Madeira well. If you’re not comfortable driving a manual car (or not used to it), opt for an automatic transmission. Madeira’s steep hills and windy roads are the ultimate test of skill for a stick shift.

Avoid renting a van, SUV, or larger vehicle. Big car culture doesn’t exist on Madeira. Here, you want the smallest car with the highest horsepower possible, but the Fiat Panda (the most popular car on Madeira) can handle even the steepest hills.

DiscoverCars has a wide variety of vehicles and companies to choose from. They compare rates from both local and international rental companies, ensuring you get the best rate.

Tip:
Rent your car early, especially if you’re traveling during summer or school holidays. Automatic cars go FAST, and prices double or triple during peak season.

We always rent our cars using Discover Cars. Rental companies on Madeira prefer working with Discover Cars over other 3rd party booking agencies and we’ve only had positive experiences with Discover.

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What to Do When Picking Up Your Rental Car in Madeira

Picking up your rental car in Madeira is the start to your amazing vacation – so here’s what you need to do to make sure your trip stays amazing.

If you notice any damages, take pictures. Make sure these damages are noted on your contract, photographed by the rental car employees, and photographed by you.

Rental cars on Madeira often have minor to major damage on the bumpers, scrapes and dents on the sides of the car, and larger dents on the ceiling. If you don’t notice any damage marked on your contract, make sure to call the rental agent’s attention to it. More often than not, they’ll say the damage is minor. Insist on taking photos, having them take photos, and having anything larger than your thumb marked on the contract.

DiscoverCars offers full coverage insurance, often at a fraction of the price offered by most rental car companies. They are a third-party insurer. This means your insurance policy covers you after you pay for the damages.

If you want a truly stress-free driving experience in Madeira, opt for the rental car company’s full-coverage insurance when picking up your car. This insurance covers all damages, except for accidents involving unlicensed drivers, accidents caused by drivers under the influence, and other driver-caused errors.

What to Expect when Driving on Madeira

Madeira’s road infrastructure is incredible. Modern highways, the VR1 and VE1, connect most of the island. The extensive tunnel network connects the island, making older, steeper roads obsolete (and partially closed!). Driving on the main roads, VR1 and VE1, is much like driving in the rest of the world. Leaving these roads, or turning highways off on your google maps settings, means driving through tight village lanes, steep climbs, and alongside breathtaking cliffs.

💡 IMPORTANT TIP: When entering the highway on Madeira, it’s normal for the driver entering the road to brake, often coming to a complete stop, before merging into the flow of traffic.

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Parking in Madeira

Parking in Madeira is the worst part about driving on the island! In Funchal, paid underground garages are your best option for a safe, centrally located parking spot. Be prepared to use your three- or four-point turn awkwardly to maneuver around the tight lot. In smaller towns, parking is usually free but limited.

🚗 Parking Garage Tip: My favorite garage in Funchal is located in the Plaza Shopping Center. It’s easy to find from the highway, has generously sized spots, and the Pingo Doce in the basement gives you 2 hours of free parking.

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Safety Tips for Driving in Madeira

• Use a low gear on steep descents—save your brakes.
• Watch for fog in the mountains.
• Expect livestock and pedestrians on all roads.
• Follow local speed limits (they change quickly between tunnels and town zones).
• Pull over if you’re being tailgated and let the local pass.
• Traffic Circles are confusing and magical. If you miss your exit, circle around again!

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Best Scenic Drives in Madeira

For a truly magical adventure, change your GPS settings to “avoid highways”. Here are a few of our favorite routes:

Family Favorite:
I love driving from Porto Moniz to Canhas through the mountains. Here, herds of cows meander along the road and the car is frequently enveloped in passing clouds.

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Should You Drive in Madeira?

Driving yourself in Madeira gives you the freedom to explore hidden beaches, mountain viewpoints, and relax at a local bakery. But, it’s not without it’s challenges. Narrow roads, steep drives, and aggresive drivers will make inexperienced drivers nervous – and nervous drivers make silly mistakes.

If you’re inexperienced or nervous about driving, I suggest hiring a driver or joining a tour to experience the island and enjoy the journey.

Personally, for families, I recommend renting a car using Discover Cars. Their rate comparison

Toddlers, babies, and small children need the freedom to decide when they’ve had enough of the beach or a hike. You need the ability to adjust your plans, drive longer in case of an unexpected car seat nap, and stop for a snack.

Driving in Madeira is intimidating, but with an automatic vehicle, a napping baby, and a calm driver, it’s the drive of a lifetime.

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