Car Rental in Lanzarote: Our Complete Guide

I’m continuing this series on planning a trip to Lanzarote with a topic that comes up often: renting a car in Lanzarote, along with all the questions that come with it. Do you really need one? How much does it cost? And what else should you know? I asked myself the same questions before traveling to the island. After spending a week exploring Lanzarote by car, I can honestly say it made the trip much easier. I could discover the island at my own pace and reach even the most remote places that aren’t served by public transportation.

Driving in Lanzarote was genuinely enjoyable, too. Trips are short, the roads are excellent, drivers are relaxed, and traffic jams are rare. I felt comfortable behind the wheel very quickly. If anything, the hardest part was keeping my eyes on the road instead of the volcanic scenery passing by. Ochre, black, and reddish volcanoes, lava fields, ocean views… it all feels so unusual that the scenery immediately draws you in. That was what struck me most on my first drive from the airport to my accommodation in El Golfo, in the southwest. I had just arrived from Tenerife, and the contrast was striking.

Back to the main topic: in this guide, I’m sharing all my tips for renting a car in Lanzarote, including rental companies, prices, insurance, and mistakes to avoid. It should make this part of your trip much easier to organize. We’ve also written a complete guide to the best things to do in Lanzarote. With a rental car, you can choose the places that appeal to you most and explore them without being tied to a fixed schedule.

Let’s get straight to the point: yes, it’s entirely possible to visit Lanzarote without a car. But renting one makes a real difference and can completely change your experience of the island. Lanzarote is far from the largest of the Canary Islands, and the capital and main tourist areas are well connected by bus. Many must-see places, however, 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.

With a car, you can visit these three places and many others that are more remote, natural, and unspoiled. To me, that is a big part of Lanzarote’s charm. You can leave early to avoid the crowds, stop whenever a viewpoint catches your eye, make room for spontaneous detours, reach wilder beaches and trails, and adapt your plans to your mood or the weather. In other words, renting a car gives you a great deal of freedom.

As I mentioned, distances are short. Driving from the north of the island to the south takes only a little over an hour at most. I spent far more time exploring than sitting in the car, which was one of the things I loved about the trip. That’s a real advantage, especially if you don’t enjoy driving on vacation.

Of course, if you plan to stay in a seaside resort or rely on organized excursions, a car is not essential. You can make up your own mind, but after spending time on the island, you already know where I stand.

Car rentals are often assumed to be expensive, but Lanzarote was a pleasant surprise. Overall, I found prices reasonable—and sometimes very affordable—provided you book ahead and compare offers carefully. In this section, I’ll cover the main factors that affect the rate, along with a few ways to save money.

As in most destinations, the time of year has a direct impact on car rental prices in Lanzarote. Rates rise and fall with demand. To give you a clearer idea of the difference, I’ve put together a few average price ranges:

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.

Overall, renting a car in Lanzarote can be quite affordable compared with many other destinations. Fuel is also cheaper than in mainland Spain. The key is to stay flexible with your dates when possible and book in advance.

Beyond the season, the type of vehicle also affects the price. The island’s roads are in good condition, so you don’t need a 4×4 to get around. Your choice will depend more on the level of comfort you want, the number of passengers, and your itinerary:

Economy car : clearly the cheapest option. You can technically drive almost anywhere on the island, but it is not always the most practical choice. Some parking areas are rocky, and so is the track to Papagayo Beach, so the ride can be quite bumpy. It is also worth keeping an eye on your tires.

Compact / mid-size car : this is what I chose, and honestly, it was more than enough. It is more comfortable and handles rocky tracks and parking areas better. It costs a little more than an economy car, but the difference remains reasonable—usually just a few extra euros per day, nothing that should break the budget.

SUV : as I mentioned, an SUV is not essential for exploring the island. Still, it can be a more comfortable choice, especially if you are traveling with family. The price difference compared with a standard car can be significant, particularly in high season.

Automatic transmission : if you are not comfortable driving a manual, automatic cars are available in Lanzarote. However, supply is limited, so prices can rise quickly.
Overall, I recommend choosing a compact or mid-size car. It is practical, comfortable, and offers good value for money. Just remember to book ahead.

This is often the part that worries travelers most, and understandably so. In Lanzarote, as elsewhere, the amount depends on the rental company and the level of coverage you choose.

The security deposit

Most rental companies place a preauthorization on your card when you pick up the vehicle. The amount varies—typically between €300 and €1,200—depending on the company, the vehicle category, and the insurance selected. Full coverage with no deductible usually means a smaller deposit, while basic coverage often leads to a higher amount being held. As long as you return the car in the same condition, the hold should be released afterward.

Hidden fees to watch for

Even when everything seems clear at the time of booking, extra charges can appear if you are not careful. It is easy to pay less attention when you are on vacation and simply want to enjoy the trip. The most common issues are:

• 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 strongly recommend reading the terms before booking and checking 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 chose the full coverage offered by Discover Cars. It was much cheaper than buying the rental company’s coverage at the counter. Everything went smoothly, and I felt much more relaxed when picking up and returning the car. I especially recommend considering it if this is your first rental.

We have already touched on this, but insurance and deductibles deserve a closer look. This is where many travelers get caught out, either because they did not have the right information or because they thought they were saving money. In reality, even a small scratch can happen quickly.

Rental companies often advertise attractive base rates with a high deductible. Then, when you pick up the car, they may strongly encourage you to buy additional coverage at a much higher price. If the discussion is not in your native language, it is especially helpful to understand the terms in advance.

Put simply, the deductible is the maximum amount you may have to pay if the car is damaged. Even on excellent roads, a flat tire or minor scrape can happen. In general, you will be choosing between two options:

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.

