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Lisseth Merino
Great value and car! Car was in great condition, clean and very reliable. Check out process was smooth and fast. I would recommend this rental company to anyone traveling to Iceland and I certainly won’t hesitate to book it again anytime I’m back to Iceland . Thank you
Gerard Chia
Was a pleasure using Project Car Rental for our trip, Communication was a breeze and staff were friendly and prompt. Unlike some of the counter folk at the other car rental employees at the airport like Avis who seemed disinterested and bored with life. It’s a bit of a walk to get to the car, especially with all the luggage and the cold ! We were travelling with young children so that was a bit of a challenge. Key collection and drop off were easy enough. Big plus that they very flexible with timing since you do all of this yourself. Would highly recommended and will certainly use them again should we return to Iceland.
radha aras
great servive. i had put in ghe wrong pick up time but they were graciious enough to pick us up when we called.
Jason Li
Very good driving experience. Good advisory from their staff.
Lisseth Merino
Great value and car! Car was in great condition, clean and very reliable. Check out process was smooth and fast. I would recommend this rental company to anyone traveling to Iceland and I certainly won’t hesitate to book it again anytime I’m back to Iceland . Thank you
Gerard Chia
Was a pleasure using Project Car Rental for our trip, Communication was a breeze and staff were friendly and prompt. Unlike some of the counter folk at the other car rental employees at the airport like Avis who seemed disinterested and bored with life. It’s a bit of a walk to get to the car, especially with all the luggage and the cold ! We were travelling with young children so that was a bit of a challenge. Key collection and drop off were easy enough. Big plus that they very flexible with timing since you do all of this yourself. Would highly recommended and will certainly use them again should we return to Iceland.
radha aras
great servive. i had put in ghe wrong pick up time but they were graciious enough to pick us up when we called.
Jason Li
Very good driving experience. Good advisory from their staff.
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Book Your Car Rental in Iceland
Discover the ideal rental car for your Iceland adventure with ease on the Guide to Iceland car rental marketplace. Boasting an extensive selection from over 40 leading car rental companies, we offer you the most competitive rates and wide-ranging choices to suit your needs. Our user-friendly search engine simplifies the process, enabling you to effortlessly compare prices and availability to secure the best deal. Enjoy peace of mind with each booking, as all cars come with CDW insurance, and benefit from our flexible policy that allows free cancellation and a full refund up to 24 hours before pickup. Start planning your journey today and find the perfect vehicle to explore Iceland.
Why you should rent a car in Iceland
When renting a car in Iceland, you give yourself the freedom to explore this breathtaking country on your own time and at your own pace. Self-drive tours and Road trips in Iceland have become increasingly popular, where travelers choose their itineraries and set out to see the incredible nature of Iceland by themselves. The following are some of the main benefits of renting a car in Iceland:
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Flexibility: Renting a car gives you the freedom to explore Iceland at your own pace and visit locations that may not be accessible by other means of transportation.
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Convenience: Renting a car eliminates the need to rely on public transportation or tour buses, which can be time-consuming and restrictive.
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Cost-effectiveness: If you're traveling in a group, renting a car can be more cost-effective than other transportation options, especially if you plan to visit several remote locations.
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Independence: Renting a car allows you to have the independence to make your own itinerary and change plans on the fly.
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Scenic Routes: Iceland is famous for its breathtaking scenery, and renting a car allows you to take in the views at your own pace. You can stop and take photos, or simply enjoy the scenery from the comfort of your car.
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Convenient Access to Remote Areas: Renting a car gives you the ability to reach remote areas of Iceland that are not accessible by other means of transportation.
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Avoid Crowds: If you're looking to avoid crowded tourist areas, renting a car allows you to venture off the beaten path and explore the more remote areas of Iceland.
In conclusion, renting a car in Iceland can provide you with a convenient and flexible way to explore the country, allowing you to make the most of your time and see all that Iceland has to offer. If you're planning to drive around Iceland during your stay, it is important to know the following information.
Where to Rent a Car in Iceland
When using our search engine you can decide where to pick up your rental car. Most car rentals in Iceland are based in Keflavik airport, or in the capital city of Reykjavik. Keflavik airport is about 40 minute drive from Reykjavik.
