Heading to Iceland soon and considering hiring a car? You might find my Iceland car rental tips useful. I’ve done many trips to Iceland (more than 10!), and have done a mixture of renting a hire car or joining tours. Both with their advantages and disadvantages, so this guide aims to give an overview of hiring a car in Iceland, as well as useful tips for planning your trip to Iceland.
Is it worth renting a car in Iceland?
This really depends on the kind of traveller you are and the trip you plan on having. If you have ample time to explore, renting a car or a campervan to do an Iceland road trip can be an excellent idea. If you’re really short on time in Iceland, or its a stopover between flights, then it might be useful to avail of local tours and companies for your adventure.
When I’ve rented a car on previous trips to Iceland, I’ve really enjoyed the freedom it affords. Each morning, we’d pore over our map to determine a route, and then hop in and off we went!
It also made our trips far more affordable, especially when travelling in groups of 3 or 4. However, if you are renting your own car and travelling in the winter months, it’s really important to make sure you and your car are fully equipped for all eventualities.
Car Rental Companies in Iceland
There’s no shortage of car rental companies in Iceland. And it’s definitely best to book beforehand to guarantee a car and at a suitable price point.
All the mainstream car hire companies are based at Reykjavík’s airport (Keflavik) including Budget, Thrifty, Enterprise, Hertz, Avis, Europcar and Alamo. I’ve used Budget and been very impressed with the service and quality of the car.
However, in Iceland, there are also some brilliant local car rental companies including Go Car Rental Iceland and Blue Car Rental. These both have excellent reviews and competitive prices.
All car rental companies are located just outside of arrivals at Keflavik airport, or a very short shuttle bus journey away. The companies are very used to travellers arriving at all times to collect their vehicle, and it’s a well organised system.
Useful tips for hiring a car in Iceland
Are the roads busy in Iceland?
Away from Reykjavík, the roads in Iceland can be very easy to drive with minimal traffic. The busiest road you will come across is Highway 41 from Keflavik airport to Reykjavík, and then some of the narrower roads around Reykjavík city.
It’s also worth noting that Icelanders are also very considerate drivers. I’ve never felt unsafe driving in Iceland.
Enjoy the freedom of driving in Iceland
We found ourselves visiting Sandvík (where you can cross the footbridge connecting the Eurasian and North American tectonic plates), the Seljalandsfoss and Skógafoss waterfalls, the Sólheimajökull glacier, and of course, the famous Blue Lagoon in Iceland.
That was in the space of just 2 days and you can read about the best day trips in Southern Iceland here.
The Sólheimajökull glacier was an incredible discovery. We didn’t even know it existed yet saw it from a road and just thought “Let’s try and get as close as possible to that”.
We parked up and climbed over volcanic lava rock until we made it. It was the most incredible feeling and just such a surprise!
Ultimately, hiring a car in Iceland offered us a degree of flexibility and freedom that we couldn’t have even imagined. Even better than a car is to explore Iceland in a camper van if you’re planning on exploring further afield and don’t want to pay for the pricey accommodation in Iceland.
What type of rental vehicle to get?
If you’re visiting the main attractions nearer to Reykjavik then a regular 2WD will suit you fine. If you’re visiting areas that are 2+ hours from Reykjavik, and certainly any kind of drive into the Highlands, you will want a more robust 4×4. If you’re visiting Iceland in winter, you will may feel more comfortable and safer in all weather conditions with a 4×4.
We had a regular Hyundai i10 for our exploration of Southern Iceland in November, and this suited us really well.
All rental car companies in Iceland fix studded tyres to the cars during the winter season, which is crucial.
If you’re planning to camp around Iceland, then travelling by campervan can be a great option.
Car Insurance in Iceland
Adding on car insurance is absolutely essential in Iceland, and should be factored into your Iceland budget from the start. Don’t risk it not having it, no matter what time of year you visit the country.
Driving conditions can change quickly at any time of the year, and although the roads in Iceland are incredibly well-maintained, it can still be quite the shock when visibility goes down to about 1 metre!
Practical information for hiring a car in Iceland
- The minimum age to hire a car is 20 years old for most vehicle types, but for a 4×4 or a van, you’ll need to be 23 or older.
- In order to hire a car, you’ll need a physical, valid driver’s license from your home country. Some nationalities will need an International Driving Permit (IDP) if your license isn’t written in English or western alphabetical letters.
- You will also need a credit card to hire a car in Iceland.
- You should absolutely pay up for insurance.
A few extra Iceland car rental tips
- Petrol: Fractionally more expensive than the UK (about 190 krona a litre)
- Roads: Excellent condition but some are gravelled (As I mentioned above, consider taking out a car insurance policy to cover chips and small dents from this – and drive with extra care!)
- Tolls: Apparently there’s only 1 in the country and it was nowhere near to Reykjavik
- Stopping: Due to very empty roads in Iceland, it was always very easy to pull over to take pics.
- Parking: It seemed to always be free at every waterfall/glacier etc and even ate the Blue Lagoon. However, in Reykjavik City Centre, it did take a bit of driving about to find spaces (which we did by the Hallgrímskirkja Church – a very standout building in the city)
- Lights: On. Always!
Renting a Car in Iceland
Are you planning to go to Iceland soon? Check out my guide to Reykjavik here! I hope this post helps in planning your future trips here or at least inspiring you to visit this incredible country!
If you’ve already visited, let me know in the comments if you have any more top tips or any feedback! I’d love to hear from you 🙂
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Disclaimer: This visit to Iceland was entirely paid for by myself and there was no involvement from the tourism board or a hotel. This is an independent guide.
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Iceland is at the top of my travel bucket list but have been on the fence about hiring a car. I would enjoy the freedom a car would give me so I would most likely hire a car unless I visit in the winter. Driving in the snow scares me but I think would be a great way to explore Iceland in the summer.
I was too scared to drive when I went to Iceland but I’d definitely do it another time – looks like you had an amazing experience!
I don’t think there is a better way to see a place than from a car. It gives you control of your experience and is incredibly liberating. I would love to visit Iceland!
I’d rather travel on foot, but if you say traveling by car was the real deal, then I believe. I hope to visit Iceland. It was on my travel bucket list last year, and I haven’t gone yet.
Being at the wheels, gives you a great sense of freedom. You can stop wherever you want to and for however long you want to. And this kind of freedom in a place like Iceland, with its spectacular landscapes is like a gift from God. Would love to be driving around Iceland someday.
Amazing! I know nothing about traveling all over the country, what a wonderful looking place to explore.
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