The total rental price is a little higher upfront, but over the course of the trip it can still be reasonable—and, above all, it gives you peace of mind. That matters on vacation, too.

My advice: if you want to avoid the hassle, choose coverage with no deductible or a reduced deductible. Ideally, add it when booking online rather than at the counter. It is usually more cost-effective and lets you plan the full cost in advance. Once again, Discover Cars really helped me on this point: the site clearly shows the insurance terms before booking.

When booking your car, you will generally have two very different coverage options: buying insurance directly from the rental company or choosing third-party coverage through a comparison site or another platform. Both have advantages, so here is what you need to know.

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 exchange for that convenience, this coverage is often more expensive than a third-party policy.

External insurance (via a comparison site)

This option is often more attractive on price, but the terms are usually different. If something happens, you may need to pay the rental company first and then submit a reimbursement claim to the third-party insurer, along with supporting documents. That is standard, but it does involve more time and paperwork.

I chose the third-party coverage offered by Discover Cars after reading the terms carefully, and it worked out much better for me. It helped me stay within my transportation budget and meant I knew exactly what to expect when picking up the vehicle.

When searching for a rental car in Lanzarote, you will quickly come across two main types of companies: local agencies, especially Cicar, and international brands such as Sixt and Europcar. Local companies are actually more prominent on the island than the major global chains. Here are the main advantages of each.

Cicar is one of the best-known local rental companies in the Canary Islands and operates throughout the archipelago. Its ads are everywhere, even on inter-island flights. I had not heard of the company before my trip, but once there, I noticed that a large number of rental cars belonged to Cicar. At the airport rental lot, there were hardly any of its cars left.

TopCar is another company with a strong presence in the Canary Islands. I chose it because the reviews were good, and I was not disappointed. I always build in extra time before collecting a rental car in case my flight is delayed, but even though I arrived early, I received the car right away with no wait. That was a welcome bonus.

From my experience, the other advantages of choosing a local rental company include:

• 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.

As I mentioned, I booked a TopCar vehicle through Discover Cars without realizing at first that it was a Canary Islands company. During my research, what stood out most were the competitive prices and positive reviews, which immediately made me feel more confident. I was not disappointed. When I returned the car, the TopCar employee mainly checked that the tank was full and did not carry out a detailed walk-around. I would not have minded either way, but it suggested a fairly relaxed return process.

Although I recommend considering local rental companies in Lanzarote, a few international brands are also available, especially Sixt and Europcar. Choosing one of them can make sense if you already use a particular company regularly or have loyalty benefits. Otherwise, I would not necessarily prioritize them, since deductibles are often higher and basic coverage may be more limited. My experience may help guide you, but the final choice is yours.

One final logistical point to consider is where to pick up your rental car. Is it better to collect it at Arrecife airport or in a town like Playa Blanca? Here is how to decide.

I picked up my car directly at Lanzarote Airport, which was by far the easiest option for me. As soon as I landed, I collected the car and drove straight to my accommodation in a small village with limited public transportation. It saved me a lot of time. Even though I arrived in the afternoon, I could start exploring right away. For me, this is the most practical choice.

Picking up a car in town makes sense if you plan to spend the first part of your stay without one. In Arrecife or Playa Blanca, many places are easy to reach on foot or by bus. Renting for fewer days will also lower the total cost, though you will have a little less freedom at the start of the trip.

As I mentioned at the beginning, the roads in Lanzarote are in very good condition. I did not know what to expect, but many of them felt almost new. The main routes connecting Arrecife, Puerto del Carmen, Costa Teguise, and Playa Blanca are excellent. If you plan to stay on these roads, an economy car will be perfectly comfortable.

The tracks and access roads leading to more secluded places can be much rockier. Still, as long as you drive slowly, you should be fine.

Unlike some of the other Canary Islands, Lanzarote has relatively little elevation change. You are unlikely to encounter many narrow cliffside roads or endless hairpin turns. I think most drivers will get used to the roads quickly. Personally, I found driving there easier than in mainland France.

Even if you feel a little unsure at first, there is a good chance you will end up enjoying driving in Lanzarote. For me, it felt more like part of the experience than a chore.

Now that you know driving is straightforward, the good news is that parking in Lanzarote is generally easy as well. Compared with islands such as Tenerife, I found it much simpler to park, even in tourist areas. A few places can still be more difficult depending on the season.

This mainly applies to busy resorts such as Playa Blanca, Puerto del Carmen, and Costa Teguise. You will usually find parking near the seafront promenades, which is convenient for the beach. In high season, however, it is best to arrive earlier in the morning to find a space more easily.

For the island’s main attractions:

• 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.

The most challenging places for parking are generally Arrecife and Teguise. Even there, though, I expected worse and managed without too much trouble.

Before returning your rental car, take a few minutes to make sure everything is in order. It can help you avoid unpleasant surprises and last-minute stress. Here is a simple checklist to work through:

• 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.

Following these steps greatly reduces the risk of a dispute, especially if you have a high deductible. Even with an all-inclusive package, the checklist is still useful: above all, it helps you return the car calmly and without wasting time.

We’ve reached the end of our guide to renting a car in Lanzarote. Since the process can quickly feel overwhelming, I hope this article has made things clearer and answered your main questions. The paperwork may not be the most exciting part of the trip, but once you have the keys, you will appreciate being able to explore the island freely and at your own pace.

I have wonderful memories of Lanzarote. It is a volcanic island filled with natural sights scattered across the landscape. Depending on the length of your stay, we have also put together 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!