Top Mistakes Tourists Make When Renting a Car in Portugal 🚗🇵🇹 — 2025 Guide

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.

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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.

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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).

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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.

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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.

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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.

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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).

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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.

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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.

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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.

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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.

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

Mistake	Why It’s a Problem	How to Avoid It
Booking late	Higher costs, fewer cars	Book early
No full insurance	High damage charges	Buy excess cover
No photos	Disputes over damage	Take 20+ pics
Wrong fuel policy	Overpaying for fuel	Choose full-to-full
No toll plan	Toll fines	Get Via Verde
Missing IDP	Rental refused	Bring IDP
Unsafe tires / no safety kit	Safety risk, fines	Inspect car
Overreliance on credit card insurance	May not cover Portugal	Confirm policy
Fuel confusion	Engine damage	Check labels
Random city parking	Fines, scratches	Use garages

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Table 2 — Average 2025 Car Rental Costs in Portugal 💶🚗

Car Type	Low Season (€ per day)	High Season (€ per day)	Weekly Total (High Season)
Economy	20–35	40–65	~€300–450
Compact	25–40	45–75	~€350–525
SUV	35–60	60–100	~€420–700
Luxury	70–120	110–200	~€770–1400

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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.