10
Amazing!
Peter Warner
Review of Auto Car Rental
Pick up and drop off at the airport. Good car. Great price. Lots of great tips about driving in Iceland, parking in Iceland, and general things to watch out for. We will book again.
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10
Amazing!
Dillon Tribble
Review of Auto Car Rental
We were picked up by Alonso Fernandez, I had no service but had wifi. Alonso stayed in constant communication until he found us and drove us to the Autocar location, which was a short drive. Booked with guide to Iceland so we had free WiFi for the trip (which you have to have). 10/10 would use both services we again.
10
Amazing!
Phil Wisdom
Review of Key Car Rental
Compared to most car hire companies this is a breath of fresh air: very relaxed and helpful. Calls and emails were answered promptly and a communications glitch owing to my phone being off swiftly resolved. The car was clean, comfortable and economical; if you want the full insurance package which includes sand and ash protection you might have to request it via email as it wasn’t an option when booking online, but I’m sure they’ll sort you out; nothing was too much trouble. Highly recommended, and a good price overall.
10
Amazing!
Atilla Yorulmaz
Review of Key Car Rental
At he beginning Iwas having an Opinion that the Car is very old. During the Trip we have hadnt any performance problems. Driving it was very easy and funny. Picking up and dropping of has happened rapidly. They were helpfull and kind.
10
Amazing!
Peter Warner
Review of Auto Car Rental
Pick up and drop off at the airport. Good car. Great price. Lots of great tips about driving in Iceland, parking in Iceland, and general things to watch out for. We will book again.
10
Amazing!
Dillon Tribble
Review of Auto Car Rental
We were picked up by Alonso Fernandez, I had no service but had wifi. Alonso stayed in constant communication until he found us and drove us to the Autocar location, which was a short drive. Booked with guide to Iceland so we had free WiFi for the trip (which you have to have). 10/10 would use both services we again.
10
Amazing!
Phil Wisdom
Review of Key Car Rental
Compared to most car hire companies this is a breath of fresh air: very relaxed and helpful. Calls and emails were answered promptly and a communications glitch owing to my phone being off swiftly resolved. The car was clean, comfortable and economical; if you want the full insurance package which includes sand and ash protection you might have to request it via email as it wasn’t an option when booking online, but I’m sure they’ll sort you out; nothing was too much trouble. Highly recommended, and a good price overall.
10
Amazing!
Atilla Yorulmaz
Review of Key Car Rental
At he beginning Iwas having an Opinion that the Car is very old. During the Trip we have hadnt any performance problems. Driving it was very easy and funny. Picking up and dropping of has happened rapidly. They were helpfull and kind.
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Iceland’s Leading Travel Agency
Recognized as Iceland's Leading Travel Agency for 8 consecutive years at the World Travel Awards, we are the most trusted source for planning your Icelandic adventure.
Iceland’s Largest Car Rental Marketplace
Compare prices and availability from Iceland’s top car rental companies, all in one place. From compact city cars to rugged 4x4s, we’ve got every journey covered.
Best Price Guarantee
Get the best rates on your rental—guaranteed. If you find a better price for the same car and conditions, we’ll match it.
Flexible Booking Options
Book now and modify your reservation with ease. Many rentals include flexible terms, giving you room to adjust your plans.
Reliable Local Partners
We only work with trusted Icelandic car rental companies known for quality vehicles, excellent service, and local know-how.
Multilingual 24/7 Customer Support
Whether you're on the road or preparing for your trip, our multilingual support team is available 24/7 with help in seconds.
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Book with us for exclusive discounts at Iceland’s best places, helping you save big on your trip to Iceland.
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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:
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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: Four-wheel-drive cars offer extra space for passengers and are ideal for driving in rough terrain and winter conditions.
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Campervans: These vans 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: 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?
Most travelers should rent a 4x4 SUV in Iceland. It’s the safest and most flexible option for handling changing weather, gravel roads, and winter conditions, and it’s required if you plan to drive in the Highlands. If you’re visiting Iceland in summer and plan to stick to the main paved roads, it’s enough to rent a small 2WD car.
What is the best car rental company in Iceland?
The best car rental companies in Iceland are MYCAR and Blue Car Rental. MYCAR has a rating of 9.6 out of 10 based on nearly 500 reviews, and Blue Car Rental has an average rating of 8.8 from more than 1000 reviews, reflecting consistently positive customer experiences. These ratings are based on verified customer reviews on Guide to Iceland.
