10
Amazing!
Daniele Artico
Review of Auto Car Rental
Everything was perfect, including Alexandra at the office desk
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10
Amazing!
DOUGLAS LANTAGNE
Review of Auto Car Rental
The rental was excellent. It was as advertised. The only problem was your cryptic description on the certificate of where to locate the Auto Rental pickup. I called at least 5 times and would get a different location on where to meet the pickup person.
10
Amazing!
Eleanor Smith
Review of Key Car Rental
Smooth process. SUV ran great and glad we got a 4x4. Price was less than other rental companies. Would definitely use again.
10
Amazing!
Lina Edelborg
Review of Foss Car Rental
Nice car and it was easy to be in contact with the staff!
10
Amazing!
Daniele Artico
Review of Auto Car Rental
Everything was perfect, including Alexandra at the office desk
10
Amazing!
DOUGLAS LANTAGNE
Review of Auto Car Rental
The rental was excellent. It was as advertised. The only problem was your cryptic description on the certificate of where to locate the Auto Rental pickup. I called at least 5 times and would get a different location on where to meet the pickup person.
10
Amazing!
Eleanor Smith
Review of Key Car Rental
Smooth process. SUV ran great and glad we got a 4x4. Price was less than other rental companies. Would definitely use again.
10
Amazing!
Lina Edelborg
Review of Foss Car Rental
Nice car and it was easy to be in contact with the staff!
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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.
VIP Club
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 are the best cars to rent in Iceland?
4x4s are the best cars to rent in Iceland. They are the best option for handling changing weather, gravel roads, and winter conditions. These types of cars are also required if you plan to drive in the Highlands. On the other hand, if you’re visiting Iceland in summer and plan to stick to the main paved roads, small 2WD cars are enough.
What are the best car rental companies in Iceland?
The best car rental companies in Iceland are MYCAR and Blue Car Rental, based on verified customer reviews on Guide to Iceland. MYCAR has a rating of 9.6 out of 10 based on nearly 500 reviews. Blue Car Rental has an average rating of 8.8 from more than 1,000 reviews. This reflects consistently positive customer experiences and a high level of satisfaction among travelers.
How do I know if a car rental is reliable and high-quality?
You can know if a car rental is reliable and high-quality by checking its reviews. All car rentals on Guide to Iceland are carefully vetted and must meet strict quality, safety, and service standards to be listed.
You can read verified reviews from real travelers for each rental provider, giving you clear insight into vehicle condition, service quality, and overall experience.
Only companies with consistently strong reviews remain on the platform, so you can feel confident you’re booking a reliable, high-quality car for your trip.
You can read verified reviews from real travelers for each rental provider, giving you clear insight into vehicle condition, service quality, and overall experience.
Only companies with consistently strong reviews remain on the platform, so you can feel confident you’re booking a reliable, high-quality car for your trip.
Do I need an SUV to drive in Iceland?
You do not need an SUV to drive in Iceland, but it is recommended for added safety and flexibility.
If you’re visiting in summer and plan to stay on main paved roads, such as around Reykjavik or along the Ring Road, a 2WD car is usually sufficient.
However, if you’re traveling in winter, driving on gravel roads, or exploring more remote areas, a 4x4 vehicle, such as a 4x4 SUV, is a better and safer option. A 4x4 is also required for driving on F-roads in the Highlands.
If you’re visiting in summer and plan to stay on main paved roads, such as around Reykjavik or along the Ring Road, a 2WD car is usually sufficient.
However, if you’re traveling in winter, driving on gravel roads, or exploring more remote areas, a 4x4 vehicle, such as a 4x4 SUV, is a better and safer option. A 4x4 is also required for driving on F-roads in the Highlands.
What rental cars are suitable for driving in the Highlands of Iceland?
The most suitable rental cars for driving in the Highlands of Iceland are 4x4 vehicles with good ground clearance, built to handle rough, unpaved mountain roads. However, not all 4x4 vehicles are allowed on F-roads, so it is important to check if the vehicle is specifically approved for highland travel.
If you plan to explore the Highlands, choose a 4x4 SUV, off-road vehicle, or camper van that is clearly marked “Yes” under “Highland Capabilities” on our website.
Please note that driving a rental car not approved for highland travel may void your insurance coverage. In such cases, you may be held responsible for any damage, including to the undercarriage or suspension.
