Iceland Car Hire FAQs

Booking options at a glance

Hertz Iceland offers three ways to book your car hire. They differ in when you pay and in what happens if your plans change.

See cancellation terms

Hiring a car with Hertz Iceland

• Do I need a car in Iceland?

  Unless you only plan to stay in central Reykjavík, yes. Most attractions — the Golden Circle, South Coast waterfalls, glaciers, and volcanoes — are best reached by car. Driving gives you flexibility and freedom.

• Can I hire a campervan in Iceland for a multi-day trip?

  Yes. Campervans can be hired for multi-day trips, so you can combine transport and accommodation while exploring Iceland.

• What are common scams to avoid with car hire in Iceland?

  Book through a reputable car hire company, review the agreement carefully, understand insurance and fees, and document the vehicle’s condition at pick-up and return.

• Best options for long-term car hire in Iceland.

  You can choose any hire period when you book on hertz.is, with no minimum or maximum. Rates depend on the hire period, vehicle category, season, and availability. If you live in Iceland, our long-term leasing service for residents is available at hertzlangtimaleiga.is.

• Why hire a car with Hertz Iceland?

  We offer a wide range of modern cars and one of only four car hire desks inside the Keflavík Airport arrivals hall, open 24/7 from 1 May to 30 September and 05:30–01:00 from 1 October to 30 April. If you need help on the road, our emergency support line is available 24/7. With over 50 years of local expertise and 11 stations across Iceland, we help you choose the right car for your trip.

• What types of vehicles can I hire?

  Choose from small cars for city trips, 4×4 SUVs for winter and remote areas, campervans and vans for groups, and plug-in hybrids (PHEVs) and electric cars (EVs). See availability.

• When are Hertz offices open?

  Our Keflavík Airport (KEF) desk is open 24/7 in summer (1 May to 30 September) and 05:30–01:00 in winter (1 October to 30 April). City and regional stations follow local hours and may reduce in winter. Check opening hours when you book.

• Where can I pick up my car?

  Collect inside Keflavík Airport arrivals or at our nationwide locations including Reykjavík, Akureyri, Egilsstaðir, Ísafjörður, and the Westman Islands. Choose a station.

• Is Reykjavík KEF the same as the domestic airport?

  No. Keflavík (KEF) is the international airport, 45 minutes from Reykjavík. The domestic airport serves local flights. Book KEF if you arrive internationally.

• Can I do a one-way hire?

  Yes. You may pick up and return at different stations. A one-way fee may apply.

• How can I extend my car hire?

  Bookings cannot be extended online. Please contact our customer service at +354 522 4400 or hertz@hertz.is, and our team will handle your request. Extensions depend on availability and your booking conditions, and cannot be guaranteed.

Booking options, payment and cancellation

• What booking options does Hertz Iceland offer?

  Hertz Iceland offers three booking options. They differ in when you pay and in what happens if your plans change:

  • Pay on Arrival: pay when you pick up your car. You can cancel any time before the rental begins, with no restrictions.
  • Pay Now: pay when you book, at a discounted rate compared with Pay on Arrival. Free cancellation up to 72 hours (3 days) before pick-up.
  • Non-refundable: pay when you book and get the highest discount of the three options. No refund is available if you cancel or do not collect the vehicle, regardless of the reason.

  Pay Now and Non-refundable bookings are charged immediately on confirmation. See the full booking options comparison.

• What is the Non-refundable booking option?

  Non-refundable is a prepaid booking option with the highest discount of our three options. You pay when you book. No refund is available if you cancel or do not collect the vehicle, regardless of the reason. Non-refundable bookings cannot be changed. If you will not collect the vehicle, please let us know at hertz@hertz.is. No refund is available.

  If your plans might change, Pay on Arrival or Pay Now may suit you better. Please check which option you have selected before you confirm your booking. See the booking options comparison.

• What is your cancellation and modification policy?

