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Hire a cheap or luxury rental car in Iceland at the best price on the largest car rental marketplace in Iceland
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Read first-hand reviews by customers from across the world

Olga
10
Amazing!

Olga

Review of Northern Lights Car Rental

From the moment we arrived, our experience with this company was outstanding. We were promptly greeted at the airport, and a shuttle bus quickly transported us to their rental office. The vehicle we received was clean, comfortable, and very spacious, making our journey exceptionally pleasant. Returning the car was just as smooth – as soon as we dropped it off, the shuttle bus promptly took us back to the airport. We highly recommend this company for their professional, efficient service and excellent customer care.

Jack Doncaster
10
Amazing!

Jack Doncaster

Review of Foss Car Rental

Great service! Will use again if I return. Would recommend to anyone.

Borja Grande Sánchez
10
Amazing!

Borja Grande Sánchez

Review of Project Car Rental

Everything was easy! The kept in touch with any question! Dacia Duster 4x4 diesel.

Orrin J Olsen
10
Amazing!

Orrin J Olsen

Review of Ring Car Rental

The car we rented from Ring served us well. We were glad to have a good rental car since we drove so many miles. We started by driving to Vik and then to Diamond Beach. Next we drove the Golden Circle. The last drive was to the Snaefellsness Peninsula. The staff at Ring are very helpful.

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Book Your Car Rental in Iceland

Discover the best 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 car rental deals in Iceland. 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.

Types of Rental Cars in Iceland

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:

  1. Economy cars: These are the smallest and most affordable cars available, suitable for city driving and short trips.

  2. SUVs & 4x4 vehicles: Four-wheel-drive cars offer extra space for passengers and are ideal for driving in rough terrain and winter conditions.

  3. Campervans: These vans are equipped with a bed, kitchenette, and storage space, allowing travelers to camp and explore the country at their own pace.

  4. Luxury cars: High-end vehicles 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.

Where To Rent a Car in Iceland

The majority of travelers rent a car at Keflavik International Airport, Iceland’s main entry point. Located about 40 minutes from Reykjavik, Keflavik offers 24/7 pick-up and drop-off services, ensuring convenience no matter when your flight arrives or departs. Renting at the airport allows you to begin your journey immediately without additional transfers.

It's also possible to rent cars from Reykjavik, Iceland’s capital and a popular starting point for exploring the country. Travelers can rent in Keflavik and return the vehicle in Reykjavik, or vice versa, though additional fees may apply for this service.

For those venturing beyond the southwest, car rentals are offered in key towns like Akureyri in the north, Egilsstadir in the east, and Hofn in the southeast. Rentals are also available in regions such as the Westman Islands, the Westfjords, and the Snaefellsnes peninsula. However, options outside of Reykjavik and Keflavik are more limited, with fewer agencies and vehicle types.

Car Rental Pickup in Iceland

Picking up your rental car in Iceland is a straightforward process, with multiple locations to choose from based on your travel plans.

Most travelers pick up their rental cars at Keflavik International Airport (KEF), where a few car rental companies have in-terminal desks. However, the majority of rental agencies are located just a few hundred meters from the airport and offer complimentary shuttle services to their offices or desks. Shuttle pick-up points are conveniently marked outside the arrivals hall.

For those starting their journey in the capital, Reykjavik also has several car rental locations, making it easy to explore Iceland without immediately renting at the airport. 

Travelers exploring other parts of Iceland, such as Akureyri, Egilsstadir, or the Westfjords, will also find rental options, though availability may be more limited outside major hubs. Booking in advance ensures the best selection and rates, especially during peak travel seasons.

Rules & Regulations for Driving in Iceland

Driving in Iceland can be a unique and exciting experience, but it also requires careful preparation and attention to safety. Whether you're sightseeing on the South Coast or exploring remote areas, understanding the essentials of driving in Iceland will help you enjoy a safe and memorable journey. Here’s what you need to know.

Car Rental Requirements in Iceland

To rent a car in Iceland, you must:

  • Have a valid driver’s license for at least one year.
  • Be at least 23 years old to rent a 4x4 or minibus.
  • Provide an International Driving Permit if your license is not in Latin characters.

Speed Limits in Iceland

Speed limits in Iceland are strictly enforced:

  • 90 km/h (56 mph) on paved rural roads.
  • 80 km/h (50 mph) on gravel roads.
  • 50 km/h (31 mph) in towns and cities.

In certain areas, such as school zones, residential neighborhoods, or near construction sites, the speed limit can be lower. Always follow posted speed limits, as they take precedence over general rules. If no signs are visible, assume the limit is 50 km/h.

Driving on F-Roads in Iceland

Mountain roads, known as F-roads, require a 4x4 vehicle and are only open during the summer. Always check the road conditions on road.is before venturing into Iceland’s Highlands. You are also advised to leave your travel plan on ​​​​​​safetravel.is for safety.

Iceland’s No Off-Road Driving Policy

Off-road driving is illegal in Iceland due to its devastating impact on the fragile environment. These roads often involve river crossings, and attempting them without proper preparation is dangerous. Damage to moss-covered lava fields takes decades to recover and is sometimes irreversible, and violators face steep fines or even imprisonment.

