Iceland is easy to explore by car — if you pick the right vehicle and plan for the weather. This guide explains the differences between 2WD and 4×4, how insurance works on Icelandic roads, where to pick up and return, and what to expect in each season. Use it to rent a car in Iceland with confidence, then book the category that fits your trip.

Choosing the right car for your route

Travel plan / route	Recommended car type	Why it works best
Reykjavík & Golden Circle in summer	Economy / compact 2WD	Paved roads, short distances, budget-friendly
Ring Road with gravel detours	SUV / crossover	Better suspension, safer and more comfortable on long drives and mixed surfaces
Highlands / F-roads (summer only)	4×4	Required by law for F-roads, high clearance for rough tracks and rivers
Winter (Oct–Apr), anywhere outside Reykjavík	4×4	Snow, ice, and unpredictable weather demand extra traction and stability

How to decide

• Road type: paved only vs gravel vs F-roads
• Season: winter needs traction; summer Highlands require 4×4
• Group & luggage: size up if unsure
• Comfort vs cost: long days on the Ring Road feel better in an SUV or 4×4

Choose the right car for your trip

Pick the category that matches your route, season and group size. If you’re unsure, size up for luggage and comfort.

Economy small cars

Best for: Reykjavík & Golden Circle in summer. Seats: 4. Luggage: 1–2 medium. Drive: 2WD.

BudgetCity tripsPaved roads

Compact cars

Best for: Short Ring Road trips in summer. Seats: 5. Luggage: 2–3. Drive: 2WD.

EfficientLight luggageEasy gravel

Intermediate cars

Best for: Ring Road comfort & gravel detours. Seats: 5. Luggage: 3–4. Drive: 2WD or AWD.

Family tripsExtra spaceStable

Full-size cars

Best for: Groups of 5–7 with luggage. Seats: 5–7. Drive: 2WD or AWD.

SpaciousComfortLong trips

4×4 SUVs

Best for: Westfjords, gravel passes, winter driving. Seats: 5. Luggage: 3–4. Drive: 4×4 / AWD.

All seasonsHigh clearanceSafer in snow

Passenger vans

Best for: Groups & gear. Seats: 7–15. Luggage: High. Drive: 2WD / 4×4 options.

Group travelTouringSpacious

Camper vans

Best for: Budget-friendly road trips with sleeping for 2–3 (summer). Drive: 2WD / some 4×4.

Sleep on the goSummerFreedom

Luxury cars

Best for: Premium comfort & style. Seats: 5. Drive: AWD / 4×4.

PremiumComfortStylish

Electric & hybrid cars

Best for: Eco-friendly travel along the Ring Road. Tip: For remote areas, consider PHEV over pure EV.

EcoQuiet ridePlan charging

Rules, restrictions & insurance essentials

Driving in Iceland is different from many other countries. The landscape is vast and often remote, with weather that can change in minutes. Roads range from smooth highways to gravel tracks, and in summer, mountain F-roads open up routes into the Highlands. These conditions make having the right car, knowing the rules, and understanding what insurance covers absolutely essential.

Here are the most important points to know before you rent:

• F-roads & off-road: F-roads are unpaved mountain roads that typically open in summer only. By law, a 4×4 vehicle is required. Off-road driving (leaving marked roads) is illegal year-round and subject to heavy fines.
• River crossings: Allowed only with specified 4×4 SUVs. No rental insurance in Iceland covers water or underbody damage — if this happens, the renter must pay the full repair cost. Always cross slowly and only if conditions are safe.
• Insurance: CDW (Collision Damage Waiver) and TPL (Third Party Liability) are included as standard. Extra protection packages are available, but exclusions always apply to off-road use and water/underbody damage.
• Age & licence: The minimum age varies by category. Smallest 2WD cars can be rented from age 20. Many 4×4 and premium vehicles require 23–25. A valid licence held for at least one year is required in all cases.
• Extra drivers: Additional drivers can be added, but they must meet the same licence and age requirements.

? For full details, check our main FAQ page.

Driving by season (what changes)

Iceland’s seasons affect road conditions more than almost anywhere else. The time of year you visit will determine which roads are open, how much daylight you’ll have, and whether you need a 4×4 for safety.