  Cancellation terms depend on the booking option you choose:

  • Pay on Arrival: cancel via our website (“View/Cancel booking” button) any time before the rental begins, with no restrictions.
  • Pay Now: free cancellation up to 72 hours (3 days) before pick-up. With less than 72 hours’ notice, or if you do not collect the vehicle, no refund is available (full price charged). To cancel, email hertz@hertz.is with your name and reservation number.
  • Non-refundable: no refund is available if you cancel or do not collect the vehicle, regardless of the reason. Non-refundable bookings cannot be changed. If you will not collect the vehicle, please let us know at hertz@hertz.is. No refund is available.

  To modify a Pay on Arrival or Pay Now booking, contact us as soon as possible. Changes depend on availability and may affect the price. See the booking options comparison and our rental requirements.

• How much does car hire cost?

  Prices vary by season, car type and hire period. For current pricing, use our booking engine. Pay Now and Non-refundable rates are discounted compared with Pay on Arrival; Non-refundable has the highest discount of the three.

• Do I need a credit card or a deposit?

  Yes. A physical credit card in the main driver’s name is required. Hertz Iceland does not take a deposit. Instead, we place a temporary authorisation hold on the card at pick-up. The hold is in principle not charged, but fines or other charges may be collected from it.

• Which payment methods are accepted?

  A valid credit card in the main driver’s name is required. Instead of a deposit, a temporary authorisation hold is placed on the card at pick-up. The hold is in principle not charged, but fines or other charges may be collected from it.

  Accepted cards: H.C.C. (booked via hertz.com), American Express, Mastercard, and Visa.

  Debit cards (with conditions): Debit cards are only accepted if they have a 16-digit number starting with 4 or 5. Luxury car hire requires two credit cards.

  Physical cards only — virtual cards, Apple/Google Pay, and e-wallets are not accepted. See rental requirements.

  When you are charged: Pay on Arrival bookings are paid at pick-up. Pay Now and Non-refundable bookings are charged online immediately on confirmation. See the booking options comparison.

• How old do I need to be?

  The minimum age depends on the car category: 20 for economy cars and the smallest vans, 23 for most categories, and 25 for premium and luxury cars. See full details in our rental requirements.

• Do I need an International Driving Permit?

  You need a valid driver’s licence held for at least 12 months. An Australian driver’s licence is printed in English, so no International Driving Permit is needed. If your licence is not printed in the Latin alphabet, you also need an International Driving Permit.

Road tax in Iceland

• What is the Road Tax in Iceland?

  Since 1 January 2026, Iceland has applied a usage-based road tax (“kílómetragjald”) that is calculated per kilometre driven. This system replaces part of the old fuel-based road tax so that petrol, diesel, hybrid, and electric vehicles all contribute fairly to road maintenance based on actual distance driven.

  The tax applies to all vehicles using Icelandic roads, including hire cars, and helps fund the upkeep and future development of the road network across the country.

• How does Hertz Iceland charge the Road Tax?

  To ensure full compliance with the new national law, Hertz Iceland manages all strict reporting and direct payments to the Icelandic Tax Authorities on your behalf.

  The charge is based strictly on usage (kilometres driven) and consists of the mandatory government tax plus a service fee to cover the administrative workload of processing these payments.

  The Road Tax & Service Fee structure is:

  • Government Road Tax: 6.95 ISK per kilometre
  • Hertz Service Fee: 1.40 ISK per kilometre (+ VAT)

  This total fee will be calculated at the end of your hire based on your odometer reading.

• Is this Road Tax unique to Hertz Iceland?

  No. The kilometre-based Road Tax is a national Icelandic system and applies to all vehicles in the same weight category, regardless of rental brand, fuel type, or ownership.

  Hertz Iceland’s role is simply to collect and remit the applicable charge for your hire car to ensure you comply with Icelandic road-usage law.

• Who should I contact regarding Road Tax questions or billing?

  For any specific inquiries regarding the Icelandic Road Tax calculation, payment methods, or billing details related to your rental agreement, please contact our dedicated support team.

  You can reach our specialists directly at: roadtax@hertz.is

  To ensure the most efficient assistance, please include your Rental Agreement number or Reservation code in the subject line of your email.

• Which vehicles and drivers does it apply to?

  The tax applies to all standard passenger cars and SUVs up to 3.5 tonnes, as well as heavier vehicles in higher weight brackets, with rates set by law for each category.