Safety Rules for Driving in Iceland

With proper preparation and attention to safe driving practices in Iceland, travelers can enjoy an unforgettable experience on the road. Follow these essential rules to stay safe on your journey:

  • Never drive under the influence.
  • Never use a mobile phone while driving.
  • Stick to posted speed limits, as traffic cameras are common, and fines are high.
  • Only stop for photos at designated pull-off areas to avoid accidents.
  • Always check weather and road conditions before setting out.
  • Dial 112 in case of emergencies for immediate assistance.

Iceland’s roads can be narrow, winding, and prone to high winds, so always drive cautiously. Keep headlights on at all times, and ensure all passengers wear seatbelts. Additionally, sheep roam freely across rural areas during summer, so drive cautiously and be prepared to stop if they cross the road unexpectedly.

Driving in Iceland's Weather

Driving in Iceland offers stunning views of glaciers, waterfalls, and geothermal hot springs, but unpredictable weather makes preparation essential. Always check the latest forecast on the Icelandic Meteorological Office before heading out and adjust your plans accordingly.

Driving in Summer

May to September typically brings mild weather and ideal driving conditions in Iceland. However, sudden rain, fog, or strong winds can still create challenges. Longer daylight hours make summer driving easier, but it’s still important to monitor daily forecasts for unexpected changes.

For a stress-free experience, consider summer self-drive tours in Iceland, which include a rental car, accommodations, optional activities, and a customizable itinerary.

Driving in Winter

Winter driving can be a unique and rewarding experience, but it requires extra preparation, especially from December through March. Snowstorms, high winds, fog, and icy roads are common, and daylight hours are shorter, down to four or five hours in midwinter. With the proper preparation, including winter tires and checking weather updates, you can safely enjoy driving in Iceland.

To simplify planning, explore winter self-drive tours in Iceland, which bundle everything you need for a safe and scenic adventure.

Why Rent a Car in Iceland

Renting a car in Iceland is the most convenient way to explore the country’s stunning landscapes and unique attractions. Public transportation options are limited, and many of Iceland’s most iconic destinations—like remote waterfalls, glacier lagoons, and volcanic craters—are only accessible by car.

The benefits of renting a car in Iceland:

  • Flexibility: Renting a car in Iceland lets you explore at your own pace.
  • Convenience: Avoid relying on public transportation or restrictive tour schedules.
  • Cost-effectiveness: A rental car can be cheaper than other options for groups.
  • Independence: Plan your own itinerary and change plans freely while traveling.
  • Scenic routes: Enjoy Iceland’s stunning landscapes and stop whenever you want.
  • Remote access: Reach remote areas of Iceland not accessible by public transport.
  • Avoid crowds: Escape busy tourist spots and explore off-the-beaten-path locations.

In conclusion, renting a car in Iceland offers a convenient and flexible way to explore the country.

Summary

Overall, drivers who are aware of the weather, the road conditions, and their own driving skills will have a safe and enjoyable time driving in Iceland. By staying informed about the weather, road conditions, and your own capabilities, you’ll be able to fully enjoy the breathtaking landscapes and unique experiences Iceland has to offer. Safe driving!