For travelers that want to hire a car as soon as they land in Iceland, it's most convenient to hire a car from Keflavik international airport and then return it at the airport before flying home. It does not matter what time of day or night your flight arrives, you can pick up your car 24 hours a day at Keflavik airport. It's also possible to rent cars from Reykjavik, which most people tend to use as a base when exploring the country. It is also possible to pick your rental car up in Keflavik and drop it off in Reykjavik, or vice versa, sometimes for an additional fee.
Car rentals are also available around the country, such as in Akureyri and Siglufjordur in the north, Egilsstadir and Hofn in the east, Selfoss and the Westman Islands in the south, as well as on the Westfjords and the Snaefellsnes peninsula. Car rentals are available in most larger towns in Iceland's countryside.
Note that in those locations, there may only be one or perhaps two car rental agencies, so you will have limited choices of cars. It is also possible to rent your car in one location in Iceland and drop it off at another for an additional fee.
Car rental types
In Iceland, there are several types of car rentals available to suit different needs and budgets. Some of the most common types of car rentals in Iceland are:
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Economy cars: These are the smallest and most affordable cars available, suitable for city driving and short trips.
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SUVs & 4x4 vehicles: These are four-wheel-drive vehicles that offer extra space and comfort for passengers and are ideal for driving on rough terrain and in winter conditions
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Campervans: These are vehicles that are equipped with a bed, kitchenette, and storage space, allowing travelers to camp and explore the country at their own pace.
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Luxury cars: These are high-end vehicles that offer maximum comfort, style, and performance, suitable for special occasions and luxury travel.
When renting a car in Iceland, it's important to consider factors such as the number of passengers, the length of the trip, the type of roads you'll be driving on, the season and weather conditions. Make sure to choose a car that meets your needs and budget.
Good to Know about Driving in Iceland
Driving in Iceland can be a unique and exciting experience, but it also requires careful preparation and attention to safety. Iceland's roads are often narrow and winding, with steep inclines and unpredictable weather conditions. It is important to be aware of the hazards that can arise while driving in Iceland and take necessary precautions to ensure a safe and enjoyable journey.
One of the most important things to keep in mind while driving in Iceland is to respect the country's speed limits. These limits are generally lower than in other countries and are designed to ensure the safety of drivers and passengers. Additionally, drivers should pay close attention to road signs and signals, as well as any instructions provided by their GPS or other navigation systems.
It is also important to note that Iceland's weather can be highly unpredictable, with sudden changes in temperature, visibility, and precipitation. Drivers should be prepared for conditions such as snow, ice, and heavy rain, and should always have appropriate equipment on hand, such as tire chains, a shovel, and extra warm clothing.
Another unique aspect of driving in Iceland is the country's road system. Iceland has a limited number of paved roads, with many routes being unpaved or only partially paved. This means that drivers must be prepared for bumpy rides and potential hazards such as loose gravel, potholes, and sharp rocks.
Despite these challenges, driving in Iceland is also an incredibly rewarding experience. The country's natural beauty is on full display from the road, with stunning views of glaciers, waterfalls, and geothermal hot springs. And with careful planning and attention to safety, drivers can safely explore all that Iceland has to offer.
The Road Network in Iceland
Iceland's most iconic highway is the Ring Road, which encircles the entire island and is your best bet for traveling around quickly and safely. As Iceland's most important road, it is well-maintained and open throughout the year. However, extreme weather conditions can sometimes lead to temporary and partial closures, especially during the winter.
Ring Road, or Route 1, is just two lanes wide, but you will seldom see much traffic in rural Iceland. It is, however, dotted with many one-lane bridges. The rule when crossing these is that the right of way goes to the driver who is closest, so always approach slowly to make the correct judgment, even if you don't see anyone ahead.
Most other roads, such as those leading to popular destinations such as the Golden Circle and the Blue Lagoon, are tarmac. However, if you stray into the countryside, you will likely encounter gravel tracks. These can be narrow and very bumpy and should be traversed with caution, especially by those who are not used to such conditions. However, all vehicles can drive on them.
F roads in Iceland are only accessible if you rent a jeep or four-wheel drive. They can be quite daunting, crossing rivers and winding along narrow mountain passes, so only confident drivers should take these routes.
Although they come with a unique set of risks, the roads in Iceland are perfectly safe to drive if you have good judgment and know your limits.
Rules & Regulations for Driving in Iceland
It is important that travelers who rent a car in Iceland are aware of laws here that are different from those of their home country, so be sure to take the following notes.
To rent a car, you must have had a valid driver's license for one year. To rent a minibus or a four-wheel drive, you must be at least 23. Your license must be in Latin alphabet characters or accompanied by an International Driving Permit.
