Planning a trip to Iceland is exciting, and having the right transportation can make your journey even better. While the country offers tours and public transport, renting a car is one of the best ways to explore Iceland at your own pace. From its famous Ring Road to the remote F-roads in the Highlands, a rental car gives you the freedom to see everything this stunning country has to offer.
Here’s a complete guide to renting a car in Iceland, with everything you need to know to have a smooth experience.
Why Renting a Car is a Great Idea in Iceland
Iceland is a land of breathtaking landscapes—volcanoes, glaciers, waterfalls, black sand beaches, and lava fields. Most of these natural wonders are scattered across the country, and many aren’t easily accessible without a car. A rental vehicle gives you the freedom to plan your own road trip, stop at lesser-known spots, and explore without being restricted by bus schedules or tour groups.
Picking the Right Car Rental Company
When searching for a car rental company in Iceland, there are plenty of options. Some of the most popular ones include Golden Circle Day Tours, Blue Car Rental, and Iceland Car Rental. You’ll find both international brands like Hertz and local options, each offering a range of vehicles.
To choose the best car rental company, consider factors like:
- Pricing: Look for transparency with no hidden fees.
- Insurance Options: Check for comprehensive insurance, including collision damage waivers.
- Reviews: Feedback from other travelers can help identify reliable companies.
- Extras: Some companies include free cancellation, unlimited mileage, or even GPS devices.
Most rental car companies provide various services and assistance options, such as roadside assistance and the choice between purchasing GPS or WIFI.
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What Kind of Car Should You Rent?
The type of car you need depends on your itinerary:
- Small Cars: Ideal for exploring the Ring Road and major towns. These are fuel-efficient and great for solo travelers or couples sticking to paved roads.
- SUVs or 4x4 Vehicles: Perfect for visiting Iceland’s Highlands or tackling F-roads. These vehicles are necessary for rougher terrains and are often better equipped for Iceland’s unpredictable weather.
- Camper Vans: Great for combining travel and accommodation. Camper vans let you explore Iceland and sleep close to nature, saving money on hotels.
Driving in Iceland: What You Should Know
Driving in Iceland is generally safe, but there are a few things to keep in mind:
Road Conditions
- The Ring Road: This is Iceland’s main highway, circling the entire island. It’s mostly paved and well-maintained.
- Gravel Roads: Found in rural areas, these can be challenging for small cars. Drive slower to avoid damaging the vehicle.
- F-Roads: These are mountain roads that require a 4x4 vehicle. They can be rough, with river crossings and steep climbs.
Weather
Iceland’s weather is famously unpredictable. Wind, rain, snow, and fog can happen in any season. Always check weather updates before heading out, especially in winter or if planning to drive on mountain roads.Speed LimitsThe speed limit in Iceland is generally:
- 50 km/h in towns
- 80 km/h on gravel roads
- 90 km/h on paved rural roads
Gas Stations
Gas stations are spread across major routes but can be sparse in remote areas. Always fill up when you see a station, especially if heading into the Highlands.Insurance Options for Rental CarsInsurance is critical when renting a car in Iceland. Most companies offer basic insurance, but it’s worth considering additional coverage:
- Collision Damage Waiver (CDW): Reduces your liability for damage.
- Super Collision Damage Waiver (SCDW): Further lowers your deductible.
- Gravel Protection: Essential if you plan to drive on gravel roads.
- Sand and Ash Damage Protection: Iceland’s volcanic landscapes can create sandstorms that damage paintwork and windows.
- Third-Party Liability Insurance: Covers damage caused to other vehicles or property.
Understanding Costs and FeesRenting a car in Iceland can feel expensive, but the convenience often outweighs the cost. Here’s what to expect:
Base Rental Costs
The cost of a rental car varies depending on the season. Summer (peak travel season) is more expensive, while winter offers better deals.Additional Costs
- Fuel Costs: Gasoline and diesel prices are higher in Iceland than in many other countries.
