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We research the local rental car companies' offerings to find you the best options for you

Renting a car in Algarve opens up Portugal's stunning southernmost region along the Atlantic coast. The area features dramatic cliff-lined beaches, authentic villages, historical landmarks, and scenic viewpoints. Short distances and well-maintained paved roads make for comfortable driving experiences.

If you are planning a trip to Portugal during the high season, book your car in advance. This way, you’ll have more options at lower prices.

With a Localrent rental car, you'll travel independently without relying on public transport schedules or organized tours. You can create your own routes throughout Algarve and Portugal, making spontaneous stops wherever catches your interest.

Benefits of Localrent Car Rental

Localrent allows you to compare offerings from local rental companies and select the best option for your needs. Service advantages include:

  1. Transparent terms. You see exactly what you're paying for upfront. The price remains fixed with no hidden fees or unexpected charges.
  2. Small deposit. You pay only 15-20% of the total rental cost when booking, with the balance due at pickup.
  3. Convenient filters. Customize your search by vehicle class and make, transmission type, payment method, and other parameters.
  4. Basic insurance included. You can purchase extended coverage when booking if desired.
  5. Wide vehicle selection. Choose from compact cars to spacious minivans or luxury models according to your preferences.

Rental Requirements

First, you must meet age and driving experience requirements, which vary by vehicle and are specified in each car's listing. You can filter search results by your parameters to show only eligible vehicles.

Second, you'll need:

  • Passport for contract signing
  • Valid driver's license
  • Bank card required for paying the booking deposit on the website

Cash may sometimes be accepted for the balance payment and security deposit. Some rental companies specifically require a credit card in the primary driver's name for the deposit. Check the conditions in your selected vehicle's listing or use the available filters.

Check the expiry dates of your documents before your travel.

Ideal car for your vacation

Both toll roads and free roads in the Algarve are suitable for absolutely any kind of car, including economy cars, so if you are travelling alone or with your partner, you can rent an economy car. 

For 3-4 people, rent a mid-size car, and a minivan is perfect for a large family or a very close-knit group.

If you want to go on a trip with a small group, discuss the route, timeline, wake-up time, and budget of the trip in advance. If you can’t agree on something, you had better split and rent several cars.

There's nothing like a convertible for two to drive along the coast and take selfies against a backdrop of gorgeous nature. And a crossover is perfect for a long journey through the natural wonders a group of friends.

Car rental prices in Faro

Car rental prices in Faro
Jan €5
Feb €9
Mar €11
Apr €20
May €19
Jun €22
Jul €28
Aug €36
Sep €37
Oct €34
Nov €24
Dec €17

Traffic Regulations

Algarve follows standard European traffic rules, with some local considerations:

  • Speed limits. Standard restrictions unless otherwise posted: 50 km/h in urban areas, 90 km/h on general roads outside cities, 100 km/h on automobile and motorcycle highways, 120 km/h maximum on motorways.
  • Overtaking. Pass only on the left. Right-side overtaking carries a fine.
  • Headlights. Use low beams in poor visibility conditions, outside urban areas, and in tunnels.
  • Roundabout navigation. Keep right when taking the first exit; use the appropriate lane for later exits. Always signal right when exiting.

Roads in Algarve are generally in excellent condition. However, coastal sections can be narrow and winding. Drive with extra attention on these routes.

Fuel Stations

The region has adequate fuel station coverage. Select Gasolina 95/98 (petrol) or Gasoleo (diesel) depending on your engine type. Self-service stations are common along motorways and near major cities, many operating 24 hours. In smaller towns, stations may have limited hours and accept cash only. Fill up with extra fuel before heading to mountain areas or remote villages.

Parking

Algarve has both paid and free parking. Follow signs and pavement markings:

  • Blue lines – paid parking with time restrictions. Conditions are posted on information boards. Pay via parking meters or mobile apps.
  • White lines – free parking
  • Yellow lines – no stopping or parking
  • Green lines – parking for local residents with special permits

Avoid parking in restricted areas. Portuguese fines are substantial.

How to Book a Car in Algarve

To rent through Localrent:

  1. Enter your rental start and end dates. Apply filters to narrow results to suitable vehicles.
  2. Review your chosen vehicle's listing. Check technical specifications, driver requirements, deposit terms, insurance, and rental costs. Add optional services if needed (not available for all vehicles): child seats/boosters, additional driver.
  3. Confirm details. Add pickup and return location and time. For airport pickup, provide flight number. Enter primary driver's personal information and contact details.
  4. Pay the 15-20% deposit by bank card.
  5. Save your voucher with order details. It arrives via email immediately after deposit payment. Present the voucher at pickup—save it on your phone or tablet, or print it out.

