Tire Damage Policy
In the event of a tire puncture occurring in the tread area (as illustrated in image 1), the repair will be covered by the company, and no charge will apply to the customer.
However, if the tire damage occurs on the sidewall of the tire (as illustrated in image 2), the tire cannot be repaired and must be replaced.
In accordance with Portuguese regulations, tires on the same axle must have matching tread depth. Therefore, both tires on the axle must be replaced.
In such cases, the customer will be charged a replacement fee of €250.
For added peace of mind, you can add extra protection at checkout for just €5/day, covering sidewall damage (image 2).
We never require a security deposit and we never block money on your credit card.
Some automatic vehicles have a €600 insurance excess.
This is not a deposit and is only payable if the vehicle is damaged during the rental period and the damage is covered by the excess conditions.
This policy allows our customers to enjoy a simple and transparent rental experience without large amounts being blocked on their cards.
No Security Deposit & Insurance Excess—How it Works
On Automatic Cars Only ( Groups S, S1, S2 and S3 )
Groups S, S1, S2 and S3 - 600€ Excess
Group A - 0,00€ Excess
The excess (also called deductible) is the maximum amount you may have to pay if the rental car is damaged or involved in an accident.
It is not an extra charge and only applies if damage occurs.
What does this mean?
✅ No damage → you pay nothing
⚠️ Damage occurs → you pay up to the excess amount
🛡️ Insurance covers the rest
🔒 You will never pay more than the excess, no matter how high the repair cost is.
Example
If the excess is €600:
Damage of €300 → You pay €300
Damage of €1,000 → You pay €600, insurance pays €400
Damage of €10,000 → You pay €600, insurance pays €9,400
When does the excess apply?
The excess applies when:
- The driver causes the damage
- The accident is the driver’s fault
- Damage happens due to negligence (for example, hitting a wall or curb).
👉 If the accident is not your fault, the other party’s insurance covers the damage, and you pay nothing.
In short
The excess is the maximum amount you are responsible for if the car is damaged—insurance covers everything above that amount.
Madeira Rental Fee
A mandatory vehicle usage fee is applied to car rentals in Madeira, as established by the Regional Government of Madeira.
The fee is €2 per complete rental day, up to a maximum of 10 days (€20 per rental contract).
This is a government-mandated fee and not a Habitat Madeira service charge.
The applicable amount will be clearly shown as part of your rental.
For rentals longer than 10 days, the maximum fee remains €20.
Our Policy
What are the rental rates?
Our rental rates vary depending on the duration and type of car.
Check the Prices Page or run your booking to check availability and pricing.
Bookings set less than 24h before the pickup must be confirmed by our team due to overbookings that lead to unwanted cancellations.
Do you offer Airport Pick-Up & Drop-Off?
Yes.
We offer an easy self pick-up and drop-off service at Madeira Airport.
Please keep your phone switched on after landing so we can contact you if necessary.
Drivers and passengers requirements
Drivers age below 21 or over 70 years old must be approved by us in a prior contact.
All drivers must have a valid driver's license for the rented vehicle and must have held their license for a minimum of 2 years.
The number of passengers is limited to the vehicle's officially approved seating capacity.
The included insurance coverage applies to the authorized driver(s) and passengers, subject to the rental terms and conditions.
What is not included?
Car interior damage, lost keys or damaged tools, misfuelling the tank, towing services, and taxi or transfer services if not authorized by us.
Garaging, parking, and traffic fines are drivers' responsibilities.
Tire punctures in the tread area are covered.
Sidewall damage is not included unless the optional tire protection is added at checkout.
I don't have a credit card. Can I Rent a car?
Yes, you can.
Rentals can be paid in cash.
A credit card is not required to rent a car with us.
Payments
Payments are made only when you receive the car and sign the contract.
No security deposit is required.
Payment can be made by cash, PayPal or Revolut.
Cancellation Procedure
Cancellations must be informed by email or phone/WhatsApp 24 hours before the rental start date.
There is no cancellation fee. However, failure to notify us within the required notice period may affect future booking requests with Habitat Madeira.
Prices, taxes and rental period
All prices include applicable taxes and insurance coverage.
Group A manual cars have €0 insurance excess.
Automatic vehicles have an insurance excess of up to €600.
No security deposit is required and no amount is blocked on your credit card.
The minimal rental period is 3 days.
If the agreed return date is not respected, additional costs may apply. If the vehicle is not returned and we are unable to contact the renter, the appropriate authorities may be notified.
It is not allowed to take the car to Porto Santo Island by ferry.
A fee of €18.50 applies to the vehicle delivery/collection service.
Prices may change during high seasons such as Christmas, end of the year, Easter, Flower Festival, summer, or other events and special dates due to the high demand for vehicles.
Vehicles: Delivery, Collection and Replacement
Vehicles must be returned with the same fuel level as delivered; additional fuel when returning will not be reimbursed.
Pick-up and drop-off locations are confirmed according to the reservation. Changes may be possible if requested at least 24 hours in advance.
If needed, vehicles will be replaced by others of the same group or superior.
Vehicle images shown on the booking process are for model identification only.
Exterior/interior features and colors may be different from the actual vehicle being rented.
Vehicle Accidents and Damage
In the event of any mechanical difficulties or accidents involving your car, it is important that details are reported to us immediately.
In the event of an accident you must also complete an accident report form by the end of the rental period.
Local police should also be notified in the case of accidents/injuries and a signed police report obtained. Full details of third parties should also be obtained.
You are not given authority to repair a vehicle, and should retain copies of all rental documentation in the event an insurance company is involved.
Your insurance cover may be invalidated if this procedure is not followed correctly and this may prejudice any claim for compensation.