Before you hit the Ring Road, please review our mandatory rental requirements. Meeting these criteria ensures a seamless pick-up at any of our 11 locations across Iceland.
Quick Eligibility Checklist
Driver’s Licence:
Original physical copy, held for at least 1 year. Must be in English/Roman script, or accompanied by an IDP or a notarised translation. Hong Kong and Taiwan licences always require an IDP or a notarised translation.
Physical Card Required:
Valid card in the main driver’s name. We do not accept Apple/Google Pay, E-wallets, or Virtual Cards.
Minimum Age:
20 years for economy/compact; 23-25 years for 4x4s and luxury models.
2026 Regulations:
Mandatory headlights at all times and the new national Kilometre-based Road Tax.
On this page
Booking optionsLicence and IDAgePaymentCoverageRoad restrictionsPick-up, return and fuelFees and cancellationParking and fines
Choose your booking option
Hertz Iceland offers three ways to book. They differ in when you pay and in what happens if your plans change. Check the cancellation terms of the option you choose before you confirm your booking.
Pay on Arrival
Pay when you pick up your car.
Cancel any time before the rental begins, with no restrictions.
Pay Now — Refundable
Pay when you book. Discounted compared with Pay on Arrival.
Free cancellation up to 72 hours (3 days) before pick-up. Less than 72 hours’ notice or a no-show: no refund.
Pay Now — 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. This booking cannot be changed.
| Pay on Arrival | Pay Now — Refundable | Pay Now — Non-refundable | |
|---|---|---|---|
| When you pay | At pick-up | When you book (charged immediately on confirmation) | When you book (charged immediately on confirmation) |
| Price | Standard rate | Discounted compared with Pay on Arrival | Highest discount of the three options |
| Free cancellation | Yes, any time before the rental begins | Yes, up to 72 hours (3 days) before pick-up | No |
| Cancelling late or not showing up | Cancel any time before the rental begins, with no restrictions | No refund (full price charged) | No refund is available, regardless of the reason |
Good to know: no refund is available for Pay Now — Non-refundable bookings, regardless of the reason, and they cannot be changed. If your plans might change, Pay on Arrival or Pay Now — Refundable may suit you better. Full terms are in the cancellation policy below.
Driver’s Licence & Identification
Do you need an International Driving Permit (IDP) to hire a car in Iceland?
No, provided your licence contains English or Roman script information. If you hold a valid licence from Australia, New Zealand, the UK, US, Canada, EU/EEA, or many Asian countries printed with English details, you can hire directly from Hertz Iceland. Exception: licences issued in Hong Kong or Taiwan must always be accompanied by an IDP or a notarised translation.
1Original Copy Mandatory:
2Translation Requirement:
- Licences issued in Hong Kong or Taiwan must always be accompanied by an IDP or a notarised translation, even if they include English details.
3Special Categories (Type D):
4Experience:
Additional Driver / Operator (The "Extra Driver")
To ensure all occupants are protected, any person intending to drive the vehicle must be registered on the rental agreement as an Extra Driver.
The Main Driver:
Adding an Extra Driver:
Requirements:
- The driving licence requirement applied to the main driver is also applied to the second driver.
Insurance Warning:
Iceland Car Hire Age Requirements
How old do you need to be to hire a car in Iceland?
Hertz Iceland has no maximum age limit for renting or driving. However, minimum age requirements apply based on the vehicle category selected for your 2026 trip.
Minimum Age by Vehicle Category
| Vehicle Group | Minimum Age | Examples |
|---|---|---|
| Economy & Compact | 20 Years Old | Toyota Yaris, VW Polo, Dacia Duster, Compact Wagons |
| Intermediate | 20 Years Old | 2 & 4-door Intermediate sedans/wagons |
| 4×4 SUVs & People Movers | 23 Years Old | Toyota Land Cruiser, Minibuses |
| Prestige & Luxury | 25 Years Old | Select luxury models and high-performance cars |
Payment Methods: Credit & Debit Card Policy
Do you need a credit card to hire a car in Iceland?
Yes. To rent with Hertz Iceland, a valid physical card in the main driver’s name is mandatory. This rule applies regardless of your booking source or reservation status.
