Portugal Rental Cars: How to save on your rental car
Whatever your European landscape of choice — be it beaches, vineyards, medieval villages or historic old towns — you’ll find it all in Portugal, generally at a fraction of the price you would pay elsewhere in Europe.
But what’s the best way to see it all? We love the bus and train, but renting a car in Portugal is an easy and cost-effective way to get around the country. If you’re traveling in a group of two or more, or would just like more flexibility when it comes to where, how, and when you travel inside Portugal, renting a car is probably your best option. And before you hit the road, check our tips for staying safe on the road in Portugal.
So here are some of our best tips on how to get the best value on your car rental.
Related:
• Search rental cars in Europe
• How to calculate the “real cost” of your rental car
• 10 Ways to save on a trip to Portugal
• 10 Days in Portugal: A budget trip to Lisbon, Porto & Braga
How to save on your rental car in Portugal
To get the best possible deal on a vehicle rental in Portugal, here are a few things you should always keep in mind:
1. Always book ahead with a reputable agency.
Booking directly after you’ve arrived in Porto or Lisbon will almost always cost you substantially more than if you make a reservation ahead of time online. Waiting until the last minute usually means less competition, as agencies run out of cars and prices go up.
2. Compare prices carefully
Compare rates closely between different rental car agencies. When you search for car rentals on EuroCheapo, be sure to look at the details, not just the prices. Do they have free cancellation? Mileage limits? Other small print items?
3. Be careful of super cheap deals
Related to the last point, don’t book a deal that seems too good to be true — it probably is and has all sorts of additional fees. To figure out which deal is the best deal when every offer includes different things use our Car Rental Cost Calculator.

Inspect that car before you drive away from the lot. Photo: patrick janicek
4. Double check the car before you hit the road
At the rental agency, carefully examine the car and have an employee at the rental agency sign off on any existing damage (scratches, dents) before you drive off into the sunset. Same goes for returning the car — make sure an employee signs off that you’ve returned the car in good condition before you leave the car at the end of your trip.
5. Get a toll reader
Speed up your trip by springing for a “Via Verde” toll reader. The rental agency has to offer them and it’s worth avoiding the fuss of paying tolls manually and will save you time on the road — you’ll be able to breeze through the Via Verde line instead of hoarding exact change to pay tolls.
6. Check your insurance
Make sure you book a good travel insurance policy, but don’t pay for coverage that you already have. A good policy should cover any excess in case of an accident not covered by the regular rental insurance (which can be as much as $1,000 or more). That way you won’t have to spring for the extra insurance to cover excess for collisions — it’s very expensive and can double your rental bill.
7. Use a credit card with plenty of available credit
Use a credit card (not a debit or bank card) with enough credit available to cover the excess temporary charges — some rental companies will place a hold on your card until you return the car in good condition.
8. Save gas by renting a smaller car
Go with a mini or economy car — they’re cheaper to rent and will save you money on fuel.
9. Upgrade with caution.
Americans take note: Rental car agencies in Portugal and around Europe have a funny tendency to offer American clients free upgrades to larger cars. This is often because they can’t get rid of them! Take the upgrade with caution: Really large cars will not only cost more for gas, but will be trickier to navigate through tiny European streets and alleyways. Upgrade with caution.
10. Plan to return your car on a weekday
Don’t expect to return or pick up a car on Saturday afternoons or Sundays in smaller towns. Apart from those located in major airports, most rental offices are closed Saturdays after 1 pm and Sundays all day.
A final note on booking
Whichever rental agency you book your car through in Portugal, expect to pay more for an automatic transmission. You’ll also have to shell out more if the driver is 25 years old or younger.
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