Top Mistakes Tourists Make When Renting a Car in Portugal

Renting a car in Portugal is a fantastic way to explore at your own pace — from sun-soaked beaches in the Algarve to winding roads through the Douro Valley. However, many travelers fall into costly traps that can turn their dream trip into a financial headache.

In this expanded guide, we’ll break down the most common mistakes tourists make when renting a car in Portugal, show you how to avoid hidden fees, and share insider tips so you can enjoy your road trip without unpleasant surprises.

1. Booking at the Last Minute ⏳💸

Many visitors believe they can just show up at the airport and grab a car. This can work in low season, but in summer, Easter, and Christmas, prices can double or triple, and availability can vanish entirely.

Why it’s a mistake:

• Fewer vehicle choices.
• Higher prices due to demand.
• Risk of no availability in small towns.

Better approach:

• Book at least 3–4 weeks in advance in high season.
• Use free-cancellation bookings so you can rebook if prices drop.

2. Ignoring Full Insurance Coverage 🛡️🚫

Basic insurance (CDW) is often included, but it usually comes with a very high deductible — sometimes €1,000–€2,000. Without extra coverage, you’re responsible for this amount if there’s any damage.

Why it’s a mistake:

• Even a minor scratch can cost hundreds.
• Many roads in rural Portugal are narrow, increasing risk.

Better approach:

• Consider full protection packages or third-party excess insurance.
• Check if your credit card includes rental coverage (and confirm it’s valid in Portugal).

3. Not Taking Photos of the Car 📸🚗

This is one of the easiest mistakes to avoid — yet so many travelers skip it.

Why it’s a mistake:

• Rental companies may claim you caused pre-existing damage.
• Without proof, you might be charged unfairly.

Better approach:

• Take 20+ time-stamped photos of every angle (including interior, wheels, and roof).
• Do the same when returning the car.

4. Choosing the Wrong Fuel Policy ⛽💰

Some companies offer a “full-to-empty” policy, where you prepay for fuel at a marked-up rate. If you don’t use all the fuel, you lose money.

Why it’s a mistake:

• Overpaying for unused fuel.
• Hidden refueling fees.

Better approach:

• Always select “full-to-full” fuel policy.
• Refuel near the drop-off location and keep the receipt.

5. Forgetting About Portugal’s Toll Roads 🛣️💳

Portugal has many electronic toll roads, especially in the Algarve and along the A1 motorway. Without proper payment, you’ll face fines.

Why it’s a mistake:

• Penalties can be several times higher than the toll.
• The system can be confusing for foreigners.

Better approach:

• Request a Via Verde electronic toll device from the rental company.
• If not available, learn how to pay online or at local post offices.

6. Overlooking License Requirements 📜🚫

Some tourists get turned away at the counter because they didn’t meet requirements.

Why it’s a mistake:

• EU rules and rental company policies can vary.

Better approach:

• Have a valid license held for at least 1 year.
• If your license is in non-Roman characters (Arabic, Chinese, Cyrillic), bring an International Driving Permit (IDP).

7. Not Checking Tires & Safety Equipment 🛞🦺

Portuguese law requires every car to carry safety items. Missing these can lead to fines.

Why it’s a mistake:

• Unsafe tires = risk of accidents.
• Missing safety equipment = police fines.

Better approach:

• Check for spare tire, reflective vest, and warning triangle.
• In winter in northern Portugal, ensure the car has snow chains or winter tires.

8. Assuming Credit Card Insurance Covers Everything 💳🛑

Credit card insurance can save money, but many travelers misunderstand it.

Why it’s a mistake:

• Some cards require you to decline the rental company’s insurance to activate coverage.
• Others exclude Portugal or certain vehicle types.

Better approach:

• Call your card provider before traveling.
• Get written proof of coverage.

9. Fuel Type Confusion — A Costly Error ⛽💥

Mixing up fuel types can destroy the engine.

Why it’s a mistake:

• “Gasolina” = petrol; “Gasóleo” = diesel.
• Putting the wrong fuel in means a very expensive repair bill.

Better approach:

• Double-check the fuel type before your first fill-up.

10. Parking Without a Plan 🚗🅿️

City parking in Lisbon, Porto, and Coimbra can be tricky.

Why it’s a mistake:

• High risk of scratches in tight spots.
• Illegal parking fines can be steep.

Better approach:

• Use secure garages or official paid lots.
• Fold in side mirrors in tight spaces.

Table 1 — Common Car Rental Mistakes & How to Avoid Them

Table 2 — Average Car Rental Costs in Portugal 💶🚗

Final Advice ✅

Renting a car in Portugal can be the highlight of your trip — if you avoid these mistakes. Plan ahead, know your rights, and inspect everything before signing. That way, you can focus on what matters most: enjoying the winding coastal roads, charming towns, and unforgettable landscapes.