How do I know if the car I booked is reliable and high-quality?
You can rest assured that your rental car is reliable and high-quality because we work exclusively with trusted Icelandic rental companies that maintain strict safety and service standards. Every vehicle is regularly checked and prepared for Icelandic road conditions, ensuring a clean, well-maintained, and dependable car when you arrive.
Do I need an SUV to drive in Iceland?
No, but many travelers still choose an SUV because it is the safest and most flexible option in Iceland. If you are visiting in summer and only plan to drive in Reykjavik, along the Ring Road, and on other main paved roads, a small 2WD car is usually enough. If you are driving in winter, plan to explore gravel roads or visit more remote areas, an SUV or 4x4 is the better choice. A 4x4 is also required on F-roads in the Highlands, and you should always check your rental agreement to make sure the vehicle is approved for F-roads.
What rental cars are suitable for driving in the Highlands of Iceland?
Only rental cars approved for F-roads are suitable for driving in the Highlands of Iceland. These are usually 4x4 vehicles with good ground clearance, built to handle rough, unpaved mountain roads. If you plan to explore the Highlands, choose a 4x4 Jeep, SUV, or camper van that is specifically marked “Yes” under “Highland Capabilities” on our website.
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.
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.
Can I rent a camper or a camper van in Iceland?
Yes, you can rent camper vans in Iceland. It’s 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 campsites all around Iceland.
What sort of rental cars are considered luxury vehicles in Iceland?
Luxury car rentals in Iceland are new vehicles that offer high-end comfort. Most of them have four-wheel drive (4WD) or all-wheel drive (AWD) and are elevated to handle gravel roads and snowy conditions better. The luxury car rental category also includes some two-wheel drive vehicles, such as sports cars and high-end hatchbacks.
What car rental options are available for groups larger than 7 people?
Larger groups can rent minibuses or 9-seater vans. These types of vehicles offer ample space for passengers and luggage, allowing everyone to travel comfortably together.
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. Some of our cars in the luxury category are electric or hybrid cars.
Can I charge electric rental cars when driving around Iceland?
Yes, charging your electric rental car in Iceland is easy along the Ring Road. Iceland is rich in geothermal energy, and you can find charging stations at almost all gas stations and many parking lots across the country, including in Reykjavik, Akureyri, and even smaller towns around the coast. The charging stations are more limited in remote areas, so it’s a good idea to plan ahead where you will stop to charge.
Can I rent a car in Iceland with automatic transmission?
Yes, you can rent a car with an automatic transmission in Iceland. Many rental cars in Iceland come with automatic transmission, including options in economy cars, 4x4 cars, and luxury vehicles. Automatic cars are a convenient choice, especially for travelers unfamiliar with Iceland’s road conditions. To guarantee an automatic vehicle, read the product description carefully before completing your booking.
Can I rent a car in Iceland with manual transmission?
Yes, definitely. 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 car rentals expensive in Iceland?
Car rentals in Iceland can be expensive, but with Guide to Iceland, you can easily compare offers from many of the country’s biggest car rental providers and find the best deals. The price of auto rentals in Iceland varies depending on the car type and season. Small economy cars are typically the most affordable, while SUVs and luxury vehicles are more expensive. Comparing options ensures you get the best value for your trip.
What is the best car rental comparison site in Iceland?
Guide to Iceland offers the biggest selection and the lowest prices for car rentals in Iceland. It is the country’s largest travel marketplace and leading travel agency. We bring together all available rental cars from over 40 providers in Iceland, giving you the easiest way to compare prices and find the perfect rental car. Simply enter your requirements in our rental car search engine, and we’ll show you the best available deals 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 book a small economy car well in advance and travel outside the peak summer season if possible. Comparing prices from different rental companies can also help you find the lowest available rate. Longer rentals often reduce the daily cost, so it is worth checking the total price across different rental lengths before booking.
What's the cheapest rental car in Iceland?
The Toyota Aygo and similar models are the most affordable rental cars in Iceland. Rates are generally lower during the low season, from October to May, and the daily cost decreases the longer you rent. During the summer, prices rise due to higher demand.
Are there any promotions or discounts available for car rentals in Iceland?
Car rental prices in Iceland often vary depending on demand, season, and availability. The best way to find deals is to compare options early and book in advance, especially for summer travel. Prices are typically lower in the off-season, and longer rental periods often come with reduced daily rates.
