Car Rental Canary Islands 2025:
Complete Expert Guide 🚗

Save 60-80% with local companies like CICAR, AutoReisen & TopCar. Get insider pricing, insurance tips, and island-specific driving advice from a local expert.

Bottom Line Up Front

Local companies like CICAR, AutoReisen, and TopCar offer 60-80% savings over international chains with superior service, comprehensive insurance included, and transparent pricing. Expect to pay €11-36 daily for economy cars with all-inclusive packages.

Quick Navigation

The Canary Islands offer some of Europe's best car rental experiences, with excellent local companies providing superior value compared to international chains. Each island presents unique landscapes and driving experiences, from Tenerife's dramatic volcanic routes to Fuerteventura's wind-swept coastal roads.

This comprehensive guide covers everything you need to know for 2025, including the best companies, current pricing, documentation requirements, and island-specific driving tips. We'll also show you how to avoid common tourist traps and save hundreds of euros on your rental.

Planning tip: Check current weather conditions before driving with our live webcams guide, and consider public transportation alternatives for resort-based stays.

🏆 Best Car Rental Companies

Local Champions (Highly Recommended)

CICAR (Canary Islands Car)

⭐ Best Overall

The market leader with 15,000+ vehicles across 40+ locations on all seven islands. Founded in 1967 with 4-star Trustpilot rating from 26,000+ reviews.

  • ✅ All-inclusive pricing with comprehensive insurance
  • ✅ Unlimited mileage included
  • ✅ Hotel delivery service available
  • ✅ Transparent pricing with no hidden fees
Visit CICAR →

AutoReisen

⭐ Highest Satisfaction

Achieving 92% customer satisfaction in 2024 surveys, operating from five major airports with unique benefits.

  • ✅ Zero deposits required
  • ✅ Full insurance with no excess
  • ✅ Free child seats included
  • ✅ Pay on arrival policy
Visit AutoReisen →

TopCar

⭐ Best Eco Options

40+ years of experience with transparent pricing and modern fleets including hybrid and electric options.

  • ✅ Hybrid and electric vehicle options
  • ✅ Transparent pricing structure
  • ✅ Modern, well-maintained fleet
  • ✅ Professional service standards

💡 MyCanaryGuide Personal Recommendations

For Las Palmas: Autos Morenos - Excellent local company with competitive rates and personalized service in Gran Canaria's capital.

Budget-friendly option: TopCar.es - Often offers the best deals for longer rentals with reliable vehicles and straightforward booking.

International Chains (Proceed with Caution)

While available, international chains often disappoint with:

  • ❌ Hidden fees and airport surcharges
  • ❌ Excess insurance charges of €183+ weekly
  • ❌ Long airport queues and service delays
  • ❌ Inconsistent policy enforcement

Brands include: Hertz (71% satisfaction), Avis, Budget, Sixt, Enterprise. Recent reports include incorrect documentation requirements and service issues.

💰 Current Pricing & Best Deals (2025)

Daily Rate Ranges

Economy Cars €11-36/day
Compact Cars €31/day avg
SUVs €16-65/day
Young Driver Fee €15-25/day

Best Booking Strategy

🎯 Optimal Booking Month: June

Book in June for 66% cheaper rates compared to December

  • ✅ June average: €12.64/day
  • ❌ December average: €37.57/day
  • ✅ Book 4+ days in advance
  • ✅ Spring months (Mar-May) offer best value

💡 Money-Saving Tips

  • • Choose local companies for 60-80% savings
  • • Avoid peak months (July-August, December)
  • • Book during shoulder seasons
  • • Consider off-airport locations
  • • Get annual insurance for frequent travel
  • • Decline rental company insurance upsells
  • • Compare total costs, not just daily rates
  • • Book directly with local companies

📋 Documentation Requirements

🇪🇺 EU/EEA Citizens

  • ✅ Standard driving license accepted
  • ✅ No International Driving Permit needed
  • ✅ Streamlined rental process
  • ✅ Valid passport or EU ID

🌍 Non-EU Visitors

  • ⚠️ International Driving Permit required
  • ⚠️ Original license must accompany IDP
  • ⚠️ Some companies enforce inconsistently
  • 💡 Obtain IDP before travel (~$20)

Essential Documentation Checklist

Required for All Renters:

  • • Valid passport or EU ID
  • • Driving license (held 1-2 years minimum)
  • • Credit card in main driver's name
  • • Rental confirmation

Age & Experience:

  • • Minimum age: 21 years (some accept 18+)
  • • License held for 1-2 years minimum
  • • Young driver fees apply under 25
  • • Some premium vehicles restricted

⚠️ Recent Documentation Issues

Some major chains (notably Hertz) have incorrectly claimed universal IDP requirements for North American travelers, while other companies honor identical bookings immediately.

