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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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Armand Ducourret

Armand Ducourret

Amazing!
25/01/2023, 06:05
Review of Ring Car Rental

The service was perfect. (answers to emails, shuttle to airport, quick car inspection). Less than 45 minutes after our arrival at the airport we where on the road.

Maria Diakonova

Maria Diakonova

Amazing!
19/01/2023, 16:09
Review of A Car Rental

Very friendly and helpful service. We wish Ivar all the best and good luck in his service. We strongly recommend to use his car rent company.

Felipe Chen

Felipe Chen

Amazing!
18/01/2023, 19:51
Review of Go Car Rental

Great experience overall! The pickup and drop off of the vehicle were pretty smooth. There is enough space on the back to perfectly store two luggage. The vehicle also comes with a shovel to help remove the snow, very helpful.

Junhyung Lee

Junhyung Lee

Amazing!
18/01/2023, 16:46
Review of Blue Car Rental

I received Hyundai Tucson, not the Toyota rav4 I chose. I was a little disappointed it but they were of the same size SUV anyway and had similar features. Company and employees were nice. Would recommend.

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Why rent a car with us?

Search the Guide to Iceland car rental marketplace to find the cheapest and largest selection of car rentals in Iceland. Compare prices and availability from more than 40 car rental companies in Iceland to find the cheapest car rental prices in Iceland. Just use our search engine to find the perfect car for you.

When renting a car in Iceland, you give yourself the freedom to explore this breathtaking country on your own time and at your own pace. Self-drive tours and Road trips in Iceland have become increasingly popular, where travelers choose their itineraries and set out to see the incredible nature of Iceland by themselves. If you're planning to drive around Iceland during your stay, it is important to know the following information.

Where to Rent a Car in Iceland

When using our rental car search engine to find just the right vehicle for you, you can decide where to pick up your rental car. Most car rentals in Iceland are based in the capital city of Reykjavik, or by the international airport in Keflavik (a 40-minute drive from Reykjavik).

For travelers that want to hire a car as soon as they land in Iceland, it's most convenient to hire a car from the international airport in Iceland and then return it at the airport before flying home. It does not matter what time of day or night your flight arrives, you can pick up your car 24 hours a day at Keflavik airport. It's also possible to rent cars from Reykjavik, which most people tend to use as a base when exploring the country. It is also possible to pick your rental car up in Keflavik and drop it off in Reykjavik, or vice versa, sometimes for an additional fee.

Car rentals are also available around the country, such as in Akureyri and Siglufjordur in the north, Egilsstadir and Hofn in the east, Selfoss and the Westman Islands in the south, as well as on the Westfjords and the Snaefellsnes peninsula. Car rentals are available in most larger towns in Iceland's countryside.

Note that in those locations, there may only be one or perhaps two car rental agencies, so you will have limited choices of cars. It is also possible to rent your car in one location in Iceland and drop it off at another for an additional fee.  

The Road Network in Iceland

Iceland's most iconic highway is the Ring Road, which encircles the entire island and is your best bet for traveling around quickly and safely. As Iceland's most important road, it is well-maintained and open throughout the year. However, extreme weather conditions can sometimes lead to temporary and partial closures, especially during the winter.

Ring Road, or Route 1, is just two lanes wide, but you will seldom see much traffic in rural Iceland. It is, however, dotted with many one-lane bridges. The rule when crossing these is that the right of way goes to the driver who is closest, so always approach slowly to make the correct judgment, even if you don't see anyone ahead. 

Most other roads, such as those leading to popular destinations such as the Golden Circle and the Blue Lagoon, are tarmac. However, if you stray into the countryside, you will likely encounter gravel tracks. These can be narrow and very bumpy and should be traversed with caution, especially by those who are not used to such conditions. However, all vehicles can drive on them.

F roads in Iceland are only accessible if you rent a jeep or four-wheel drive. They can be quite daunting, crossing rivers and winding along narrow mountain passes, so only confident drivers should take these routes. 

Although they come with a unique set of risks, the roads in Iceland are perfectly safe to drive if you have good judgment and know your limits.

Rules & Regulations for Driving in Iceland

It is important that travelers who rent a car in Iceland are aware of laws here that are different from those of their home country, so be sure to take the following notes.

To rent a car, you must have had a valid driver's license for one year. To rent a minibus or a four-wheel drive, you must be at least 23. Your license must be in Latin alphabet characters or accompanied by an International Driving Permit.

The speed limits are generally lower than in other European countries due to the hazards associated with driving in Iceland. The maximum speed limit on paved highways in the countryside is 90 km/h. On gravel roads, the limit is 80 km/h, and in towns and cities, generally 50 km/h.