The speed limits are generally lower than in other European countries due to the hazards associated with driving in Iceland. The maximum speed limit on paved highways in the countryside is 90 km/h. On gravel roads, the limit is 80 km/h, and in towns and cities, generally 50 km/h.
If you are unsure or if the area is not signposted, it is best to assume the limit is 50 km/h. In some areas, signs encourage you to reduce speed, but it is generally expected that drivers will use common sense and choose a safe speed according to the conditions. More common are signs indicating specific hazards ahead, such as sharp bends or exposure to high winds.
For safety reasons, motorists are obliged by law to keep headlights at all times, even during summer when the sun does not set. Blind corners are common, and, of course, the deep winters are notoriously dark. Even at midday, it is barely brighter than during the twilight hours.
As in most countries, all passengers are required by law to wear a seatbelt. Driving under the influence of alcohol, or using a mobile phone while driving, is strictly forbidden. Speeding fines are high, and there are many traffic cameras throughout the country.
Driving on F-roads is legal if you rent a jeep or a four-wheel-drive, and only if they have been opened for the summer. It is against the law, and foolish, to travel on any roads that are cordoned off for safety reasons.
The fragile, delicate nature of Iceland's wildlife means that driving off-road is strictly forbidden. Doing so is punishable by hefty fines and even a jail sentence of up to four years. Much of the country's volcanic landscape has been formed over millions of years, and the beautiful moss that creeps across it takes centuries to grow. Driving carelessly through vegetation will cause damage that can take decades to recover.
If you have an accident or need urgent help, call 112 for emergency services.
Driving Off the Beaten Track in Iceland
Most roads within Iceland's interior have a loose gravel surface, many are narrow, and some are raised from ground level to prevent weather-related closures. Although they are safe to drive, they present a unique set of hazards you should beware of when you plan to rent a car in Iceland. Leaving a tarmac road for a gravel one is a common accident site for visitors to Iceland. The driver approaches too fast and loses control of the vehicle. Drivers should always slow down and stay focused when the road's surface changes, and if the car begins to slide on the gravel, release the gas and steer gently in the direction it is pulling.
Slow down when you see oncoming traffic and move as close to the right-hand side as is safe. Beware that the loose road surface means it's easy to kick up rocks and stones, so practice this even if the roads are wide. Also, take notice of any sheep on the side of the road and make sure to come to a complete stop if sheep are crossing the road, as they roam free during the summer in Iceland.
If you decide to rent a jeep in Iceland, you can access the country's most remote places. The best time to do this is in summer, as before June, snow blocks and muddy conditions make many mountain and interior roads completely impassable. These roads can be very challenging to traverse, so it is always recommended that two or more 4x4 vehicles travel together. It is also advised that you leave your travel plan at Safetravel.is.
You should always know what the road conditions will be before you set out, and you can check this on the website of the Icelandic Road and Coastal Administration.
Don't Forget the Icelandic Weather
The unpredictable weather in Iceland can sometimes make driving the Ring Road a challenging experience. During the winter months, snowstorms, high winds, dense fog, icy roads, and perpetual darkness can complicate the simplest of journeys, and you must prepare for such conditions.
Before setting out anywhere, check the weather in Iceland on the website of the Icelandic Meteorological Office. Heed bad weather warnings and always err on the side of caution, especially if you do not have experience driving in these conditions. Throughout summer, the weather in the west and south is usually a lot less rough, but it is always wise to check out the forecast before starting your day.
Overall, drivers who are aware of the weather, the road conditions, and their own driving skills will have a safe and enjoyable time driving through the incredible beauty of Iceland. Make sure you know the rules and take all necessary precautions, and the whole of the country will be at your fingertips.
If you seek more information, please check out our ultimate guide to driving in Iceland.
Frequently asked questions
What kind of car should I rent in Iceland?
Can I rent a car in Iceland with automatic transmission?
Are car rentals expensive in Iceland?
What's the cheapest rental car in Iceland?
Can I pick up my rental car at Keflavik International Airport in Iceland?
At the end of your trip, you can also drop off the rental car at Keflavik Airport.
Can I rent a car at Keflavik International Airport in Iceland and drive to visit the Blue lagoon?
Do I need a 4x4 SUV car rental in Iceland?