Accepted Payment Methods
We accept the following physical cards for the security authorisation hold (not a deposit) required at pick-up:
| Card Type | Requirements & Conditions |
|---|---|
| Credit Cards | Visa, Mastercard, American Express. H.C.C. cards (booked via Hertz.com) are also accepted. |
| Debit Cards | ONLY accepted if the card has a 16-digit number starting with 4 or 5. |
| Prepaid Credit Cards | Accepted only if in the main driver’s name with sufficient funds to cover all estimated charges. |
| Luxury Hire | Two (2) Credit Cards must be presented at the time of rental. |
Strictly Not Accepted
To avoid rental refusal, please note that we cannot accept the following for security authorisation:
✕Mobile Wallets:
✕Virtual Cards:
✕Apple Cards:
✕Cards not in the Main Driver’s Name:
Important Notes on Authorisation & Payment
Physical Card Mandatory:
Authorisation Hold:
Final Payment Flexibility:
Online Reservations:
Coverage Packages & Protection in Iceland
Navigating Iceland’s unique terrain requires the right protection. Here is a breakdown of what is included and how you can upgrade your coverage.
What’s Included with Every Hertz Iceland Rental
Every vehicle includes two mandatory protections required by Icelandic law, built into your rental rate at no extra cost:
✓Third-Party Liability Insurance (TPL):
✓Collision Damage Waiver (CDW):
Note: CDW and TPL provide basic protection but do not cover common Icelandic risks such as tyres, windscreens, and damage from gravel, sand and ash. To have these risks covered, we recommend taking our optional car hire coverage packages. Underbody damage and water damage are not covered by any coverage package, see the exclusions below.
Optional Protection Packages
Hertz Iceland offers three levels of coverage packages. We recommend choosing a level that matches your itinerary, especially if you plan to drive the Ring Road or South Coast.
| Package | Inclusions | Excess (Passenger) | Excess (4×4/Luxury) |
|---|---|---|---|
| Basic Cover | CDW + TPL | 242,000 ISK | 399,000 ISK |
| Medium Cover | Basic + SCDW, Theft (TP), Windscreen (WP) & Headlights, Gravel (GP) | 30,000 ISK | 65,000 ISK |
| MAX Cover | All Inclusions + Sand & Ash (SAAP) + Tyres & Wheels | Zero Excess | Zero Excess |
Zero Excess applies to damage covered by the package. Underbody damage, water damage and damage from off-road driving are never covered, including with MAX Cover.
Estimated Daily Rates:
Passenger Cars:
4x4s & Luxury:
Critical Safety & Liability Exclusions
Please be aware that certain risks are not covered by any coverage package in the Icelandic rental market. The renter remains 100% financially liable for:
✕Underbody Damage:
✕Water Damage:
✕Off-Road Driving:
✕Traffic Violations:
Use Your Own Insurance or Credit Card Coverage
Purchasing additional coverage from Hertz Iceland is not mandatory. You are free to:
iExpert Local Tip
If you choose to use third-party coverage, please ensure your policy specifically covers rental vehicles in Iceland. Many standard international policies exclude risks like gravel protection (GP) and sand and ash damage (SAAP), which are common on Icelandic roads and can result in high out-of-pocket costs.
Road Restrictions & 2026 Usage Tax
Driving in Iceland requires strict adherence to road classifications to ensure your protection remains valid.
F-Road & Highland Restrictions
2WD Vehicles:
EV & PHEV 4×4 Models:
Consequences:
Icelandic Road Usage Tax (Kilometre Tax)
From 1 January 2026, Iceland has introduced a national road usage tax for all vehicles. When you rent with Hertz Iceland, the charge is calculated based on the actual distance driven during your rental period:
Government Road Tax:
6.95 ISK per km
Hertz Service Fee:
1.40 ISK per km (+ VAT)
Road tax is not included in your rental price. It is charged separately after return, based on the actual km driven.
Questions regarding Road Tax billing? If you have specific inquiries regarding the calculation of these fees or require further clarification on your rental statement, please contact our dedicated support team at: roadtax@hertz.is.