If you are unsure or if the area is not signposted, it is best to assume the limit is 50 km/h. In some areas, signs encourage you to reduce speed, but it is generally expected that drivers will use common sense and choose a safe speed according to the conditions. More common are signs indicating specific hazards ahead, such as sharp bends or exposure to high winds.

For safety reasons, motorists are obliged by law to keep headlights at all times, even during summer when the sun does not set. Blind corners are common, and, of course, the deep winters are notoriously dark. Even at midday, it is barely brighter than during the twilight hours.

As in most countries, all passengers are required by law to wear a seatbelt. Driving under the influence of alcohol, or using a mobile phone while driving, is strictly forbidden. Speeding fines are high, and there are many traffic cameras throughout the country.

Driving on F-roads is legal if you rent a jeep or a four-wheel-drive, and only if they have been opened for the summer. It is against the law, and foolish, to travel on any roads that are cordoned off for safety reasons.

The fragile, delicate nature of Iceland's wildlife means that driving off-road is strictly forbidden. Doing so is punishable by hefty fines and even a jail sentence of up to four years. Much of the country's volcanic landscape has been formed over millions of years, and the beautiful moss that creeps across it takes centuries to grow. Driving carelessly through vegetation will cause damage that can take decades to recover.

If you have an accident or need urgent help, call 112 for emergency services.

Driving Off the Beaten Track in Iceland

Most roads within Iceland's interior have a loose gravel surface, many are narrow, and some are raised from ground level to prevent weather-related closures. Although they are safe to drive, they present a unique set of hazards you should beware of when you plan to rent a car in Iceland. Leaving a tarmac road for a gravel one is a common accident site for visitors to Iceland. The driver approaches too fast and loses control of the vehicle. Drivers should always slow down and stay focused when the road's surface changes, and if the car begins to slide on the gravel, release the gas and steer gently in the direction it is pulling.

Slow down when you see oncoming traffic and move as close to the right-hand side as is safe. Beware that the loose road surface means it's easy to kick up rocks and stones, so practice this even if the roads are wide. Also, take notice of any sheep on the side of the road and make sure to come to a complete stop if sheep are crossing the road, as they roam free during the summer in Iceland.

If you decide to rent a jeep in Iceland, you can access the country's most remote places. The best time to do this is in summer, as before June, snow blocks and muddy conditions make many mountain and interior roads completely impassable. These roads can be very challenging to traverse, so it is always recommended that two or more 4x4 vehicles travel together. It is also advised that you leave your travel plan at Safetravel.is.

You should always know what the road conditions will be before you set out, and you can check this on the website of the Icelandic Road and Coastal Administration.

Don't Forget the Icelandic Weather

The unpredictable weather in Iceland can sometimes make driving the Ring Road a challenging experience. During the winter months, snowstorms, high winds, dense fog, icy roads, and perpetual darkness can complicate the simplest of journeys, and you must prepare for such conditions.

Before setting out anywhere, check the weather in Iceland on the website of the Icelandic Meteorological Office. Heed bad weather warnings and always err on the side of caution, especially if you do not have experience driving in these conditions. Throughout summer, the weather in the west and south is usually a lot less rough, but it is always wise to check out the forecast before starting your day.

Overall, drivers who are aware of the weather, the road conditions, and their own driving skills will have a safe and enjoyable time driving through the incredible beauty of Iceland. Make sure you know the rules and take all necessary precautions, and the whole of the country will be at your fingertips. 

If you seek more information, please check out our ultimate guide to driving in Iceland.

Frequently asked questions

Why should I rent a car in Iceland?

Yes, renting a car in Iceland is smart as it allows you to explore the country at your own pace, go off the beaten path and do what you want to do on your own schedule. We have a variety of self-drive tours in Iceland where you drive from place to place with pre-arranged accommodations and activities along the way, which gives you the freedom of traveling on your own, but without the hassle of having to book everything yourself.

Is driving Iceland's Ring Road worth it?

Yes, most definitely. Driving the Ring Road allows you to see so much of what Iceland has to offer, compared to just staying around Reykjavik. It also gives you the flexibility to stay as long as you want at attractions and natural wonders around the country. The Ring Road, which goes around the entire island, is paved and well-maintained, so it's easy to drive around Iceland.

Can I rent a car in Iceland and drive to see the northern lights?