How old do I need to be to rent a car in Iceland?
To rent a car in Iceland, the driver must be at least 18 years old and have held a valid driver’s license for at least 12 months. However, some rental companies require the driver to be at least 20, or they may apply a small daily surcharge if the driver is below a certain age. To rent a minibus or a 4×4 vehicle, the minimum age requirement is 23 to 25.
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.
What are the requirements for renting a car in Iceland?
To rent a car in Iceland, you need a valid driver’s license that you have held for at least one year, as well as a credit card in your name. Most rental companies in Iceland also require drivers to be at least 20 years old, though some have a higher age requirement. It is also recommended to carry a valid passport. Additionally, if your driver’s license is not in the Latin alphabet (e.g., Russian, Arabic, Chinese), you will need an International Driving Permit.
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 (e.g., Cyrillic, Chinese, Japanese, Arabic), you will need to obtain an International Driving Permit (IDP) before arriving in Iceland.
Do I need an International Driving Permit to rent a car in Iceland?
It depends. 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 (e.g., Cyrillic, Chinese, Japanese, Arabic), 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, and you must carry it at all times.
Do I need a credit card to rent a car in Iceland?
Yes, the main driver must usually present a valid credit card in their name to rent a car in Iceland. If the main driver does not have a credit card, an additional driver may be registered using their own credit card and a valid driver’s license. Some rental companies also accept debit cards, but this often comes with extra conditions, such as a security deposit or mandatory full insurance, depending on the company’s policies.
How does payment work, and is a security deposit required when I pick up my rental car?
When booking your rental car, you can usually choose to pay in full right away, book now and pay later, or split the cost into installments with PayPal or Klarna.
Most rental partners require a credit card when you collect the vehicle. Depending on the rental company, vehicle type, and insurance coverage, a security deposit or pre-authorization may be placed on the card and released after the car is returned.
Most rental partners require a credit card when you collect the vehicle. Depending on the rental company, vehicle type, and insurance coverage, a security deposit or pre-authorization may be placed on the card and released after the car is returned.
If I booked a car rental online using one credit card, can I pay the deposit in Iceland using a different credit card?
Yes, you can make a car rental deposit in Iceland with any credit card in the main driver's name.
Are there any additional or hidden fees when renting a car in Iceland?
All rental prices on our website include taxes and basic insurance, so there are no extra fees for the standard rental. However, a safety deposit is normally placed on your credit card, which won’t be charged if the car is returned without damage. Additional charges may apply for optional services or special cases, such as:
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
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
Where do I pick up my rental car in Iceland?
Most international travelers in Iceland pick up their rental car directly upon arrival at Keflavik International Airport. However, you can also pick up rental cars in Reykjavik, Akureyri, and several other towns and domestic airports around the country. You’ll find all the details you need about the pick-up and drop-off process on your voucher.
Can I pick up and drop off my rental car at Keflavik International Airport in Iceland?
Yes, the majority of travelers pick up their rental car directly at Keflavik International Airport. This way, you can start your adventure right away. 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 for a relaxing geothermal soak after your flight. The distance from Keflavik Airport to the Blue Lagoon is only 13 miles (21 kilometers) and normally takes less than half an hour. 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, there are car rentals pickup locations at Reykjavik Domestic 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 Iceland.
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. Some car rentals also offer free shuttles to their office. Make sure to read the rental car description before completing your booking to make sure this service is provided.
Can I rent a car in Iceland with a different drop-off location than the pick-up location?
Yes, you can book a rental car 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, please note that additional fees may apply.
Are car rentals in Iceland open 24/7?
Some car rental companies in Iceland offer 24/7 pick-up and drop-off, while others allow self-pick-up or self-return outside office hours. These options are common at Keflavik International Airport, but they may also be available in Reykjavik and other locations, depending on the provider. Always check the pick-up and drop-off details on the booking page before reserving.
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 a car in Iceland in our car rental search engine to compare the available options.
Is it necessary to make a reservation in advance, or can I rent a car upon arrival in Iceland?
You can rent a car upon arrival in Iceland. However, to get the best deal, we always recommend reserving your rental car at least 2-3 months in advance, especially during summer, which is the peak travel season.
Can I return my rental car early in Iceland?
Yes, early rental car returns are allowed in Iceland. However, you will not receive a refund for unused rental time.
Can I return my rental car outside of office hours in Iceland?