Frequently asked questions

What kind of car should I rent in Iceland?
The best rental car in Iceland depends on the number of travelers, luggage size, and travel plans. For those who want to combine transportation with accommodation, renting a camper van is ideal. If you plan to explore cities and stick to paved roads, renting a small economy car is enough. For winter travel or reaching remote hiking areas, renting a 4x4 SUV ensures safety and versatility. For more details, see our rental car size guide.
What is the best car rental company in Iceland?
To find the best car rental provider in Iceland, we recommend reading the user reviews on Guide to Iceland for each car rental. Some of the highest-rated car rentals in Iceland include Ring Car, Go Car Rental, Blue Car Rental, Lava Car Rental, and My Car. All these car rentals and dozens more are included in our comprehensive car rental search engine, allowing you to compare prices and guarantee you find the best prices on rental cars in Iceland.
What is the best car rental comparison site in Iceland?
Here at Guide to Iceland, we aggregate all available rental cars from over 40 rental providers in Iceland, giving you the best way to compare prices and find the perfect rental car for you. Just put your requirements in our rental car search engine, and we will find you the best available rental deal from the top car rental companies in Iceland.
What is the cheapest way to rent a car in Iceland?
The cheapest way to rent a car in Iceland is to search the Guide to Iceland car rental marketplace. It is the largest travel marketplace in Iceland, offering the largest collection of car rental companies in Iceland, and the widest selection of rental cars. After selecting your travel dates, you can sort by the lowest price. Pricing depends on how many days you want to rent the car and the time of year.
What's the cheapest rental car in Iceland?
The cheapest rental car you can get in Iceland is a Toyota Aygo. Rates are typically lower during the low season between October and May. The longer you rent the car, the cheaper it is per day. During summer, prices increase as demand rises. If a compact model is sufficient for your journey and you book well in advance, it's normally still possible to find cheap cars in Iceland for your trip.
Are car rentals expensive in Iceland?
Car rentals in Iceland are not expensive if you know where to look for the best deals. The car rental search engine on Guide to Iceland compiles options from all the main providers, making it easy to compare and find the lowest prices on rental cars in Iceland.
The price of auto rentals in Iceland varies depending on the car type and season. Small economy cars suitable for paved roads are typically the most affordable, while SUVs and luxury vehicles, including 4x4 cars capable of river crossings, are also available at competitive prices. Comparing options ensures you get the best value for your trip.
Can I rent a car in Iceland with automatic transmission?
Yes, many rental cars in Iceland come with automatic transmission, including options in economy, SUV, and luxury categories. Automatic cars are a convenient choice, especially for travelers unfamiliar with Iceland’s road conditions. To guarantee an automatic vehicle, carefully read the product description before booking.
Can I rent a car in Iceland with manual transmission?
Yes, rental cars with manual transmission are widely available in Iceland, particularly in economy and mid-size categories. Manual cars are often slightly cheaper to rent than automatics, making them a popular choice for budget-conscious travelers. Be sure to check the car’s specifications in the product description before booking to ensure it meets your preferences.
Are automatic rental cars more expensive than manual cars in Iceland?
Yes, automatic rental cars are typically more expensive than manual cars in Iceland. The price difference depends on the car category, but automatic cars remain a convenient option for many travelers. Be sure to compare prices and confirm the transmission type in the product description before booking.
Can I rent a camper or a camper van in Iceland?
Yes, you can rent camper vans in Iceland. Renting a camper van is a convenient way to explore Iceland’s natural beauty and enjoy flexibility in your travel plans. Camper rentals offer you the freedom to stay at designated campsites, which you can find all around the country. We have plenty of options if you're looking for a cheap camper van to rent in Iceland, so check out our selection and find the best camper for you.
What sort of rental cars are considered luxury vehicles in Iceland?
Luxury car rentals in Iceland are generally very new vehicles that offer high-end comfort and can accommodate up to seven passengers with luggage. Most of them have four-wheel drive (4WD) or all-wheel drive (AWD) and are elevated to handle gravel roads and snowy conditions better. However, this category also includes some two-wheel drive vehicles, such as sports cars and high-end hatchbacks.
Do I need an SUV to drive in Iceland?
This depends on your travel plans. You don’t need an SUV to drive in Reykjavik or along the Ring Road, as these roads are paved and well-maintained. However, an SUV or 4x4 vehicle is recommended if you plan to explore gravel roads or travel during winter when conditions can be snowy or icy.
For driving in the Icelandic Highlands and on F-roads, a 4x4 vehicle or SUV is required, as these areas feature rough terrain and unpaved roads. Always check your rental agreement to ensure the car is approved for F-roads.
What rental cars are suitable for driving in the Highlands of Iceland?
Cars that are suitable for traveling in the Icelandic Highlands are marked as such on our website. These are generally in the luxury, 4x4 Jeep, SUV, and camper van categories of cars to rent in Iceland. Please note that driving a rental car not marked for highland travel will void any insurance you've purchased. Therefore, you will be liable for all damages to the undercarriage or suspension.
What rental options are available for groups larger than 7 people?
Larger groups can rent minibuses or 9-seater vans. Ensure you book early, especially during peak seasons.
How much does a liter or gallon of fuel costs in Iceland?
Fuel prices in Iceland are relatively high compared to many other countries due to taxes and import costs. As of January 2025, petrol (gasoline) costs between 300 and 330 ISK per liter, which is approximately 2.6 to 2.9 USD per liter. Diesel is slightly cheaper, ranging from 280 to 310 ISK per liter, or about 2.4 to 2.7 USD per liter.
