Every island of the Azores has a name: Faial is known as the 'Blue Island' thanks to the overwhelming presence of hydrangea all over the island. Due to the relative absence of efficient public transport systems, it is advisable that you rent a car if you want to visit the various parts of the island in depth. It takes less than 3 hours to drive around the entire island.

Rental car companies congregate around two streets in the centre of Horta: the Rua Vasco da Gama, and Rua Conselheiro Medeiros. It is advisable to enquire around for prices and availability, as prices and the class of cars available at short notice differ hugely between different car rental companies.
We rented our car from Auto Turistica Faialense Rent-a-Car. They are very friendly and offer efficient service. The only thing you need to watch out for if you want to rent a car in Horta is, try to make a reservation as soon as possible because in the summer months, often you will need to wait 3-4 days before a car of your choice is available. Otherwise you might have to pay much more for a bigger car if you want something immediately. In addition, it seems most of the rental car companies in Horta do not offer rental terms with unlimited mileage. Instead you are required to pay for a fixed minimum daily charge, plus additional kilometer charges.
Driving around Faial is a joy because of the beautiful, lush green scenery and the abundance of nature everywhere you go. Roads are in good condition, although sign posts are somewhat inadequate. Make sure you have a copy of latest road map with you while venturing inland on Faial.

The Caldera in the middle of the island is a beautiful crater landscape, 2km wide and almost 0.5km deep. The crater used to be a huge crater lake, but it was said that the water in the crater lake disappeared overnight during the undersea volcanic eruption of 1957/58. A small path for hiking surrounds the entire perimeter of the crater; the hike will take about 2.5 hours.