Yes, some car rental companies in Iceland offer pick-up and drop-off outside of office hours, and some also have offices that are open 24/7. To confirm what is available for a specific rental, check the pickup and drop-off section on the booking page before completing your reservation.
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.
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. Additionally, 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, you can normally extend your car rental reservation in Iceland. Extra charges may apply depending on the length of the extension. Please reach out to us directly through the contact details on your voucher, and we will change the booking for you.
Can I change my rental car booking in Iceland?
If you want to modify any details of your rental car reservation in Iceland after receiving confirmation, please contact us directly using the contact information on your voucher.
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 come with dash cameras.
What is included with my rental car in Iceland?
Most rental cars in Iceland include Collision Damage Waiver (CDW) insurance, unlimited mileage, all mandatory taxes and fees, including the 2026 road tax, and free cancellation with a full refund up to 24 hours before pick-up. Winter tires are also included during winter. Some vehicles may also include extras such as additional insurance, GPS, airport pick-up, or an extra driver, but these vary by car and supplier. Always review the vehicle description and the “Included” section before confirming your booking.
Do I need a GPS device when I rent a car in Iceland?
A GPS device is not strictly necessary, but it can be very helpful, especially if you are unfamiliar with Iceland. Some rental cars include a GPS, while others do not, and an additional fee may apply if you want to add one.
Drivers who are comfortable using a navigation app on their smartphone may not need a GPS device, but keep in mind that some remote areas in Iceland have limited or no internet service. You can also add a portable Wi-Fi hotspot to your rental, which allows you to stay connected and use navigation apps throughout your trip.
Drivers who are comfortable using a navigation app on their smartphone may not need a GPS device, but keep in mind that some remote areas in Iceland have limited or no internet service. You can also add a portable Wi-Fi hotspot to your rental, which allows you to stay connected and use navigation apps throughout your trip.
Can I bring my own GPS device when renting a car in Iceland?
Yes, you can bring your own GPS device. Most rental companies also offer GPS devices for free or 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 in Iceland. However, please note that coverage can be unreliable in more remote areas such as the Highlands and some parts of the Westfjords. It’s recommended to download offline maps (Google Maps, Maps.me) before your trip or rent a GPS device from the car rental company.
Is there a mileage limit when renting a car in Iceland?
Mileage is almost always unlimited when renting a car in Iceland, unless otherwise stated. This allows you to explore the country without restrictions on distance. However, it's always advisable to read the rental agreement carefully and clarify any doubts with the rental company before finalizing your booking.
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 your insurance.
Are there any restrictions on where I can drive my rental car in Iceland?
Yes, there are some restrictions on where you can drive a rental car in Iceland. Most vehicles are allowed on paved roads and regular gravel roads, including popular routes like the Ring Road and Golden Circle.
Off-road driving is strictly illegal in Iceland and will void your insurance. In addition, F-roads (mountain roads) are only accessible with 4x4 vehicles and are typically open only in summer. If you drive a standard 2WD car on F-roads, any damage will not be covered by your insurance.
Off-road driving is strictly illegal in Iceland and will void your insurance. In addition, F-roads (mountain roads) are only accessible with 4x4 vehicles and are typically open only in summer. If you drive a standard 2WD car on F-roads, any damage will not be covered by your insurance.
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. Icelandic law requires children shorter than 4 feet and 5 inches (135 centimeters) to use an appropriate child seat or booster.
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.
What insurances are included with rental cars in Iceland?
CDW (Collision Damage Waiver) insurance is included by default for nearly 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 to your booking.
Complete coverages are also available, such as Premium or Platinum insurance packages, which usually reduce the deductible to zero. These are the most recommended options for a carefree trip, especially if you're traveling during winter.
Complete coverages are also available, such as Premium or Platinum insurance packages, which usually reduce the deductible to zero. These are the most recommended options for a carefree trip, especially if you're traveling during winter.
Do I need gravel protection when I rent a car in Iceland?
Gravel protection is worth adding to your rental, especially if you plan to explore beyond the main paved routes. While roads like the Ring Road are generally well-maintained, many roads leading to smaller attractions include short gravel sections. Even short stretches can cause loose stones to hit the car's paint or windshield, and gravel protection ensures you are covered if that happens.
Do I need special insurance for river crossings in Iceland?
River crossings are not covered by standard rental insurance. If you plan to drive F-roads in the Highlands, ensure that your route does not feature river crossings, or that your rental is approved for such, and consider purchasing additional water damage insurance.