Yes, renting your own car is a great way to get out of the city and go look for the northern lights in the Icelandic countryside, away from the light pollution of human settlements. If you have a rental vehicle of your own, you can go on a comprehensive northern lights self-drive tour in Iceland, which takes you to many of the main attractions in the country.

Can I rent a car at Keflavik International Airport in Iceland and drive to visit the Blue lagoon?

Yes, there are many rental companies located at Keflavik International Airport, where you can rent a car and drive to the nearby Blue Lagoon. The distance from Keflavik Airport is only 13 miles (21 kilometers), and can be driven in less than half an hour. The Blue Lagoon provides lockers to store your luggage while soaking in the warm geothermal water.

Can I rent a car in Iceland and drive to the Golden Circle?

Yes, renting a car in Iceland to go see the wonders along the Golden Circle is a great way to explore Iceland. Since the Golden Circle road is paved and well-maintained, an affordable car from our Small & Cheap category is sufficient to drive this famous route.

How long does it take to drive the circle around Iceland?

You can drive around Iceland's Ring Road, which circles the entire island, in one day if you don't stop, but that way you're not making the most of your time. We recommend hiring a car for at least 4-5 days for this drive so you can stop along the way and enjoy the sights. Most people prefer to spend 7-14 days exploring the island, like this 7-day self-drive tour around Iceland.

What kind of car should I rent in Iceland?

Choosing the right rental car to hire in Iceland depends on how many people are in your group, how much luggage you have collectively, and where you plan to go. We recommend renting a camper van if you're planning to use your car as an accommodation on wheels. If you're mostly staying in the city and sticking to paved roads to go sightseeing, renting a small and cheap car is enough. However, if you want to go hiking in remote locations or visit during the winter, it would be best to rent a 4x4 SUV.

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 and look at the available options.

What type of rental car is best for a self-drive tour in Iceland?

During the summer, cars in the Small & Cheap category are sufficient for most of our summer self-drive tours. The self-drive tours usually stick to paved roads and the weather conditions in the summer are easy to drive in.

During the winter, we recommend renting a 4x4 vehicle or an SUV for our winter self-drive tours to be ready for snowy conditions.

Can I rent a van in Iceland?

Yes, we have a wide selection of vans for rent in Iceland. You can pick up your rental van at Keflavik airport or at a designated location in Reykjavik at your convenience.

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 hire in Iceland. Please note that driving a rental car type not marked for highland travel will void any insurance you've purchased. Therefore, you will be liable for damage to the undercarriage or suspension.

Can I hire a rental car in Iceland with automatic transmission?

Yes, most rental cars in Iceland have an automatic transmission. Most cars in our luxury category have an automatic transmission, as well as in the 4x4 & SUV's category. If you want to guarantee to rent a car with an automatic transmission, make sure to carefully read the description page as it will be listed there.

Can I hire a rental car in Iceland with a manual transmission?

Yes, some rental cars, such as those in the Small & Cheap category, have a manual transmission. Additionally, many of the vans and jeeps might also have a manual transmission. You can use our car rental search engine to filter our rental vehicles based on transmission.

Do I need a 4x4 SUV car rental in Iceland?

You do not need an SUV for driving in Reykjavik city or to drive the ring road of Iceland. But if you intend to go off the beaten path and drive gravel roads in Iceland an SUV or a 4x4 Jeep is recommended. The time of year you visit also plays a part. If you're visiting during the summer and plan on staying around Reykjavik or driving the Ring Road, a four-wheel drive rental car is not necessary, as the roads are paved and well-maintained. However, if you're visiting Iceland during the winter when it gets snowy, and the roads get slippery, it is advisable to rent a four-wheel-drive vehicle. Additionally, if you're planning to go into the Highlands and drive on Iceland's infamous F roads (which are only open during the summer), a four-wheel-drive vehicle or SUV is required.

Can I rent a camper or a camper van in Iceland?

Yes, you can rent camper vans in Iceland. Doing so is a great way to give you mobility when traveling around the island. Camper rental offers 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 look at 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 larger vehicles that can fit up to seven passengers and their luggage, are very new, and 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. However, this category also includes some two-wheel drive vehicles, such as sports cars and high-end hatchbacks.

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.

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.

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 searching for the specific dates you want to visit, you can sort by the lowest price first. The lowest prices can be as low as 24 USD per day, depending on how many days you want to rent the car and the time of year. However, on average, the cost of renting a car in Iceland is about 75 USD per day.

What's the cheapest rental car in Iceland?

The cheapest rental car you can get in Iceland is a Toyota Aygo. The price starts from around 24 USD per day during the low tourist season between October and May. The longer you rent the car the cheaper it is per day. During summer rental rates are much higher and usually closer to about 109 USD per day during the high season.