If you plan to explore the Highlands, choose a 4x4 SUV, off-road vehicle, or camper van that is clearly marked “Yes” under “Highland Capabilities” on our website.
Please note that driving a rental car not approved for highland travel may void your insurance coverage. In such cases, you may be held responsible for any damage, including to the undercarriage or suspension.
Can I rent camper vans in Iceland?
Yes, you can rent camper vans in Iceland, and they are a convenient way to stay at designated campsites across the country. This makes it easy to explore different regions without booking multiple accommodations. It’s a flexible and cost-effective option, combining transport and accommodation for easy access to Iceland’s natural attractions.
What kind of rental cars are considered luxury vehicles in Iceland?
Rental cars in Iceland that are considered luxury vehicles are typically newer models that offer high-end comfort and premium features. They are usually listed under the luxury car rental category. Most have four-wheel drive (4WD) or all-wheel drive (AWD) and higher ground clearance to better handle gravel roads and snowy conditions. The luxury category can also include some two-wheel drive vehicles, such as sports cars and high-end hatchbacks.
What car rental option in Iceland is best for groups larger than 7 people?
The best car rental options for groups larger than 7 people in Iceland are minibusses or 9-seater vans. These vehicles offer enough space for passengers and luggage, making it easy for everyone to travel comfortably together.
Are hybrid and electric cars available for rent in Iceland?
Yes, hybrid and electric cars are widely available for rent in Iceland, including Tesla and Toyota models. Some of our cars in the luxury category are electric or hybrid. These vehicles are a good choice for travelers looking for a more sustainable and fuel-efficient way to explore the country.
Can I charge electric rental cars when driving around Iceland?
Yes, you can charge electric rental cars across most of Iceland, especially along the Ring Road and in larger towns. Iceland is rich in geothermal energy, which supports a growing network of electric vehicle infrastructure.
You can find charging points at gas stations and in many parking lots across the country, including in Reykjavik, Akureyri, and smaller coastal towns. However, charging options are more limited in remote areas, so it’s a good idea to plan where to charge in advance.
You can find charging points at gas stations and in many parking lots across the country, including in Reykjavik, Akureyri, and smaller coastal towns. However, charging options are more limited in remote areas, so it’s a good idea to plan where to charge in advance.
Can I rent a car in Iceland with an automatic transmission?
Yes, you can rent a car with an automatic transmission in Iceland. Many are available across the economy, 4x4, and luxury vehicle categories. Automatic cars are a convenient choice, especially for travelers unfamiliar with Iceland’s road conditions. They are easier to operate, allowing the driver to focus more on the road and the changing weather. To guarantee an automatic vehicle, read the product description carefully before completing your booking.
Can I rent a car in Iceland with a manual transmission?
Yes, you can definitely rent a car with a manual transmission in Iceland. They are widely available, particularly in the 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, especially during peak season. 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 car 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?
The best car rental comparison site in Iceland is Guide to Iceland, offering the largest selection and competitive prices for rental cars in the country. It is Iceland’s biggest travel marketplace and leading travel agency. The platform brings together rental cars from over 40 providers, making it easy to compare options and find the right vehicle. Simply enter your requirements in the search engine to see the best available deals from the best 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 are the cheapest rental cars in Iceland?
The Toyota Aygo and similar models are the cheapest 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?
Yes, promotions or discounts for car rentals in Iceland are sometimes available depending on demand, season, and availability. Prices often vary throughout the year. The best way to find deals is to compare options early and book in advance, especially for summer travel. Rates 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 in Iceland, the minimum age requirement is 23 to 25.
Is there a young or senior driver fee when renting a car in Iceland?
Yes, a young or senior driver fee may apply when renting a car in Iceland. Some rental companies add a young driver fee for drivers aged 25 or under. Similarly, a few companies also charge a senior driver fee for drivers over the age of 70.
What are the requirements for renting a car in Iceland?
The requirements for renting a car in Iceland include a valid driver’s license held for at least one year and a credit card in your name. Most rental companies in Iceland also require drivers to be at least 20 years old, while some may have higher age limits. 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'll need an International Driving Permit (IDP). 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 an International Driving Permit to rent a car in Iceland?