Do I need to buy theft protection with my car rental in Iceland?
Theft protection is not considered essential for most car rentals in Iceland, as theft is very uncommon. Iceland is generally a very safe destination, and rental car theft is rare. Still, theft protection can give you extra peace of mind. Please note that theft insurance normally does not cover personal valuables kept in the car.
Can I forfeit CDW insurance on my rental car in Iceland?
No, CDW insurance is included with rental cars in Iceland and cannot usually be removed. It forms part of the standard rental agreement and sets the basic level of liability in case of damage.
Do any car rentals in Iceland offer zero-deductible insurance?
Yes, many car rentals in Iceland offer zero-deductible insurance. You can review all available add-on insurance options on the booking page for your chosen vehicle, including zero-deductible coverage options.
What rental car damages are not covered by any insurance in Iceland?
Some types of rental car damage in Iceland are not covered by insurance, regardless of the coverage you choose. This typically includes damage caused by negligence or illegal behavior, such as driving into rivers or water crossings, or driving off-road, which is strictly prohibited in Iceland.
Damage caused by wind catching and forcing a car door open is also often excluded, so it’s important to hold the door firmly when opening it in strong winds. In addition, any damage that occurs while driving under the influence of alcohol or drugs is not covered.
Each Iceland car rental has its own terms and coverage. Therefore, we highly recommend checking for more details on the contract you sign when picking up the car.
Damage caused by wind catching and forcing a car door open is also often excluded, so it’s important to hold the door firmly when opening it in strong winds. In addition, any damage that occurs while driving under the influence of alcohol or drugs is not covered.
Each Iceland car rental has its own terms and coverage. Therefore, we highly recommend checking for more details on the contract you sign when picking up the car.
Can I use my own car insurance when renting a car in Iceland?
It depends on your insurance policy. You should check with your insurance provider to see if your policy covers car rentals in Iceland. Even if it does, you still need to purchase the minimum CDW 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.
Is driving in Iceland difficult?
Driving in Iceland is generally easy in summer, especially on main routes like the Ring Road, which are paved, well-maintained, and clearly marked. Traffic is usually light outside Reykjavik, and most popular travel routes are straightforward to navigate.
Driving can be more difficult in winter or in remote areas. Snow, ice, strong winds, reduced visibility, gravel roads, and mountain routes can all make conditions more challenging, and some routes require a 4x4 vehicle. Checking the weather and road conditions before setting out is important.
Driving can be more difficult in winter or in remote areas. Snow, ice, strong winds, reduced visibility, gravel roads, and mountain routes can all make conditions more challenging, and some routes require a 4x4 vehicle. Checking the weather and road conditions before setting out is important.
What driving rules in Iceland are different from those in other countries?
Some driving rules in Iceland may be different from what you are used to. The speed limit is 50 km/h (31 mph) in towns, 80 km/h (50 mph) on gravel roads, and 90 km/h (56 mph) on paved roads outside built-up areas. Headlights must be on at all times, day and night. Off-road driving is strictly illegal, including on beaches, lava fields, and moss-covered terrain. You should also never stop on the road for photos; always use designated parking areas or pull-offs. F-roads are only accessible to vehicles approved for highland driving.
Are there seasonal considerations or restrictions, such as road closures, that can impact car rentals or driving routes?
Yes, seasonal conditions can affect where you can drive in Iceland. During winter (roughly November to April), some roads may close due to snow, ice, or severe weather, especially highland F-roads, which are typically closed outside of summer. In summer, most roads, including F-roads, are open and easier to access, but opening and closing dates can vary depending on weather conditions. Always check road.is for the latest updates before setting out.
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 on ferries that travel within Iceland's borders, but you can't travel abroad with it.
What are the F-roads in Iceland, and can I drive on them with a rental car?
The F-roads in Iceland are mountain roads in the Icelandic Highlands. The "F" stands for "Fjall," the Icelandic word for mountain. They are unpaved, rough, and generally closed during winter. To drive on F-roads, your rental car must be a 4x4 vehicle approved for highland driving; you can confirm this by checking the "Highland Capabilities" field on the vehicle listing. It is also important to check current road conditions on road.is before heading into the Highlands, as opening dates vary each year depending on weather.
What is the 2026 mandatory road tax in Iceland?
