As we did in the other Azores Islands during our various trips to the archipelago, on Terceira we rented a car and we consider it essential to do so if you want to explore the island on your own terms and at your own pace. In this guide, we’ll tell you which car rental companies are available on Terceira, what to check when renting a car (insurance and deductibles), how to get the best price and what our experience was like traveling by rental car around the Azorean island of Terceira.
Are you in a hurry or don’t feel like reading much? In Terceira, we recommend renting a car using Discover Cars, o find a vehicle that fits your needs and budget, and we recommend purchasing Discover Cars’ extra insurance (Full Coverage)
Book as soon as possible (prices go up, and vehicles can even sell out)

Why is it essential to rent a car in Terceira (Azores)?
Terceira is the third-largest island in the Azores and has many places to explore, from its capital Angra do Heroísmo, a UNESCO World Heritage Site, to its volcano, which you can enter to gaze at the sky from within (Algar do Carvão), a patchwork quilt of green pastures in the archipelago’s largest volcanic crater (Serra do Cume), natural pools like Biscoitos, incredible restaurants, and plenty of festivals. To see what we’re talking about, check out our guide to Terceira. Now, to enjoy all these places, it’s essential that rent a car for your visit to the island and in this guide, we’ll tell you how and what you need to keep in mind.
Although in the island’s capital, Angra do Heroísmo (where we recommend that you use it as a base for exploring and stay somewhere with parking, such as the options listed at this link), you can get to most attractions on foot, in the rest of Terceira your best option is to have your own vehicle.

If you’re thinking about getting around the island by public transportation, there’s only one bus company (EVT) that connects some of the island’s destinations you can view the schedules here. Connections and frequencies are quite limited, but if you’re traveling on a tight budget, it can be a viable option for visiting some of the island’s main attractions.
If, on the other hand, you’re planning to rent a motorcycle instead of a car for this trip, keep in mind that long distances on a motorcycle can be uncomfortable, and, more importantly, the unpredictable and changeable weather in the Azores means you might experience all four seasons in a single day… on a motorcycle.
Another option if you’re on a tight budget, haven’t reserved a car in advance, and have found the daily rates to be prohibitively high is to base yourself in the capital, Angra do Heroísmo, and book tours to get to know the island better—though 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.
- Terceira East Coast Tour and West Terceira Van Tour: two tours that let you experience a little bit of everything on Terceira.

Is it safe/easy to drive in Terceira (Azores)?
In general, the main roads on Terceira are in good condition, so driving is fairly easy and relaxed, even if you don’t have much experience. That doesn’t mean we haven’t had a few scares, like a car stopped in the middle of the road after a blind curve because the driver ran into his neighbor in a car coming the other way and decided to stop for a chat. Go in with the mindset that the Azores are predominantly rural, so slow down, take a deep breath, and arm yourself with patience—because cars parked anywhere, unexpected turns, and cows crossing the road are common occurrences.

Here are some tips if you don’t have much driving experience and/or are particularly concerned about driving on more challenging or unpaved roads:
- In the Azores in general, it’s not uncommon to suddenly come across cows on secondary roads, so be patient, admire them, and enjoy the leisurely drive. It’s also true that Terceira is the only one of the nine Azores islands with a 23-km highway that crosses the island via viaducts built specifically for cows: the Vacaductos, as they’re called by the locals
- Drive slowly and carefully. An island like Terceira is perfect for slowing down, enjoying the views, and avoiding any surprises.