- Parking Fees: Paid parking is common in towns like Reykjavik and Akureyri.
- Speeding Fines: Speed cameras are frequent, and fines are strict.
- Extras: Items like GPS devices, child seats, or roof boxes may come at an extra charge.
Driving Rules and Regulations
- Valid Driver’s License: You need a valid license to rent and drive a car. If your license isn’t in English, an international driver’s license may be required.
- Minimum Age: Most rental companies require drivers to be at least 20-21 years old. For 4x4 vehicles or larger cars, the minimum age may be higher.
- Driving Lights: Headlights must be on at all times, even during daylight.
- Mobile Phones: Using a mobile phone while driving is not allowed unless it’s hands-free.
Exploring Iceland’s Famous Routes
The Ring Road
The 1,332-kilometer Ring Road is Iceland’s most popular driving route, connecting many of the country’s iconic attractions. It’s ideal for a week-long road trip and passes sites like Vatnajökull National Park, Jökulsárlón Glacier Lagoon, and countless waterfalls.The Golden CirclePerfect for a day trip, the Golden Circle includes Þingvellir National Park, Geysir Hot Springs, and Gullfoss Waterfall. It’s a short and easy route from Reykjavik, making it popular with visitors.The HighlandsAccessible only with a 4x4 vehicle, the Highlands are a remote and rugged region filled with volcanic landscapes, hot springs, and hiking trails. Popular spots include Landmannalaugar and Askja.
Tips for Renting and Driving a Car in Iceland
- Book Early: Rental cars are in high demand, especially during summer. Reserving early ensures better availability and prices.
- Inspect the Car: Before driving off, check for any pre-existing damage and report it to the company to avoid disputes later.
- Check F-Road Access: Not all 4x4 vehicles are allowed on F-roads. Confirm with the rental company.
- Plan Refueling Stops: Gas stations aren’t always close together, especially in rural areas.
- Pack Essentials: Carry water, snacks, and warm clothing, as remote areas may not have facilities.
Should You Rent a Camper Van?
Camper vans are a popular option for exploring Iceland, combining transportation and accommodation. They’re especially handy for those planning a longer road trip and wanting to experience the outdoors.
However, camper vans may not suit everyone. They can be tricky to drive in strong winds, and finding parking spots near major attractions can be challenging during peak seasons.
Practical Takeaways for Your Iceland Car Rental Journey
Before finalizing your car rental in Iceland, double-check a few key details to ensure a hassle-free trip. Confirm the type of vehicle you’ll need based on your route, such as a 4x4 for F-roads or a smaller car for the Ring Road.
Review insurance options carefully, including coverage for gravel or ash damage, which are common concerns in Iceland. Plan fuel stops ahead of time, especially if venturing into remote areas, and always inspect the car thoroughly before driving off.
These steps will help you avoid unexpected costs or delays and let you focus on enjoying Iceland’s incredible scenery with confidence.
FAQs
Is car rental insurance necessary in Iceland?
Yes, car rental insurance is highly recommended in Iceland due to challenging road conditions like gravel roads, high winds, and potential sand or ash damage. Many rental car companies offer basic coverage with options to add additional insurance for better protection.
What type of car is best for an Iceland road trip?
For an Iceland road trip along the Ring Road, a standard car is usually sufficient. If you plan to explore F-roads or rugged areas, choose a 4x4 vehicle, which many rental companies offer specifically for off-road travel.
Are gas stations readily available in Iceland?
Gas stations are common along main routes like the Ring Road but may be sparse in remote areas. Many gas stations offer self-service options, so carrying a card with a PIN is a good idea.
Can I rent a car in Iceland without an international driver’s license?
If your driver’s license is in English or uses the Latin alphabet, it’s usually accepted by rental car companies in Iceland. Otherwise, an international driver’s license may be required.
What’s the average cost of gas in Iceland?
Gas prices in Iceland can be high compared to other countries. The exact cost fluctuates but budgeting for higher fuel costs is essential when planning your trip.