The 2026 mandatory road tax in Iceland is a kilometer-based driving fee that applies to all vehicles, including petrol, hybrid, and electric cars. This means you pay a fee based on the distance you drive rather than a flat annual or per-vehicle charge. This system was implemented in January 2026.
While the new fee may sound like an added cost, it has been balanced out by lower fuel prices, meaning the overall cost of driving in Iceland remains similar.
For travelers renting through Guide to Iceland, this fee is already included in the rental price as a fixed daily rate that reflects average mileage, so you don’t need to calculate or pay it separately.
While the new fee may sound like an added cost, it has been balanced out by lower fuel prices, meaning the overall cost of driving in Iceland remains similar.
For travelers renting through Guide to Iceland, this fee is already included in the rental price as a fixed daily rate that reflects average mileage, so you don’t need to calculate or pay it separately.
How much does a liter or gallon of fuel cost in Iceland?
As of March 1, 2026, petrol (gasoline) in Iceland typically costs between 185 and 230 ISK per liter, which is approximately 1.3 to 1.6 USD per liter depending on exchange rates. Diesel is usually slightly higher, ranging from 205 to 230 ISK per liter, or about 1.4 to 1.6 USD per liter.
For those measuring in gallons, petrol costs roughly 5.0 to 6.2 USD per gallon, while diesel ranges from approximately 5.5 to 6.2 USD per gallon. (One liter equals about 0.26 gallons.)
Fuel prices in Iceland are relatively high compared to many other countries due to taxes and import costs, though they dropped in early 2026 following changes to fuel taxation.
For those measuring in gallons, petrol costs roughly 5.0 to 6.2 USD per gallon, while diesel ranges from approximately 5.5 to 6.2 USD per gallon. (One liter equals about 0.26 gallons.)
Fuel prices in Iceland are relatively high compared to many other countries due to taxes and import costs, though they dropped in early 2026 following changes to fuel taxation.
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. Many of these service stations have a small shop or diner where you can grab a snack or a meal while refueling.
Are there toll roads in Iceland?
Iceland only has one toll tunnel, the Vadlaheidargong tunnel near Akureyri. You can pay the toll online before or after use of the tunnel. All other roads, including the Ring Road and Golden Circle, are toll-free.
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 camper van rentals in Iceland for those who want maximum mobility on their road trip.
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 3,600 USD (500,000 ISK). Always stay on designated roads and tracks.
What are the parking rules in Reykjavik and other Icelandic towns?
Parking rules in Reykjavik and other Icelandic towns are generally easy to follow, but you should always pay attention to local signage. In Reykjavik, most central areas operate a paid parking system, usually from morning until early evening. Outside these hours, parking is typically free. You can pay at meters or through mobile apps, and some residential streets require permits.
In smaller towns, parking is usually free and less regulated, though restrictions may still apply in certain areas. Some popular attractions also charge parking fees, which are used to maintain facilities and protect the surrounding environment.
In smaller towns, parking is usually free and less regulated, though restrictions may still apply in certain areas. Some popular attractions also charge parking fees, which are used to maintain facilities and protect the surrounding environment.
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.
Is it safe to drive in Iceland in winter?
Driving in Iceland during the winter season is safe if you rent a 4x4 vehicle and regularly check the weather and road conditions before setting out, as winter often brings snow, ice, and strong winds that can make driving more challenging. Winter tires are mandatory from November 1 to April 14, which helps provide better traction and control on icy and snow-covered roads.
Where can I check road conditions and weather when driving in Iceland?
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. You will find their contact information on your voucher or booking confirmation. 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 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. Turn on your vehicle's hazard lights to alert other drivers that there is an emergency. Then, call 112 for emergency services.
Is driving Iceland's Ring Road by rental car worth it?
Yes, exploring Iceland's Ring Road attractions by rental car 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 many days do I need to drive Iceland’s Ring Road by rental car?
Most travelers take 7 to 10 days to drive the full circle around Iceland, which gives you enough time to see the main attractions along the Ring Road without rushing. A 1-week Ring Road itinerary is one of the most popular choices and works well if you keep a steady pace, focusing on the highlights and add-on activities. For a more relaxed trip, a 10-day Ring Road itinerary with a detour to Snaefellsnes gives you extra time to explore and enjoy each stop.
All 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.
All 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 worth it if you want to see the northern lights in Iceland. It’s one of the best ways to increase your chances of witnessing this fantastic natural phenomenon. It allows you to drive out to remote areas with dark skies, far from light pollution. For 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.
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