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Like most other canary islands, Lanzarote has plentiful taxis located outside the main terminal which are easy to access. Most drivers are local and speak some English and they are very knowledgeable of the touristic areas so you can expect a pleasant ride.
If you are travelling in peak season then queues will get very long so an alternative would be to prebook a transfer with a reputable company.
Don't just stay at your hotel - Lanzarote has too many interesting things to see and do, and the best way of getting around is by renting a car. While taxis are available, they are not cheap once you want to travel across the island, and the big bus tours do not offer you the flexibility to explore the island at your own pace and according to your own preferences. If you arrive in the island by plane, the easiest and by far away the most economical way of starting a Lanzarote holidays is by pre-booking a car online. These can be picked up at the airport. If you want to pay through the nose, book when you arrive at the airport, all the usual players have booths there.
If you pre-book a compact car from home, it will set you back by about 120€ for a week, but that's money well spent.
Driving in Lanzarote is quite relaxed - the traffic is not dense and the other drivers all seem to take it easy. The condition of the roads are good, with the exception of the many gravel tracks that lead to places like the Papagayo beaches - note that this "road" is unpaved (which means that you will have no insurance cover if you drive it in normal car, but lots of people do it anyways), but the few kilometers of gravel that you need to access the beautiful Papagayo beaches are quite manageable even in a small car if you just keep in mind not to drive too quickly.
As remarked before, driving in Lanzarote is quite easy even for beginners provided you remember that you are driving on the right!, But note that some roads are quite narrow so go sensible slow on these passages (no one will blow a horn there if you do!). One thing that takes some time to get used to are the round-abouts: there are hardly any traffic lights, but all intersections have round-abouts (which in fact makes traffic more fluid) - make sure you read the sign describing the different exits that is placed before you enter a round-about (once inside the round-about, exits are not always signed). And remember that drivers inside a round-about have priority of way, so always wait and check before you enter.
Speed limits are usually 40 km/h in towns and 90 km/h outside (some towns have unsigned speed breakers, so make sure not to go too fast).
As Lanzarote is quite a small island, you can probably visit the most interesting places at a relaxed pace in about 3-4 days (always depending on your interest and the time you spend there).