Renting a car in the Algarve
The Algarve is easiest to explore by car. Many beaches, coves, and hill towns are hard to reach by bus, and routes between cities can be slow. If you’re flying into Faro Airport, booking a car in advance usually means a smoother pickup and a better price. This guide shows exactly how to compare deals, understand insurance and deposits, handle A22 tolls, and avoid common fees. You’ll also find our brand-by-brand take for Faro Airport and a quick checklist for pickup and return, so you can spend less time at the desk and more time on the coast.
Renting a car online and picking it up at Faro Airport
We strongly recommend booking your rental car online before your trip. It gives you peace of mind knowing a vehicle is reserved and often saves money compared to last-minute bookings. Once you land at Faro Airport, simply follow the car hire signs outside the terminal. Go to the desk of the company you booked with, show your documents, and you’ll be on the road quickly.
Algarve car hire quick checklist
- Book 2-6 weeks ahead; compare at least 3 brands.
- Pick up at Faro Airport (FAO) to skip shuttles.
- Choose full-to-full fuel and unlimited kilometres.
- Photograph the car (all panels, wheels, interior, fuel gauge) at pickup and return.
- Know your excess and deposit; consider excess cover if a big hold worries you.
- Ask for the A22 toll transponder and how billing works.
- Add a second driver online (cheaper than at the desk).
Questions to ask yourself when renting a car
Rental companies often advertise low daily rates, but the real costs are hidden in insurance, deposits, and extra fees. To avoid surprises, ask yourself these questions before you book:
- Do I know this company? If you’ve never heard of them and reviews are poor, think twice.
- Where are they located? Some claim “Faro Airport” but are actually in town, requiring a shuttle.
- What type of car do I need? Small for city driving, larger for luggage or families.
- What is the daily rate, and does it drop for longer rentals?
- What happens if the car is damaged or stolen? Check the excess you’d need to pay.
- Do I need extra insurance? Compare the cost of adding it versus taking the risk.
- Are the insurance conditions clear? Watch for exclusions in the fine print.
- Is there a security deposit? Know how much will be blocked on your card.
- What’s included in the price?
- Second driver
- Baby seat (if necessary)
- Permission to drive into Spain
- What is the fuel policy? Full-to-full is usually the fairest option.
- What’s the cancellation policy?
- Is there a mileage limit? Unlimited kilometres are best for exploring.
- What do reviews say? Pay close attention to recent negative ones.
- What’s the minimum driver age? Most companies require 18-21 years, plus a valid license and ID.
Asking these questions up front can save you stress, money, and time at the rental desk.
Do you need insurance?
When you rent a car without insurance, you are responsible for any damage or theft. Even a small scratch can be treated as damage, and companies may charge hundreds of euros. There are also cases where renters were billed for scratches that were already on the car.
To protect yourself, always inspect the car carefully before driving away. Take photos or a short video of all sides, close-ups of existing scratches, the wheels, and the interior. This gives you proof if the company tries to claim for old damage.
Insurance reduces your risk, but it does come with extra cost. The question is whether you prefer to save money up front and take the risk, or pay more for peace of mind.
In general, we recommend taking insurance. Many companies are strict when checking cars on return, and if you’re not covered, even minor damage can turn into a big bill.
Toll roads in the Algarve
When driving on the A22 highway, you’ll need to pay electronic tolls. Most rental cars come with a small transponder device that beeps when you pass a toll point. The charges are automatically recorded and settled when you return the car.
If your rental doesn’t include the device, you can usually request one at the desk or arrange payment at a post office. Always check the rental conditions so you know how tolls will be billed. Unpaid tolls can lead to extra admin fees.
How tolls are billed when renting a car in the Algarve:
- Pickup: ask for a transponder and how charges are settled.
- Driving: each gate is logged automatically.
- Return: charges are billed by your rental company (or later, depending on brand).
- Tip: unpaid tolls can trigger admin fees. Confirm the process at pickup.
Nearest petrol station
If you need to refuel before returning your car, there’s a petrol station just a minute’s drive from Faro Airport. This makes it easy to bring the car back with a full tank. Always keep the receipt as proof you refueled. Some companies ask for it when checking the car in.
Car rental companies
At Faro Airport you’ll find a wide choice of international and local car rental companies. They may all advertise low prices, but the real differences come down to deposits, insurance costs, mileage limits, and customer service.
Most companies also require a security deposit on your credit card. This amount is blocked during the rental and released when you return the car without issues. The maximum amount you might pay in case of damage or theft also varies by brand.
To reduce your risk, you can add insurance cover, which limits or removes the excess you’d otherwise be responsible for. This usually increases the daily price but can save you stress at drop-off.
In short: stick with brands you know or that have strong reviews, and avoid those with frequent complaints about hidden costs. Below, we’ve listed the main car rental companies at Faro Airport, ranked from the most reliable to those we suggest avoiding.
