I haven't seen or used a traveller's cheque for more than 15 years. There are plenty of banks in PB so it shouldn't be a problem although I've no idea what the commission is. When I did use them I brought Peseta ones over and used them like cash in the restaurants so I didn't have to pay commission, most restaurants accepted them this way.

I'd stick your cash in a bank account and use the ATMs, there are plenty of them.

I agree. The number of exchanges has considerably reduced with the advent of the Euro currency. Now you might find at most one or two in each resort, banks being the alternative (often with high charges). Use an ATM, of which there are lots around in Lanzarote.

We are going to Costa Teguise in May staying in a private rental apartment at the Sands Beach and would like to know where the nearest / best places are to change cash.

There are few official Money Exchanges in Lanzarote now, due to the Euro. Cash can be exchanged in banks, and there are shops (mainly the ones selling drink and cigarettes) which will exchange money for you. They will have signs up outside them with the exchange rate of the day.

Hi Geoff
Don't know how much cash you're thinking of taking, but just check your insurance to see how much is covered. It's usually not a lot!

Stick it in your bank account and use an ATM.