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 largest car rental company in the Azores, but also the one that requires the highest security deposit (€1,200), and about which we read some negative reviews regarding wait times at the airport to pick up the car and strict policies regarding minor damage. The truth is that we used Ilha Verde on some of our trips, and everything went smoothly.
- AutAtlantis: The cars we used throughout the archipelago on our two-month trip across the 9 islands of the Azores were from AutAtlantis, and everything went perfectly! Plus, it’s one of the car rental companies that charges the lowest deposit and deductible (€700, compared to €1,300–€1,500 at other companies).
- Wayzor: excess fee of €845, lower than most.
- Micauto & Angrauto
- Way2Azores
n addition to these companies, Terceira is also home to multinational car rental companies such as Sixt, EuropCar, GoldCar, Hertz, Dollar, Thrifty, etc., which tend to be significantly more expensive than local companies. Even so, depending on how far in advance you book and the time of year, it’s possible that only those companies will have availability or that, in some cases, they might even offer better prices—which is why it’s best to use comparison sites like DiscoverCars with your dates to find availability and the best prices.
On one of our recent visits to São Miguel, we tried another company that also operates in Terceira, Magic Islands, which unfortunately we cannot recommend. We booked directly with them, choosing the highest level of insurance they offered (Plus). We had a flat tire, which wasn’t covered by the insurance (in theory, we were supposed to pay an extra fee to cover flat tyres, but they never offered it to us—neither during the booking process nor when we picked up the car), and the service and treatment we received from that point on were terrible: they didn’t answer our calls even though we were calling during the contact hours they’d specified; the insurance company didn’t offer us any assistance (so we had to arrange the tow truck and everything else on our own); the car was missing its warning triangles; and we had to pay for a taxi from where we were (Nordeste) to Ponta Delgada so they could give us another vehicle. When we returned the vehicle at the end of the rental, we were met with an arrogant and condescending attitude; they verbally threatened that they hoped we had photos of some scratches or they would charge us for them (we had a video confirming they were already there), they ignored us for quite a while, and told us in a mocking tone that we had a hefty bill to pay (the cost of repairing the tire) and that “this wouldn’t have happened if you knew how to drive,” in a mocking tone. This was completely unacceptable and inappropriate customer service. After many calls, emails, and complaints, they agreed to refund us only the cost of the roadside assistance they should have provided, while we still had to pay for the tire replacement and the taxi. We recommend that you do not rent from Magic Islands Rent A Car, read the terms and conditions and reviews of each company carefully—not just the prices—and purchase the extra insurance from DiscoverCars.
We try to keep this post as up-to-date as possible, but always check the information when booking, as some of these terms and conditions may have changed, and Discovercars provides all the information clearly and transparently.

Car rental prices in Terceira (Azores)
Car rental prices in Terceira (Azores) vary depending on the number of days you rent the car, the season, the type of car, and how far in advance you book. Prices rarely drop below €25 per day (though, especially in winter, you can find deals for less), and to give you an idea, in recent summers prices have reached €100 per day, and we know several people who were unable to rent a car because they waited until the last minute.
Ideally, you should check and compare all the companies that have availability for your dates on DiscoverCars. Be sure to carefully review each company’s rental terms (deductible, what the insurance covers, fuel policy, whether a second driver is included or not, reviews, etc.)—not just the price.
Plus, the good news is that there are no tolls on Terceira, so you’ll only need to factor in the cost of car rental and gas to get a rough estimate of how much you’ll spend.

What to consider when renting a car in Terceira, Azores
Book in advance
Especially in recent years, due to the increase in tourism in the Azores, prices have risen, and during peak tourist seasons, accommodations may sell out or become prohibitively expensive. For this reason, it is very important to try to book as far in advance as possible.

Deposit and Deductible
The vast majority of car rental companies require a deposit when you pick up the rental car, which involves placing a hold on a certain amount on your credit card, which remains frozen until the end of the rental period. If there are any issues (scratches on the car, accidents, etc.), the blocked funds will be used to cover these costs (up to the amount of the deductible); if there are no issues, the funds are released from the credit card and become available again.
Based on our experience, Ilha Verde requires the highest deposit (€1,200 was held on the credit card and released upon returning the car in perfect condition), while AutAtlantis and Wayzor have the lowest deposits (between €700 and €850), but it’s important to check when you make your reservation, as this may depend on the type of vehicle and can change over time. On the DiscoverCars comparison site, you can see this clearly to avoid any mistakes.
If you’re planning to travel to several islands in the Azores and rent a car on each one, keep in mind that if you rent from the same company, they usually carry over the deposit from one rental to the next (in other words, they don’t block the deposit amount for each reservation; instead, the initial deposit holds over to subsequent rentals). It’s important to keep this in mind because if you rent from multiple companies, you may end up with a significant amount of money held in escrow, since the funds aren’t released immediately once the reservation ends.

In addition, the deductible is the maximum amount you’ll have to pay if the vehicle sustains significant damage or breakdowns; that is, you’ll only have to pay it if the car has been damaged or broken down, but in most cases, you can waive it by paying X euros more per day or by purchasing a specific insurance policy.
To illustrate this with an example, if the deductible is €700, you’ll pay a maximum of €700 if 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-to-full” fuel policy, meaning you receive the car with a full tank of gas and return it with a full tank as well. Otherwise, you’ll have to return the vehicle with the same fuel level it had when you picked it up. However, not only is it always more complicated to fill the tank to exactly the level you want at the gas station before returning it (and you end up losing money), but there may also be misunderstandings with the rental company.
In either case, take a photograph of the mileage and fuel level when the car is delivered to you so you have photographic proof.