For those measuring in gallons, petrol costs around 9.8 to 10.9 USD per gallon in Iceland. Diesel costs approximately 9.1 to 10.2 USD per gallon in Iceland. This is based on the conversion of 1 liter to about 0.26 gallons.
Where do I pick up my rental car in Iceland?
There are many options for picking up your rental car in Iceland. Many rental car companies give you the option to pick up your car at the Keflavik International Airport in Iceland shortly after you land. You can also pick it up in Reykjavik, Akureyri, or several other locations, which you can select from the drop-down menu in our car rental search engine.
Can I pick up my rental car at Keflavik International Airport in Iceland?
Yes, many car rental companies in Iceland offer the option to pick up your rental car directly at Keflavik International Airport upon arrival. This convenient location allows you to drive straight to Reykjavik or take a detour to the Blue Lagoon for a relaxing soak in its geothermal waters after your flight. At the end of your trip, you can easily return the car at Keflavik Airport before departure.
Can I rent a car at Keflavik International Airport and drive straight to the Blue lagoon?
Yes, you can rent a car at Keflavik International Airport and drive directly to the Blue Lagoon. The distance from Keflavik Airport to the Blue Lagoon is only 13 miles (21 kilometers) and can be driven in less than half an hour. The Blue Lagoon also has lockers to store your luggage while you soak in the warm geothermal water. Just remember to book your rental car and Blue Lagoon entrance tickets in advance.
Can I pick up or drop off my car at the Reykjavik domestic airport in Iceland?
Yes, some car rentals are located at the domestic Reykjavik airport, close to the city center. There you can conveniently pick up your rental car or drop it off before flying to another part of the country.
Can I pick up my rental car at my hotel or a specific address in Reykjavik?
Yes, some car rental companies will bring your vehicle to your hotel or a specific address in the city. Make sure to read the description before renting the car and see if the car rental provides this service. It is also popular to simply pick up the car at the international airport in Iceland once you land in the country.
Can I rent a car in Iceland with a different drop-off location than the pick-up location?
Yes, many car rental companies in Iceland offer one-way rentals with a different drop-off location than the pick-up location. You could, for example, pick up your car in Reykjavik and return it to Keflavik Airport. However, additional fees may apply.
Are car rentals in Iceland open 24/7?
Some car rentals are open 24/7, allowing you to pick up or drop off your rental car at any hour of the day. Usually, car rentals that are open around the clock are located at the Keflavik International Airport, so visitors can rent a car as soon as they land in Iceland and drop the vehicle off when they leave.
Is driving Iceland's Ring Road worth it?
Yes, driving Iceland's Ring Road is absolutely worth it. This route takes you through a wide range of Iceland’s stunning landscapes, from waterfalls and glaciers to black sand beaches and volcanic fields. The Ring Road is fully paved and well-maintained, ensuring a smooth drive as you explore Iceland’s breathtaking scenery and top attractions.
How long does it take to drive the circle around Iceland?
Driving Iceland's Ring Road, which circles the entire island, takes about 16–20 hours without stopping. However, this doesn’t allow time to enjoy the many attractions along the way. To fully experience Iceland’s natural wonders, we recommend renting a car for at least 4–5 days. Most travelers prefer spending 7–14 days exploring Iceland, following a self-drive itinerary tailored to their interests. Self-drive packages in Iceland include a rental car, travel itinerary, and accommodations along the planned route, offering an easy way to enjoy an unforgettable road trip.
Is it worth renting a car to see the northern lights in Iceland?
Yes, renting a car is one of the best ways to increase your chances of seeing the northern lights in Iceland. It allows you to drive out to remote areas with dark skies, far from light pollution. For tips on finding the aurora, check out our guide on how to spot the northern lights. If you’d like added convenience, a 1-week northern lights self-drive tour in Iceland combines a rental car, accommodations, and a pre-planned itinerary featuring top aurora-viewing spots.
Can I rent a car in Iceland and drive the Golden Circle?
Yes, renting a car in Iceland is an excellent way to explore the wonders of the Golden Circle. The route is fully paved and well-maintained, so a cheap car from our wide selection of small rental cars in Iceland is perfect for driving this famous loop. You can easily rent a car for the day and enjoy this iconic journey at your own pace.
Can I rent an electric car in Iceland?
Yes, some of our cars in the Luxury category are electric or hybrid cars. These include electric vehicles from car companies such as Tesla and Toyota.
Are hybrid and electric cars available for rent in Iceland?
Yes, Iceland offers a growing number of hybrid and electric rental cars, including Tesla and Toyota models. Charging stations are available in Reykjavik, Akureyri, and along the Ring Road, but they are limited in remote areas.
Can I charge electric rental cars when driving around Iceland?
Yes, since Iceland is rich in geothermal energy, you can find charging stations at many gas stations and parking lots around the country. It's good to plan ahead where you will stop and charge along the way, which you can do while exploring Iceland's natural wonders.
How is the availability of electric vehicle charging stations in Iceland?
The number of electric vehicle charging stations in Iceland is always growing, with multiple parking spots in the downtown area and most gas stations offering charging for electric vehicles. However, once you leave the capital, the number of electric charging stations becomes more sparse.
What is required to rent a car in Iceland?
To rent a car in Iceland you will need a valid ID, an international credit card, and to have had valid driver's license for at least 1 year. Most car rentals in Iceland also have an age requirement of 20 years old. Additionally, if your driver's license is not written in the Latin alphabet, you will need to provide an International Driving Permit.
How old do I need to be to rent a car in Iceland?
To rent a car in Iceland, the driver needs to be at least 18 years old and to have held a valid driver's license for at least 12 months. However, some car rentals require the driver to be at least 20 years old or they may add a small surcharge per day if the driver is under 20. To rent a minibus or a 4x4 vehicle, there is an age requirement of 23.
