If you're planning to spend some time in Iceland, car rental is by far the best way to explore. A car rental in Iceland gives you total freedom and flexibility on your adventures, and it also gives you the chance to explore places that you just can't get to on a tour bus.
Iceland has some of the most beautiful natural landscapes in the world and driving through them is a real joy, pulling over where you want, spending as much time in any given spot that suits you.
We wholeheartedly encourage you to be free, to set yourself no boundaries and truly explore the backroads and sometimes off-roads of Iceland.
But the question is, what are the rules for rental cars in Iceland?
We have all the answers for you right here.
What do you need for a car rental in Iceland?
There are no strict rules for an Iceland car rental, so as long as you have a few key documents and a little experience you are good to go.
For your license, you just need to have a valid driving license that is more than one year old.
You also need a credit card to pay and hold the booking.
And you need to be over 20 years old, for insurance purposes. (though it is over 23 if you are renting a 4wd or a campervan)
And that is it as far as documentation goes. Pretty simple, right?
What is the story for Insurance on my car hire?
Iceland is a little different from the rest of Europe. You still get insurance included with every car hire booking that covers Collision Damage Waiver, Theft Protection and Third-party liability.
And this is cool, it covers all the basics if that is all you want.
However, Icelandic weather can be a little more extreme than in other European countries, so when you go to pick up your car, the guys at the desk will offer you a few other options. With the occasional crazy winds comes the risk of sand and ash damage to the car. There are also some gravel roads on which winds or other drivers can send gravel flying at your hire car.
The guys on the desk will discuss this with you openly and honestly. Well, they will if you choose to rent your vehicle with one of our partners at CarsIceland.is!
We don't believe in forcing things on people that they do not need and we expect the same from others. We won't sell you scare stories, guilting you into additional insurance, but if there are parts of the island you are visiting that we think are riskier, we will totally let you know.
What Type of Car for my Rental in Iceland?
We can rent you whatever kind of vehicle you would like, and again, we won't upsell you into something you don't need. Your car, your way.
You can hire a standard car, great for getting around the main sites of Iceland. If you are sticking to the main routes, a compact family car will be the perfect vehicle for you.
If you are planning to get a little out of the way, then we would suggest a 4wd vehicle. Iceland is all about its natural wonders and while there are a lot of these that are easily accessible, if you are looking to go out of your way to explore the unknown, a 4wd will navigate the potholes on the gravel roads, and the bumpy, weather-worn track roads a lot better than a car can!
And, if you are looking to sleep where you stop, then we have a beautiful range of campervans you can rent. There are a few different rules and suggestions when exploring Iceland by campervan.
How To Book Rental Cars in Iceland
As with everything, it is now far easier and more convenient to book car rental before you leave your home country. This means that you have your vehicle confirmed and don't have to run from rental desk to rental desk to try and pick something up.
By far, the friendliest, most helpful company renting cars in Iceland is the superstar team at CarsIceland.is.
Now, it is our blog, so we are bound to say that, but hear me out for a second.
We are 100% the local experts on car hire. Iceland has so many different ways to explore, so many landscapes and we know each route and road intimately. If we see you are heading somewhere, we will give you the insider tips to discover that little bit extra.
We are passionate, we live just down the road near the airport and we are not some gigantic, soulless corporation, looking to get bigger. We are Icelandic, and simply love showing off our beautiful country.
Go for one of the big guys if you like, but we promise, it is like eating a packaged sandwich when you could be eating artisan goods.
How to Pick up Your Hired Vehicle
When you arrive at Keflavik Airport there are one of two things that are going to happen if you have already pre-booked online.
There will be someone waiting for you in the arrivals area, with your name on a board. If they are from one of our suppliers, they will be smiling broadly, waiting to welcome you to our beautiful country and assist you in handing over your rented vehicle.
If there is nobody in the arrivals area because you arrive early or late, just contact us or your supplier and you will catch the next shuttle bus.
During high season there might be a small waiting period as the shuttle bus just shuttled over a few people. Always make sure you have your flight information on hand when you book the vehicle so that we can inform the supplier about your arrival.
Tips to Inspecting your Vehicle
1. Carefully Inspect the Exterior
Make sure you have an extensive look at the whole exterior of your vehicle. If it's dark out, use the flashlight on your smartphone or ask one of the agents for any kind of light source.
You want to look for any scratches, dents or damages that are not marked on your rental agreement, and this is also the time to confirm all the damages on the agreement.
2. Take pictures
This is very important.
Take pictures of the WHOLE outside of the vehicle, make sure they are in focus and that you can visibly see the car. If you see ANYTHING out of the ordinary or looks like something that might be considered a scratch or a dent, take a photo of it.
This is just for ease of mind and to make sure that you have your bases covered.