When in Algarve, arrive at your selected location, inspect the vehicle, pay the remaining balance, and sign the contract.

The demand for car rental services in Portugal

The demand for car rental services in Portugal
Jan 54 %
Feb 67 %
Mar 73 %
Apr 71 %
May 72 %
Jun 78 %
Jul 81 %
Aug 84 %
Sep 70 %
Oct 68 %
Nov 59 %
Dec 55 %

What to See with Your Rental Car

Include these destinations in your Algarve exploration:

  1. Praia da Marinha. One of Europe's most beautiful beaches, renowned for distinctive rock formations and exceptionally clear water.
  2. Benagil Cave (Cathedral Cave). A massive sea cave with a skylight opening in the ceiling. Access is by boat or kayak only. You can also view it from above via the "Seven Hanging Valleys" hiking trail.
  3. Cape São Vicente with its working lighthouse—the southwestern-most point of mainland Europe. Towering cliffs, powerful waves, and strong winds create an end-of-the-world atmosphere.
  4. Ria Formosa—a nature park featuring islands, lagoons, sandy beaches, and remarkable flora and fauna diversity. Explore on foot, bicycle, or kayak.
  5. Mount Fóia—Algarve's highest point in the Serra de Monchique mountains near the town of Monchique. Offers panoramic views of the entire coastline.

Consider your plans when selecting your rental vehicle. Compact models work well for city driving with easier maneuvering and parking. For extended trips to mountain areas, choose a more powerful car with at least 2-liter engine capacity.

Where to Rent a Car in Algarve

Different rental companies offer various pickup locations:

  • Faro Airport in Algarve (FAO)
  • Rental company office
  • Delivery to specified address

When booking, select convenient pickup and return locations. Available options vary by vehicle and rental dates. Use the "Specify location" filter when selecting your pickup city to see all available options.

Rental Tips

Here are recommendations to save money and ensure positive driving experiences in Algarve with your rental car.

Thoroughly Inspect the Vehicle at Pickup

Check and photograph or video any existing defects (chips/scratches/dents), interior condition, tires, bumper, and windshield. Ensure all damage is documented in the pickup/return report. Note the fuel level—it should match when you return the vehicle.

Avoid Unpaved Roads

Unpaved roads may lead to beaches, typically less crowded ones. However, rental cars aren't permitted on such roads—insurance doesn't cover them. Check your route through navigation apps beforehand.

Account for Toll Roads

Payment methods depend on motorway type:

  • Electronic toll system (marked with blue signs showing a car, euro symbol, radio waves, and "Electronic toll only" text)—payment through electronic systems (EastToll, TollCard, ViaVerde, TollService).
  • Traditional toll booths (marked with "Portagem" signs, sometimes showing barrier and payment card symbols)—pay cash or card at exit.

Toll costs depend on distance traveled and vehicle category.

Frequently Asked Questions

Can I rent a car without a credit card?

Yes, but not all models. Use the "No credit card" filter to see suitable options for your dates. Some rental companies accept debit cards or cash.

How much does rental cost in Algarve?

Prices vary by season, rental duration, vehicle class, and additional services. Highest prices occur in July-August.

Can I find cheap car rental in Algarve?

Yes, choose compact models and book in advance. Off-season rentals are relatively affordable.

Can I pay for rental in cash?

Sometimes this option is available. Check conditions for your selected vehicle or use the "Cash payment" filter. The website deposit can only be paid by card.

Can another driver operate the vehicle?

Yes, if their information is included in the rental contract. Add the "Additional driver" service when booking. The rental company manager will add their details to the documents at pickup. If someone not listed in the contract drives, insurance is invalid.

How is speed monitored on Algarve roads?

Through photo enforcement cameras installed throughout urban areas and motorways. Some sections use systems calculating average speed between two cameras. Slowing down just before a camera is ineffective since the average speed reading may still exceed the limit.


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4 Comments
like
William
12.09.2023 13:33

Hello. Can I pick up my car in one city and drop it off in another?

like
Iryna (Localrent)
12.09.2023 16:09

Hello! Yes, sure.

like
Sandra
02.01.2023 19:42

can we pick up our car at the airport?

like
Iryna (Localrent)
03.01.2023 10:03

Hello! On the car page, after you click on the “Book now” button, you will be able to select the pick-up and drop-off time and location, including the “Airport” option.

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