How to Rent a Car in Iceland

Congratulations! You’ve just booked a thrilling trip to Iceland. We can fully understand your excitement and we know you’re itching to plan every single moment of your time in the land of ice and fire. But where should you start?

One of the most common questions amongst those visiting Iceland is whether they should consider hiring a car. If you’re looking to explore the wonders of our beautiful country, then the answer is a resounding yes! So once you’ve arranged flights and accommodation, the next item on your checklist should be to arrange a car for your time in Iceland.

The first thing you need to know is that public transport in Iceland is fairly limited. When in Reykjavík you can easily get around without access to a car, however, if you want to get out and experience anything beyond the capital city or truly explore the magnificent Icelandic wilderness, there are definitely clear benefits of renting a car in Iceland.

Where to Start

First things first, there are a few key rules to follow when hiring a car for your trip to Iceland, outlined below. 

• Only rent from a trusted company with positive reviews
• Ensure the company has plenty of availability for your dates of travel
• Find out if they offer airport transfers to make collecting and dropping off your car easier
• Shop around and make sure you’re getting a fair price

Requirements

In order to hire a car in Iceland, there are a few requirements you must meet. These requirements act as an assurance for both yourself and the hire company. Find out these requirements and how to make the most of your vehicle in Iceland.

Age & License Requirements

As a rule, you must be 21 or older to hire a car in Iceland and you do not need to have an international driver’s license, but you must have a valid license from your home country with full driving privileges. This means that a driving permit or provisional driving license will not be adequate. 

Insurance Requirements

You’ll also be required to have minimum car insurance for your vehicle. The minimum that is accepted is third-party liability insurance, which is normally included for free with your rental agreement. But just because this is included doesn’t mean that it’s suggested that you go with the minimum. 

There is additional coverage you can choose to opt for, and we’d certainly suggest that you consider this. It’s important to bear in mind that Iceland is a country of extreme weather - and not just snow. Wind can churn up significant amounts of dirt and gravel that can leave your vehicle more damaged than you might imagine. 

When collecting your car, make sure to speak to a representative, tell them about the types of areas you plan to drive and they can advise you on any additional insurances you may want to take out. Remember, if you don’t and the car gets damaged, you’ll have to pay out of pocket for any repairs, so it’s better to be safe than sorry.

Choosing the Right Car for Your Visit

Because Iceland is a country with such varied landscapes, you’re likely to encounter a lot of different terrains depending on your plans. 

If you’re planning to stick to the areas directly around Reykjavík or paved roads like the Golden Circle and Ring Road, you’ll be fine with just about any type of car. Small city cars with no 4x4 capabilities will do just fine, however, if you plan to head onto any unpaved roads or tackle the Highlands, you’ll need a 4x4. Find out more about How to Select the Right Car for Your Iceland Trip. 

Tips and Resources

Make pick-up and drop-off simple: Choosing a hire car company with an office located at Keflavik Airport makes your pick-up and drop-off process simple. You can find us at Keflavík Airport with a quick ride on the shuttle after you arrive and can reverse the process when you leave Iceland.
Be a kind driver: It’s important to follow local laws and customs when driving in Iceland. Make sure to brush up on driving etiquette in Iceland. 

Observe local road laws: Like any country, the traffic and road laws in Iceland may differ from those in your home country. Following laws and obeying signage can help you avoid speeding tickets and other fines. It’s also important to be aware of parking rules and regulations in Reykjavík. 
Don’t get caught out when it comes to fuel: In some areas of Iceland, fuel stations can be few and far between. Plan ahead to make sure you’re not caught out.
Be prepared for the weather: Driving in adverse weather conditions can sneak up on you in Iceland. Read up on how to drive in snow in Iceland.
Make the most of your time in Iceland with a road trip: Iceland’s open roads, stunning scenery, and immersive wilderness make it the perfect place for a road trip. Plan a road trip you’ll never forget to make the most of your visit.

 

We’re the experts when it comes to all things driving in Iceland. If it’s time to hire your car in Reykjavík, our fleet is ready and waiting. Let’s hit the road!

Back