Can I rent a car in Iceland if I am under 20 years old?
Most rental companies in Iceland require drivers to be at least 20 years old, but some companies have a higher age requirement, while other companies allow people under the age of 20 to rent a car for an extra fee. It is best to check the minimum age on the rental car page beforehand to see if they allow drivers under the age of 20.
What do I need to rent a car in Iceland?
To rent a car in Iceland, you need a valid driver's license, a credit card in your name, and to be at least 20 years old (some rental companies have a higher age requirement). It is also recommended that you have a valid passport.
Can I rent a car in Iceland without a driver’s license?
No, renting a car in Iceland without a valid driver’s license is not possible. Your driver’s license must be issued by a recognized authority in your home country and be valid throughout your rental period. If your license is not written in the Latin alphabet (e.g., Russian, Arabic, Chinese), you must also present an International Driving Permit (IDP) along with your original license.
Can I drive in Iceland with my foreign driver's license?
Yes, you can drive in Iceland with a valid foreign driver's license. However, if your license is not written in the Latin alphabet, you will need to obtain an International Driving Permit (IDP) before arriving in Iceland.
Is an International Driving Permit necessary to rent a car in Iceland?
You do not need an international driver's license to drive in Iceland if your license is written in the Latin alphabet (such as English). If your national driver's license is in another alphabet (such as Cyrillic or Chinese), it must be accompanied by an International Driving Permit. You will be asked to present a physical copy of your license when you pick up your rental car in Iceland.
Do I need an International Driving Permit (IDP) to rent a car in Iceland?
An International Driving Permit (IDP) is required if your national driver’s license is not written in the Latin alphabet (e.g., Cyrillic, Japanese, Arabic). If your license is in English, Spanish, French, German, or another Latin-based language, an IDP is not required. However, you must carry your original license at all times.
Can I return my rental car early in Iceland?
Yes, early rental car returns are allowed in Iceland, but no refund is due unless the amendment has been requested before the pick-up date. Depending on the car rental, you can return your rental car early at the Keflavik Airport in Iceland or the domestic airport in Reykjavik.
How much is the deposit when I pick up the rental car in Iceland?
The rental car deposit in Iceland usually equals the CDW self-risk amount mentioned on the car rental booking page. Purchasing Premium or Platinum insurance exempts you from paying a deposit.
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 return my rental car outside of office hours in Iceland?
Some but not all car rental companies in Iceland offer pick-up/drop-off services outside of office hours. Please contact your car rental company directly for further information and note that extra charges may apply.
Do I need a credit card to rent a car in Iceland?
Customers need to present a valid credit card in the name of the main driver in order to rent a car in Iceland. If the person registered for the rental car does not have a credit card with them, the extra driver needs to be registered using their credit card, and they must have a valid driving license. If there is no credit card, the car rental company will ask for a deposit. The amount can vary depending on the rental company.
Can I rent a car in Iceland with a debit card?
It depends on the rental company. Some companies accept debit cards, but others require a credit card. In some cases, you will be required to buy full insurance or leave a deposit if you book with a debit card. It is best to check on the rental car page beforehand to see what payment methods are accepted.
Can I pay the car rental deposit in Iceland with a credit card different from the one I used online?
Yes, you can make a car rental deposit in Iceland with any credit card, as long as it is in the main driver's name.
What happens if I cannot provide a credit card for the deposit?
Without a credit card, you may need to purchase full insurance or leave a larger cash deposit, depending on the rental company’s policies. Some car rentals will refuse to rent their rental cars without a credit card.
Can I rent a car with no deposit in Iceland?
Most rental car companies in Iceland do not require a deposit, but you will need to provide a valid credit card. Please make sure to check the details of each company on our website.
What is included with my rental car in Iceland?
Features included with your rental car in Iceland will vary. Please read the description carefully and review the "Included" section before finalizing your booking. All rental cars include unlimited mileage and CDW insurance. CDW insurance covers all damage you might cause with the car and compensation for individuals hurt in an accident. Many Icelandic Camper Vans rentals also offer free camping equipment, but make sure you read the vehicle description, as camping items vary.
Is there a mileage limit when renting a car in Iceland?
When renting a car in Iceland, most companies allow for unlimited mileage while exploring the country. However, it's always advisable to read the rental agreement carefully and clarify any doubts with the rental company before finalizing your booking.
Are there any promotions or discounts commonly available for car rentals in Iceland?
You will find the best prices on car rentals at Guide to Iceland, where any promotions or discounts are already calculated into the price, giving you the best value for your money.
Is it possible to rent a car in Iceland during the winter season?
Yes, it is possible to rent a car in Iceland during the winter season. However, it is recommended to rent a four-wheel drive vehicle and check the weather and road conditions before driving.
Is it possible to rent a car in Iceland with a one-way rental option?
Yes, it is possible to rent a car in Iceland with a one-way rental option, but it may come with additional fees.
Can I rent a car in Iceland for one day?
Yes, you can rent a car for just one day. Simply choose the day you plan to rent an auto in Iceland in our car rental search engine and look at the available options.
Is it necessary to make a reservation in advance, or can I rent a car upon arrival in Iceland?
Making a reservation in advance to rent a car in Iceland is highly recommended, especially during peak travel seasons (summer and around late December), to secure a car during your stay.