You do not need an International Driving Permit to rent a car in Iceland if your driver's license is written in the Latin alphabet (such as English). However, if your driver's license is in another alphabet (e.g., Cyrillic, Chinese, Japanese, Arabic), it must be accompanied by an International Driving Permit.
Do I need a credit card to rent a car in Iceland?
To rent a car in Iceland, a valid credit card in the main driver's name is usually needed. If the main driver does not have one, some rental companies allow an additional driver to be registered. The additional driver must present their own credit card along with a valid driver’s license.
Some providers accept debit cards, but this often comes with additional conditions, such as higher security deposits or mandatory insurance. A credit card is the most reliable and widely accepted payment method.
Some providers accept debit cards, but this often comes with additional conditions, such as higher security deposits or mandatory insurance. A credit card is the most reliable and widely accepted payment method.
How does payment work for car rentals in Iceland, and is a security deposit required at pickup?
Payment for car rentals in Iceland typically allows you to pay in full at booking or choose a “book now, pay later” option. You can also split the cost into installments using services like PayPal or Klarna.
Most rental partners require a credit card when you pick up the vehicle. Depending on the rental company, vehicle type, and insurance, a security deposit may be placed on your card and released after the car is returned.
Most rental partners require a credit card when you pick up the vehicle. Depending on the rental company, vehicle type, and insurance, a security deposit may be placed on your 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, in most cases you can book online with one credit card and use a different credit card for the deposit in Iceland, as long as it is in the main driver’s name.
Are there any additional or hidden fees in the car rental price in Iceland?
There are no hidden fees included in the standard car rental price in Iceland. All prices on our website include taxes and basic insurance. Additional charges may only apply for optional services or specific situations, such as:
1. Young drivers under 25 or senior drivers over 70
2. GPS rental, Wi-Fi hotspots, or baby seats
3. Late returns or early drop-offs outside office hours
4. Optional coverage, such as gravel protection, tire insurance, or theft protection
A security deposit is also normally placed on your credit card at pickup and will be released if the car is returned without damage.
1. Young drivers under 25 or senior drivers over 70
2. GPS rental, Wi-Fi hotspots, or baby seats
3. Late returns or early drop-offs outside office hours
4. Optional coverage, such as gravel protection, tire insurance, or theft protection
A security deposit is also normally placed on your credit card at pickup and will be released if the car is returned without damage.
Where do I pick up my rental car in Iceland?
You can pick up your rental car in Iceland directly upon arrival at Keflavik International Airport. 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, you can pick up and drop off your 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 about 13 miles (21 kilometers). It usually takes less than half an hour to get there. Just remember to book your rental car and Blue Lagoon entrance tickets in advance, as they can get fully booked quickly.
Can I pick up or drop off my car at the Reykjavik domestic airport in Iceland?
Yes, you can conveniently pick up and drop off your rental car at Reykjavik Domestic Airport before flying to another part of Iceland. This makes it easy to continue your journey without returning to your original pickup location, saving time and simplifying travel between different regions of the country.
Can I pick up my rental car at my hotel in Iceland or a specific address in Reykjavik?
Yes, you can pick up your rental car at your hotel in Iceland or a specific address in Reykjavik with some car rental companies that offer delivery directly to your location.
In addition, some providers also offer free shuttle services to their rental office if delivery is not available.
Make sure to read the rental car description before completing your booking to make sure this service is provided.
In addition, some providers also offer free shuttle services to their rental office if delivery is not available.
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 in Iceland. 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 are open 24/7, offering pick-up and drop-off around the clock, while others allow self-pickup 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 pickup 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 in Iceland for just one day. Short-term rentals are common, especially for day trips like the Golden Circle, although daily rates are usually higher than longer rentals. Simply choose the day you plan to rent a car 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?
Yes, you can rent a car upon arrival in Iceland, and a reservation in advance is not strictly necessary. However, availability may be limited, and prices are often higher for last-minute bookings.
For the best choice and rates, we always recommend booking your rental car 2–3 months in advance, especially during the summer peak travel season.
For the best choice and rates, we always recommend booking your rental car 2–3 months in advance, especially during the summer peak travel season.
Can I return my rental car early in Iceland?
Yes, you can usually return your car rental early in Iceland. However, most providers charge a fixed rental rate, so you typically won’t receive a refund for any unused time. It’s also a good idea to inform the rental company in advance, especially if you’re returning the vehicle outside of regular office hours.