  It affects both Icelandic residents and visitors, including tourists hiring a vehicle from Hertz Iceland for short stays or longer trips such as driving the Ring Road.

• Does the Road Tax replace tolls, parking or fines?

  No. The Road Tax does not include or replace tunnel or road tolls (such as the Vaðlaheiðargöng tunnel or the Hornafjörður bridge near Höfn), parking fees in towns or nature sites, entrance fees, or any traffic and parking fines.

  Those charges remain separate, pay-as-you-go costs that you pay to the relevant operator or authority, and fines are handled under local regulations.

• How will the Road Tax appear on my booking?

  Because the tax is based on exact distance driven, it cannot be calculated at the time of online booking. Instead, the Road Tax is shown as a separate line item on:

  • Your Rental Agreement (provided at pick-up)
  • Your Final Invoice (provided after drop-off)

  This separation makes it easy to see which part of your total cost is the Hertz Iceland rental price and which part is the mandatory Road Tax Fee required by Icelandic road-usage legislation.

• Why is there a Road Tax if I already pay for fuel?

  As vehicles become more efficient or fully electric, fuel taxes alone no longer cover the full cost of maintaining Iceland’s road network, especially in remote and high-tourism areas.

  The kilometre-based Road Tax ensures that all road users contribute fairly, regardless of fuel type, so both locals and visitors in hire cars support the same national system.

Driving in Iceland

• Is it safe to drive in Iceland?

  Yes, but conditions change quickly. Always check weather, road.is, and safetravel.is before you go. Drive carefully, follow speed limits, and stay on marked roads. Off-road driving is illegal in Iceland.

• Which side of the road do you drive on?

  Iceland drives on the right-hand side of the road. If you are used to driving on the left, take extra care at intersections and roundabouts, especially on your first day.

• How are the roads in Iceland?

  The Ring Road (Route 1) is paved. Many side roads are gravel, and Highland F-roads are rough and seasonal. Always check road status before you go.

• Do I need a 4×4 in Iceland?

  In summer, a 2WD suits Reykjavík and popular routes. In winter and for remote or Highland travel, we recommend a 4×4. Only 4x4s are allowed on F-roads.

• Can I drive on F-roads and in the Highlands?

  Yes, with a 4×4 approved for F-roads. 2WD cars are not allowed, and a small number of luxury models are also not permitted on F-roads. Check your vehicle’s road permissions in the car description.

• Are Hertz cars prepared for all seasons?

  Yes. All vehicles are fitted with seasonal tyres and winterised when needed.

• What tyres are required in Iceland?

  Tyres must suit the season, so cars use winter tyres in winter. Under Icelandic law, studded tyres are allowed between 1 November and 15 April.

• Are there tolls in Iceland?

  Yes. Iceland has two tolls: the Vaðlaheiðargöng tunnel near Akureyri and the Hornafjörður bridge near Höfn. The Hornafjörður toll is 1,500 ISK per trip for vehicles under 3.5 tonnes, paid by the driver at spolur.is within 5 hours, with no Hertz admin fee.

• Where can I refuel or charge my car?

  Fuel stations are frequent on the Ring Road but limited in remote regions. EV charging points are expanding nationwide.

• Where can I park in Iceland?

  Parking fees apply in central Reykjavík and some tourist sites. Always pay to avoid fines.

Pick up your car

• How do I book a hire car for Keflavík Airport pick-up?

  Select Keflavík International Airport (KEF) as your pick-up location, enter your travel dates and flight details, and complete the reservation online.

• Car hire deals for Iceland airport pick-up?

  Airport car hire deals vary by season, vehicle category, hire period and booking date. Check current rates for your travel dates.

• How do I pick up my car at Keflavík (KEF)?

  Our desk is inside the arrivals hall. Cars are parked just outside the terminal.

• What documents do I need to bring when I pick up the car?

  A valid driver’s licence, a physical credit card in the main driver’s name, and your booking confirmation.

• Do I need to provide my flight number?

  Yes. Sharing your flight details helps us hold your car if your flight is delayed.