Sixt is one of the most famous car rental companies in Europe. Started in Germany in 1912, they now have a big international presence worldwide. Their required security deposit is one of the lowest in the Algarve. Based on over 2000 reviews, their customer satisfaction rating is excellent (8,2 / 10). Sixt is definitely one of our top choices when renting a car in the Algarve.
- Security deposit: € 200
- Maximum charge in case of damage: € 2600
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Avis is a well known American car rental company. Prices are higher than average, but this is because you know that you will not get scammed. Based on over 2000 reviews, they score a 7,6 out of 10, which is quite good.
- Security deposit: € 200
- Maximum charge in case of damage: depends on the car
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Guerin is a Portuguese car hire company, started in 1989. It only operates in Portugal. Prices are reasonable, and reviews are favourable (8,4 / 10).
- Security deposit: € 600
- Maximum charge in case of damage: € 1476
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Enterprise is a big car rental company from the United States, operating since 1957. Prices are relatively expensive, but their customer satisfaction rating is very good (8,1 / 10).
- Security deposit: € 600
- Maximum charge in case of damage: € 1180,80
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Europcar is a well known French car rental company, with a presence all over Europe. Prices are quite decent. Based on over 1000 reviews on Rentalcars.com, they score a 7,7 / 10 which is good.
- Security deposit: € 300
- Maximum charge in case of damage: € 2300
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Hertz is a well known car hire company from the United States. They are professional and the staff is friendly. Once you have booked your car already online, the paperwork on-site is relatively easy. Dropping the car off is also easy. You pay a bit extra for everything, but we find the service is worth it. Their customer satisfaction score is 7,9 out of 10.
- Security deposit: € 3075
- Maximum charge in case of damage: € 3075
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Dollar is another company where you can rent a car. Their security deposit is very high, and you can only drive 60 kilometres per rental. If you drive more than 60 kilometres per rental, you pay € 0,37 per kilometre. Based on over 500 reviews on Rentalcars.com, they score a 7,8 / 10 which is good.
- Security deposit: € 1537,50
- Maximum charge in case of damage: € 1537,50
- Fuel policy: full to full
- Maximum # of kilometres: 60 kilometres per rental
Firefly is a low cost car hire company that is owned by Hertz. The good thing that it is indeed low cost. The downside of this is the high security deposit, as well as the maximum of 60 kilometres per rental. If you go over 60 kilometres, you will pay € 0,37 for each additional kilometre. Their customer ratings are quite good though (7,9 / 10).
- Security deposit: € 1537,50
- Maximum charge in case of damage: € 1537,50
- Fuel policy: full to full
- Maximum # of kilometres: 60 kilometres per rental
Drive on Holidays is a Portuguese car rental company that is relatively new (founded in 2011). While their prices are quite low, their review score is also lower than most competitors (6,8 / 10).
- Security deposit: € 880
- Maximum charge in case of damage: € 880
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Interrent is a low cost car rental brand that belongs to the Europcar group. They are operating in at least 40 countries worldwide. Even though they advertise as being low cost, their prices are not very cheap. And their review score is average (6,6 / 10).
- Security deposit: € 1200
- Maximum charge in case of damage: € 1200
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Goldcar is a Spanish car rental company, and is one of the biggest rental companies in Spain. Based on over 10.000 reviews on Rentalcars.com, they score a 7,2 / 10. However, if you read the reviews, there are several people that complain about having to pay damage costs for small scratches, while they claim they didn’t cause these scratches. These people did not have insurance. If you go with this company, make sure to get insurance for damages. However, our advice is to avoid this company.
- Security deposit: € 1200
- Maximum charge in case of damage: € 1200
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Centauro is a Spanish car hire company that exists since 1973. Prices are higher than average, but that is because their cars are also not the cheapest. For example, their cheapest model is a Fiat 500. Based on over 2000 reviews on Rentalcars.com, they score a 7,0 / 10 which is ok. However, a lot of the reviews speak about hidden costs, which are not shown when you book the car. Avoid this company.
- Security deposit: € 1050
- Maximum charge in case of damage: € 1050
- Fuel policy: full to full
- Maximum # of kilometres: unlimited
Booking your rental car
The easiest way to compare all major car rental companies in one place is through Booking.com. They offer a wide selection of cars at Faro Airport, clear terms, and often the best online prices.
By booking in advance you can:
- Lock in lower rates before they rise in peak season
- See real customer reviews for each rental company
- Filter by what matters most: fuel policy, deposit amount, or unlimited kilometres
- Enjoy the security of trusted payment and support from Booking.com
We recommend checking your dates now and reserving early. That way, your car is guaranteed when you land, and you’ll save both time and money at the airport.
FAQ
Airport pickup is usually the easiest option because you can collect the car right after landing and return it before your flight. Prices are often similar once you factor in shuttles or taxis to town depots. Returning at the airport also reduces stress on departure day. If you’re staying far from Faro, compare one-way rentals with returns in your final city.