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 on Terceira are in good condition, so in our opinion, the most basic and smallest car (the cheapest one) is usually more than enough. In any case, depending on your preferences (whether there are 5 of you or even more, or if you prefer a taller car or one with more power), most rental companies have cars to suit every taste. Use the DiscoverCars filters if you have specific preferences so you can compare prices from various companies for the type of vehicle you prefer. Keep in mind that the more requirements you have, the harder it will be to find something at a good price (for example, automatic vehicles are scarce and go fast).

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).

Forms of Payment
Most car rental companies ask for a credit card in the driver’s name to block the amount of the deposit. 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 are generally few and more expensive. If you search in DiscoverCars, in the filters you have a specific one (“Payment card at pick-up”) 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 daily cost of this insurance varies depending on the number of days and the company you choose. 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 in the central group—by taking the same rental car on the ferry—you should check with the rental company in advance to see if this is allowed and if your insurance covers you on the other island. There are limited connections a couple of days a week and only during the summer to the other islands in the central group of the Azores archipelago (you can check the schedules here). 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.
We know that at least Autatlantis does allow you to take the rental car on the ferry with advance notice and return the vehicle to Terceira (that is, where you rented it), but this could change in the future, so contact the company or companies you’re interested in before booking if your trip includes traveling with the vehicle to another island.

Where do I pick up the rental car? Airport, port or Angra do Heroísmo (the capital)
Since you’ll likely be flying into Terceira, the most convenient option is to pick up your car as soon as you arrive at a counter at Lajes Airport, without having to transfer. If you’re arriving by sea, there are also counters at the port for car rental companies. Ideally, you should choose a car rental company with a counter and/or booth in the same airport terminal (or at the port if you’re arriving by sea) to save time when both picking up and dropping off your rental car, such as Autatlantis, Ilha Verde or Wayzor.
If there are no cars available at the airport, don’t worry—there are counters in downtown Angra do Heroísmo where you can pick up and drop off your car. It’s not the most convenient option, but it may be the only choice for those who’ve taken a chance on a last-minute reservation. If this applies to you, keep reading…

How to get from Lajes Airport to Angra do Heroísmo (and the other way around)
If you need to pick up your car in downtown Angra do Heroísmo, here’s how to get there. Lajes airport (Terceira) is located next to the island’s other city, Praia da Vitória, and is 20 minutes from the capital, Angra do Heroísmo. If you don’t rent a car at the airport, know that it’s super easy to get between the airport and the city center. Here are the different options:
- Taxi: You’ll find taxis outside Lajes Airport, and the fare from the airport to Angra do Heroísmo ranges from €15 to €20.
- Private transfer: you can book a transfer from the airport to Angra or other areas of the island so that someone will be waiting for you at the airport when you arrive. The price varies depending on the number of people (for example, it costs €27 for 4 people). 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 you generally won’t have to worry too much about parking on Terceira, the capital, Angra do Heroísmo, is the exception—if you’re staying in the city center, there may not be any free parking available right next to your accommodation.
In any case, be sure to check carefully when you book your accommodation, to see if they offer free parking and/or if there are free public parking areas nearby (in our case we parked in this parking almost always without problems). At this link, you’ll find several options where to stay in Angra do Heroísmo, all with parking included and across a full range of prices. And in the next section, we’ll suggest a few options.

Where to stay in Terceira (Azores): hotels and apartments with parking
Check out the best areas to stay in Terceira and the specific accommodations we’ve tried and recommend in our Terceira accommodation guide
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.
Azores travel insurance
Do you know what cannot be missing in your luggage? A good travel insurance! We are affiliates of several specialized travel insurance companies and you can get a discount in some of them if you book with us:
Appart from the medical assistance in case something happens when you visit Portugal, the insurance can also cover anything that happen while you get into adventures like hiking, kayaking, snorkeling and diving. Also, if something happens to your luggage (damage, theft, delays, losing it) or if your flight is cancelled or delayed (or, if because a delay you lose another connecting flight), a travel insurance can also help
Carefully read the terms and conditions of each policy and hire the insurance that best suits your needs.

Our experience renting a car in Terceira (Azores)
In our case, we’ve visited Terceira several times and tried different rental companies. As we’ve mentioned, rental car prices in Terceira rarely drop below €25 per day, and—especially in the summer—we recommend booking well in advance to avoid running out of cars or having to pay exorbitant prices for the few that are available.
Driving on Terceira’s roads is a real pleasure, and fortunately, the island’s roads are dotted with several viewpoints for just that reason. Stop at them whenever possible and safe to do so. You’ll also likely come across the occasional cow along the way, so drive slowly and take your time, taking in the scenery around you.
What are you waiting for? Come explore Terceira! Buckle up and… Have a great trip through this paradise in the Azores!
