Car rental in Lanzarote - Our complete guide

I’m continuing this series of articles on planning a trip to Lanzarote. There’s a topic that comes up often, and that’s car rental in Lanzarote and all the questions that follow, like: Do you really need to rent a car in Lanzarote? How much does it cost? And many others! Let me reassure you right away, I asked myself the same questions before heading to this island. As for me, after spending a week on the island discovering it by car, I’ll admit it made the trip a lot easier. I was able to explore the island at my own pace, even going to the most isolated spots that aren’t served.

And I can even tell you that it was enjoyable to drive in Lanzarote. The drives are short, the roads are perfect, drivers are relaxed, there are no traffic jams… I got used to it quickly in a week. If anything, I’d say the hardest part is staying focused on the road without looking at the volcanic landscapes along the way. It’s not common: you see volcanoes in ochre, black, or reddish colors, lava fields, ocean views… it’s really not common and you immediately feel amazed. In any case, that’s what struck me most when I did my first drive from the airport to my accommodation in the southwest, in El Golfo. I was coming from Tenerife and as soon as I arrived, the contrast was impressive.

To get back to the topic of our article, I’m going to share all my tips here on renting a car in Lanzarote: companies, prices, insurance, mistakes to avoid, etc. This should help you handle that part of your trip! I’ll also take this opportunity to tell you that we wrote a complete guide to things to do in Lanzarote. By renting a car, you’ll be able to pick from this article all the places you want to see, with no limits, just whatever you feel like most.

So, let’s get straight to the heart of the matter! I’ll give you that, it’s absolutely possible to visit Lanzarote without a car… but renting a car in Lanzarote makes all the difference. It will completely change your experience on the island. Technically, Lanzarote is far from being the largest of the Canary Islands. Tourist spots and the capital are well served by the bus network. On the other hand, many must-sees are not. I’m thinking for example of Timanfaya National Park, Charco Verde in El Golfo, Las Grietas. For me, these are three natural gems of the island that I truly fell in love with.

Concretely, with a car, you can visit these three spots and many others, more isolated, natural, and raw. And I think that’s what gives Lanzarote all its charm. You can also head out early in the morning to avoid the crowds, stop whenever you want (you’ll come across beautiful viewpoints that are worth it), leave room for the unexpected, access wilder beaches and trails, and adjust your plan to how you feel that day, or even to the weather. Basically, renting a car gives you huge freedom.

Plus, like I was saying, the distances are very short. To give you an idea, to go from north to south, you should plan for at most a little over an hour. In the end, I spent more time enjoying it than on the road, and that’s what I loved about my stay there. It’s also an advantage, especially if you don’t like driving during your vacation.

Of course, if you prefer to stay in a seaside area or if you choose to do organized excursions, in those cases, a car isn’t essential. I’ll let you form your own opinion! But you know mine, having stayed on the island.

People often think car rental prices are expensive, but I was pleasantly surprised with Lanzarote. I found that overall, prices were reasonable, even affordable, if you plan ahead and compare properly. In fact, in this section, I’m giving you all the info that can affect the rate, along with a few tips to save money.

In Lanzarote, and like most destinations, the time of year directly affects the price of a car rental. Indeed, it all depends on demand and you can feel it right away in the rates. To give you a better idea, I put together a few price ranges so you can clearly see the difference. But of course, these are averages:

Low season (May–June / September to November, outside school holidays) : these are good periods to rent a car because that’s when you’ll find the best deals. During these periods, for small city cars, you can expect to pay from €10 to €20 per day. For more mid-range cars (what I chose), it’s around €20 to €30 per day. Small note: that’s not including insurance.

Shoulder season (March–April, October, early December) : prices start to go up but it’s still reasonable. You should expect around €25 to €40 per day for a standard car.

High season (July–August, school holidays, Christmas, February) : these are the much-dreaded periods with rates that rise quickly, especially if you book at the last minute. At the last minute, prices can even double:

• €40 to €60 per day,
• more for SUVs or automatic cars.

We agree, renting a car in Lanzarote is quite affordable if you compare it with other destinations. Plus, gas is even cheaper than in mainland Spain. But keep in mind that the most important thing is to be flexible with your dates if you can, or to book ahead.

