If you’re looking to travel in Iceland, renting a car in Iceland can be a great way to explore the country. Here are 10 tips for renting a car in Iceland to help you make the most of your car rental experience.
Firstly, it’s important to book your rental car well in advance, especially if you’re planning to visit during peak season. This will not only help you secure the best deals but also ensure that you have a car available when you arrive. Additionally, make sure to carefully read the terms and conditions of your rental agreement, including the insurance coverage and any additional fees.
Secondly, be aware of Iceland’s driving laws and regulations. The speed limit on highways is 90 km/h and 80 km/h on gravel roads, and it’s important to stick to these limits to avoid hefty fines. Also, keep in mind that driving conditions in Iceland can be challenging, especially during the winter months, so make sure to rent a car that’s suitable for the terrain and weather.
Tips for Renting a Car in Iceland
Renting a car in Iceland is a great way to explore the country at your own pace. However, it can be a bit overwhelming if you’re not familiar with the process. Here are a few things you should know before renting a car in Iceland:
Rental Companies
There are several car rental companies in Iceland, including international brands and local companies. Some of the popular companies include Budget, Avis, Hertz, and Europcar. It’s important to do your research and compare prices and services before making a reservation. We use Discover Cars to get the best deals.
Types of Cars
Most rental companies in Iceland offer a variety of cars, ranging from small economy cars to larger SUVs and 4x4s. If you plan on driving on the F-roads, which are gravel roads in the highlands, you’ll need a 4×4. It’s important to choose a car that suits your needs and budget.
Rental Requirements
To rent a car in Iceland, you’ll need a valid driver’s license and a credit card. The minimum age to rent a car is usually 20 or 21, depending on the rental company. Some companies may also require an international driver’s license, so it’s best to check with the rental company before making a reservation.
Insurance
It’s important to have insurance when renting a car in Iceland. Most rental companies offer basic insurance, which usually covers collision damage and theft. However, it’s recommended to purchase additional insurance, such as gravel protection and sand and ash protection, as Iceland’s roads can be rough and unpredictable. Be sure to read the rental agreement carefully and understand what is covered by the insurance.
Road Conditions
Iceland’s roads can be challenging, especially in the winter months. It’s important to check the weather and road conditions before embarking on your journey. The Icelandic Road and Coastal Administration website provides up-to-date information on road conditions and closures.
#1 Choose the Right Vehicle
When it comes to renting a car in Iceland, choosing the right vehicle is essential. There are different types of vehicles available, and it’s important to select the one that best suits your needs and preferences. Here are some factors to consider when choosing the right vehicle for your Iceland road trip.
Car vs Campervan
One of the first decisions you’ll need to make is whether to rent a car or a campervan. If you prefer the convenience of a traditional vehicle and plan to stay in hotels or guesthouses, a car is likely the best option for you. However, if you’re looking for a more adventurous and flexible trip, a campervan may be the way to go. With a campervan, you have the freedom to travel at your own pace and camp in some of Iceland’s most beautiful and remote locations.
Manual vs Automatic
Another factor to consider is whether to rent a manual or automatic transmission. If you’re not comfortable driving a manual, it’s best to stick with an automatic. However, if you’re used to driving a manual and prefer the control and fuel efficiency it offers, then go for it. Keep in mind that Iceland’s roads can be challenging, especially in winter, so it’s important to choose a vehicle that you’re comfortable driving.
It’s also worth noting that 4WD vehicles are recommended for driving in Iceland, especially if you plan to venture off the main roads. However, 4WD vehicles can be more expensive to rent, so consider your budget when making your decision.
#2 Rent Ahead of Time
Renting a car ahead of time in Iceland is highly recommended, especially if you plan to explore the country’s natural wonders. Iceland’s roads can be challenging to navigate, and weather conditions can be unpredictable, so having a reliable vehicle is essential. By booking your rental car in advance, you can secure a vehicle that meets your needs and avoid the hassle of trying to find a rental car upon arrival.
Booking a rental car ahead of time in Iceland is easy and can be done online. Many rental companies offer competitive rates, and by booking in advance, you may be able to take advantage of special discounts. It’s also a good idea to read reviews of rental companies before booking to ensure you choose a reputable and reliable company.
#3 Take Note of Extra Costs
When renting a car in Iceland, it’s important to consider the various costs involved. Here are some key factors to keep in mind:
Rental Rates
Rental rates for cars in Iceland can vary greatly depending on the time of year and the type of vehicle you choose. During peak travel season, rates can be significantly higher. To get the best deal, it’s important to book your rental car in advance and compare rates from multiple companies.