Rental Logistics: Pick-up, Return & Fuel
Airport Service Charge:
One-Way Hire:
Taxes display:
Fuel Policy (Full-to-Full):
EV Charging Policy (70%):
Return Locations:
Opening Hours & After-Hours Returns:
Fees, Fines & Cancellation Policy
Parking, Tolls & Fines
The renter is responsible for all parking fees, tunnel and bridge tolls, and speeding fines.
Administrative Fee:
Cancellation Policy
Compare the three booking options before you confirm your booking:
| Pay on Arrival | Pay Now — Refundable | Pay Now — Non-refundable | |
|---|---|---|---|
| When you pay | At pick-up | When you book (charged immediately on confirmation) | When you book (charged immediately on confirmation) |
| Price | Standard rate | Discounted compared with Pay on Arrival | Highest discount of the three options |
| Free cancellation | Yes, any time before the rental begins | Yes, up to 72 hours (3 days) before pick-up | No |
| Cancelling late or not showing up | Cancel any time before the rental begins, with no restrictions | No refund (full price charged) | No refund is available, regardless of the reason |
| How to cancel | “View/Cancel booking” button on our website | Email hertz@hertz.is with your name and reservation number | If you will not collect the vehicle, please email hertz@hertz.is with your name and reservation number. No refund is available. |
Pay Now — Refundable:
- 72+ Hours Notice: Full refund.
- Less than 72 Hours / No Show: No refund (full price charged).
- To cancel, email hertz@hertz.is with your name and reservation number.
Pay on Arrival:
Pay Now — Non-refundable:
Vehicle Reservation Policy
How does the "or similar" car hire policy work in Iceland?
At Hertz Iceland, we provide a diverse fleet of modern vehicles. To ensure availability for all travellers, reservations are typically made by car category, though we offer exclusive Guaranteed Models for premium experiences.
Standard Reservations: The "Or Similar" Guarantee
For most bookings, your reservation is guaranteed by car category, not by a specific make or model. If the exact model shown (e.g., Toyota RAV4) is unavailable, we provide a similar vehicle within the same class.
Our "Or Similar" Commitment: When providing an alternative vehicle, we guarantee that the core specifications remain identical:
Transmission:
Drive System:
Capacity:
- Note on Luggage: While we ensure the vehicle dimensions are equivalent, the exact boot configuration and luggage capacity may vary slightly between different brands in the same class.
Exclusive: Guaranteed Luxury & Premium Models
If you require a specific driving experience, Hertz Iceland offers a selection of Guaranteed Models. When you book these specific vehicles, you are guaranteed to receive that exact make and model, not a “similar” alternative.
How to spot a Guaranteed Model: Guaranteed Models cannot be filtered in the search results, and only a small number of our premium vehicles are offered this way. If a car is a Guaranteed Model, its title in the results will not include "or similar".
Our Current Guaranteed Fleet Includes:
Luxury SUVs:
F-Road Icons:
Parking, Tolls & Traffic Fines
Managing your road trip expenses in Iceland.
The renter is 100% responsible for all parking fees, tunnel and bridge tolls, speeding fines, and any other traffic-related fines incurred during the rental period. These costs are not included in your rental rate.
Direct Payment Requirement
Most parking areas (including National Parks like Þingvellir and Skaftafell), the Vaðlaheiðargöng tunnel in North Iceland and the Hornafjörður toll bridge in Southeast Iceland use automated camera systems. You are required to pay these fees via the official apps (e.g., Parka or EasyPark) or websites within the required timeframe.
Unpaid Fees & Administrative Charges
If you fail to pay for parking or tolls during your trip, the authorities will notify Hertz Iceland. In these cases:
The Fine/Fee:
Service Fee:
iExpert Local Advice
To avoid unnecessary Administrative Service Fees, we highly recommend checking for “Pay” signs at all tourist stops and National Parks.
Pro Tip: Iceland has two tolled crossings. If your route takes you near Akureyri, the Vaðlaheiði Tunnel must be paid online at www.tunnel.is within 24 hours of passing. In Southeast Iceland near Höfn, the Hornafjörður toll bridge must be paid at spolur.is within 5 hours of crossing. Paying online promptly is the best way to ensure a stress-free journey.
Hertz Iceland reserves the right to modify or amend its Terms of Service at any time without notice. Hertz Iceland also reserves the right of final decision on the interpretation of its Terms and Conditions.
