FAQ: Frequently Asked Questions

General questions about renting 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.

• What is the Road Tax in Iceland?

  Iceland is introducing a new usage-based road tax (“kílómetragjald”) that is calculated per kilometer driven. This system gradually 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 rental 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 (kilometers 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 kilometer
  • Hertz Service Fee: 1.40 ISK per kilometer (+ VAT)

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

• Is this Road Tax unique to Hertz Iceland?

  No. The kilometer-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 rental car to ensure you are compliant with local traffic laws.

• 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 tons, 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 renting 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), 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 kilometer-based Road Tax ensures that all road users contribute fairly, regardless of fuel type, so both locals and visitors in rental cars support the same national system.

• Why rent a car with Hertz Iceland?

  We offer a wide range of modern cars and the only rental desk inside Keflavík Airport arrivals, open 24/7 for all scheduled flights. If you need help on the road, our emergency support line is also available 24/7. With over 50 years of local expertise and 13 stations across Iceland, we help you choose the right car for your trip.

• What types of vehicles can I rent?

  Choose from small cars for city trips, 4×4 SUVs for winter and remote areas, campers and vans for groups, and eco-friendly PHEV and EV rentals. See availability.

• How much does it cost to rent a car?

  Prices vary by season, car type, and rental length. For current pricing, use our booking engine.

• How old do I need to be?

  Most cars require a minimum age of 20. Larger SUVs, vans, and luxury cars require 23–25. See full details in our rental requirements.

• Do I need an international driver’s licence?

  A valid licence printed in the Latin alphabet and held for at least 12 months is accepted. If not, please bring an International Driving Permit.

• Do I need a credit card or a deposit?

  Yes. A credit card in the main driver’s name is required. Hertz Iceland does not take a cash deposit; instead, we place an authorization hold on the card at pick-up.

• Which payment methods are accepted?

  A valid credit card in the main driver’s name is required. An authorization hold is placed at rental start (not a deposit).

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

  Debit & prepaid cards (with conditions): Debit cards must have 16 digits starting with 4 or 5. Prepaid cards must be in the main driver’s name with sufficient funds. Luxury rentals require two credit cards.

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

• When are Hertz offices open?

  Our KEF airport desk is open 24/7 for all scheduled flights. 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 rental?

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

• How can I extend my rental?

  Contact us at +354 522 4400 or hertz@hertz.is. Extensions depend on availability and your rate conditions.

• What is your cancellation and modification policy?

  You can cancel free of charge up to 16 days before pick-up. After that:

  • 15–8 days before: 40% of total reservation value
  • 7–2 days before: 50%
  • 1 day before: 80%
  • No-show: 100%

  To modify your booking, contact us as soon as possible. Changes depend on availability and may affect the price. See rental requirements.

• 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, avoid off-road driving, and follow speed limits.

• Which side of the road do you drive on?

  Iceland drives on the right-hand side.

• 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, but only with an authorised 4×4. Small cars, 2WDs, and certain PHEVs are not allowed. 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?

  Winter tyres are mandatory in winter; summer tyres in warmer months. Studded tyres are allowed between 1 November and 15 April.

• Are there tolls in Iceland?

  Yes. The Vaðlaheiðargöng tunnel near Akureyri has an electronic toll. See our toll payment guide.

• 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. See our fuel & charging guide.

• 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 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. A key box service is available for collections outside staffed hours. Please confirm availability when booking or at the counter.

• 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 licence and credit card.

• What happens if I arrive outside opening hours?

  At Keflavík airport, we serve all scheduled flights. For city and regional stations, arrange an out-of-hours pick-up in advance.

• Will I get the exact car I booked?

  We guarantee specific models in our prestige fleet. For other categories, you’ll receive the booked car type or a similar vehicle.

Returning your car

• 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 rentals are available; a fee may apply.

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

  Yes. Please return the car with the same fuel level as at pick-up, unless you purchased a prepaid fuel option.

• 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 rental.

• Can I return the car early?

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

Insurance and support

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

  Collision Damage Waiver (CDW) is 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’ll arrange roadside help or a replacement vehicle as quickly as possible.

• What’s included in the rental price?

  Unlimited mileage, VAT, and CDW are included. Extra insurance and equipment can be added during booking.

Extras and equipment

• 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

• What cars can I rent in Iceland with Hertz?

  We offer everything from small economy cars and compact city cars to 4×4 SUVs, vans, campers, 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. See our 4×4 cars.

• Do you rent campers or motorhomes?

  Yes. Combine transport and accommodation in one. View campers & motorhomes.

• Does Hertz Iceland have economy cars?

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

• Can I rent a compact car?

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

• Do you have intermediate cars?

  Yes. A balance of space and comfort. View intermediate cars.

• Can I rent a full-size car?

  Yes. Extra room for families and longer trips. See full-size cars.

• Do you have vans or minibuses?

  Yes. Great for larger groups or extra luggage. Explore vans & minibuses.

• Can I rent a prestige or luxury car?

  Yes. Premium guaranteed models for a first-class drive. View prestige cars.

• Does Hertz Iceland have electric cars?

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

• Do you rent automatic cars?

  Yes. Most of our fleet is automatic for an easy, stress-free drive. See automatic cars.

Booking

• 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.

• Can I return the car early?

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

• Ready to book?

  Reserve your car and pick up inside KEF arrivals or at one of our 13 stations nationwide.

  Hertz. Let’s go!