You don't want to be liable to any damages that weren't made by you that was missed by the rental supplier.
3. Door handles, Windows, Wipers and Lights
Now is a good time to check all the door handles and make sure they work accordingly. Open all doors and close them, to make sure they are all working, also lock and unlock with the key.
Check the wipers by turning them on and visually inspect as well. Use the time to check the windows for any cracks and also rolling the side windows up and down.
Use the turn signals to ensure they are working properly as well as the break paddle.
4. Tires
Inspect the tire treads and make sure they are deep enough. Also check if they are seasonal for when you are picking up your vehicle. In the winter, the rental supplier will have studded tires or good winter tires.
A great way to inspect the threads is by using a coin, perhaps a penny. Simply insert the penny into your tire's tread groove with Lincoln's head upside down and facing you. If you can see all of Lincoln's head, your tread depth is less than 2/32 inch and it's time to replace your tires.
If the tires do not look safe, tell your supplier and they will inspect the tires and, if needed, switch them out or replace the vehicle.
5. Interior
Have a look at the interior, such as any damages to the seats or steering wheel as well as the carpet, headliner, door panels and dashboard.
Get familiar with all the items on the dashboard and check if there are any warning lights.
Now is a good time to ask the rental agent about the GPS or radio, or anything else that catches your eye that you are not fully aware of utilizing.
6. Fuel
Make sure the fuel is full and be aware of the fuel type. You can do this by either asking the agent or opening the fuel cap as the fuel type will be stated on the inside.
Before You Drive Away
1. Important Documentation
Be sure that you have all of your documentation with you before you depart, such as:
- Drivers License
- Insurance Cards
- Passports
- Rental Papers
We have all experienced the awful feeling of leaving something important behind, so lets not.
2. Important Terms and Information
Ask your agent about the terms of the rental agreement, such as mileage limitations, extra driver fees, when to return the vehicle and more.
It's better to be informed rather than risking any extra fees.
3. Questions
Now is a good time to just ask the rental agent if there is anything you need to know before you enter the vehicle. If he knows about anything special going on, perhaps weather warnings or road closings.
Also, if you are renting a 4x4 make sure you have all the details and maps for approved F-Roads to drive.
4. Adjust
Take a moment and adjust the seats and the mirrors. It's best to do this before you drive off to not be uncomfortable and to be able to view the side mirrors when your or others are passing.
5. Luggage
Best not to leave any luggage behind so make a count of all your items. Secure them correctly in the drunk so it doesn't move around or, if anything happens, it won't be a hazard for those traveling with you.
Top Tips for driving in Iceland
We drive on the right here. We know this will be the same for most people, but if you are coming from the UK, remember to stick to the right! If you have never done it before, the first 15 mins will be slow and nervy, but don't worry, it soon becomes like riding a bike.
Unless you specifically ask for it, every car in Iceland will be a manual transmission. So, if you are an automatic kind of person, make sure to ask before you travel.
Driving is pretty straightforward. In some rural areas, there are single-lane bridges and tunnels. The etiquette is to let the vehicle closest to the bridge/tunnel pass first. And remember to smile and wave as they pass, that is definitely the way to do things here!
Driving off road is illegal and can get you a hefty fine. There are special roads that you can take that are marked with F-##, such as F35. These are specialy made for the adventurous type that likes to drive on the edge. The roads are mostly gravel and you can only drive an F-Road on a 4x4 vehicle.
Seatbelts are to be worn at all times and headlights always turned on, even during day time. If someone flashes their headlights, that usually means you have yours turned off (or maybe there is a police giving out speeding tickets nearby).
Animals are adrenaline seekers in Iceland and they love crossing the road. Be aware of them and drive carefully in the country side. If you happen to hit sheep you will have to contact the police, as well as the rental supplier.
Many of the roads in Iceland do not have breakdown lanes or road turn-offs. Stopping in the middle of the road is not an option, even though you are witnessing something magical. Drive until you see somewhere to park your car, safely, to avoid an incident. You don't want to break your wallet, or your back.
Accident and Breakdown Information
The emergency number in Iceland is 112, if you need it. This is for any emergency, such as accidents, fire, crime, search & rescue and more. If you have a flat tyre or breakdown, then call us or your supplier, and we will do everything we can to help sort it out.
We do recommend the 112 App which is great if you don't have a mobile signal but you are connected to an Internet source. I would, for sure, have it downloaded and ready to go. This is also specially helpful for those who have speech and/or hearing impairment.
Do not leave your car behind if it breaks down or you are in an accident. Stay close by, call the authorities or your supplier and inform them of what has happened and where you are located.
