Renting a car in Portugal as a Canadian: licence, insurance and roads

Your licence

If you don't live in Portugal, you can drive with a valid Canadian licence for up to 185 days. You must be at least 18 to drive.

You generally must be at least 21 to rent a car in Portugal, and drivers under 25 may pay a young-driver fee.

Only CAA issues International Driving Permits in Canada. It costs $32 including tax, lasts one year, and is only valid with your Canadian licence.

Insurance: what to check

• Rates from Auto Europe include liability and fire insurance. Collision damage waiver is extra.
• After an accident, don't move the vehicle. Report it to police right away and fill out the accident report form before you submit it to the insurer.

Roads, tolls and parking

• Most highways in Portugal charge tolls, some of them electronically only. International credit or debit cards are not always accepted.
• Electronic-only toll roads have no booths. Your licence plate is recorded as you pass, and signs read 'Electronic Toll Only' or 'Portagem Electrónica'.
• Most rental cars come with an electronic toll device (Via Verde transponder) for a small daily fee. Tolls are charged to your credit card.
• Without a toll device, you must pay electronic tolls at a post office or Payshop within a few working days. Unpaid tolls can lead to fines and rental company admin fees.
• Madeira has no toll roads, including its expressways.
• Madeira has many tunnels and steep mountain roads with tight switchbacks. Village roads can be very narrow. Funchal has paid and restricted parking downtown.
• You must keep a reflective vest and a warning triangle in the car. Children under 135 cm or 12 years old need a suitable car seat.
• Low-beam headlights must be on at all times.

Staying safe on the road

• Fatal accidents are frequent and drivers don't always respect traffic laws, so drive defensively. Motorcyclists often speed and tailgate.
• The legal blood alcohol limit is 0.05%. Penalties include licence suspension, car seizure, heavy fines and jail.
• If possible, avoid rental cars with visible rental-company stickers, which thieves target.