Car Rental in Terceira: a guide to drive around the island with a rented car

As we did in the other Azores Islands in our 2-month trip through the archipelago, in Terceira we rented a car and we consider it essential to do so if you want to explore the island organizing the days at your own pace and to your liking. In this guide we tell you which car rental companies exist in Terceira, what to check at the time of rental (insurance and excess), how to get the best price and how was our experience traveling by rental car on the Azorean island of Terceira.

Why is it essential to rent a car in Terceira (Azores)?

Terceira is the third largest island of the Azores in size and with many corners to explore, from its capital Angra do Heroísmo, a Unesco World Heritage Site, its volcano that you can enter and contemplate the sky from inside, Algar do Carvão, a patchwork of green grasses in the largest volcanic crater of the archipelago, Serra do Cume, natural pools like Biscoitos, amazing restaurants and many festivities. To know what we are talking about, take a look at our guide to Terceira. However, to enjoy all these places it is essential that you rent a car for your visit to the island and in this guide we tell you how and what you have to take into account.

Terceira island (Azores): a guide to visit the island [with map] on your own (things to do, where to eat and sleep…)

While in the capital of the island, Angra do Heroísmo (where we recommend that you base your exploration and stay in a place with parking as the ones in this link), you can move on foot to most places of interest, in the rest of Terceira your best option is to have your own vehicle.

If you are considering public transportation around the island, there is only one bus company (EVT) that connects some of the points of the island, you can see the schedules here. Connections and frequencies are quite limited, but if you are traveling on a low budget it can be a valid option to visit some of the main points of the island.

If, on the other hand, you have considered renting a motorcycle instead of a car for this trip, remember that long distances on a motorcycle can be uncomfortable and, more importantly, the unstable and changeable weather in the Azores will make you have all four seasons in the same day… on the motorcycle.

Another option if you do not have much budget, you have not booked a car in advance and you have found prohibitive daily prices is to base yourself in the capital, Angra do Heroísmo, and hire tours to get to know the island better, although if you can rent a car, all the better:

• Tour of Terceira, around the island: a tour that goes around the island stopping at some of the most iconic places of Terceira (Serra do Cume, Praia da Vitória, Biscoitos…).
• Jeep excursion to the volcanic caves (Algar do Carvão and Gruta do Natal): the Algar do Carvão is a must.
• Tour of Terceira’s viewpoints: a one-day tour that will take you to several viewpoints on the island.

Is it safe/easy to drive in Terceira (Azores)?

In general, the main roads of Terceira are in good condition so driving is quite easy and calm, even if you do not have much experience. That doesn’t mean that we didn’t get a scare or two, like a car stopped in the middle of the road after a curve with no visibility because that man met his neighbor in the car in the opposite direction and decided to stop to chat for a while. Be aware that the Azores are predominantly rural so slow down, take a deep breath and arm yourself with patience because parked cars everywhere, unexpected turns or cow traffic are commonplace.

Some tips if you do not have much driving experience and/or are particularly concerned about driving on more complicated or unpaved roads:

• In the Azores in general it can be common to suddenly come across cows on secondary roads, so be patient, admire them and enjoy the unhurried travel. It is also true that Terceira is the only one of the nine islands of the Azores with a 23 km highway that crosses the island with viaducts specifically for cows: the Vacaductos, so designated by the local people.
• Drive slowly and with caution. An island like Terceira is perfect for slowing down, enjoying the views and, in addition, avoiding scares.

How to rent a car in Terceira (Azores)

Car rental companies in Terceira (Azores)

There are several car rental companies in Terceira. To find the best price, we recommend yoe use DiscoverCars and check very well the conditions of each company and not only the price:

• Ilha Verde: the biggest rent-a-car company in the Azores but also the one that asks for a bigger deposit (1200€) and of which we read some negative reviews regarding the wait at the airport to pick up the car and charges for small damages. The truth is that Inês used Ilha Verde on her first trip to the Azores (to the island of São Miguel, the biggest of them all) and everything was great.
• AutAtlantis: the cars we used all over the archipelago (including Terceira) on our trip to the 9 islands of the Azores were from AutAtlantis and everything went perfectly! In addition, it is one of the rent-a-cars that asks for a lower deposit and deductible (700€, compared to 1300-1500€ of other companies).
• Magic Islands Rent-a-car: in case you are planning to spend a long period of time in the Azores, it offers competitive prices for monthly rentals.
• Wayzor: excess fee of €845, lower than most.
• Micauto & Angrauto
• Way2Azores

In addition to these companies, in Terceira you will also find multinational companies such as Sixt, Europcar, GoldCar, Hertz, Dollar, Thrifty, etc. which are usually much more expensive than local companies. Even so, depending on the time of the year, it is possible that only these companies have availability or even in some cases have better prices, hence the ideal is to use comparators such as DiscoverCars with your dates to find availability and better prices.

