Rent a car in Iceland how to choose, what to expect, and driving tips

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 car insurance and coverage work 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.

Choose your car Rules and coverage Seasons Fuel and charging Pick-up and return Safe driving Why Hertz Iceland FAQs

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, with high clearance for rough mountain tracks
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, gravel, or F-roads.

Season

Winter needs traction. Summer Highlands travel requires a 4×4.

Group & luggage

Size up if you are 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 are 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 and hybrid rental car in Iceland

Electric & hybrid cars

Best for: Eco-friendly travel along the Ring Road. Tip: For remote areas, consider a plug-in hybrid over a pure EV. If you would rather not drive a fully electric car, we also have PHEV options: see our hybrid cars.

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 coverage includes essential.

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

F-roads and driving off marked roads

F-roads are unpaved mountain roads that typically open in summer only. By law, a 4×4 vehicle is required. Driving off marked roads is illegal year-round and subject to heavy fines.

River crossings

River crossings carry real risk. Water and underbody damage is never covered by any coverage product, and the renter pays the full repair cost. Always cross slowly and only if conditions are safe.

Insurance and coverage

CDW (Collision Damage Waiver) and TPL (Third Party Liability) are included as standard. Extra protection packages are available, but exclusions always apply to driving off marked roads and to water and underbody damage.

Age & licence

The minimum age varies by category. The 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 for a daily fee. They must meet the same licence and age requirements, and only drivers listed on the rental agreement are covered.

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 will 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 typically open between June and September, with exact dates varying by year and route. 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 will not be caught off guard.

Fuel stations

Widely available in towns and along the Ring Road. Sparse in the Highlands and Westfjords, so fill up whenever you can.

Range planning

SUVs and 4×4 vehicles have larger tanks but use more fuel, especially in strong headwinds. Do not 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.

Fuel policy

Our default fuel policy is full-to-full: return the car with a full tank, unless a different arrangement has been agreed and confirmed with us in advance.

Pick-up & return flexibility

With Hertz, you are 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.

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Collect at Keflavík International Airport (KEF), Reykjavík, Akureyri, and our other stations. We have 11 locations across Iceland.

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One-way rentals are available. A station-dependent one-way fee is shown in your quote when you search.

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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:

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Slow down on gravel; keep two hands on the wheel.

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Watch for wind gusts on open stretches and when opening doors.

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Never drive on closed roads; respect posted speed limits.

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Tell someone your route when heading into remote areas.

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Carry water, snacks, and a power bank for long drives.

Why rent a car with Hertz Iceland?

Flexible booking options

Cancellation terms depend on the rate you choose: Pay on Arrival, Pay Now or Non-refundable. Compare booking options.

No deposit required

No security deposit. An authorization hold is placed on your physical credit card at pick-up.

11 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

All vehicles are 2 years old or newer and serviced for Iceland.

Winter tyres in season

Studded where appropriate, fitted during winter.

Unlimited mileage

Drive as far as you like. CDW, TPL and VAT (included in your rental price) are included.

KEF arrivals hall pickup

Collect your car right inside the airport terminal.

Note: water and underbody damage are never covered by any coverage product. Road tax is not included in the rental price: it is charged separately after return, based on actual km driven.

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 physical 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 English or Roman script.
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 Iceland rentals include unlimited mileage, VAT, Collision Damage Waiver (CDW), Third Party Liability (TPL) and season-appropriate tyres. Extras like GPS, child seats, and protection upgrades are available.
Road tax is not included. It is charged separately after return, based on actual km driven.
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 our other stations. We have 11 locations across Iceland. One-way rentals are available.
Can I cancel or change my booking?
It depends on the booking option you choose:
- Pay on Arrival: cancel 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.
- 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. Non-refundable bookings cannot be changed.
To modify a Pay on Arrival or Pay Now booking, contact our customer service team as soon as possible. Changes depend on availability and may affect the price. See the full booking options comparison.
What insurance options are available?

CDW and TPL are 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?

Our 24/7 emergency support line is available to all renters. Roadside Assistance is a separate add-on.