How to Rent a Car on Terceira Island in 2026
There’s no better way to explore the third-biggest island in the Azores than by having a car! If you rent a car here on Terceira Island, you’ll have the ultimate freedom to drive around and explore some of the coolest spots completely at your own pace.
After visiting Terceira ourselves, we wouldn’t do it any other way. It’s so easy to drive around, and this is the best way to see everything you want on the island.
There are so many scenic drives and activities you can do from Angra do Heroismo (like hiking the Misterios Negros trail or visiting the Queijo Vaquinha Cheese Factory) – and public transport isn’t great, so having your own car is the way to go.
In this post, we’ll share everything you need to know about renting a car from Lajes Terceira Airport (most practical) – including the most common mistakes people make (such as booking last minute), what you can expect when you land at the airport, and other important things you need to know when booking your car rental here in the Azores and Terceira in specific.
We also share exactly how we found a car for just €9.77 for a week (+ insurance) on Terceira in November (low season), so keep reading to learn how we found that deal!
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What to know about renting a car from Terceira Airport
There are so many awesome volcanic hikes, viewpoints, cheese factories, and natural swimming pools to visit around the island, so having a car is hands down the best way to enjoy Terceira!
In this post, we’ll go over everything you need to know about renting a car from Tenerife Airport (and why we suggest renting from there instead of any of the towns) – but if you’re just here to figure out how to book, our personal suggestion is to book a car through DiscoverCars.
The platform pools together information from pretty much all the different car rental companies available on the island and shows you the best price for the type of car you’re looking for.
We’ve been using the platform for years all around Europe and New Zealand, and unless we have a local contact in the specific destination who can offer us a better rate, we use this platform to see where we can get the best deal.
But if you’re here to find more information about the rental cars, what it’s like driving around the Azores, and common mistakes travellers make, then keep reading…
Quick answer: Book your rental car for Terceira through DiscoverCars 🚗
Things to consider before renting a car on Terceira
When renting a car, there are a few things you should look out for during the booking process.
Things like the size and comfort of the car, and whether you want an automatic or manual transmission, are things you need to consider (or at least be aware of) before you make your booking.
We found that most cars on Terceira Island and in the Azores were automatic transmission, but if you don’t drive stick, you want to make sure you double-check this.
Unless you’re a bigger group of 5 people or more, you really don’t need a big car for travelling around Terceira.
We had a mid-size sedan, and this was big enough for our two suitcases and carry-ons, and it was perfect for cruising around the island and on the country roads between viewpoints and villages. It also had good gas mileage, so that was a plus given the cost of fuel in Europe!
Here are some things to consider and to look for on the booking page when renting a car:
- Transmission: Automatic vs manual (most cars are automatic in the Azores)
- Size & comfort: If you’re a bigger group, you might want to opt for a bigger car than we had
- Parking: Is there parking available at or near your place of accommodation? (We suggest staying in Angra do Heroismo)
- Extra drivers: Will there be one or more drivers? Additional drivers often cost an extra $20-50 per driver (flat fee).
- Is an international driver’s license needed? You will most likely need a translated version (into English) of your driver’s license if it’s not already. You can check this on your country’s national automobile association.
- Insurance: Consider whether you should get (full) insurance through DiscoverCars or the rental company. We go into more detail on car insurance further down in the post.
- Drop-off location: Select the same drop-off location for the best rates (in this case, Terceira Airport) and then return it to the airport, as it will save you money.
Mistakes people make when renting on Terceira
One of the best things you can do is to rent a car in advance if you know the dates for when you’ll be on the island.
What happens is that the closer to the date, the less supply there is, and the prices will go up. Especially if you’re planning to come during peak season. Trust us, we’ve seen this happen so many times!
The busiest time of year in the Azores is between early May and late October (peak season). If you’re planning to come during those months, try to book your rental car at least a few months in advance if you can.
How to find the cheapest car rental from Lajes Terceira Airport
Since Terceira Island isn’t that big, there aren’t a ton of options and places around you can rent a car from. For convenience and cost purposes, we decided to rent our car from the airport (via DiscoverCars). Most of the rental companies are right at the airport terminal, so this was super conveniet.
The main thing you’ll notice is the price difference between peak season and shoulder season here on the Azores.
Expect to pay at least $40/day for a vehicle during the busier months (because of demand), while it can drop to as low as $10/day during the quieter season (one of the perks of coming during the slower season, which is October through April).
To make sure we get the best possible rate (and rent from a reputable company), we always book through DiscoverCars.
We’ve used them in the Czech Republic, Greece, Italy, New Zealand, as well as both mainland Portugal & Madeira, and we have never had any issues with them.
They have 24-hour customer support, and anytime we’ve had to modify a booking (which we’ve done a few times by now), we’ve just sent them an email or given them a call – and they’ve gotten back to us right away with no issues.
Best practices when renting a car from Terceira Airport (TER):
Pay attention to the drop-off time
More often than not, car rentals work for 24 hours at a time. This means that after every 24 hours, you pay for another full day. So when booking your rental car, pay attention to the pick-up and drop-off times.
If you’re flexible with the timing, make sure the drop-off time is at the same time of day or earlier than your pick-up time; otherwise, you will pay for an extra full day (even if it’s just a few hours). Most car rentals have this type of policy, and it just depends on how strict they are on it.
For example, if you arrive at 11am and fly out at 3pm, you can select both your pick-up and drop-off time to 11.30am, and you won’t get charged for an additional day like you would if you for example selected the drop-off time to be 12.30pm.