• Summer (May–Sep): Long daylight hours and mild weather mean most main roads are open. Gravel detours are common, and F-roads gradually open in late June or July. A 4×4 is required for any F-road.
• Shoulder seasons (spring/autumn): Weather can swing from sunshine to heavy wind and rain in the same day. Be flexible with plans and allow buffer days in your itinerary.
• Winter (Oct–Apr): Expect snow and ice on most roads outside Reykjavík. A 4×4 is strongly recommended for safety. Many roads, including all F-roads, are closed. Slower speeds and occasional closures are normal.

Always check before you go: road status on road.is and weather on vedur.is.

Fuel, range and charging

Distances between services in Iceland can be long, and wind or cold can affect fuel consumption. Careful planning ensures you won’t be caught off-guard.

• Fuel stations: Widely available in towns and along the Ring Road. Sparse in the Highlands and Westfjords — fill up whenever you can.
• Range planning: SUVs and 4×4 vehicles have larger tanks but use more fuel, especially in strong headwinds. Don’t underestimate fuel needs.
• EV/PHEV: Charging stations are growing along the Ring Road and in larger towns. For remote travel, a plug-in hybrid is safer than a pure EV.

Pick-up & return flexibility

With Hertz, you’re not tied to a single location. Cars can be collected and returned across Iceland, making it easy to match your rental to your travel route.

• Collect at Keflavík International Airport (KEF), Reykjavík, Akureyri, and other stations.
• One-way rentals available (fees may apply).
• At KEF, our desk is inside the arrivals hall for a smooth start.

Safe-driving essentials (quick checklist)

Iceland’s natural beauty comes with unique driving challenges. Keep these basics in mind:

• Slow down on gravel; keep two hands on the wheel.
• Watch for wind gusts on open stretches and when opening doors.
• Never drive on closed roads; respect posted speed limits.
• Tell someone your route when heading into remote areas.
• Carry water, snacks, and a power bank for long drives.

Why rent a car with Hertz Iceland?

Free cancellation

Up to 16 days before your rental date.

No deposit required

Book with confidence — no deposit at any time.

13 rental locations

KEF arrivals hall, Reykjavík, Akureyri and more.

Zero-excess coverage

Add our MAX package for total peace of mind.

24/7 emergency support

Talk to us anytime, anywhere in Iceland.

New, well-maintained cars

Typically under 2 years old and serviced for Iceland.

Winter tyres in season

Studded where appropriate, fitted during winter.

Unlimited mileage

Drive as far as you like — CDW and VAT included.

KEF arrivals hall pickup

Collect your car right inside the airport terminal.

Note: water and underbody damage are not covered by any rental insurance in Iceland.

Rent a car with Hertz Iceland FAQs

• What documents do I need to rent a car in Iceland?

  You need a valid driver’s license, a credit card in the main driver’s name, and a passport or ID. An international driving permit is required if your license is not in Latin letters.

• What is the minimum age to rent a car?

  The minimum age is 20 years for small cars. For larger 4×4 SUVs and luxury cars, the minimum age is 23–25 years depending on the category.

• Do I need a 4×4 car in Iceland?

  It depends on your travel season and route. A 2WD is enough for Reykjavík and the Golden Circle in summer. A 4×4 is required for all F-roads and strongly recommended in winter due to snow and ice.

• What is included in the rental price?

  All Hertz rentals include unlimited mileage, VAT, Collision Damage Waiver (CDW), and season-appropriate tyres. Extras like GPS, child seats, and insurance upgrades are available.

• Where can I pick up and return my rental car?

  You can collect and return cars at Keflavík International Airport (arrivals hall), Reykjavík, Akureyri, and 10+ other Hertz stations across Iceland. One-way rentals are available.

• Can I cancel or change my booking?

  Yes. Free cancellation is available up to 16 days before pick-up. Changes can be made online or by contacting our customer service team.

• What insurance options are available?

  CDW is included as standard. You can also choose additional coverages such as theft protection, gravel protection, sand and ash damage protection, and our 0-excess MAX package.

• Is roadside assistance included?

  Yes. Hertz Iceland provides 24/7 emergency support and partners with repair shops nationwide to assist you wherever you are.