We usually prefer to take public transit on our adventures to help the budget and the environment. However, public transit can only get you so far in some destinations. We had a plan to explore the Algarve region so we decided that driving in Portugal to be the best decision.
This article will help with everything you need to know from where to rent a car to some of the road rules we learned along the way. Overall, driving in Portugal is relatively easy depending on your comfort level. It’s definitely something you need to do if you want to escape the city and discover more out-of-the-way sights.
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Renting a Car in Portugal
Renting a car in Portugal is pretty straightforward and similar to other European countries. You can rent a car from any of the major companies as well as a few local options. We typically rent from Enterprise because they always seem to have the best cars, prices, and service no matter which location we use.
Enterprise Rent-A-Car Lisbon Airport
Chances are you’ll be landing at Humberto Delgado (aka Lisbon or Portela) Airport when you arrive in Portugal. Lisbon Airport boasts many different rental car companies located in an area just off of the main Arrivals terminal. The other international airports in Portugal are Porto and Faro which both also offer a number of car rental options.
We recommend heading to the Enterprise Rent-A-Car at Lisbon Airport for the best selection and price. The staff at the desk are very helpful and speak perfect English so there’s no confusion. The process is really quick if you reserve a car online which is what you want after getting off a long flight!
What Kind of Car to Rent in Portugal?
Probably the biggest decision you’ll need to make when you plan on driving in Portugal is what type of rental car you need in Portugal. There is no simple answer to this because it depends what you have planned during your stay.
Staying in the cities? You’ll need something small to get around easily. Looking to spend more time out in the country or searching for beaches? Choose an SUV so you can take it anywhere.
We chose the Kia Niro which is a smaller SUV but suited our needs. Our goal was to spend a few days exploring the Algarve so we needed something more comfortable and rugged than a compact car. Luckily, Enterprise offers a free upgrade on many rentals which saves a lot of money!
Rental Add-Ons for Driving in Portugal
Every rental company offers a wide range of add-ons to your car that may or may not be worth it. Things like a GPS are great but can be very expensive compared to buying a SIM card and using Google Maps. One thing you definitely want while driving in Portugal is a toll transponder which we’ll talk about further down.
Insurance for Driving in Portugal
Like most other places, rental car companies offer insurance to protect your wallet while driving in Portugal. It’s not strictly required but we highly recommend being covered by something. You can purchase insurance from the rental company if you don’t already have coverage built-in to your credit card.
Check Your Credit Card for Insurance
Call your credit card company if you’re not sure what sort of coverage is offered. You’ll be covered for anything like dents/scratches, accidents, and even your car or belongings getting stolen. It’s really great not to have to worry about this while you’re travelling.
Make sure the insurance coverage is good for renting cars outside of your home country. You also want to check that it covers all possible things that could happen. If there are any gaps in that insurance (like low limits or no medical coverage) then you might want to add one of the insurance options offered by Enterprise.
Is Rental Car Insurance Worth It?
Rental car insurance is one of those things where it’s better to have it and not need it than need it and not have it. It’s always better to know you’re covered for any situation especially in a country you’re not familiar with. At the end of the day, the cost for added insurance is low compared to having to fix or replace the car out-of-pocket.
Toll Roads in Portugal
Like we mentioned above, you’re going to want to add a toll transponder to your rental car in Portugal. The country is full of toll roads that connect you to just about anywhere you want to go. Basically, if you venture outside of any city the chances are high you’ll be taking a toll road.
The tolls aren’t very expensive but the charges can add up quickly. For example, we travelled 600km round-trip from Lisbon to Lagos during our 2 weeks in Portugal. The bulk of the road trip was on a toll highway which ended up costing about €25 in tolls each way. You can use the Portugal Toll Calculator to get an idea of how much driving in Portugal will cost you.
Via Verde Toll Transponder
The Via Verde toll transponder is really handy when you’re driving. in Portugal. This allows you to use the Via Verde (green) lanes at each toll checkpoint. Your transponder will automatically charge the right amount to the credit card used for your rental car.
Things get a LOT more inconvenient if you don’t have a Via Verde transponder. You can still pay for your tolls while driving in Portugal but will need to find a post office or authorized shop. Your toll charges are linked to your license plate and are ready to be paid after 48 hours. Keep in mind you have 5 days to pay your tolls so don’t forget!
Not All Toll Roads Are Equal
Portugal has been doing a great job of updating their toll roads but they’re not done yet. Some roads are not set up with license plate sensors to make things easy. If you do not have a Via Verde transponder you’ll have to stop at every toll booth along the way.
You will be paying for each section of your trip at each of these booths. It’s much easier to have the Via Verde transponder in your rental car to have everything done automatically. The transponder allows you to keep driving without having to park and wait in line for payment.
