{"id":7075989,"date":"2026-10-04T19:10:16","date_gmt":"2026-10-04T19:10:16","guid":{"rendered":"https:\/\/fivemor.com\/?p=7075989"},"modified":"2026-10-04T19:10:16","modified_gmt":"2026-10-04T19:10:16","slug":"iceland-car-rental-8-essential-tips-before-you-book","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7075989","title":{"rendered":"Iceland car rental: 8 essential tips before you book"},"content":{"rendered":"


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Welcome to my guide with my best Iceland car rental tips! Renting a car in Iceland is not difficult, and I\u2019ve done it many times over the past decades. I\u2019ve now visited Iceland 11 times, in both summer and winter, and on many of these trips I\u2019ve explored the country by rental car.<\/p>\n

For many trips, a regular rental car is perfectly fine and you don\u2019t necessarily need to spend a fortune on a 4\u00d74. However, there are some important things to consider before you book, from choosing the right type of car and understanding insurance to knowing when you actually need a 4WD.<\/p>\n

In this guide, I\u2019ll share 8 essential Iceland car rental tips based on my own experience, so you can choose a rental car that suits your trip and avoid unnecessary costs or surprises along the way.<\/p>\n

Note that this article was first published in 2021 and updated in 2026 after my most recent visit to Iceland. <\/em><\/p>\n

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Table of Contents | Inhoudsopgave<\/p>\n

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The beauty of Iceland\u2019s nature by rental car<\/h5>\n

Exploring Iceland by rental car guarantees plenty of \u2018ohhh\u2019 and \u2018ahhh\u2019 moments. The regular buses or organized tours take you to the tourist spots, but they don\u2019t stop everywhere and won\u2019t take you down the smaller side roads. With your own rental car, you can stop whenever you want to take pictures, enjoy the scenery or simply take your time.<\/p>\n

If you feel comfortable driving in Iceland, renting a car is a great way to explore the country at your own pace and with the freedom to change your plans along the way. <\/p>\n

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Car rental tips for Iceland<\/figcaption><\/figure>\n
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The roads in Iceland<\/figcaption><\/figure>\n
Renting a car in Iceland<\/h5>\n

Iceland is ideal for exploring by car. Most of the roads are in good condition and most sights are easily accessible with your own vehicle. The most important thing to know, however, is that there are also quite a few unpaved roads in Iceland. These are the so-called \u2018interior routes\u2019 \u2013 and marked as an F-road. The best known of these are the Kj\u00f6lur and the Sprengisandur. These routes cross the island from north to south and are only accessible in summer and with a 4\u00d74. You can find more about this in the 4\u00d74 section later in this article. <\/p>\n

To rent a car in Iceland you must have a valid driver\u2019s license for at least one year. In addition, a credit card in the name of the main driver is usually necessary. Check the conditions of your rental car company for this when renting a car. The minimum age is 20 or 21 years, this varies per car rental company. Sometimes there is a surcharge for drivers under the age of 25.<\/p>\n

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Driving your rental car<\/figcaption><\/figure>\n
How does renting a car in Reykjav\u00edk work?<\/h5>\n

This paragraph is extremely important! Most visitors arrive in Iceland via Keflav\u00edk \u2013 Reykjav\u00edk\u2019s international airport. This is about an hour\u2019s drive from Reykjav\u00edk city. Please note that there is also an airport in the city (Reykjav\u00edk) but this is only used for domestic flights. So don\u2019t make the mistake of booking a rental car in Reykjav\u00edk instead of in Keflav\u00edk. <\/p>\n

However, if you are going on a city trip in Reykjav\u00edk for a few days and you don\u2019t need a rental car, you can take the Flybus to Reykjav\u00edk and as soon as you start traveling around, pick up your rental car at the city office. The options for this are more limited because most depots are located at Keflav\u00edk airport.<\/p>\n

Also note that parking your car in Reykjav\u00edk can be quite expensive so it may be worth checking whether picking up in the city is cheaper than renting at the airport if you plan to stay in Reykjav\u00edk longer than a day. <\/p>\n

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Icelandic music along the way<\/figcaption><\/figure>\n
Car rental tips Iceland: do you need a 4\u00d74 or regular car?<\/h5>\n

Technically, you can get very far with a regular 2WD car. If you plan to stay on the ring road and only visit the main sights such as the South Coast<\/a>, you don\u2019t need a 4\u00d74 car at all. This is only necessary if you want to take an unpaved route, a so called F-road. Think of the previously mentioned inland routes, but also some routes in the Westfjords and the routes to the popular Landmannalaugar (the starting point of the famous Iceland Laugavegur Trail) and Th\u00f3rsm\u00f6rk. <\/p>\n

Although more and more bridges are being built, some of these routes still include river crossings. This can lead to exciting situations, especially when it has rained a lot. If you plan to make a river crossing, always check whether this is possible. See what others are doing and always do a wade-through (i.e. before crossing) before you decide to drive through the water. Water damage is not covered by most insurance policies, so caution is necessary.
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What\u2019s also good to know is that most interior roads do not open until the end of June or the beginning of July. If you travel outside this season, a 4\u00d74 will not be of much use, other than that it may be a bit more comfortable. <\/p>\n

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A normal car will get you almost everywhere<\/figcaption><\/figure>\n
Renting a car in Iceland in the winter<\/h5>\n

Do you want to rent a car in Iceland in winter<\/a>? Note that winter tires are mandatory. Most car rental companies have packages that already offer this as standard and most tires come with studs. Driving with snow chains is usually not necessary, depending on the snowfall. The times I went to Iceland in the winter there was hardly any snow (yes really) and the roads were in great condition. A 4\u00d74 is therefore not typically necessary in winter.
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Also read: what to pack for Iceland in winter<\/a><\/p>\n

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Fjalls\u00e1rl\u00f3n in winter<\/figcaption><\/figure>\n
Should you rent a cheap car in Iceland?<\/h5>\n

If you want to rent a cheap car in Iceland, you can compare rates on Booking<\/a>. There are numerous options here, including cheaper options. However, keep in mind that the cheap rate often pays for itself in high additional costs, such as a limited number of kilometers, a high deductible or limited insurance. Make sure to research all options in advance before you choose a budget rental car in Iceland and know what expected extra costs are.
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I usually rent from Alamo or Herz, they are usually a little bit more expensive but have a low deductible and offer good insurance options. I\u2019d rather not have a large own risk in case an accident happens or in case someone else causes damage to my car.<\/p>\n

You can check options via Discover Cars here<\/a>, they have a mix of more expensive rental companies as well as some budget options. <\/p>\n

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Landmannalaugar in Iceland is only accessible by 4WD<\/figcaption><\/figure>\n
Is renting a car and driving in Iceland safe?<\/h5>\n

Yes, driving in Iceland is very safe. The roads are generally in good condition. Sometimes you have to drive a short distance on an unpaved route, for example to get to your accommodation. This is of course no problem. You can fill up your gas along the ring road and Icelanders are generally very friendly and helpful. When you pick up the rental car you will also receive an overview of the traffic rules in Iceland, read this carefully before you set off. Fines are relatively high and it is better to avoid them.<\/p>\n

Note that most cars are not automatics and you will need to know how a manual gear box works. Automatic cars are quite uncommon in Iceland so if you want to rent an automatic car, make sure to book well ahead of time. <\/p>\n

In short, always check the following things when making a rental car booking:<\/p>\n