Can an existing rental car booking be amended in Iceland?
If you want to modify your rental car reservation in Iceland after receiving the confirmation, please contact us directly at info@guidetoiceland.is. Extensions are possible based on availability, and extra charges are subject to the duration of the extension.
What happens to my car rental in Iceland if my flight has been delayed?
If your flight has been delayed, please inform the car rental company in Iceland directly through the phone number listed on your voucher. Including your flight number on your reservation will help the car rental company track your flight and be aware of any changes ahead of time. Please use the orange "Edit booking" button on your electronic voucher to add your flight number.
Can I extend my car rental reservation once I have picked up the car in Iceland?
Yes, if the car is available, it's not a problem to extend your car rental reservation in Iceland. Please contact us directly at info@guidetoiceland.is and we will amend the booking for you.
What happens if I need to change my booking dates due to flight delays or cancellations?
You can change your booking dates up to 24 hours before pickup completely for free. If your flight is delayed contact us as soon as possible so we can help you make the necessary changes.
Can I cancel my car rental booking?
Yes, you can cancel your car rental booking and receive a full refund up to 24 hours before your pickup time. Send us an email and we'll cancel it for you and issue a full refund.
Do rental cars in Iceland have winter tires and snow chains?
All cars for rent in Iceland come with winter tires from November 1 until April 14. Snow chains are not allowed in Iceland because they damage paved roads and are usually unnecessary.
Do rental cars in Iceland have cameras?
No, rental cars in Iceland generally do not have dash cameras. However, many auto rentals have a GPS device included, which customers are free to use while traveling around the island.
Do I need a GPS device when I rent a car in Iceland?
Some rental cars in Iceland come with a GPS included with the car rental. For travelers unfamiliar with Iceland, this is useful for getting around the country. However, not all rental cars come with a GPS device, so you might need to pay for an add-on if you want to include it. For drivers that are comfortable using a navigational app on their smartphone, a GPS device may not be necessary, but keep in mind that some remote regions in Iceland don't have internet service.
Can I bring my own car seat or GPS device when renting a car in Iceland?
Yes, you can bring your own car seat or GPS device when renting a car in Iceland. However, most rental companies offer these items for an additional fee.
Can I use my mobile phone as a GPS while driving in Iceland?
Yes, you can use a mobile phone for navigation, but coverage is unreliable in remote areas. Iceland has many regions without cell service, especially in the Highlands. It’s recommended to download offline maps (Google Maps, Maps.me) before your trip or rent a GPS device from the car rental company.
Do I need gravel protection when I rent a car in Iceland?
Whether you need gravel protection in Iceland depends on where you will be driving during your visit. If you're staying in Reykjavik and planning to drive popular routes such as the Golden Circle or the Ring Road, gravel protection is not necessary as those roads are paved and well-maintained.
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?
Even though Iceland has low crime and is a very safe country, it is worth getting theft protection if you carry valuables in your car.
What insurances are included with rental cars in Iceland?
CDW (Collision Damage Waiver) insurance is included by default for all car rental reservations in Iceland. Most rental car companies also offer the option of adding SCDW (Super Collision Damage Waiver), TP (Theft Protection), GP (Gravel Protection), and SADW (Sand & Ash Damage Waiver) insurance.
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 additional insurance when renting a car in Iceland?
It is highly recommended that you purchase additional insurance when renting a car in Iceland, especially if you plan on driving in the winter months. The most common types of insurance are Super Collision Damage Waiver (SCDW) and Gravel Protection (GP). It is important to note that these insurances do not cover damages caused by driver negligence, such as driving under the influence of drugs or alcohol.
Do I need tire insurance when renting a car in Iceland?
We recommend getting tire insurance if you plan to drive on any of the gravel roads in Iceland. That way you don't have to worry in case something happens to the tires while you're driving and you can focus on enjoying your surroundings.
Can I forfeit CDW insurance on my rental car in Iceland?
You can forfeit the CDW insurance on your rental car in Iceland, but this is something we do not recommend. If you do, you will be personally liable for all and any damages that occur to the car, occupants, and other people involved.
What rental car damages are not covered by any insurance in Iceland?
Several rental car damages are not covered by insurance in Iceland. Those include damages caused by negligence, such as driving into waters and rivers. Driving off-road is illegal in Iceland and therefore any damages caused by driving off-road are not insured. Likewise, damage caused by the wind blowing a door off the car is not covered (keep a good grip on the car door when opening it under windy conditions). Driving while intoxicated or under the influence of drugs is, of course, not covered by insurance either.
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?
Yes, many car rentals in Iceland offer zero-deductible insurance. The vehicle’s booking page will list it in their insurance options if available.
Can I use my own car insurance when renting a car in Iceland?
It depends on your insurance policy and the type of credit card you have. You should check with your insurance provider to see if your policy covers car rentals in Iceland. If it does, you will still need to purchase the minimum insurance required by the rental company.
Am I still insured when driving off-road in Iceland?
No, off-road driving in Iceland is illegal and by doing so you forfeit all rental insurance. Even if the vehicle is undamaged, you might face a hefty fine when returning the car.
Do I need special insurance for river crossings in Iceland?
Yes, river crossings are not covered by standard rental insurance. If you plan to drive F-roads in the Highlands, ensure that your rental is approved for river crossings and consider purchasing additional water damage insurance.