• What if my flight is delayed?

  If you’ve provided your flight number, we’ll keep your car for you. Otherwise, contact us at +354 522 4400.

• Do you offer online check-in or off-hours key collection?

  Yes. You can check in online before you arrive at checkin.hertz.is. Cars are collected during the station’s opening hours. An out-of-hours pick-up is only possible if it has been arranged and confirmed with our customer service before your arrival. Outside opening hours, you can return the keys to our key box.

• Can someone else pick up the car for me?

  Only the main driver listed on the reservation can pick up the car, as they must present their driver’s licence and credit card.

• What happens if I arrive outside opening hours?

  Our Keflavík Airport desk is open 24/7 in summer (1 May to 30 September) and 05:30–01:00 in winter (1 October to 30 April). At all stations, cars are collected during opening hours. An out-of-hours pick-up is only possible if it has been arranged and confirmed with our customer service in advance.

• Will I get the exact car I booked?

  A small number of premium vehicles are Guaranteed Models, shown without “or similar” in the car title. For all other cars, you’ll receive the booked car type or a similar vehicle.

Returning your car

• What is the process for returning a hire car at Keflavík Airport?

  Follow the “Car Rental Return” signs at Keflavík Airport, park in the designated return area, remove your belongings, and complete the return instructions.

• Where can I pick up and drop off a hire car in Iceland?

  Hire cars can be collected and returned at Keflavík Airport and selected Hertz locations around Iceland. One-way fees may apply when locations differ.

• How do I return my car at Keflavík (KEF)?

  Follow the “Car Rental Return” signs near the terminal. Our return area is about 250 metres from departures.

• Can I return my car at a different location?

  Yes. One-way hire is available; a fee may apply.

• Do I need to refuel the car before returning it?

  Yes. Our default fuel policy is full-to-full: please return the car with a full tank. Full-to-full applies to every hire unless a different arrangement has been agreed and confirmed with us in advance.

• What if I return my car outside opening hours?

  You can return to the KEF drop-off area at any time. For city and regional stations, confirm after-hours return with our team in advance.

• Will the car be inspected when I return it?

  Yes. Our staff will check fuel level, mileage, and any new damage.

• What if I return my car late?

  Late returns may incur additional charges. Please contact us if you need to extend your hire.

• Can I return the car early?

  Yes, but unused days are not refunded once the hire has started.

Insurance and support

• Does my Australian travel insurance cover me in Iceland?

  Cover from an Australian travel or car insurance policy varies by provider and policy. Check with your insurer before travelling whether it covers hire cars overseas, including the excess.

• What insurance do I need when hiring a car in Iceland?

  Collision Damage Waiver is included, while optional protections can provide additional coverage for gravel, theft, sand, ash, and other risks.

• Insurance options for car hire in Iceland?

  Available options may include Collision Damage Waiver, Super Collision Damage Waiver, Theft Protection, Gravel Protection, and Sand and Ash Protection.

• What type of insurance is recommended for hire cars in Iceland?

  Recommended protection depends on your route, season, vehicle, and risk tolerance. Gravel and sand-and-ash protection may be useful for certain conditions.

• What insurance is included, and what do you recommend?

  Collision Damage Waiver (CDW) and Third Party Liability (TPL) are included. You can add Super CDW, Theft Protection, Gravel Protection, or Sand & Ash Protection depending on your route and season.

• Do I need special insurance for winter driving?

  Winter tyres are included. Adding Gravel Protection and Super CDW provides extra peace of mind for winter travel.

• What happens if my vehicle breaks down?

  Call our 24/7 emergency line at +354 858 0499. We will handle the situation and find a solution for you. Our optional Roadside Assistance add-on provides support in situations where the driver is responsible.

• What’s included in the car hire price?

  Unlimited mileage, VAT, Collision Damage Waiver (CDW) and Third Party Liability (TPL) are included. Optional protection and equipment can be added during booking. Road tax is charged separately after return, based on the actual kilometres driven.

Extras and equipment

• What is the fuel policy for car hire in Iceland?