The time of year you visit also plays a part. If you're visiting during the summer and plan on staying around Reykjavik or driving the Ring Road, a four-wheel drive rental car is not necessary, as the roads are paved and well-maintained.
However, if you're visiting Iceland during the winter when the roads get snowy and slippery, it is advisable to rent a four-wheel drive vehicle. Additionally, if you're planning to go into the Icelandic Highlands and drive on Iceland's F roads (which are only open during the summer), a four-wheel drive vehicle or SUV is required.
Is driving Iceland's Ring Road worth it?
How long does it take to drive the circle around Iceland?
Can I rent a car in Iceland and drive to see the northern lights?
Can I rent a car in Iceland and drive to the Golden Circle?
Can I rent a car in Iceland for one day?
What type of rental car is best for a self-drive tour in Iceland?
At other times of the year, we recommend renting a 4x4 vehicle or an SUV so you'll be prepared for snow or ice on our winter self-drive tours. You can advise our rental car size guide for further information.
What rental cars are suitable for driving in the Highlands of Iceland?
Can I rent a car in Iceland with manual transmission?
Can I rent a camper or a camper van in Iceland?
What sort of rental cars are considered luxury vehicles in Iceland?
Can I rent an electric car in Iceland?
Can I charge electric rental cars when driving around Iceland?
What is the cheapest way to rent a car in Iceland?
Are rentals cars with automatic transmission in Iceland more expensive than cars with manual transmission?
What is the best car rental comparison site in Iceland?
What is the best car rental company in Iceland?
Where do I pick up my rental car in Iceland?
Can I pick up or drop off my car at the Reykjavik domestic airport in Iceland?
Can I pick up my rental car at my hotel or a specific address in Reykjavik?
Are car rentals in Iceland open 24/7?
What is required to rent a car in Iceland?
Can I return my rental car early in Iceland?
Can I return my rental car outside of office hours in Iceland?
What happens to my car rental in Iceland if my flight has been delayed?
How much is the deposit when I pick up the rental car in Iceland?
Check the vehicle information on the rental car booking page. Please don't hesitate to contact us at info@guidetoiceland.is for further details.
Can I extend my car rental reservation once I have picked up the car in Iceland?
Can an existing rental car booking be amended in Iceland?
Is an International Driving Permit necessary to rent a car in Iceland?
Do I need a credit card to rent a car in Iceland?
Can I pay the car rental deposit in Iceland with a credit card different from the one I used online?
Can I rent a car with no deposit in Iceland?
What is included with my rental car in Iceland?
How old do I need to be to rent a car in Iceland?
Do rental cars in Iceland have cameras?
Do rental cars in Iceland have winter tires and snow chains?
Do I need a GPS device when I rent a car in Iceland?
What insurances are included with rental cars in Iceland?
Complete coverages are also available, such as Premium or Platinum insurances which usually reduce the self-risk to zero. These are the most recommended options for a carefree trip, especially if you’re traveling during the winter.
Do I need gravel protection when I rent a car in Iceland?
However, if you're planning to go off the beaten path and explore remote areas, you will need to drive on Iceland's gravel roads. In that case, it would be advisable to buy gravel protection insurance as the car could get damaged when driving on unpaved roads.
Do I need to buy theft protection with my car rental in Iceland?
Do I need tire insurance when renting a car in Iceland?
Can I forfeit CDW insurance on my rental car in Iceland?
What rental car damages are not covered by any insurance in Iceland?
Each Iceland car rental has its own terms and coverages. Therefore, we highly recommend checking for more details on the contract you sign when picking up the car.
Do any car rentals in Iceland offer zero-deductible insurance?
Am I still insured when driving off-road in Iceland?
Is driving in Iceland difficult?
However, during the winter, it can be harder to drive in Iceland if the roads are slippery due to freezing temperatures or if there has been heavy snowfall. We recommend hiring a 4x4 vehicle to drive in winter conditions. All car rentals in Iceland will be equipped with winter tires from November 1–April 14. Be aware that Icelandic weather can be unpredictable even in summer, and be sure you adhere to all traffic rules.
When traveling to remote places in the country, sometimes only gravel roads can take you there. In those cases, it's not enough to have a small car as it can get damaged. We recommend renting an SUV or a 4x4 vehicle to ensure you can traverse the gravel roads. And remember to always drive slowly on gravel roads.
What is the speed limit in Iceland?
What are the F roads in Iceland?