Is driving in Iceland difficult?
For experienced drivers, there shouldn't be any problem following Iceland's traffic rules and adjusting to the local driving etiquette. Icelanders are mostly patient and courteous on the road and often give pedestrians the advantage even if it slows the driver down.
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?
The maximum speed limit on highways in Iceland is 90 km/h. The speed limit on gravel roads is 80 km/h. The speed limit in residential areas can be either 50 km/h or 30 km/h. Aside from these general rules, speed limits in Iceland are well displayed on yellow circular speed limit signs. For safety reasons, drivers should always pay close attention to Iceland's road signs and keep in mind that speed cameras are common.
What are the F roads in Iceland?
The F roads in Iceland are mountain roads (The F stands for "Fjall," the Icelandic word for mountain) in the Icelandic Highlands, which can be hard to traverse and are usually closed during the winter.
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.
Are road signs in Iceland in English?
Once you land at the airport in Keflavik, you will notice that Icelandic road signs use the metric system. The text on road signs is almost exclusively in Icelandic, so it's a good idea to learn what differently shaped road signs indicate and use your phone's navigation system or a GPS device. For more information, read our comprehensive guide on road signs in Iceland.
On what side of the road do they drive in Iceland?
In Iceland, there is right-hand traffic, meaning cars keep to the right side of the road.
Is it easy to find gas stations to fuel my rental car when driving around Iceland?
Yes, all towns and villages around Iceland have at least one gas station where you can refuel your rental car. Along the Ring Road, you'll also find some gas stations between villages. Usually, these service stations will have a small shop or diner where you can refuel yourself with some Icelandic hot dogs.
Are there toll roads in Iceland?
No, Iceland has only one toll tunnel, the Vadlaheidargong tunnel near Akureyri. The toll must be paid online before or after use. Otherwise, all roads, including the Ring Road and Golden Circle, are toll-free.
How do I pay for toll roads or tunnels in Iceland?
In Iceland, the majority of roads and tunnels do not require toll payments. However, the one exception is the Vadlaheidargong tunnel in North Iceland, which you can pay for online or simply drive through, and a scanner will detect your license plate number and charge you through your rental car company.
Are child seats mandatory when driving in Iceland?
Yes, Icelandic law requires children shorter than 135 cm (4 ft 5 in) to use an appropriate child seat or booster. Rental companies provide these for an additional fee.
Are child or booster seats available for rent when renting a car in Iceland?
Yes, you can add a booster seat for your child as an extra when renting a car in Iceland.
Can I sleep in my rental car in Iceland?
Yes, you can sleep in your rental car in Iceland at designated camping sites. We offer a variety of mini camper and van rentals in Iceland for those who want maximum mobility on their road trip.
Can I turn off my headlights while driving in Iceland?
No. Icelandic law requires all cars to have their headlights turned on at any time of day, whether it's dark or bright outside.
Can I turn right on red in Iceland?
No, Icelandic traffic laws do not allow turning right at a red light. When driving in Iceland, you will need to be patient and wait until the light turns green before turning right.
Do I need to carry any specific documents while driving in Iceland?
Yes, you should carry your driver's license, passport, and rental car documents while driving in Iceland.
Do I need to fill up the gas tank before returning the rental car?
Most car rental companies in Iceland require renters to return the car with a full tank of gas. If the tank is not full, the rental company may charge a refueling fee.
Are there any additional fees or taxes when renting a car in Iceland?
There will be no additional fees to the price you see on our website. This price includes all taxes. However, most auto rentals require a safety deposit on your credit card, which will not be charged if the car is delivered without damage.
Is there a young or senior driver fee when renting a car in Iceland?
Some car rentals in Iceland may add a young driver fee to your total, for drivers aged 25 years old or under. Similarly, a few car rental companies also apply a senior driver fee for drivers over the age of 70.
Are there hidden fees in Icelandic car rentals?
Most rental prices include taxes and basic insurance, but extra charges may apply for:
1. Young drivers under 25 or senior drivers over 70.
2. GPS rentals, Wi-Fi hotspots, or baby seats.
3. Late returns or early drop-offs outside office hours.
4. Gravel protection, tire insurance, or theft protection coverage.
What happens if I return my rental car late?
Most car rental companies charge an extra full day’s rate if you return the vehicle more than one hour late. Always check the grace period for late returns and notify the rental provider in advance if you're delayed.
Can multiple people drive a rental car in Iceland?
Yes, but all additional drivers must be registered when picking up the vehicle. Some rental companies allow one additional driver for free, while others charge an extra daily fee for each driver. Only registered drivers are covered by insurance.
Can I use my mobile phone while driving in Iceland?
No, using a mobile phone while driving in Iceland is illegal, unless using hands-free equipment. If you need to use your phone, it's always better to pull over to a safe location.
Are there any restrictions on where I can drive my rental car in Iceland?
Some rental car companies may restrict driving on specific F roads or in certain areas of Iceland like the Highlands. It is recommended to check on the rental car page if the car is suitable for highland driving before you book
Are there seasonal considerations or restrictions, such as road closures, that can impact car rentals or driving routes?
Yes, during winter, the Highlands and the Westfjords are mostly closed off. The so-called "F roads" are closed off completely during winter as well.
Can I drive on beaches or off-road in Iceland?
No, off-road driving is strictly illegal in Iceland to protect the environment. Driving on beaches, lava fields, or moss-covered terrain is punishable by heavy fines of up to 500,000 ISK (3,600 USD). Always stay on designated roads and tracks.
What are the parking rules in Reykjavik and other Icelandic towns?