Beyond the season, the type of car changes the price. Don’t worry, the island’s roads are in good shape so you don’t need a 4×4 to get around. I’d say your choice will depend more on the comfort you want, the number of people on board, and your plan:

City car : clearly the cheapest option. Technically, you can go everywhere on the island but it’s not the most practical. There are rocky parking areas, and the track to reach Papagayo beach is too. So yes, it shakes quite a bit. I also recommend paying attention to your tires.

Compact / mid-size car : this is what I chose and honestly, it was enough. It’s more comfortable and above all, it handles better on rocky tracks or parking areas. It’s a bit more expensive than a small city car, but I think it still stays reasonable. Basically, you should expect a few extra euros per day, nothing to blow the budget, haha.

SUV : like I was saying, it isn’t essential to discover the island. But if you want to be more comfortable or if you’re traveling with family, you’ll feel more at ease. Price-wise, there’s a real difference compared to standard cars, especially in high season.

Automatic transmission : if you’re not comfortable with a manual, know that it’s possible to rent an automatic car in Lanzarote. However, there aren’t many on the island so prices go up quickly.
In short, what I recommend is choosing a compact, mid-size car. It’s enough and offers good value for money. Just remember to book ahead!

This is often what worries people most when renting a car, and that’s understandable. In Lanzarote, like everywhere, it all depends on the rental agency you choose and the level of auto insurance you choose.

The security deposit

Most of the time, when you pick up the vehicle, they ask for a card pre-authorization. But what varies is the amount: between €300 and €1,200 depending on the rental company, the type of vehicle, and the chosen auto insurance. For example, if you choose full coverage with no deductible, the deposit is smaller. On the other hand, if you choose basic insurance, the blocked amount is often higher. But as long as you return the car in the same condition, the agency will release the amount afterwards.

Hidden fees to watch for

So, even if everything is clear to you at the time of booking, some fees can be added if you’re not careful. It’s true that when you’re on vacation, you’re more relaxed and you often pay less attention, you just want to enjoy. But most of the time:

• at the counter, they offer extra insurance and rental agencies can sometimes be pushy, and it’s harder to say no when it’s not our language,
• some agencies only accept credit cards and not debit cards for the security deposit, which can force you to take extra insurance,
• there are often fees for an additional driver,
• young driver surcharges,

I really recommend taking the time to read the conditions before booking and to read the fine print in your rental agreement.

To avoid unpleasant surprises, I used the Discover Cars comparison site, which allowed me to see at a glance:

• the deposit amount,
• the type of bank card accepted (debit or credit),
• what is included or not included in the insurance,
• and customer reviews for each rental company.

I also took the full coverage insurance from Discover Cars, it was much cheaper than taking the rental company’s insurance at the counter. Everything went well for me and I felt more relaxed when picking up and returning the rental car. I especially recommend it if it’s your first time!

We’ve already talked about it a bit, but insurance and the deductible are still important when renting a car. It’s also where you can get tricked, either because you don’t have the right info, or because you thought you were saving money. In reality, you never know—one scratch, for example, can happen quickly.

What often happens is that when you book the car, rental companies show attractive prices but with a high deductible. But it’s when you pick up the car that agencies get pushy, offering fairly high prices. And if it’s not in our language, it’s better to have the information from the start.

To explain it clearly, the deductible is the maximum amount that can remain at your expense in case of damage to the car. Even if the roads are perfect, a flat tire or a small scrape can happen quickly. In general, here are the two options available to you:

High deductible (basic insurance)

It’s the cheapest option when booking, but also the riskiest. In case of an issue (scratch, impact, side mirror…), you may have to pay a high deductible:

• €500 to €1,500 on average,
• or even more depending on the rental company and the vehicle.

Zero deductible (full coverage)

With zero-deductible insurance, you’ll feel much more at ease to enjoy your vacation:

• no fees in case of minor damage,
• no security deposit, or
• an easier return process with less stress.

To put it simply, the overall rental price is a bit higher at first, but over the whole stay, it remains reasonable and above all it gives you peace of mind. After all, that’s what vacations are for, too!