  Our default fuel policy is full-to-full: return the vehicle with a full tank. Full-to-full applies to every hire unless a different arrangement has been agreed and confirmed with us in advance.

• Do you offer child seats, GPS, or Wi-Fi?

  Yes. These extras are available during booking or at pick-up, subject to availability.

• What in-car features are included?

  Most cars include Bluetooth, USB ports, and heating. Check the vehicle description for details.

• How much luggage space does my rental have?

  Capacity depends on the car group. Compact cars fit 1–2 medium bags; SUVs and vans offer more room. Check the vehicle page for specifics.

Fleet and car categories

• Requirements for hiring a 4×4 in Iceland?

  You need a valid driver’s licence, an accepted payment card, and must meet the minimum age requirement for the selected 4×4 category.

• Do I need a 4×4 vehicle to drive the Ring Road in Iceland?

  A 2WD is often suitable for the Ring Road in good summer conditions, while a 4×4 may be preferable during winter or difficult weather.

• Best vehicles for driving Iceland’s highland roads?

  An authorised high-clearance 4×4 is required for Highland F-roads. Check the vehicle’s permitted-road information before beginning your trip.

• What cars can I hire in Iceland with Hertz?

  We offer everything from small economy cars and compact city cars to 4×4 SUVs, vans, campervans, electric vehicles, and luxury models. Browse the full range on our fleet guide.

• Does Hertz Iceland have 4×4 cars?

  Yes. We offer a wide selection of 4×4 SUVs that are ideal for winter conditions and permitted F-roads.

• Can I hire a campervan or motorhome?

  Yes. Combine transport and accommodation in one.

• Does Hertz Iceland have economy cars?

  Yes. Ideal for short city breaks or budget-friendly trips.

• Can I hire a compact car?

  Yes. Easy to park and fuel-efficient for towns and main roads.

• Do you have intermediate cars?

  Yes. A balance of space and comfort.

• Can I hire a full-size car?

  Yes. Extra room for families and longer trips.

• Do you have vans or minibuses?

  Yes. Great for larger groups or extra luggage.

• Can I hire a prestige or luxury car?

  Yes. Premium cars for a first-class drive, including a small number of Guaranteed Models.

• Does Hertz Iceland have electric cars?

  Yes. Modern EVs with access to Iceland’s growing charging network.

• Do you have automatic hire cars?

  Yes. We offer a wide choice of automatic cars, which makes it easier to adjust to driving on the right.

Booking

• How do I hire a car in Iceland as an Australian resident?

  Australian residents can hire a car with a valid Australian driver’s licence held for at least 12 months, a passport, and a physical credit card or eligible debit card in the main driver’s name. An Australian licence does not need an International Driving Permit in Iceland.

• Can I hire a car in Iceland without a credit card?

  Debit cards are accepted only if they have a 16-digit number starting with 4 or 5. Card requirements also depend on the vehicle category; luxury rentals require two credit cards.

• How do I book car hire in Iceland online?

  Choose your pick-up and return locations, dates, vehicle category, and extras in the online booking system, then complete the required driver and payment details.

• Where can I compare car hire prices in Reykjavík?

  Use the Hertz Iceland booking system to compare available vehicle categories and prices for your selected Reykjavík location and travel dates.

• How much does it cost to hire a car in Iceland for a week?

  Weekly car hire prices vary according to season, vehicle category, availability, insurance options, and extras. Check live rates for an accurate total.

• What are the age requirements for car hire in Iceland for Australian drivers?

  Age requirements depend on the vehicle category. Most standard vehicles have a lower minimum age than larger SUVs, vans, and luxury vehicles.

• Are there any hidden fees when hiring a car in Iceland?

  Review the quoted price and your rental agreement for taxes, optional protection, extras, one-way charges, road-related fees, fuel, tolls, parking, and possible fines.

• My flight lands at KEF — where should I book?

  Always book at Keflavík International Airport (KEF). Reykjavík domestic airport is only for local flights.

• What happens if my chosen car is unavailable?

  We’ll provide a similar or upgraded model at no extra cost.

Ready to book?

Pick up inside KEF arrivals or at one of our 11 stations nationwide. Hertz. Let’s go.

Book your car