We try to keep this post as up to date as possible but always check the information when booking as some of these conditions may have changed and Discovercars presents all the information in a clear and transparent way.

Car rental prices in Terceira (Azores)

The prices for renting a car in Terceira (Azores) vary depending on the number of days rented, the season, the type of car and how far in advance the reservation is made. They rarely go below 25€ per day (although, especially in winter, you can get for less) and, to give you an idea, in the summer of 2021 and 2022 they reached 100€ per day and we know several people who did not manage to rent a car because they left it to the last minute.

Ideally, you should check and compare all the available companies for your dates on DiscoverCars. Remember to check the rental conditions of each company (excess, insurance coverage, fuel policy, second driver or not included, reviews…) and not only the price.

Besides, the good thing is that in Terceira there are no tolls so you will only have to count on the price of car rental and fuel to make an approximate budget of how much you are going to spend.

What to consider when renting a car in Terceira, Azores

Book in advance

Especially since travel resumed after the pandemic, since 2021, some of the rental companies that had to sell part of their fleet to hold on, now have difficulty acquiring more vehicles, so with less supply and much more demand, prices have risen and it is possible that in high tourist seasons you don’t find available cars or you find them with very high prices. Therefore, it is very important to try to book as far in advance as possible.

Deposit and Excess

The vast majority of rental car companies require a deposit when picking up the rental car, which translates into the blocking of a certain amount on the credit card, which is frozen until the end of the rental period. If there is any problem (scratches on the car, accidents, etc.), the blocked money will be used to pay these expenses (up to the value of the excess); if there is no problem, the money is unblocked from the credit card and becomes available again.

When we visited the Azores, the company Ilha Verde was the one that asked for the highest deposit (1200€ were blocked in the credit card and unlocked when the car was delivered in perfect condition) and AutAlantis and Wayzor the ones that had the lowest deposit (between 700€ and 850€) but it is important that you check at the time of booking as it may depend on the type of vehicle. In the DiscoverCars comparator you will be able to see it clearly so that there are no mistakes.

If you are going to travel to several islands in the Azores and rent a car in all of them, keep in mind that if you do it with the same company they usually keep the deposit from one rental to another (that is, they do not block the amount of the deposit in each reservation, but the first block is carried over to the following ones). It is important to keep this in mind because if you rent with several companies, it is possible that you will be left with a lot of money withheld, since the release of the money is not immediate once the reservation is finalized.

In turn, the excess is the maximum amount that you will have to pay in the event that the vehicle suffers major damage or breakdowns, i.e., you will only have to pay it in the event that the car has suffered damage or damage but, in most cases, you can eliminate it by paying X euros more per day or by taking out a specific insurance policy.

To understand it with an example, if the excess is 700€, you will pay a maximum of 700€ in case something happens to the vehicle:

• If any part of the car is scratched and the stipulated price for it is 200€, you will pay those 200€.
• If something more serious happens and the stipulated price for it is 2400€, you will pay 700€.
• That is, up to 700€ you will have to pay it yourself, and what exceeds that will be paid by the insurance company.

Fuel Policy

Ideally, you should choose a full-full fuel policy, i.e. you receive the car with a full tank of fuel, and you deliver it with a full tank. There is also nothing wrong if the car is delivered with half a tank and you have to deliver it with half a tank, but, in addition to the fact that it is always more complicated to fill the tank to exactly where you want it at the gas station before delivering it (and you lose money), there may be misunderstandings with the company.

In either case, take a photograph of the mileage and fuel level when the car is delivered to you and you will have photographic proof of how it was delivered to you. Most of the local companies in Terceira that we recommend have a policy of returning the vehicle with the same level of fuel, as indicated in the contract. In our case, we always create an alert when we rent the car so that the day before the return we remember how much fuel we have to return the car with.

Mileage

Most local rental companies in Terceira include unlimited mileage, so you don’t have to worry and can drive around the island freely. In any case, be sure to confirm this in the terms and conditions (and/or use DiscoverCars filters) before booking.

Type of car

The roads in Terceira are in good condition so in our opinion, the most basic and smallest car (the cheapest) is usually more than enough. In any case, depending on your preferences (if you are 5 people or even more, or if you prefer a higher or more powerful car) most companies have cars for all tastes. Use DiscoverCars filters if you have preferences to be able to compare the prices of various companies for the type of vehicle you prefer.

Extras (GPS, additional driver, baby seats, etc.)