My personal tip: if you don’t want the headache, take insurance with no deductible or with a reduced deductible. And above all, do it when booking online rather than at the counter. It’s much more advantageous and it lets you plan ahead! Once again, Discover Cars really helped me on this point: the site clearly shows the insurance terms before booking.

One more difference: when booking your car, you’ll have two very different options for coverage: take the rental company’s insurance directly or take external insurance, from a comparison site or another platform. Technically, both have advantages. I’ll explain everything right away so you can see more clearly.

Local insurance (with the rental company)

This is often the option considered the simplest and most reassuring for many travelers. If you choose full coverage with no deductible directly with the rental company:

• you generally don’t have to advance any costs in case of damage,
• no security deposit, or a lower one,
• the return process is simpler.

In return, this insurance is often more expensive than external coverage.

External insurance (via a comparison site)

This option is much more attractive price-wise, but the conditions are generally different. For example, in case of an issue, you’ll often have to advance the costs to the rental company, then file a reimbursement claim with the external insurer, sometimes with delays and supporting documents to provide. Which is normal in itself, but it takes a bit of time and admin.

On my side, I took external insurance, the one from Discover Cars, by reading the conditions carefully, and it was much more advantageous for me. It allowed me to stay within my transportation budget and to have all the info in mind when picking up my vehicle.

When you look for a car rental in Lanzarote, you’ll quickly come across two very different types of rental companies: local agencies (especially Cicar) and big brands you find a bit everywhere, like Sixt and Europcar. In fact, it’s more the local rental companies than the international agencies that are present on the island. To help you choose, I’ll explain the advantages of each.

You’ll see: in the Canaries, and especially in Lanzarote, Cicar is the local agency present on all the islands in the archipelago. It’s simple, there are ads everywhere for this agency, even on planes that do inter-island flights. And I didn’t know it before going, but most of the cars I saw were with this agency. It’s true that looking more closely, from the airport in the rental parking lot, there were hardly any Cicar cars left.

There’s also TopCar, which is very present in the Canaries. It’s the agency I used because it had good reviews and honestly, I wasn’t disappointed. I always plan a buffer before picking up the car in case my flight is delayed. And even arriving early, I got my car right away, with no waiting. It’s a little extra that feels nice!

If I had to give you other advantages of choosing a local vehicle rental company, from my point of view, it would be:

• more accessible prices with fewer add-ons,
• full coverage often included from the start,
• a simpler and faster process,
• a wider range of car options.

Like I was saying, I rented a TopCar by going through Discover Cars without knowing it was a Canary Islands rental agency. But while doing my research, what I noticed most were the best prices and the good reviews, and that immediately made me feel more confident. And I can tell you I wasn’t disappointed! Even when returning the car, the TopCar employee mostly checked whether I had filled up and didn’t really walk around the car. Well, it wouldn’t have bothered me, but it shows it’s a fairly flexible agency.

Even though I recommend going through local rental companies for Lanzarote, there are still a few international brands present. I mostly saw Sixt and Europcar. If you prefer using these brands, it can be interesting if you’re used to using one in particular or if you have loyalty perks, for example. If that’s not the case, I don’t necessarily recommend it, especially since deductibles are often higher and basic insurance is more limited. I hope my opinion and experience can help you, but it’s still up to you!

One more logistical point to consider: where to pick up your rental vehicle. Is it better to pick up your car at Arrecife airport or in a town like Playa Blanca? I’m going to help you make your choice.

As for me, I picked up my car directly at Lanzarote airport. It was much easier for me. As soon as I arrived, I was able to pick up my car and then head straight to my accommodation, which was in a small village, not well served. Honestly, it saved me time. Even arriving in the afternoon, I was already able to start sightseeing without losing time. To me, it’s the most practical option!

I think picking up a car in town is suitable if you’re doing the start of your stay without a car. It’s true that in Arrecife or Playa Blanca, you can easily do your visits on foot or by bus. At least, the final rental price will be cheaper for you, even if you have a few days with less freedom.