Fill out the accident statement form found in the glove box in your rental vehicle. It's vital to do this as soon as possible so you won't leave out any facts that will help your case. Don't trust the other driver to be honest in it's transactions, always write up the accident and make a phone call to authorities.
Search and rescue teams to have regular patrolling on F-Roads, especially the more difficult ones.
SafeTravel.is offers information about any weather warnings or alerts that you need to be aware so that you reach your destination safely. You can also submit a travel plan if you are heading through difficult conditions and want others to be aware of your adventure.
All of the suppliers working with CarsIceland offer 24 hour breakdown service so just call the number on your voucher and we will take care of it.
Filling up with petrol in Iceland
We know, it's just filling up with petrol, how hard can it be? Well, not hard at all, but it might be a bit different than in your own country, so we thought we should explain a few things.
You will need a debit/credit card with a pin number to pump gas in Iceland. Many petrol stations in Iceland are self-service, so you have to put your pin number in before the fuel will start to come out. This is cool, it means you can get petrol any time of the day, and if this isn't working out for you and there is someone in the petrol station, you can jump in and pay cash or card.
We would also say to remember that fuel costs are high in Iceland, so remember to plan for this in advance.
Prices are as follow:*
- Highest Petrol Price: 334.6kr
- Lowest Petrol Price: 291.7kr
- Highest Diesel Price: 337.1kr
- Lowest Diesel Price: 302.7kr
*these numbers are formatted to be updated in realtime.
Be on the look out for car rental suppliers that offer a fuel discount card. Ask the rental agent if they offer one.
And just a final tip, the food in petrol stations in Iceland is pretty good, so if you need a snack, they often sell decent, fresh food. The hot dogs are legendary!
Are Icelandic drivers safe?
Generally, the people in Iceland are competent, safe drivers, but like everywhere, you always get some careless people! Because of very variable weather conditions, everyone likes to be extra safe driving and know how to deal with wind, heavy rain, hail, sleet, snow, volcanic eruption etc. Just focus on your own game, and you will get on perfectly.
The speed limit in Iceland
Again, pretty straightforward here, and roadsigns and sat-nav / GPS will keep you right too.
- In cities, the limit is 50km\h
- In rural areas on paved roads the limit is 90km\h
- If you are driving with a camper attached the limit is 80km/h
- In rural areas on gravel or dirt roads the limit is 80km/h
Oh, and btw, here are camera traps / speed cameras in nondescript boxes on the side of the road. There are signs on the road to look out for that give you a heads up. Best to just drive the speed limit to avoid any fines.
Rental cars in Iceland are a super-effective way to see the country and as we might have mentioned, CarsIceland is the local, friendly, all-around good people choice and you could do a lot worse than booking your car with us.
If you have any further questions about booking rental cars in Iceland, then don't hesitate to visit our site, or drop us an email and we will be more than happy to help.
FAQ
How old to you need to be to Rent a Car in Iceland?
The age varies between rental suppliers. Usually the minimum age is 20 but can be as low as 18. For larger vehicles the rental age can be higher, up 25 years old.
Some rental companies also charge you extra if you are a driver under the age of 25.
Can I use a Debit Card to pay for my Rental Car?
Yes. Some debit cards work in our payment process, but only if the debit card has embossed numbers (like a credit card).
After you have selected a vehicle you can click on "More Information" and you will find details on the the card needed for booking the vehicle with this supplier.
If you have selected an insurance that will need an excess from you, then you will have to have a credit card with you for the excess amount.
You may also pay with a different card than was used to book your vehicle.
Am I Allowed to Forfeit my Insurance (CDW) in Iceland?
Yes, you may forfeit the CDW, though that is not something we recommend.
This makes you personally liable for all and any damages that occur to the car, occupants and other people involved. The amount can be very costly.
Always be in touch with your insurance company and credit card company before you travel to make sure you have all papers with you involving your insurance information.
Is it Cheaper to Book my Vehicle in Advance?
Yes, it is. This comes down to supply and demand. When there are more vehicles available by the supplier the prices are better. This is also better for you, as you can then start planning your trip as you might now afford a better vehicle for all terrains, possible a Camper or a Motorhome.
We recommend booking months ahead of time so that you will be able to receive the car you need, and not settle for anything less.
Can I use my National Driving License in Iceland?
Yes, you can drive with any drivers license in Iceland, as long as it is written in English / Roman letters.
If your drivers license is written in Arabian, Chinese, Slavic or any other alphabet form then you must bring your international drivers license.
How long do I need to have held a license for?
Most car rental companies ask you to have your license for the minimum of 12 months, but that varies again between companies.
Do I Need a Passport to Collect my Rental?
No, it is not a requirement. You will only need a drivers license to pick up your vehicle.
How many miles/km are included in my trip?
When you book your vehicle through our booking services, you have unlimited mileage.