What Are Roads in Portugal Like?
The roads in Portugal range from smooth asphalt to cobblestone to rough dirt. They can also be luxuriously wide to claustrophobically narrow depending on where you are. Make sure you choose your rental car based on the type of driving in Portugal you plan on doing.
Our small Kia SUV was more than enough for all the driving in Portugal we did during our trip. If you plan on driving the coastal road or deep into the countryside then you’ll want a car with some ground clearance to make sure you won’t get stuck.
What Side Does Portugal Drive On?
All cars in Portugal drive on the right so you won’t have any issue if you’re coming from North America or other right-driving countries. If you’re coming from a left-driving country it might take some getting used to but the roads are well marked.
Getting Fuel in Portugal
Gas is another cost you’ll have to keep in mind if you’re driving in Portugal. This is also a variable cost that can be different for everyone. It all comes down to the current gas prices in Portugal to the amount of driving you’re doing.
Our Kia Niro SUV was actually really good on gas for its size. We only had to fill up on the way back to Lisbon after driving to and around Lagos for 4 days. It still ended up costing us about €50 or so since our car had a big tank.
Where to find Gas in Portugal
You can find gas stations in just about every decently sized town in Portugal. There are also a lot of service stations along the highways of Portugal so you shouldn’t need to worry about running out of gas. We passed a service station about every 20 minutes along the A2 Highway in Portugal.
Gas Prices in Portugal
Gas prices in Portugal are generally quite high because they are heavily taxed. As of May 2021, you can expect to pay €1.60/liter (or €6/gallon) on average. Make sure to choose a fuel efficient option when renting a car in Portugal so you don’t blow your budget at the pump!
Quick Note on Types of Gas in Portugal
In Canada, we have standard gas nozzles for all cars – you just need to know the difference between regular and diesel. In Portugal, however, we learned there are different nozzle sizes for pumping gas. Mark thought he was going crazy when the pump wasn’t going into the tank!
Depending on your car, you won’t necessarily be able to fill up with the cheapest option at each gas station. Instead, you’ll have to use the type of gas that goes with the nozzle that fits into your car. We had to fill up using the mid-range gas which was a little more expensive than the cheap option we were hoping for. There will be a sticker inside the fuel flap that tells you which nozzle you need.
Gas Station Near Lisbon Airport
Rental car companies always want you to bring the car back with a full tank of gas. Luckily, there is a BP gas station near Lisbon Airport where you can top up your tank. It is located right next to the entrance where most rental companies have their drop-off area.
Unfortunately, the gas station near Lisbon Airport has higher prices than other options. We recommend filling up at a station with cheaper gas to save money. You can then just top up before dropping off your car so you only spend a few Euros.
Where NOT to Drive in Portugal
Even though Portugal is almost completely connect by roadways, there are some places where you should avoid. You should stick to the highways and major roads especially as a tourist driving in Portugal. We highly recommend avoiding cities like Porto, Sintra, and even parts of Lisbon if you have a car.
Driving in Lisbon
You might want to avoid driving in Lisbon if you’re not comfortable driving in big cities. Lisbon has a lot of traffic, impatient drivers, and restrictive parking which can be inconvenient. Some areas of Lisbon, like Alfama, are also from a time before cars so the streets are incredibly narrow and mostly one-way.
Driving in Sintra
Exploring the town of Sintra is a perfect day trip from Lisbon. However, we strongly recommend taking transit or a bus tour instead of driving there. The mountainous streets heading up to Sintra are VERY narrow and require quick thinking to avoid cars coming the other way.
There is also almost no parking in and around Sintra itself so you have nowhere to leave the car. We saw nothing but traffic mayhem during our day in Sintra and were glad we didn’t have a car with us.
Driving in Porto
Porto is a must-see city in Portugal but it is better to leave your car behind. The city itself is relatively small so you can walk just about anywhere. The streets are narrow, one-way, and full of wandering tourists. Save yourself a lot of stress and just use Uber in Porto instead.
Driving in Portugal: Is it Worth it?
Driving in Portugal can be the best way to get around depending on your itinerary. If you are only staying in one city, like Lisbon or Porto, then driving in Portugal may not be the best decision If, on the other hand, you want to explore the Algarve or the coastline then renting a car is your best bet.
Make sure you are aware of the rules of the road and how to handle a multi-lane roundabout. Most people driving in Portugal treat the highway speed limits as merely a suggestion so keep to the right lane as other cars go flying past. We only felt a little overwhelmed getting into and out of Lisbon while the rest of driving in Portugal was a piece of cake.
Have you experienced driving in Portugal? Let us know in the comments how it went or if you have more tips for other people considering renting a car in Portugal.
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