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Wednesday, 19. August 2026
Holidays in Tenerife

Hire cars on Tenerife from around €120 a week, with caveats

Low taxes and competition between local and European firms keep rates down, but add-ons at the desk, fuel policies and damage checks decide what a booking really costs. Photograph the car before driving off.

Car hire on Tenerife can be very affordable. Prices for a hire car are significantly lower than the Central European average. Depending on the time of year and how far in advance you book, a small car with unlimited mileage and comprehensive insurance can be booked for as little as around 120 euros for a week. You can find all our tips and tricks here.

As well as the low taxes in the Canary Islands, a price war between local and European providers also means you can get good deals when hiring a car. However, tourists should take a very close look before hiring a car. Below are our tips.

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Due to the parking situation in the built-up areas of the Canary Islands, small cars are particularly popular. They are generally more than adequate for exploring the island or doing the shopping. However, those travelling with their family or wishing to transport sports equipment, for example, will of course also find larger models available. Price increases are usually moderate. It’s usually only when you have special requests, such as a convertible or an automatic gearbox, that prices really start to rise.

Car hire tips for Tenerife

Whilst a small car with all-inclusive services for around 120 euros is already a very good deal, there are also providers who advertise with rock-bottom prices. That isn’t necessarily a bad thing. However, tourists may find themselves intimidated at the counter by some ‚black sheep‘ operators with a drawn-out sales pitch for additional services. These should be checked very carefully, as they are not always worthwhile.

All about car hire insurance

We recommend opting for comprehensive insurance. Whether you choose a policy with or without an excess is more a matter of personal preference. A major advantage of this cover – particularly without an excess – is that minor parking dents and scrapes can be settled through the insurance. And this isn’t so much about your own driving skills. Scratches and dents are, unfortunately, part of everyday life, especially in Tenerife’s major cities. And the rate of hit-and-run accidents is high.

Many car hire companies offer additional insurance. This covers much of what is not covered by comprehensive and third-party liability insurance. This usually includes damage to the underbody and tyres, as well as the loss of keys. Here, too, you should ask yourself how likely such an incident is and decide for yourself, depending on the cost of the additional cover.

We recommend that you give this matter some thought beforehand and set a limit on optional extras. Otherwise, you could easily be persuaded by well-trained sales staff to sign up for deals that you’ll regret later.

Car hire on Tenerife: collection and return

Some car hire companies on Tenerife pay very close attention to scratches and dents. In contrast, some of the local hire firms do not check the car at all when it is returned. As a result, it is not uncommon for holidaymakers to be allocated cars that already have dents and scratches. Apart from the aesthetic aspect, this is of course not a serious problem.

No matter what sort of hire car company you come across: as a precaution, you should take photos of any damage to the interior and bodywork before setting off. That way, if any queries arise when you return the car, you’ll have proof of your innocence straight to hand.

What should you do in the event of an accident?

The companies have very clear rules regarding damage claims. You’ll normally be given a form to fill in if you’re involved in an accident. There’s also usually a helpline you can contact. Whether you’re at fault or not, whether it’s a hit-and-run or a clear-cut case: always call the police!

Fuel policy for hire cars

There is also significant potential for hidden additional costs when it comes to petrol regulations. Some hire companies follow the widespread practice of requiring the car to be collected with a full tank and returned in the same condition. The model whereby the car must have the same amount of petrol on return as it had on collection is also becoming increasingly common. However, there are other arrangements as well.

Some car hire companies on Tenerife operate on the basis that petrol is included in the hire price. In this case, the car is handed over with a full tank and may be returned with an empty one. This is sometimes also specified in the small print. It may therefore happen that a flat-rate petrol charge is added to the initial hire price quoted. You should therefore check this carefully before booking.

Alternative: Buses in Tenerife

Incidentally, the biggest competitor to car hire on Tenerife is public transport. The well-developed network and the modern buses, which can also carry large items of luggage from the airport to your holiday destination, sometimes make hiring a car unnecessary. Added to this are the very affordable ticket prices – not least thanks to the TenMas ticket (formerly: Bonobus).

Nevertheless, it can make a great deal of sense to book a hire car. Anyone wishing to explore the island at their own pace or go on an active holiday – for example, to go climbing – should opt for a car. Surfers and other active sports enthusiasts should also consider hiring a car. If, on the other hand, you’re planning a quiet beach holiday or have even booked an all-inclusive package, it usually makes more sense to book a hotel shuttle and do without a hire car.

Compare the best car hire deals now, with no obligation, via our partner:

Book a holiday in Tenerife

If you’re currently planning your holiday on Tenerife, you should also take a look at our hotel recommendations here.

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