In Reykjavik and larger towns, street parking is paid during business hours and is divided into zones (cheaper further from the city center). Payment is available via parking meters or mobile apps. Outside urban areas, parking is mostly free, but parking on private land or nature reserves is illegal.
What happens if I get a parking ticket or traffic violation with my rental car in Iceland?
The simplest way to pay for it is to bring the ticket to any local bank and pay it there. If you don't pay your ticket directly, you will be charged by your rental car company after returning the vehicle. Depending on how long you stay in the country, the fine may increase if it remains unpaid for multiple days, so it's better to take care of it sooner rather than later.
Check our guide to parking in Reykjavik for further information to prevent parking tickets.
Are there any particular road hazards to watch out for in Iceland?
Yes, there are a few hazards to watch out for while driving in Iceland, including loose gravel, potholes, sharp bends, and narrow bridges. You may also encounter animals on the road, such as sheep and reindeer, particularly in rural areas.
Where can I check road conditions and weather when driving in Iceland?
The best way to check weather forecasts in Iceland is vedur.is. For current road conditions in Iceland, keep an eye on road.is, operated by the Icelandic Road Administration in cooperation with the Icelandic Meteorological Office.
Is it safe to drive in Iceland in winter?
Driving in Iceland in winter is safe if you rent a 4x4 vehicle and check road conditions daily. Roads can be icy, snowy, or closed due to storms. Winter tires are mandatory from November 1 to April 14, and it is advised to check road.is and vedur.is daily for weather updates.
Do rental car companies in Iceland provide emergency assistance or breakdown services?
Some rental car companies in Iceland do provide emergency assistance, so make sure to read the rental agreement before booking your car. If you need assistance on the road in Iceland, call us directly at +354 519 79 99.
Do Icelandic car rental companies provide 24/7 emergency assistance?
Yes, most major car rental companies offer 24/7 emergency support.
What should I do if the rental car breaks down or I get into an accident?
If the rental car breaks down or you get into an accident, contact the rental company as soon as possible. The rental company will provide instructions on what to do next and may arrange for a replacement vehicle if necessary. It's important to follow all procedures and instructions provided by the rental company in case of an emergency.
What should I do if I encounter black ice while driving?
If you hit black ice, follow these safety tips:
• Do not brake suddenly—instead, ease off the accelerator.
• Steer gently in the direction of the skid to regain control.
• Keep a safe distance from other vehicles and reduce speed.
What should I do if I encounter a sandstorm or extreme wind while driving in Iceland?
If you encounter a sandstorm or extreme wind, find a safe place to park and wait until the conditions improve. Keep your doors closed and secure all windows to prevent damage. Always check weather forecasts and road conditions before heading out at road.is and vedur.is.
What should I do if my rental car gets stuck in snow or sand?
If your rental car gets stuck in snow or soft terrain:
1. Do not spin the wheels aggressively, as this may damage the tires or engine.
2. Call your rental company for roadside assistance (many offer 24/7 support).
3. If you are in a remote area, call 112 (Iceland emergency services) for help.
4. If conditions allow, dig around the wheels and use traction mats if available.
What should I do if I encounter an emergency while driving in Iceland?
If you encounter an emergency while driving in Iceland, such as a breakdown or an accident, the first thing you should do is pull over to a safe location off the road, if possible. Then, follow these steps:
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.
Are snow chains allowed on rental cars in Iceland?
No, snow chains are illegal in Iceland because they damage the roads. Instead, all rental cars come with mandatory winter tires between November and April.
What should I do if I hit an animal while driving in Iceland?
If you hit a sheep, horse, or other animal, you must:
• Stop immediately and check for injuries.
• Call 112 (Iceland’s emergency services) and report the incident.
• Inform your rental car provider to assess vehicle damage.
Failure to report an animal collision can result in a fine.
Are there any specific hazards when driving near glaciers or in remote areas?
Hazards near glaciers include icy roads, loose gravel, and sudden weather changes. Always drive slowly on gravel roads and avoid parking too close to the glacier edges. In remote areas, carry a charged phone, warm clothing, and enough fuel.
What should I do if my rental car is vandalized or broken into?
Car break-ins are rare in Iceland, but if they occur:
• Call the police (112) immediately and file a report.
• Contact your car rental provider for further instructions.
• Do not leave valuables in the car overnight, as theft is not covered by standard insurance.
How do car rental companies in Iceland handle issues like lost keys?
If you lose your car key for your rental car in Iceland, you can expect to pay an additional fee when returning your car. However, some car rentals do offer insurance for lost keys and similar incidents.
Is leaving a car engine idling in Iceland discouraged?
Yes, idling is discouraged in Iceland for environmental reasons. Many Icelanders consider unnecessary idling wasteful and harmful to the climate. Turn off your engine when parked for long periods.
Can I cross country borders with my rental car from Iceland?
No, you cannot cross country borders with your rental car in Iceland. As Iceland is an island, the only way to do that would be via ferry. You can board your rental car to ferries that travel within Iceland's borders, but you can't leave Iceland's borders on your auto rental.
Are there any eco/environmental considerations when renting a car in Iceland?
When renting a car in Iceland, considering the environmental impact is important due to the country's fragile ecosystems and the growing emphasis on sustainable tourism.
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.
Do rental car companies offer any guided tours or recommended routes for exploring Iceland?
If you want to add guided tours or fun things to do while traveling Iceland on your rental car, you can book self-driving activities around the country, which can easily be added to your itinerary.
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