Are car rentals expensive in Iceland?

Car rentals in Iceland are not expensive if you know where to look for the best prices. You can compare prices using the car rental search engine on Guide to Iceland, which compiles all the main car rentals in Iceland in one marketplace. This guarantees you will find the lowest prices on rental cars in Iceland. The price of car rentals in Iceland varies depending on the model and time of year. The cost of 4x4 vehicles that can cross rivers is higher than the price of a small car built to drive on paved roads. Therefore, the cheapest cars to rent in Iceland can range from 24 USD per day, and SUVs or luxury cars can cost more than 100 USD per day, depending on the model.

Are rentals cars with automatic transmission in Iceland more expensive than cars with manual transmission?

Yes, most rental vehicles in the Luxury category, as well as the 4x4 & SUVs category, have an automatic transmission. Some of our cheapest rental cars, included in the Small & Cheap category, have a manual transmission. You can read the description of each rental vehicle to see whether the transmission is manual or automatic.

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.

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 Rental, Lotus Car Rental, Go Car Rental, and Blue Car Rental. Ring Car Rental is rated 4.8 out of 5 with more than 140 reviews. Lotus Car Rental has a rating of 4.8 stars out of 5 with more than 120 reviews. Go Car Rental Iceland has a rating of 4.6 out of 5 stars with more than 310 reviews. Blue Car Rental is also a popular and highly rated rental car provider in Iceland, with a rating of 4.4 out of 5 stars, from more than 781 reviews. 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.

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 the car you hire at the international airport in Iceland shortly after you land. You can also pick it up at 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 rentals in Iceland allow you to pick up your rental car at Keflavik Airport shortly after landing. The car rental location is perfect as it will enable you to drive directly to Reykjavik city from the airport or detour to the Blue Lagoon and soak in warm geothermal waters after a long flight.

Once you're heading home after your trip, you can also drop off the rental car at the international airport in Iceland, allowing you to drive to the airport when you're leaving the country.

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 once you fly 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 rentals will bring you the vehicle you hire at your location in Reykjavik, whether a hotel or a specific address in the city. Make sure to read the description before hiring 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.

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 hire a car as soon as they land in Iceland and drop them off when they leave.

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.

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.

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.

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.

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. This usually ranges between 1-2000 USD. Purchasing Premium or Platinum insurance exempts you from paying a deposit.

You can find this information on the car booking page under "Vehicle Information." Please don't hesitate to contact us by clicking on the "Inquire about this car" button below the reservation form if you require more details.

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 or your car rental directly to request an extension.

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 use your electronic voucher’s orange 'Edit booking' button. Extensions are possible based on availability, and extra charges are subject to the duration of the extension. In case of any questions, please send us an email: info@guidetoiceland.is.

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 a credit card to rent a car in Iceland?

Customers need to present a valid credit card in the name of the main driver for car renting 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 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.

Can I rent a car with no deposit in Iceland?

Most rental car companies in Iceland require a deposit. 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 hired 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.

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 hold 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 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.

Do rental cars in Iceland have cameras?

No, rental cars in Iceland generally do not have dash cameras. However, many rental cars have a GPS device included, which customers are free to use while traveling around the island.

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 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. This is useful for getting around Iceland for those unfamiliar with 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, don't necessarily need a GPS device, but keep in mind some remote regions in Iceland don't have internet reception.

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 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 hoping to go more off the beaten and explore less visited areas, you will need to drive on Iceland's gravel roads to get there. 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.

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 out a car door is not covered. 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.

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?

For experienced drivers, there shouldn't be any problem following basic 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 have studded tires during winter. Be aware that Icelandic weather can be unpredictable even in summer, and ensure 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 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 is 30 km/h. Aside from these general rules, speed limits in Iceland are well displayed on yellow circular speed limit signs. Drivers should adhere to these for safety reasons and know that speed cameras are common.

What are the F roads in Iceland?

The F roads in Iceland are so-called mountain roads (The F stands for "Fjall", the Icelandic word for mountain) in the Highlands of Iceland, 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.

Where can I check road conditions and weather when driving in Iceland?

The best way to check on the weather and road conditions all around the country is on road.is, operated by the Icelandic Road Administration in cooperation with the Icelandic Meteorological Office.

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 a navigation system. 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 include at least one gas station where you refuel your rental car. Some gas stations can also be found along the Ring Road, usually with a simple diner inside, where you can refuel yourself with some Icelandic hot dogs.

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 always 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.