I told you at the beginning of the article to reassure you from the start: the roads in Lanzarote are in very good condition. It’s true that I didn’t know what to expect, but I was surprised: they were like new. The main roads that connect the biggest towns like Arrecife, Puerto del Carmen, Costa Teguise, or Playa Blanca are just perfect—nothing to complain about. If you plan to stay on these routes, a city car is enough; you’ll be comfortable.

On the other hand, the tracks and access roads to more discreet spots are rockier, and that changes things. But if you drive slowly, it should be fine!

Also, unlike the other Canary Islands, Lanzarote has almost no elevation changes. You won’t have narrow roads close to the edge or with lots of hairpin turns. I think you’ll get used to it quickly. Personally, I found it easier than in mainland France.

In short, even if you weren’t comfortable at first, I’m almost sure you’ll end up enjoying driving in Lanzarote. I saw it more as a pleasure than as an obligation.

Well, now that you know driving is easy, know that parking in Lanzarote is just as easy. Honestly, compared to other islands like Tenerife, it’s much easier to park in Lanzarote, even in tourist areas. Of course, there are always a few places that are trickier depending on the season.

I’m mainly thinking of the most touristy places like Playa Blanca, Puerto del Carmen, or Costa Teguise. In general, there are mostly spots near the seaside promenades. It’s convenient for going to the beach. Just keep in mind that in high season, it’s better to head out earlier in the morning to park more easily, without the hassle.

If you’re mainly wondering about must-see spots:

• Timanfaya: there’s a designated parking lot with park staff managing traffic and arrivals and departures. Since it gets busy, it’s super convenient.
• Jameos del Agua / Cueva de los Verdes: the parking lots are accessible but they fill up during the day.
• Papagayo: careful, spots are limited and access is via a rough, unpaved track because it’s a protected site. I recommend arriving early and driving slowly.

For your information, since you’ll probably pass through, the cities that are hardest to park in are more Arrecife and Teguise. And even then, I expected worse—it was fine!

Before returning your rental car, I recommend taking a little time to check that everything is good. Believe me, it avoids unpleasant surprises and last-minute stress. Basically, I prepared a simple little checklist for you to tick off:

• Fuel : in general, if you return the car with a full tank, you need to fill up before dropping it off. It’s almost the most important, because otherwise they’ll deduct it, but it may cost you more since they won’t necessarily use the price of the day.
• Overall condition : quickly check if there are new scratches, impacts, or marks (often on rims and bumpers) and compare with the photos you took on day one.
• Quick clean : I prefer to vacuum inside and do a quick pressure wash outside. It’s fast and it’s always better, even if some rental companies don’t even look at that. I think it’s preferable, not to mention that some agencies require it.
• Personal items : it’s always my fear before returning the vehicle. I check carefully several times, but it still happened that I forgot my sunglasses. Luckily, I realized five minutes later. So check everywhere.
• Exact time and location : you can return the car early, but not late. In general, I check the day before to have the exact time in mind, because otherwise you can get extra fees. That would be a shame, right before leaving!
• Ask for confirmation : I’ve gotten into the habit of always asking for an email confirmation that everything is OK at return. In general, it arrives in the minutes following the return. That way, you’re sure nothing will be held against you.

By doing this, you greatly reduce the risk of a dispute, especially if you have a high deductible. And if you chose an all-inclusive package, this checklist is still useful: above all, it helps you return the car without stress and without wasting time.

We’re coming to the end of our guide to car rental in Lanzarote. Since it can quickly become a headache, I hope you were able to see things more clearly and that I answered all your questions. Even if everything related to paperwork isn’t the most fun, once you have the car, you’ll be glad to be able to get around the whole island without constraints, just at the pace of your desires.

Also, I have a great memory of Lanzarote. It’s a volcanic island with natural spots scattered all over. Depending on how long you’re staying, we prepared Lanzarote itinerary ideas.

Written by Laura CALLES

Thanks to Mélanie and Sylvain, I had the chance to discover the Canary Islands, specifically Tenerife and Lanzarote, so that I could share these island paradises with you. Two real favorites of mine!

Despite our vigilance, an error may have crept into this article. If you spot one, please don't hesitate to let us know so that we can correct it immediately and keep our information up to date!