To Rent a Car

Renting a Car in Portugal: What You Need to Know

Renting a car in Portugal is easy, but there are a few things to keep in mind to avoid surprises. 

I recommend paying attention to local car rental companies. They are usually much cheaper, at least.
Many of them can be found through popular search platforms like Booking, Expedia, Rentacar, etc.
You can make a reservation directly through a search platform, although I personally don’t recommend it, even though, for example, Booking sometimes offers a discount. An alternative is to go directly to the website of the company you choose.

Everywhere, you will be offered the option to purchase insurance. I’ll talk about that a little later.

You will need to use your credit (not debit) card!

1️⃣ Deposit

Most rental companies block a security deposit on your credit card, usually several hundred euros. This isn’t charged unless there’s damage, traffic fines, or missing fuel.

2️⃣ Insurance Options

The price of insurance can vary a lot depending on where you buy it. You cannot rent a car without it. There are several ways to get coverage.

The cheapest - essentially free - insurance is the MasterCard benefit (call your credit card and check if you have it), if you have that program with your credit card. Trust me, rental companies don’t love it because they don’t make money on it, but they accept it. It covers:

• CDW / TP (Collision Damage Waiver / Theft Protection)

• Third-party liability within the card’s limit

• Deductible (partially or fully, depending on the card)

IMPORTANT: Before your trip, you can call the MasterCard Benefit service and request a Letter of Coverage – they will send it to your email immediately.

It is also important to book the car using the same credit card that is linked to your MasterCard Benefit plan.

If you don’t have this benefit, insurance can be purchased:

• Directly from the rental company, usually expensive, sometimes even more than the car rental itself.

• Through a broker, for example, Sunnycars, which offers an all-inclusive package with extended coverage.

a) Direct Rental + MasterCard Insurance

• Basic coverage (CDW, TP) comes free with certain credit cards.

• If there’s damage, the rental company may block the deposit, and you’ll need to file a claim with your credit card company.

• Savings come at the cost of potential stress: the deposit may be held, disputes can arise, and claim processing can take weeks.
  
  

b) Sunnycars / All-Inclusive Rental

• Full coverage included: CDW, TP, glass, tires, roof, undercarriage, towing, and sometimes keys/documents.

• You pay a bit more upfront (~€150 for 8 days), but the rental company won’t charge you for minor scratches or damages - Sunnycars handles it.

• For major accidents, you might need to provide documents for the claim, but you won’t pay out of pocket.

c) Direct Rental + Local Insurance

• Insurance can be more expensive than Sunnycars, but the deposit is usually smaller.

• Local insurance often has exclusions (glass, tires, roof) and franchises/deductibles.

• Risk of additional charges for small damages is higher.

3️⃣ CROSSING BORDER
If your plans include crossing the border, for example, traveling to Spain, you will need to pay an additional fee. Depending on the company, it can range from a few euros per day up to €150 for the entire rental period. If it’s more expensive, it’s usually not worth it.