Most of the extras have to be paid separately, making prices go up (usually X euros per day for each extra), so if you are going to need them, use DiscoverCars filters to see the prices of the different companies with those extras included and do not get surprises later at the time of booking.

One of those extras is GPS: in our opinion, it is not worth paying for it nowadays as it is much easier and faster to use apps like Google Maps on your smartphone. So, you can take our map of the island in your Google Maps app, select the place to visit and follow the GPS indications of the app itself. We recommend you to bring a good cell phone holder (and remember to remove it when you deliver the car hahaha, in our case we have already forgotten a few) and a good powerbank (some cars bring USB charger, but not always and sometimes they charge very slowly).

Payment methods

Most car rental companies require a credit card in the driver’s name to block the amount of the deposit. However, some local companies are more flexible in this respect and/or allow renting without a credit card for an extra fee. In any case, it is best to check the particular conditions of each company in the Discovercars search results (you will find all the information there).

If you don’t have a credit card, you will have to limit yourself to companies that only ask for debit cards, which in general are few and more expensive. If you search in DiscoverCars, in the filters you have a specific one (Payment Method) to see only the companies that accept one type of card or another.

Extra insurance: yes or no?

If you prefer to pay a little more to avoid headaches or hassles at the time of delivery of the rental car, you can consider hiring the Discovercars Full Coverage Insurance. The current cost starts at 6,36 € per day (if you rent for more than 3 days), valid for car rental in Terceira and covers the excess entirely. More info about the insurance.

Be careful! Most car rental companies do not cover damages caused by driving on unpaved roads and, most probably in Terceira, you will venture a bit sometimes, but check well if the extra insurance coverages you see or the company offers you would cover such cases before hiring it.

As a recommendation, when the vehicle is delivered to you, make a video/photo of the car’s condition, to avoid situations in which the company tells you that some of the damage was not there and they want to charge you for it.

Algar do Carvão. Photos by Randomtrip

Taking the rental car from Terceira (Azores) on the ferry to another island in the Azores

If you plan to take advantage of your trip to Terceira to visit another island of the central group, taking the same rental car on the ferry, you must confirm with the company in advance if you can do so and if you are covered by insurance on the other island. There are limited connections a couple of days a week and only during the summer with the other islands of the central group of the Azores archipelago, (you can see the schedules at https://www.atlanticoline.pt/ but they only release the schedules near the summer months, when they confirm the connections and schedules). The neighboring island of Graciosa is the closest, 4 hours away by boat. The islands of the Triangle: Pico, 4 hours by boat, São Jorge, 6 hours by boat and Faial, 7 to 9 hours by boat because it involves 2 or 3 stopovers. There are no ferry connections with the islands of the eastern group (São Miguel and Santa Maria) nor with the western group (Flores and Corvo), only flights with Sata.

In our case, we know that at least Autatlantis does allow you to take the rental car on the ferry with prior notice and return the vehicle to the same office in Terceira (i.e. where you rented it), but this could change in the future so contact the company or companies you are interested in before booking if your trip includes travel with the vehicle to another island.

Where do I pick up the rental car? Airport, port or Angra do Heroísmo (the capital)

Taking into account that you will probably arrive in Terceira by plane, the most practical way is to pick up your car as soon as you arrive, at a counter at the Lajes Airport, without the need to transfer. If you arrive by sea, there are also car rental company counters at the port. Ideally, choose a car rental company with representation and/or balcony at the airport terminal (or the port if you arrive by sea) to save time, both in the collection and delivery of your rental car such as Autatlantis, Ilha Verde or Wayzor.

If there are no vehicles available at the airport, no problem, in the city center of Angra do Heroísmo there are counters where you can pick up and drop off the car. It is not the most practical option but it may be the only option for those who have taken a chance with a last minute reservation. If this is your case, read on…

How to get from Lajes Airport to Angra do Heroísmo (and the other way around)

In case you have to pick up your car in the center of Angra do Heroísmo, we explain how to get there. The airport das Lajes (Terceira) is located next to the other city of the island, Praia da Vitória, and 20 minutes away from the capital, Angra do Heroísmo. If you don’t rent a car at the airport, it is very easy to move between the airport and the city center. Here are the different options:

• Cab: you will find cabs at the exit of the Lajes airport, and the fare between the airport and Angra do Heroísmo varies between 15€ and 20€.
• Private transfer: you can book a transfer from the airport to Angra or other areas of the island to be waiting for you at the airport upon arrival. The price varies according to the number of people (for example, for 4 people it costs 27€). More info here
• Bus: bus line 5 will take you from the airport to Angra do Heroísmo operating between 06:40h and 19:50h from Monday to Friday and between 06:40h and 19:50h on Saturdays and Sundays. The price is 3,50€ per person and you can see more information about the route and prices here

Parking in the center of Angra do Heroísmo

Although in general in Terceira you won’t have to worry too much about parking spaces, the capital Angra do Heroísmo is the exception as if you are staying in the center there may not be free parking space available right next to the accommodation.