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 in Iceland?
Returning your car rental late in Iceland will usually incur additional fees. Most rental companies charge extra costs if the vehicle is returned past the agreed drop-off time. Some may also charge an additional fee equivalent to a full extra day for significant delays.
It is important to check the specific grace period for late returns, as this can vary between providers. You should also inform the rental company in advance if you expect any delay.
It is important to check the specific grace period for late returns, as this can vary between providers. You should also inform the rental company in advance if you expect any delay.
Can I change my car rental booking dates in Iceland due to a flight delay or cancellation?
You can change your car rental booking dates up to 24 hours before pickup completely for free in Iceland. 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?
Yes, you can usually change your rental car booking in Iceland after confirmation, depending on availability and the rental provider’s conditions. Please note that any changes may affect the total price of your rental. To modify your reservation, contact us directly using the details provided on your voucher.
Can I cancel my car rental booking in Iceland?
Yes, you can cancel your car rental booking in Iceland and receive a full refund if you cancel at least 24 hours before your scheduled pickup time. Please send us an email, and we will cancel your booking for you and process the 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?
Rental cars in Iceland generally do not come equipped with dash cameras or other recording devices as standard features. This includes interior-facing cameras or any additional monitoring systems. Availability of additional equipment may vary depending on the rental company and vehicle.
What is included with my rental car in Iceland?
Most rental cars in Iceland include Collision Damage Waiver (CDW) insurance, unlimited mileage, and all mandatory taxes and fees, including the 2026 road tax. They also typically offer free cancellation with a full refund if you cancel up to 24 hours before pick-up. Winter tires are also included during winter.
Some vehicles may include extras such as additional insurance, GPS, airport pick-up, or an extra driver, but these vary by car and supplier. Always check the vehicle description and the “Included” section before confirming your booking.
Some vehicles may include extras such as additional insurance, GPS, airport pick-up, or an extra driver, but these vary by car and supplier. Always check the vehicle description and the “Included” section before confirming your booking.
Do I need a GPS device when I rent a car in Iceland?
You do not need a GPS device when renting a car in Iceland, but it can be very helpful, especially if you are unfamiliar with the country’s roads. 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. However, 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. However, 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 when renting a car in Iceland. Most rental companies also offer GPS devices, either for free or for an additional fee. Having a dedicated GPS unit can be especially useful in areas with limited or no mobile signal, where navigation apps may not work reliably. Before your trip, make sure your device is updated and compatible with Iceland’s road system.
Can I use my mobile phone as a GPS while driving a rental car in Iceland?
Yes, you can use a mobile phone for navigation while driving a rental car 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?
There is usually no mileage limit when renting a car in Iceland, unless otherwise stated. This allows you to explore the country without restrictions on distance, which is ideal for long road trips such as driving the Ring Road. 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, multiple people can drive a rental car in Iceland, but all additional drivers must be registered when picking up the vehicle. Some rental companies allow one additional driver for free, while others charge a daily fee for adding extra drivers. 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, child or booster seats are available as an add-on when renting a car in Iceland. You can add one for your child when booking or picking up the vehicle. 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 in Iceland?
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?
Collision Damage Waiver (CDW) is included by default for nearly all rental car bookings in Iceland. Most rental car companies also offer the option of adding Super Collision Damage Waiver (SCDW), Theft Protection (TP), Gravel Protection (GP), and Sand and Ash Damage Waiver (SADW) to provide additional coverage.
Complete coverages are also available, such as Premium or Platinum insurance packages, which usually reduce the deductible to zero. These higher-tier coverages are often recommended for a more worry-free experience, particularly when driving in winter.
Complete coverages are also available, such as Premium or Platinum insurance packages, which usually reduce the deductible to zero. These higher-tier coverages are often recommended for a more worry-free experience, particularly when driving in winter.
Do I need gravel protection when I rent a car in Iceland?
Gravel protection is recommended when renting a car in Iceland, especially if you plan to drive outside the main paved roads.
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.
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.
Are river crossings included in standard car rental insurance in Iceland?
No, river crossings are not covered by standard rental insurance in Iceland, and coverage for this type of damage is very limited. 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 when renting a car 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?