It's necessary to have a 4WD (four-wheel drive) or an AWD (all-wheel drive) vehicle to drive on Icelandic F roads. It's also important to check road conditions on the Icelandic Road Administration website before you embark on a drive into the Highlands on the F roads.
Where can I check road conditions and weather when driving in Iceland?
Are road signs in Iceland in English?
On what side of the road do they drive in Iceland?
Is it easy to find gas stations to fuel my rental car when driving around Iceland?
Can I sleep in my rental car in Iceland?
Can I turn off my headlights while driving in Iceland?
Can I turn right on red in Iceland?
What do I need to rent a car in Iceland?
Do I need additional insurance when renting a car in Iceland?
Can I use my own car insurance when renting a car in Iceland?
Can I drive in Iceland with my foreign driver's license?
Can I rent a car in Iceland if I am under 20 years old?
Can I rent a car in Iceland with a debit card?
Do I need to carry any specific documents while driving in Iceland?
Is it possible to rent a car in Iceland during the winter season?
Is it possible to rent a car in Iceland with a one-way rental option?
Are there any restrictions on where I can drive my rental car in Iceland?
Can I bring my own car seat or GPS device when renting a car in Iceland?
Do I need to fill up the gas tank before returning the rental car?
Can I rent a car in Iceland with a different drop-off location than the pick-up location?
Are there any additional fees or taxes when renting a car in Iceland?
Can I use my mobile phone while driving in Iceland?
Are there any particular road hazards to watch out for in Iceland?
What should I do if the rental car breaks down or I get into an accident?
What should I do if I encounter an emergency while driving in Iceland?
Call emergency services: In Iceland, the emergency number is 112. This number connects you to police, ambulance, and fire services. Explain the situation and provide your location.
Use hazard lights: Turn on your vehicle's hazard lights to alert other drivers that there is an emergency.
Stay safe: Stay in your vehicle if it's not safe to exit, such as during a storm or in a high-traffic area. If you need to exit the vehicle, make sure to wear reflective clothing and stay in a safe location away from traffic.
Document the situation: Take photos or videos of the situation, including damage to the vehicle or any injuries sustained. Exchange contact and insurance information with any other parties involved.
Contact your rental company: If you are driving a rental car, contact the rental company to inform them of the situation and follow their instructions for the next steps.
Remember, safety should always be your top priority in an emergency situation.
What are the typical fuel costs in Iceland?
Petrol (Gasoline): Prices per liter for petrol in Iceland could range significantly but were generally around 290 to 320 Icelandic Króna (ISK). This translates to approximately 2.5 to 2.8 USD per liter, given the exchange rates at the time.
Diesel: Diesel prices were slightly lower than petrol, usually ranging from 270 to 300 ISK per liter, which is about 2.2 to 2.5 USD per liter.
However, these prices can fluctuate based on global oil prices, local taxes, and currency exchange rates. It's always advisable to check current prices as they can change frequently.
Is there a mileage limit when renting a car in Iceland?
How do I pay for toll roads or tunnels in Iceland?
Are there any eco/environmental considerations when renting a car in Iceland?
Size of Vehicle: Rent a car that suits your needs. Larger vehicles typically consume more fuel, so if you don't need the extra space, choose a smaller, more fuel-efficient model.
Stick to Designated Roads: Driving off-road is not only illegal in Iceland but also damaging to the environment. Stick to marked roads and paths to protect the delicate natural landscapes.
Car Sharing: If traveling with a group, consider carpooling in one vehicle instead of renting multiple vehicles. This reduces overall emissions.
Proper Disposal of Waste: Always dispose of your waste properly. Never leave trash in the rental car or throw it out in nature.
Is it necessary to make a reservation in advance, or can I rent a car upon arrival in Iceland?
What happens if I get a parking ticket or traffic violation with my rental car in Iceland?
Check our guide to parking in Reykjavik for further information to prevent parking tickets.
Do rental car companies in Iceland provide emergency assistance or breakdown services?
Is there a young or senior driver fee when renting a car in Iceland?
Are there any promotions or discounts commonly available for car rentals in Iceland?
How do car rental companies in Iceland handle issues like lost keys?
How is the availability of electric vehicle charging stations in Iceland?
Are child or booster seats available for rent when renting a car in Iceland?
Can I cross country borders with my rental car from Iceland?
Do rental car companies offer any guided tours or recommended routes for exploring Iceland?
Are there seasonal considerations or restrictions, such as road closures, that can impact car rentals or driving routes?
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