Tip: Always have IDP ready to avoid delays, but know your rights and consider local companies for consistent policy enforcement.

🛡️ Insurance Options & Strategies

✅ Best Option: Third-Party Annual

€70-150 annually

  • • Covers excluded items
  • • Windscreen, tires, undercarriage
  • • Superior to rental company options
  • • Up to €50,000 coverage

✅ Good: Third-Party Daily

€3-12 daily

  • • Insurance4CarHire
  • • Questor Insurance
  • • Better than rental company
  • • Covers most exclusions

❌ Avoid: Rental Company

€15-40 daily (€183+ weekly)

  • • Extremely overpriced
  • • Limited coverage
  • • High-pressure sales tactics
  • • Profit center for companies

💡 Local Company Advantage

CICAR, AutoReisen, and TopCar include comprehensive insurance in base pricing, eliminating excess charges that international chains use as profit centers.

Included in Local Companies:

  • • Unlimited third-party liability
  • • Collision damage waiver
  • • Fire and theft protection
  • • No excess fees

International Chain Extras:

  • • €300-3,000 excess charges
  • • Pressure to buy expensive coverage
  • • Complex terms and conditions
  • • Hidden fees and exclusions

💳 Credit Card Insurance

Premium credit cards offer up to $50,000 coverage but typically as secondary insurance requiring upfront damage payments and lengthy reimbursement processes.

Best for: Experienced travelers comfortable with claim processes. Not ideal for: First-time renters or those wanting simple, immediate coverage.

🚗 Island-Specific Driving Conditions

🌋 Tenerife

Challenging

Excellent highway infrastructure (TF-1, TF-5) covers 75% of perimeter, but includes dramatic mountain routes requiring skill and patience.

Best For:

  • • Experienced drivers
  • • Mountain driving enthusiasts
  • • Automatic transmission recommended
  • • Robust vehicles with good power

Watch Out For:

  • • Masca approach: avoid 10am-4pm crowds
  • • Narrow winding roads with hairpins
  • • Dramatic elevation changes
  • • Mount Teide snow in winter

🏔️ Gran Canaria

Challenging

Features some of Europe's most winding mountain roads (GC-200, GC-210) through spectacular interior landscapes.

Highlights:

  • • Incredible diversity: dunes to mountains
  • • Excellent road surfaces with barriers
  • • Ring road for efficient coastal travel
  • • Traditional villages accessible by car

Challenges:

  • • Serpentine mountain roads
  • • Aggressive local drivers on narrow passes
  • • Constant gear changes required
  • • Parking challenges in Maspalomas

🌙 Lanzarote

Easy

Ideal for international driving beginners with flat terrain and well-maintained roads.

  • ✅ Minimal challenging routes
  • ✅ Flat volcanic landscapes
  • ✅ Perfect for nervous drivers
  • ✅ Unique geological attractions

🏖️ Fuerteventura

Easy

Flat terrain ideal for beginners, but strong Sahara winds can affect high-sided vehicles.

  • ✅ Excellent for nervous drivers
  • ✅ Well-maintained roads throughout
  • ⚠️ Strong wind considerations
  • ⚠️ Some remote unpaved areas

🏝️ La Palma, La Gomera & El Hierro

These islands require advance booking due to smaller rental fleets and offer the most spectacular driving experiences.

Adventure Driving:

  • • Steep mountain roads with dramatic views
  • • Dramatic elevation changes
  • • Essential for limited public transport
  • • Spectacular volcanic landscapes

Requirements:

  • • Book well in advance
  • • Confident driving skills needed
  • • Not suitable for nervous drivers
  • • Automatic transmission beneficial

🚦 Traffic Laws & Enforcement

Speed Limits:

  • • Urban areas: 50 km/h
  • • Rural roads: 90-100 km/h
  • • Motorways: 120 km/h
  • • Tolerance: Just 3 km/h on roads under 100 km/h

Key Rules:

  • • Zero tolerance for mobile phone use
  • • 0.5g/l alcohol limit (proposed 0.2g/l)
  • • All occupants must wear seatbelts
  • • No toll roads throughout islands

🅿️ Parking & Fuel Logistics

Parking Guidelines

Blue Lines = Paid Parking

Use metered systems, typically €1-3 hourly in urban areas

White Lines = Free Parking

No payment required, but respect time limits

Yellow Lines = No Parking

Swift enforcement with substantial fines

Problem Areas & Fines

Maspalomas (Gran Canaria)

€80 fines for unclear violations near beach areas

Valle Gran Rey (La Gomera)

€200 fines (€100 with early payment)