Gas Prices
Gas prices in Iceland are generally higher than in many other countries. However, it’s important to note that many rental car companies require you to return the car with a full tank of gas. To avoid extra fees, plan your route and fill up at gas stations along the way.
Insurance Costs
When renting a car in Iceland, you’ll need to consider insurance costs. Most rental car companies offer a basic level of insurance coverage, but it’s important to read the fine print and understand what is and isn’t covered. Additional insurance coverage is often available for an extra fee.
It’s also worth noting that your travel insurance may provide some level of coverage for rental car accidents or damage. Be sure to check your policy to understand what is covered and what isn’t.
#4 Plan your Route Ahead
When it comes to exploring Iceland, renting a car is one of the best ways to see all the country has to offer. However, navigating the roads can be a bit daunting, especially if it’s your first time driving in Iceland. Here are some tips to help you navigate Iceland with ease.
Understanding the Ring Road
The Ring Road, also known as Highway 1, is a 1,332 km (828 mile) road that circles the entire country. It’s the main road in Iceland and connects most of the major cities and attractions. If you’re planning a road trip in Iceland, the Ring Road is a great place to start.
Driving the Ring Road can take anywhere from 7-10 days depending on how many stops you make along the way. The road can be narrow at times, and there are several one-lane bridges, so it’s important to pay attention to the road and be aware of other drivers.
Off the Beaten Path Destinations
While the Ring Road is a great way to see many of Iceland’s most popular attractions, there are also plenty of off the beaten path destinations worth exploring. Some of these destinations include the Westfjords, the Highlands, and the Snæfellsnes Peninsula.
When driving off the beaten path, it’s important to have a reliable GPS and a good sense of direction. Some of the roads can be rough and unpaved, so it’s also important to have a sturdy vehicle.
#5 Consider Seasonal Factors
When it comes to renting a car in Iceland, it is important to consider the seasonal factors that may affect your trip. Iceland’s weather can be unpredictable, and road conditions can change rapidly. Here are some things to keep in mind:
Winter Driving
If you plan to visit Iceland during the winter months, you should be prepared for driving in snowy and icy conditions. It is important to rent a car with four-wheel drive and studded tires, as these will provide better traction on slippery roads. Additionally, you should always check the weather forecast and road conditions before setting out on your journey. Be aware that some roads may be closed due to snow and ice, and that driving in Iceland during the winter can be challenging even for experienced drivers.
High Season Travel
Iceland’s high season runs from June to August, and during this time, the country sees a large influx of tourists. This can make driving more challenging, as the roads can be crowded and parking can be difficult to find.
#6 Understand Insurance Options
When renting a car in Iceland, it’s important to understand the different insurance options available to you. Basic insurance typically covers damage to the rental car and third-party liability, but additional coverage options are available, such as collision damage waiver and gravel protection.
When signing rental agreements make sure to read the fine print and fully understand the terms and conditions. Pay attention to things like mileage limits, insurance coverage, and additional fees.
The country’s unpredictable weather and challenging roads can increase the risk of accidents, so it’s crucial to have adequate insurance coverage. Here are three types of insurance options you should be aware of:
Gravel Protection
Iceland’s landscape is known for its rugged terrain and gravel roads. As a result, it’s common for rental cars to suffer damage from flying rocks and gravel. Gravel Protection is an optional insurance coverage that can protect you from the cost of repairing any damage caused by gravel. If you plan on driving on unpaved roads, it’s recommended that you consider purchasing this insurance.
Theft Insurance
Theft Insurance is an optional coverage that can protect you from the cost of replacing the rental car if it’s stolen. While Iceland is a relatively safe country, car theft can still occur. If you’re concerned about the possibility of theft, you may want to consider purchasing this insurance coverage.
Extra Insurance
In addition to the standard insurance coverages that may be included in your rental agreement, many rental car companies offer additional insurance options. These may include:
- Super Collision Damage Waiver (SCDW): This insurance coverage can reduce or eliminate your liability in the event of an accident.
- Sand and Ash Protection (SAAP): This coverage can protect you from the cost of damage caused by sand and ash storms, which are common in Iceland.
- Tire and Windshield Protection: These coverages can protect you from the cost of repairing or replacing damaged tires or windshields.
#7 Note Pick Up and Drop Off Locations
When renting a car in Iceland, it is essential to know where you can pick up and drop off your vehicle. The most common locations for car rental pick up and drop off are Reykjavik and Keflavík Airport, so make sure to plan a convenient pick up and drop off spot for your rental car.
Reykjavik
If you’re staying in Reykjavik, you can find many car rental companies located in the city center. Some companies offer a shuttle service to their office from your hotel or accommodation, while others require you to arrange your transportation to their location.
