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Renting a Car in Iceland: What You Should Know

Renting a car in Iceland is an excellent way to explore the country's stunning scenery, whether you're planning a road trip around the island or need a dependable vehicle for a short trip.

However, before renting a car in Iceland, it is critical to understand the options available, what to look for in a rental car, as well as tips for driving in Iceland.

Summary

  1. Car rental in Iceland is a popular way to explore the country's diverse landscape.
  2. Keflavik International Airport is Iceland's main airport, where both major and local car rental companies operate.
  3. Due to the rough terrain and unpredictable weather conditions in Iceland, it is recommended to rent a 4x4 or SUV.
  4. Car rental prices in Iceland vary depending on the season and the type of vehicle selected.
  5. When driving in Iceland, it is critical to be aware of the weather, road conditions, and speed limits.
  6. Without the permission of the landowner, off-roading is illegal in Iceland, and it is critical to be aware of the rules of the road, including the prohibition on using cell phones while driving.

Keflavik Airport

One of the most popular options is to rent a car at Keflavik International Airport, Iceland's main airport located about 50 kilometers southwest of Reykjavik.

Many major car rental companies, including Avis, Budget, and Europcar, have airport locations, making it easy to rent a car as soon as you arrive in Iceland. There are also several local car rental companies at the airport, including Hertz and others.

Frequent travelers always recommend booking your car well in advance to save time and money, as well as to be able to choose the type of rental car you want without it being unavailable.

Rental Car Type

When renting a car in Iceland, you should think about what type of vehicle is best for your needs.

The roads in Iceland can be rough and unpredictable, so a 4x4 or SUV is often recommended. These vehicles are better equipped to handle rough terrain and perform well in snowy and icy conditions. Furthermore, if you intend to explore Iceland's highlands by F-Roads, a 4x4 is required because some of the roads are not paved and therefore only 4x4 vehicles are allowed.

Image of a 4x4 vehicle in Iceland
4x4 is the best option for Iceland

We pride ourselves in having the best 4x4 vehicles available. Check our search box below to check out our vast selection and lowest prices.

Price

The cost of renting a car in Iceland is another important consideration. Car rental prices in Iceland vary depending on the season and the type of vehicle you select. Because of the high demand for rental cars during the summer, prices tend to rise.

However, prices may be lower during the winter as demand for rental cars decreases. It is also necessary to consider the cost of fuel, as gas prices in Iceland can be quite high.

Driving in Iceland

There are a few things to keep in mind when driving in Iceland.

Weather Conditions

First and foremost, it is critical to be aware of the weather conditions, which can change quickly and unexpectedly. The weather in Iceland can be fickle, and it's not uncommon for a clear day to turn into a snowstorm in a matter of hours. It's also important to be aware of road conditions, as some Icelandic roads are rough and unpaved as mentioned before.

Speed Limit

Image of a speed sign saying 70kmh speed limit in snowy conditions.
Speed limit.

Another thing to remember when driving in Iceland is the speed limit. The speed limit on Icelandic roads is generally low, with the highway's maximum speed limit of 90 km/h. It is critical to obey the speed limit because Iceland has many cameras that monitor traffic and enforce the speed limit.

Rules of the road

Finally, it's critical to understand Iceland's traffic laws. While the rules are similar to those in other countries, you should be aware of a few differences. In Iceland, for example, it is illegal to drive while using a cell phone, and you must always drive with a valid driver's license and proof of insurance.

Furthermore, it is critical to be aware of the off-roading rules, as it is illegal to drive off-road in Iceland without the permission of the landowner. F-Roads are not the some as off-roads as F-Roads are man made while off-road is driving on untouched earth.

image of a black sand beach in Iceland
Iceland has one of a kind scenery

Conclusion

To summarize, renting a car in Iceland is an excellent way to explore the country's stunning landscape. Whether you rent at the airport or through a local car rental company, you should think about what type of vehicle is best for your needs and be aware of the cost. When driving in Iceland, it is critical to be aware of the weather, road conditions, speed limits, and traffic rules. You can have a safe and enjoyable trip to Iceland if you follow these tips.

10 Additional Tips

  1. Reserve your car rental ahead of time, as rental cars are in high demand during the summer months and can quickly sell out.
  2. Before you hit the road, double-check the mileage limit on your rental car, as some companies charge extra for excessive mileage.
  3. When renting a car, bring a valid credit card with you because most companies require a credit card deposit.
  4. Purchase a comprehensive insurance plan to protect yourself from any damages or accidents that may occur during your trip.
  5. Before you hit the road, familiarize yourself with the car's manual and features.
  6. Be mindful of road conditions and plan your route accordingly.
  7. Always carry a physical map with you, or download an offline map, as cell service may be limited in some remote areas.
  8. Always bring warm clothing with you because the weather in Iceland can change quickly.
  9. Bring enough cash or a credit card, as some rural gas stations and restaurants may not accept credit cards.
  10. Respect nature by not driving off-road or on closed roads, as this can harm the environment and be dangerous.

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