Solution: Underground Parking

Follow blue "P" signs for reliable €1-3 hourly options

⛽ Fuel Costs & Strategy

2025 Fuel Prices:

  • • Range: €0.999-€1.31/liter
  • • Major chains: Repsol, Cepsa, BP
  • • Excellent availability on major roads
  • • Limited in remote mountain areas

Government Subsidies:

  • • Fuerteventura: 5-cent subsidy
  • • La Gomera: 20-cent subsidy
  • • El Hierro: 30-cent subsidy
  • • Extended through June 2025

Local Company Advantage:

  • ✅ Fair same-to-same fuel policies
  • ❌ Avoid pre-purchase schemes
  • ✅ No exploitative fuel charges
  • ✅ Transparent fuel requirements

⚠️ Common Mistakes to Avoid

💸 Most Costly Mistake: Buying Rental Company Insurance

International chains charge €183+ weekly for coverage that third-party annual policies provide for €70-150 yearly.

Solution: Get annual third-party insurance or choose local companies with inclusive pricing.

📋 Documentation Confusion

Some companies incorrectly claim universal IDP requirements. Recent reports include Hertz denying rentals to properly licensed North Americans while other companies honor identical bookings.

Solution: Have IDP ready but know your rights. Consider local companies for consistent policy enforcement.

⛽ Fuel Policy Misunderstandings

Rental companies charge premium rates for pre-purchase fuel options that local companies avoid through fair same-to-same policies.

Solution: Choose companies with transparent fuel policies. Avoid GoldCar and specific Thrifty locations known for scam attempts.

🏢 Company Selection Errors

Failing to compare local versus international companies missing 60-80% savings and superior service quality.

Solution: Prioritize local companies (CICAR, AutoReisen, TopCar) for best value and service.

📅 Timing & Location Mistakes

Airport pickup fees can be avoided by choosing off-site locations, while booking less than 4 days ahead consistently shows above-average pricing.

Solution: Book 4+ days in advance, consider off-airport locations accessible by short taxi rides.

✅ Success Strategy Checklist

  • ✅ Choose local companies over international chains
  • ✅ Get third-party insurance or all-inclusive packages
  • ✅ Book 4+ days in advance during optimal months
  • ✅ Have proper documentation ready
  • ✅ Avoid airport pickups when possible
  • ✅ Decline rental company insurance upsells
  • ✅ Choose appropriate vehicle for planned islands
  • ✅ Check fuel policies and parking regulations

🚌 Public Transport Alternatives

While car rental offers the best flexibility for exploring the Canary Islands, public transportation provides viable alternatives for specific travel patterns and environmental considerations.

Detailed comparison: Check our comprehensive public transportation guide for routes, schedules, and cost comparisons across all islands.

🚌 Best Public Transport Options

Gran Canaria

Most comprehensive bus network with 100+ routes connecting major destinations. Excellent coverage for resort areas and main attractions.

Tenerife

Excellent tram service between Santa Cruz and La Laguna. Bus connections available but reliability issues reported in 2024 reviews.

Inter-Island Ferries

Up to 16 daily crossings on popular routes. 25-minute Lanzarote-Fuerteventura connection. Operated by Fred Olsen Express, Naviera Armas, Trasmediterranea.

📊 When Public Transport Works Best

Ideal Scenarios:

  • • Single resort-based stays
  • • Major tourist destination focus
  • • Environmental concerns
  • • Strict budget constraints

Limitations:

  • • Limited access to remote beaches
  • • No mountain village connections
  • • Restricted hiking trailhead access
  • • Schedule dependency

💰 Cost Comparison Reality

Car rental becomes highly competitive with public transportation costs, especially for groups or travelers planning diverse itineraries across multiple island areas.

Solo Traveler

Public transport often cheaper for single destinations

Couples

Car rental competitive for multi-destination trips

Groups (3+)

Car rental almost always more economical

🎯 Final Recommendations

Key Takeaways

  • ✅ Local companies offer 60-80% savings over international chains
  • ✅ CICAR, AutoReisen, and TopCar provide superior service and value
  • ✅ Third-party insurance saves hundreds compared to rental company options
  • ✅ Each island offers unique driving experiences requiring different strategies

Action Steps

  1. 1. Compare local companies for your travel dates
  2. 2. Secure third-party insurance or all-inclusive packages
  3. 3. Prepare proper documentation (IDP for non-EU visitors)
  4. 4. Check current conditions with our webcam guide

Remember: The Canary Islands reward vehicle-based exploration with access to experiences impossible through resort-based or public transportation travel. Choose wisely and explore freely!

📚 Related Guides

Public Transportation Guide

Complete routes, schedules, and cost comparisons for buses, trams, and ferries across all Canary Islands.

Read the guide →

Live Webcams Guide

Check real-time weather and road conditions before driving with our comprehensive webcam network.

View webcams →