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Another option for the daring traveler is to rent a scooter. You'll need a valid drivers license and must be at least 16-years-old to rent a scooter or motorcycle. Be careful on the roads, as some of them can be treacherous.
Walking is always a good way to get around and the scenery and ocean views can be worth it. For longer distances taxis are available.
A car is definitely not necessary for travelling along the coast, as public transport is very good and very cheap. If you are travelling to any cities or larger conurbations, a car can be a positive nuisance. Parking is a major problem and especially in the summer. For travel to major cities get the train or bus. The trains from Malaga to the coastal resorts finish at 22.30 but the busses run from the harbour much later and at the weekend until 2.00 am or later. A car is useful if you want to travel inland to see something of the countryside or little villages. For train timetables see www.renfe.es, for the local busses see www.ctsa- portillo.com/otros.html .