This way, you avoid paying for an additional day (note: this isn’t a hidden fee; this is just how the day rates work when you rent cars in most places).
Car rental insurance
Car rental insurance is 100% a personal preference. We personally always get full car insurance when renting because of the peace of mind it brings us.
It does cost a bit of extra money, but we find the peace of mind is worth it. Especially if you’re splitting the cost with your fellow travellers, it usually doesn’t end up being that much money per person.
There are a few ways you can get your rental car insured:
- Through DiscoverCars
- Through your Credit Card
- Directly through the rental company (most of the time, the best deal)
Let’s look at each of them…
Through DiscoverCars
We usually choose to get our insurance through DiscoverCars when we rent through them.
We do this because we’ve been using DiscoverCars as a company for a while now and we know they can help handle any issues that may arise.
The biggest downside of getting car insurance this way is that the rental company will file the claim first, and then you get charged before getting reimbursed by DiscoverCars.
It’s basically like using a third party, and it takes longer for the claim and everything to process, which is one of the downsides if you need the money ASAP.
If you don’t want to worry about having your card charged first before getting reimbursed, then we wouldn’t suggest choosing this method. In that case, going directly through the rental company (or your CC, depending on your policy) is your best bet.
Through your Credit Card
Some credit cards offer insurance for car rentals. If you have a good credit card, this may be the best option as insurance through credit cards is usually quite good, especially if you’re from the US or Canada (they seem to just have amazing coverage).
Directly through the rental company
It’s also an option to get car insurance directly through the rental company. If you decide to do this, you will likely have to pay for the insurance once you pick up the car rental (whereas if you get insurance through DiscoverCars, you have to pay upon booking).
By getting insurance directly through the rental company, you only deal with them directly in case any damage happens to the car.
This is maybe the simplest way, but the downside of this is that it is only you and the car rental company – you won’t get help from DiscoverCars’ support team or your credit card.
If the car rental company isn’t very cooperative, this situation isn’t great. Overall, people in the Azores are incredibly kind, but you just never know beforehand what the situation could be like.
At the end of the day, it’s up to your personal preference how you want to go about it.
Please note that you should NOT get insurance both directly with the company and with your CC or through DiscoverCars. One insurance is enough!
What to do when picking up your rental car
Bring a credit card and your ID (important!)
This is very important! Please check the terms after booking your rental and what you need to bring. A physical credit card is often required (we’ve had an issue with this in the past). We always bring both a MasterCard and a Visa just in case.
Also, please note that in some cases, it is the primary driver’s credit card that needs to be used (once we only brought Josie’s credit card, but Dom wanted to drive, and they wouldn’t allow it).
The company will also need to take a copy of your passport or driver’s license (sometimes both) for their records.
Check for scratches and cracks
Depending on the type of insurance you have chosen for your car rental, it’s always a good idea to check for scratches on the car and cracks in the windshield.
Take a video (!) of the car as you walk around it before leaving the parking lot. Highlight any scratches, cracks, or issues that you see. Then mark this video as your favourite and keep it until at least a few weeks after your holiday.
Make sure you film any scratches and/or cracks that you notice (photos aren’t always enough these days). This way, you have documentation for any damage that was already done to the vehicle before you picked it up.
It should already be documented on their side, but it’s still good to have proof. If you have full insurance, this is less important – but it takes less than 2 minutes to do so, so it doesn’t hurt to do it.
Check the tire pressure
This shouldn’t be an issue because it’s something the rental companies should check beforehand, but you’re responsible for your own safety, and it’s worth checking this before hitting the road.
One time, when we picked up a car rental (years ago), the tire pressure was visibly low (may have even been punctured). We told the company and they fixed it right away, but for this reason, we always suggest checking the tires before leaving the car rental place for your own safety.
Check the gas gauge
Quickly check or ask the employee if the fuel for the car should be full-to-full. If so, double-check that the gas gauge is actually full when you turn on the car. If it is, then you’re ready for your travels.
In case the policy is not full-to-full, quickly make a note of how much gas is in the car. Take a picture for your own recollection while you’re still at the car rental place.
Most of the time, the employee will do it with you, but it’s good to do it as well. This should also be noted on the paperwork you get from the rental company.
What it’s like driving around Terceira
We personally found it very relaxing driving around the island. Teicera is very easy to drive around, with good countryside roads and signage. It’s not a big island, and it’s not overly trafficked, so we found it super chill.
You do encounter a good number of trucks and tractors occasionally when you’re driving out in the countryside, since it is a very agricultural island. So just be patient and always plan to have a bit of a time buffer when you have places to be. By the way, Google Maps works great here.
It’s honestly a lot of fun, and the car we rented from the airport was also really good, which made the experience even better.
All in all, we only have good things to say about driving around Terceira, and if you like driving, we think you will too.
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Recap of renting a car on Terceira
We hope this post helps you with your planning and answers any questions you had about renting a car here in the Azores and specifically on Terceira. Once you know what to look for, booking a car is quite easy!
If you have any questions about the Azores, like where to stay in Angra, which hikes to do around the island, unique restaurants to visit, or anything else related to visiting the Azores, feel free to leave a comment below, and we’ll do our best to help answer any questions.
The Azores are absolutely stunning, each island offering something unique and different. Whether you end up here on Terceira, on São Miguel, or any of the other islands, we’ll gladly share the knowledge we have on them. So please, ask away. You can also DM us on Instagram @redwhiteadventures.
We hope you have an awesome time driving around, admiring the volcanic landscape, the lush green fields, and all the beautiful nature that Terceira has to offer.
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