Car rental in Iceland

Iceland captivates visitors with its untouched and breathtaking natural landscapes: dormant volcanoes, expansive lava fields, innumerable waterfalls, mighty geysers, vast caves, and stunningly blue glaciers. This destination is truly ideal for those seeking to escape the daily grind, drive along roads offering spectacular panoramas, and marvel at the extraordinary marvels nature has crafted. If you prefer exploring at your leisure, renting a car is the perfect choice.

With a rental car, you have the freedom to pause at any attraction that catches your eye, savor the natural beauty without rushing, and dine at genuine local eateries. Driving yourself allows an immersive experience into the authentic spirit of Iceland.

How to Rent a Car in Iceland

Iceland attracts a large number of tourists, and traveling by car is the preferred method for many. To secure the best options, especially during the busy high season, it is crucial to reserve your vehicle well in advance. Early booking provides a wider selection, particularly among budget-friendly models.

You can conveniently select and book a car directly through our platform.

Benefits of booking with us:

  • A comprehensive selection of vehicles from the top local rental companies on the island, all in one place, enabling quick and easy comparison to find the best deal.
  • Transparent pricing with no hidden fees or unexpected charges.
  • Minimal upfront payment: only 15-20% is required at booking, with the remainder payable upon vehicle pickup.
  • Many cars available for rent without any deposit requirement.
  • Reliable customer support available throughout your rental period, ready to assist you with any issues or questions.

Optimal Duration for Renting a Car in Iceland

Planning your trip carefully is important. The length of your rental should depend on your travel goals, the season, and the local weather conditions.

If you intend to visit only the main highlights, a rental period of 2 to 3 days is typically sufficient.

For a more relaxed and extensive journey around the island, consider renting a vehicle for one or two weeks to fully experience Iceland’s diverse attractions.

For travelers planning to drive throughout their stay, picking up and returning the car at Reykjavik Airport is a convenient option.

Selecting the Right Vehicle

For city driving or summer trips on paved main roads, a compact two-wheel drive car is ideal.

During the winter months (October through April), opting for a four-wheel drive crossover is advisable. Such vehicles handle slippery, snowy, or gravel roads with greater ease and safety.

Documents Required for Renting a Car

When renting a car in Iceland, make sure to have the following documents ready:

  • Valid passport
  • Driver’s license, preferably with an English translation or an International Driving Permit
  • Credit or debit card for payment and security purposes

Important Traffic Rules to Follow

Adhering to Icelandic traffic regulations is essential, as penalties for violations can be quite steep.

  • Both drivers and passengers must always wear seatbelts.
  • Low beam headlights are mandatory at all times, day and night.
  • On highways, stopping is allowed only in designated bays, which are conveniently located at scenic and practical spots.
  • Using a mobile phone while driving is strictly forbidden.
  • The legal blood alcohol limit is 0.5‰, and enforcement is stringent.
  • Be alert on rural roads as sheep frequently cross unexpectedly.
  • Respect “road closed” signs; entering closed roads is prohibited and can be dangerous.

Unique Aspects of Icelandic Petrol Stations

Aside from the spectacular nature, petrol stations in Iceland have distinctive features that may surprise newcomers unfamiliar with local customs.

Most petrol stations operate fully automatically and do not accept cash payments. They are spaced approximately every 150 to 200 kilometres along some routes. Before setting out on your journey around the island, ensure your payment card works for automated pumps, always fill up with enough fuel, and check maps for the location of the next station.

Road Conditions in Iceland

Major highways across Iceland are well-paved, in contrast to many secondary roads which may be gravel or unpaved.

Always reduce your speed when transitioning from a highway to an unpaved road.

The main route encircling the island is the Ring Road (Route 1). It is accessible with any car and generally consists of two lanes, making it very tourist-friendly. Most of Iceland’s popular destinations are easily reached via the Ring Road, which connects numerous towns and villages, ensuring convenient access to fuel, food, and accommodation.

While major highways are typically passable year-round, winter weather may cause temporary closures. Always check weather forecasts before travelling in snowy seasons.

Highland routes, known locally as F-roads, are unpaved and challenging. These roads often feature potholes, large stones, rivers without bridges, and other hazards. Sudden heavy rain can wash out these tracks quickly, potentially trapping vehicles.

It is highly recommended to use a large four-wheel drive vehicle and exercise maximum caution when driving on unpaved roads.

Off-road driving is illegal in Iceland and can cause severe environmental damage, so always stay on marked roads.

Parking in Icelandic Cities

Urban areas feature four distinct parking zones, each with different hourly rates. Zones are clearly identified by coloured markings on the pavement and “P” signs followed by numbers from 1 to 4, indicating the zone level.

Parking fees generally range from about 100 ISK to 250 ISK per hour (approximately 0.70 to 1.70 EUR). Payment can be made by cash or card at parking meters or ticket machines.

Many tourist attractions offer free parking, though some of the most popular places may charge a fee.

Top Places to Explore in Iceland

If you have a day or two to spare, the Golden Circle is a highly recommended driving route. Starting and ending in Reykjavik, it covers key “must-see” sites such as Thingvellir National Park, the mighty Gullfoss Waterfall, and the geothermal wonders of Haukadalur Valley.

For those venturing south, highlights include the majestic Seljalandsfoss and Skógafoss waterfalls nestled among rolling hills, the striking sea arch at Dyrhólaey Cape, and the forested trails of Skaftafell National Park.

The northern part of Iceland offers treasures like the charming historic town of Djúpivogur, the impressive Litlanesfoss and Hengifoss waterfalls, as well as the expansive Mývatn lake dotted with numerous small lava islands.