Keflavík Airport
Keflavík Airport is the primary gateway into Iceland, and many car rental companies have offices located at the airport. To pick up your rental car at the airport, follow the signs to the car rental area, which is located near the terminal building. When returning your car, make sure to follow the signs to the car rental return area and park your car in the designated spot.
#8 Know Road Safety and Regulations
When renting a car in Iceland, it’s important to be aware of the road safety rules and regulations. Here are some tips to help you drive safely and avoid any issues:
Speed Limits
Speed limits in Iceland are generally lower than in other countries. The speed limit on paved roads is usually 50 km/h in urban areas and 90 km/h outside urban areas. However, some roads have lower speed limits, so make sure to pay attention to the signs.
Roadside Assistance
If you run into any problems on the road, there are several companies that offer roadside assistance in Iceland. Most car rental companies also offer some form of roadside assistance, so make sure to ask about this when you rent your car.
In case of an emergency, dial 112 to reach the Icelandic emergency services. They will be able to provide assistance and direct you to the nearest hospital or police station if necessary.
It’s also worth noting that there are speed traps in Iceland, so make sure to stick to the speed limit to avoid getting a speeding ticket. If you do get a ticket, you can pay it online or at a police station.
#9 Don’t Stop in the Road
One frequent mistake that travelers to Iceland make is to stop their car in the middle of the road. Iceland is an incredibly scenic destination, packed to the brim with beautiful views that may seem worthy of stopping for.
But it’s important to never stop in the middle of the road when driving in Iceland. Iceland’s roads can be narrow and winding, and sudden stops can cause accidents or create dangerous situations for other drivers.
Instead, find an area where it’s safe to pull of the road. Iceland has plenty of places to pull of the road to see the scenery, and they even have viewpoints specifically made for sight seeing. Make sure to use those instead of stopping on the road.
#10 Alternative Transportation Options
While renting a car is the most popular option for exploring Iceland, there are a few alternative transportation options to consider.
Public Transport
Public transport options in Iceland are limited, especially outside of Reykjavik. Buses are available and can take you to popular tourist destinations, but they can be infrequent and may not fit your schedule. Additionally, if you’re planning to explore Iceland’s more remote regions, public transport may not be an option.
Bus Tours
If you don’t want to rent a car but still want to see the sights, a bus tour may be a good option. Bus tours can take you to popular destinations and offer guided tours with knowledgeable guides. However, you’ll have little control over your schedule and may have to follow a set itinerary.
Additional Tips and Tricks
In addition to the essential tips for renting a car in Iceland, here are some additional tips and tricks that can make your experience smoother:
- Fill up your gas tank frequently: Gas stations can be few and far between in Iceland, so make sure to fill up your tank whenever you have the chance. Also, keep in mind that gas prices in Iceland are quite high, so budget accordingly.
- Bring a GPS or download offline maps: While Iceland is a beautiful country to explore, it can be easy to get lost, especially if you’re driving in rural areas. Make sure to bring a GPS or download offline maps to your phone to help you navigate.
- Watch out for gravel roads: Many of Iceland’s roads are unpaved, and driving on them can be tricky, especially if you’re not used to it. Slow down and take your time, and be aware of rocks and gravel that can cause damage to your car.
- Check the weather forecast: Iceland’s weather can be unpredictable, and conditions can change quickly. Check the forecast before you head out and be prepared for rain, snow, and strong winds.
- Pack warm clothing and food: If you’re planning on driving in more remote areas of Iceland, make sure to pack warm clothing and food in case of an emergency. It’s always better to be prepared.
- Be respectful of wildlife and nature: Iceland is known for its stunning natural beauty and wildlife, but it’s important to be respectful and mindful of your impact. Don’t disturb wildlife or leave trash behind, and stay on designated paths and trails.
- Take advantage of rest stops: Iceland has many rest stops along its roads, and they can be a great place to take a break, use the restroom, and stretch your legs. Take advantage of these stops to make your journey more comfortable.
Be Prepared For Travel
Planning is the most important part of any successful trip. Do it the easy way:
🧳 Travel Packing List | ✔️ Why You Need Travel Insurance | ✈️ What to Do Before You Leave Home
- Find and book the best hotel (our favorite booking site is Expedia)
- Research flight options (our favorite tool is Skyscanner)
- Book a tour (we always use Viator to find the best tours)
- Rent a car through Discover Cars (they search the best deals for you!)
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Laura Lynch, creator and writer of Savored Journeys, is an avid world traveler, certified wine expert, and international food specialist. She has written about travel and food for over 20 years and has visited over 75 countries. Her work has been published in numerous guidebooks, websites, and magazines.