In any case, find out when you book your accommodation, to know if it has free parking (in our case we parked in this parking almost always without problems) and/or if it has free public parking areas nearby. In this link you will find several options where to stay in Angra do Heroísmo, all with parking included and in all price ranges. And in the following section we propose a few options.

Where to stay in Terceira (Azores): hotels and apartments with parking

Angra is our area of choice and where we would recommend you to stay. There are plenty of options for all tastes and budgets and it is also where most of the dining options are concentrated. Although it is true that, as we did, if your stay is more than 5 nights, it is a good idea to divide it between Angra and a more rural experience or near the sea. Here are recommendations for both options.

Where to stay in Angra do Heroísmo

• Casa Flor de Sal (from 35€/night): an apartment with a double bed (and a sofa bed) for up to three people, with a terrace, in the center of Angra. Free parking included.

• Hotel do Caracol (from 55€/night): comfortable double rooms with private bathroom in a hotel with a swimming pool and views of the Atlantic Ocean. It is a 15-minute walk from the historic center of Angra, includes breakfast and has indoor parking included.

• Lost in Terceira (from 58€/night): Although it is not in the center of Angra (5 min drive), it is ideal if you are looking for a two-bedroom house, comfortable, well equipped, with a small garden and attention of 10 (everyone appreciates the attention of Adília and João). Free parking included.

• The Shipyard (from 78€/night): studios and apartments with sea views in a brand new aparthotel. They will probably raise the prices after this first year because it is really amazing. Free parking included.

More accommodation options in Angra do Heroísmo with parking here

Maps and useful Apps for driving in Terceira (Azores)

In this Google Maps map that you can carry on your smartphone to check at any time we leave you all the places of interest in Terceira that we talked about in our complete guide to the island.

Here is also an official tourist map with the roads of Terceira (click on the image to download it in larger size and resolution) (Source)

We recommend that you carry a good holder for your cell phone, to use Google Maps as GPS in the car (and remember to remove it when you deliver the car, in our case we have already forgotten a few) and a powerbank (some cars come with USB charger, but not always and sometimes they charge very slowly).

In addition, we recommend you these apps that will be very useful when driving to explore Terceira:

• SpotAzores (Android / iOS / Web): here you can see all the existing webcams in different points of the islands to see how the weather is. Because the weather is very changeable and it can be raining in one part of the island and sunny in another, this app is the fastest way to make sure and avoid unnecessary trips.
• Google Maps (Android / iOS): this app is our best friend on the road. Besides working as a GPS, it is the app we use to save/classify all the places we want to go/have gone. You can see other people’s opinions of the places, photos, restaurant menus, phone numbers of the places to contact them, etc.
• Maps.me (Android / iOS): this app is similar to Google Maps but works better offline than the previous one and that’s great in some parts of the island where you lose connection.
• Windy (Android / iOS / Web): essential app for our trips. It allows you to see forecasts not only for wind but also for rain, clouds, etc. to help you plan your days based on the weather (as there are places that lose a lot depending on the weather). Obviously the forecasts are not 100% reliable. It also shows the available webcams

Also, always travel with travel insurance: medical expenses, theft or problems with your plane on a trip can mean a lot of money, so the ideal is to take out travel insurance. At Randomtrip we always use IATI and we recommend it. If you contract your insurance through this link you have a 5% discount.

Our experience renting a car in Terceira (Azores)

Our rental car was from Autatlantis and everything was perfect: the attention upon arrival was fast and effective, the car was spacious, comfortable and in very good condition and we had no problems. Practically all the companies include in the insurance a deductible, and Autatlantis is one of those with a lower deductible (700€, compared to 1300-1500€ of other companies). As we have said, the prices of rental cars in Terceira rarely fall below 25€ per day and, especially in summer, we recommend booking well in advance to avoid running out of vehicles or that the few that are available have prohibitive prices.

Driving on the roads of Terceira is a joy and, fortunately, the roads of the island are dotted with several viewpoints precisely for that reason. Stop at them, whenever possible and safe. Besides, you will probably also come across a cow or two along the way, so drive slowly and leisurely, admiring your surroundings.

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What are you waiting for to explore Terceira? Fasten your seat belt and… Have a good trip in this paradise of the Azores!

Terceira island (Azores): a guide to visit the island [with map] on your own (things to do, where to eat and sleep…)