Most visitors with a valid EU/UK/US/Canadian/Australian license can drive without an IDP, but policies vary by rental company. If your license uses a non-Roman alphabet or you’re unsure, getting an IDP is a safe backup. Some brands may still request it at pickup, especially for long rentals. Always check your rental’s terms before you book.
Age requirements vary by company, but many accept drivers from 21–23 with a “young driver” fee. Some local brands allow 18–20 with higher fees and restrictions on vehicle categories. Premium cars usually require older drivers with more years of license history. Always check both the minimum age and the surcharge.
Standard cover often includes an excess (deductible), which is the maximum you pay if the car is damaged or stolen. You can buy an “excess waiver” or “Super CDW” to lower that liability, usually to near zero. Third-party excess policies can be cheaper but require you to pay the rental company first and claim later. Choose the option that matches your risk tolerance and budget.
Deposits range widely—roughly €300 to over €2,000—depending on the brand and whether you buy their excess waiver. The amount is typically a hold on your credit card, not a charge. Holds usually clear within a few business days after return, but it can take up to two weeks depending on your bank. Keep your return paperwork until you see the release.
The A22 uses electronic tolling with no cash booths. Many rental cars provide a transponder; tolls are logged automatically and billed later. If your car doesn’t have a device, ask for one at the desk or confirm how to pay to avoid admin fees. The N125 is a slower toll-free alternative if you prefer to avoid charges.
Manual cars are more common and often cheaper in Portugal. Automatics sell out fast in summer, so book early if you prefer one. If you’re not comfortable with a manual on hilly or narrow roads, paying extra for an automatic can be worth it. Always filter by transmission type when comparing deals.
Cross-border trips are often allowed, but you must request permission in advance. There’s usually a small fee and specific insurance conditions. Some companies restrict certain car groups or require additional paperwork. Always get written approval on your contract before crossing.
Bring your driver’s license, passport or national ID, and a credit card in the main driver’s name. Some companies accept debit cards, but limits and higher deposits are common. Have your booking confirmation ready, plus an IDP if your license might require it. If adding a second driver, they need their license and ID too.
Inspect the car carefully at pickup and take time-stamped photos or a short video. Capture all panels, close-ups of marks, wheels, interior, windscreen, and fuel gauge. Repeat the photos at return and keep the paperwork. This simple habit prevents headaches and speeds up deposit release.
Parking varies by town and season; it’s easier in shoulder months and tougher in July–August. Use paid lots near old towns to avoid circling narrow streets. Check signs for resident zones and time limits. When possible, choose accommodation with dedicated parking.
You can rent child and booster seats when booking, but availability is better if you reserve early. Bringing your own is allowed and often more comfortable for kids. If renting, inspect the seat’s condition and installation at pickup. Portuguese law requires appropriate restraints for children based on age and size.
As a general guide, urban areas are around 50 km/h, rural roads around 90 km/h, and motorways up to 120 km/h. Always follow the posted signs, as limits can change near schools, roadworks, or villages. Speed cameras and mobile checks are used. Fines can be paid on the spot, so drive within the limits.
Most rentals include roadside assistance; the number is on your contract or glovebox card. Call the service first and follow their instructions rather than arranging your own tow. Document any damage with photos and note times and locations. Don’t continue driving on a damaged tire to avoid extra charges.
Yes, but you must list them on the contract, and a daily fee often applies. Adding a second driver online during booking is usually cheaper than at the desk. Each driver needs a valid license and ID. Unlisted drivers can invalidate insurance coverage.
Most airport locations track flight numbers if you provide them during booking. Still, it’s wise to message the rental brand if you foresee delays. After a long delay, they may reassign the car but usually offer an alternative when you arrive. Keep your booking reference handy at the desk.
Policies vary by rate type. Flexible rates allow changes closer to pickup, while prepaid deals are stricter. If flexibility matters, pay slightly more for free cancellation. Always read the cancellation cutoff time and method. Save confirmation emails in case you need support.
For summer and school holidays, book 4-8 weeks ahead to secure the car type you want. Shoulder months can be cheaper, but weekends still sell out. Prices usually rise as availability drops, so set alerts and compare a few brands. If you see a good flexible rate, lock it in and keep checking for better deals.
Conclusion
Renting a car in the Algarve is the best way to explore the region, but choosing the right company and cover makes all the difference. From deposits and tolls to insurance and mileage, being prepared helps you avoid stress and surprise costs.
In general, we recommend well-reviewed brands such as Sixt, Avis, or Enterprise. Companies with repeated complaints, like Goldcar or Centauro, are better avoided. The biggest decision you’ll face is whether to add insurance: it costs more but offers valuable peace of mind.
With these tips, you can book with confidence, collect your car at Faro Airport, and enjoy the freedom to discover the Algarve’s beaches, towns, and countryside at your own pace.