Rental car damages that are not covered by any insurance in Iceland include those caused by negligence or illegal actions, such as driving through rivers or water crossings, or off-road driving, which is strictly forbidden. Damage from strong winds, such as doors being blown open, is also commonly excluded, so extra care is needed in harsh conditions. Additionally, any damage that occurs while driving under the influence of alcohol or drugs is never covered. Coverage can vary by rental company, so always check the specific terms of your agreement.
Can I use my own car insurance when renting a car in Iceland?
You may be able to use your own car insurance when renting a car in Iceland, but it depends on your insurance policy. Check with your provider to confirm if rentals in Iceland are covered. And even if they are, please note that you’ll still need to purchase the minimum CDW insurance required by the rental company.
Will I still be insured if I drive off-road in Iceland?
No, you will not be insured if you drive off-road in Iceland, as it is illegal and voids all rental insurance coverage. Even if no damage occurs, you may still face significant fines when returning the vehicle.
Is driving in Iceland difficult?
Driving in Iceland is generally easy, especially in summer on main routes like the Ring Road, which are paved, well-maintained, and clearly marked. Traffic is usually light outside Reykjavik, making navigation straightforward for most travelers. However, driving can become difficult in winter or remote areas due to snow, ice, strong winds, reduced visibility, and gravel or mountain roads, and some routes may require a 4x4 vehicle. Checking weather and road conditions before setting out is essential.
What driving rules in Iceland are different from those in other countries?
Several driving rules in Iceland are different from those in other countries, including strict speed limits of 31 mph (50 km/h) in towns, 50 mph (80 km/h) on gravel roads, and 56 mph (90 km/h) on paved rural roads. Headlights must be on at all times, day and night, regardless of conditions. Off-road driving is strictly illegal, including on beaches, lava fields, and moss-covered areas. You should also never stop on the road for photos. Always use designated parking areas or pull-offs. F-roads are only open to approved 4x4 vehicles suitable for highland driving.
Are there seasonal considerations or restrictions, such as road closures, that can impact car rentals or driving routes in Iceland?
Yes, there are seasonal considerations and restrictions that can affect driving rental cars in Iceland, such as road closures due to weather conditions. During winter (roughly November to April), some roads may close due to snow, ice, or severe weather, especially highland F-roads, which are typically inaccessible outside of summer. In contrast, summer conditions make most roads, including F-roads, open and easier to drive, although exact opening and closing dates still depend on the weather. 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 a rental car from Iceland. Iceland is an island, so there are no land borders to cross. While you can take your rental car on domestic ferries within Iceland, you are not allowed to 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, there are plenty of gas stations available for fueling your rental car around Iceland. All towns and villages have at least one gas station, so you can refuel regularly. Many gas stations also have small shops or diners where you can grab a snack or a meal while fueling your rental car.
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, you cannot drive on beaches or go off-road in Iceland. Off-road driving is strictly illegal to protect the environment, and this includes beaches, lava fields, and moss-covered terrain. Violations can result in 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 road 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.
To stay safe, reduce your speed on gravel roads, approach blind curves and single-lane bridges with caution, and remain alert for sudden animal crossings. It’s also a good idea to check the weather and road conditions before setting out, as conditions can change quickly.
To stay safe, reduce your speed on gravel roads, approach blind curves and single-lane bridges with caution, and remain alert for sudden animal crossings. It’s also a good idea to check the weather and road conditions before setting out, as conditions can change quickly.
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 Icelandic car rental companies provide 24/7 emergency assistance or support. This means you can contact them at any time if you run into issues like a breakdown or flat tire. However, the level of assistance may vary, so it’s best to check your rental agreement for specific details.
What should I do if the rental car breaks down or I get into an accident in Iceland?
If your rental car in Iceland breaks down or you’re involved in an accident, contact the rental company as soon as possible using the details on your voucher or booking confirmation. They will guide you on the next steps and may arrange a replacement vehicle if needed.
If the incident involves another vehicle, injuries, or significant damage, you should also contact the police. Be sure to document any damage by taking photos and noting relevant details, as this may be required for insurance purposes. Always follow the procedures provided by the rental company to ensure you’re properly covered.
If the incident involves another vehicle, injuries, or significant damage, you should also contact the police. Be sure to document any damage by taking photos and noting relevant details, as this may be required for insurance purposes. Always follow the procedures provided by the rental company to ensure you’re properly covered.
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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