Here you can find all the rental requirements and our cancellation policy when renting your car with Hertz Iceland:
Do you need an International driver’s license to rent a car in Iceland?
No, if you have held a driving license with ENGLISH info. If you hold a driving license, for example, from the EU/EEA countries, the U.S., Canada, or any Asia country printed with English information, you can rent a car from us directly with your VALID license.
If your driving license does not have any English information, then you will need to apply for an international driver’s license or provide a notarized translation of your driving license.
You will need to present the original copy of your driving licence when renting with us; We do not accept virtual driving licenses for rental.
Please note: If your driving license is not categorised according to the IDP (International Driving Permit), for example, a driving license issued by the Hong Kong SAR government, we recommend you apply for an International driver’s license to drive and rent a car in Iceland.
Driver’s License: Minimum years held, and international driving license
The driver must present a valid driver’s licence held for a minimum of one year at the time of rental. An International Driving Permit (IDP) / International Driving License (IDL) is also required if your national driver’s licence is not in English/Roman script. We highly recommend you get an international driving license with you if your license is not in English, in case the Icelandic police do not recognize the language of your national driving licence. International driving licences are recommended for translation purposes and may only be used in conjunction with a national driving licence. Renting 10-seater (9 passengers + driver) or more vehicles, driving licence D (Type D) is required.
Additional Driver / Operator, i.e. extra driver
The person named on the reservation booking must be the main driver, present at the time of rental and payer of any rental charges. Additional drivers are possible with a small daily fee for each additional driver. The charge for an additional driver serves to cover the second driver under the same agreement as the main driver.
Please be reminded that if an undeclared driver drives the car and has an accident, the insurance is automatically invalidated.
The driving licence requirement applied to the main driver is also applied to the second driver. For further information regarding the second driver’s licence requirements, .please refer to the “Driver’s licence” section.
The second driver is also expected to meet the minimum age requirement depending on the type of car renting. For further information regarding the second driver’s minimum age requirements, please refer to “Iceland car rental minimum age and exceptions”.
Car Insurances and coverage package in Iceland
What’s Included with Every Hertz Iceland Rental
Every rental car from Hertz Iceland comes with two mandatory insurances included in your rental rate at no extra cost:
Collision Damage Waiver (CDW)
CDW limits your financial responsibility if the rental car is damaged in a collision. With CDW, you are only liable up to the excess amount (deductible) stated in your rental agreement—not the full cost of repairs.
Third Party Liability Insurance (TPL)
TPL covers claims from third parties for bodily injury or property damage caused by the rental vehicle during your rental period. This is required by Icelandic law for all vehicles on the road.
Note: CDW and TPL do not cover everything. Common exclusions include damage to tyres, windscreen, undercarriage, and damage caused by gravel, sand, ash, or water. For better protection, consider our optional coverage packages.
Optional Protection Packages
Hertz Iceland offers three levels of coverage packages. Choose the protection level that suits your trip:
Package What’s Included Excess (Passenger Cars) Excess (4×4/Minivans/Luxury) Basic Cover CDW + Third Party Liability (TPL) 242,000 ISK 399,000 ISK Medium Cover Basic Cover + SCDW, Theft Protection (TP), Windshield & Headlights, Gravel Damage 30,000 ISK 65,000 ISK MAX Cover All protections included as mentioned above + Windows & Glass, Sand & Ash Protection (SAAP), Tyres & Wheels Zero Excess Zero Excess
Daily Rate (examples):
- Passenger Cars: from 2,750 ISK/day (Basic) to 4,950 ISK/day (MAX)
- 4×4 Jeeps, Minivans & Luxury Vehicles: from 3,850 ISK/day (Basic) to 5,950 ISK/day (MAX)
➡️ View full pricing and coverage details on our Car Protection Coverages and Extras Price List
Important: Underbody damage, damages from river/water crossings, and off-road driving or any damage dur to violation of traffic laws are NOT covered under any package.
Use Your Own Insurance or Credit Card Coverage
Purchasing additional coverage from Hertz Iceland is not mandatory. You are free to:
- Rely on travel insurance from your own insurance provider
- Use rental car coverage provided by your credit card company
- Decline optional protection packages at the rental desk
If you choose to use third-party coverage, please ensure your policy covers rental vehicles in Iceland, including specific risks like gravel and ash damage, which are common on Icelandic roads.
How old to rent a car in Iceland? Minimum age limitation and exceptions
Hertz Iceland not have a Maximum age limit restriction when renting or driving with us. But we do have minimum age requirement on renting and driving our vehicles.
The minimum age for rentals in Iceland is 20 years old for vehicle groups Economy, Compact, Compact Wagon, Intermediate 2 and 4 doors and Intermediate Wagon. For all other vehicle groups, the minimum age is 23 years old. For certain prestige/luxury cars, a 25-minimum age might be required. Please refers to the car description page for information about the exact age requirement of each car.
For further information, please contact our Reservation Center.
Do you need a credit card to rent a car in Iceland?
Yes, you will need a valid credit card in the main driver’s name when renting with Hertz Iceland. When you rent, we will place an authorization hold (not deposit) on your credit card for security. This applies to all payment methods and reservation statuses.
- The only acceptable credit cards are: H.C.C. card holders (booked through hertz.com), American Express, Mastercard, and Visa.
Debit and Prepaid Credit Cards – accepted with Special Conditions:
If you don’t have a credit card, we accept debit and prepaid credit cards under the following conditions:
- Debit card requirement: we ONLY accept Debit card with a 16-digit number starting with 4 or 5.
- Prepaid credit card requirements: The card must be in the name of the main driver. The driver must ensure sufficient funds are available on the card to cover all estimated charges, as we will authorize a certain amount at the start of the rental.
For luxury vehicle rentals, TWO credit cards must be presented at the time of rental.
Methods of Payment: A physical Card is required, NOT virtual cards, apple/google pay or e-wallet
You need one of the cards mentioned above in the main driver’s name to book and rent the vehicle. This rule applies no matter where you reserved your rental with Hertz Iceland. However, you may opt to pay by other means at the termination of the rental, subject to specific terms and conditions being met.
At the time of rental, authorization is obtained on your credit card based on the estimated rental charges. There must be sufficient credit on your card to cover all charges. We are not charging a deposit to your credit card. Instead, we are getting authorization for a certain amount based on your rental. This is done using the credit card you provided.
To recap, when renting with Hertz Iceland:
| Accepted Payment Methods |
| Credit Cards American Express, Mastercard, and Visa. H.C.C. cards (booked via Hertz.com) are also accepted. |
| Debit Cards Must have a 16-digit number starting with 4 or 5 and be in the main driver’s name. |
| Prepaid Credit Cards under these conditions 1. Must be in the main driver’s name. 2. Must have sufficient funds to cover all estimated charges |
| Not Accepted payment Methods |
| Apple credit or debit cards. |
| Virtual cards, e-wallets (e.g., Apple Pay, Google Pay). |
Important Notes:
- For luxury vehicle rentals, two credit cards must be presented.
- The physical card must be presented at the rental desk.
- Online reservations are charged immediately upon confirmation.
- Payment at the end of the rental is possible using other methods, provided all terms and conditions are met.
- We do not take a deposit but an authorization hold from the card you provided at the rental
Driving Restrictions
Hertz 2WD vehicles are not allowed to be driven on roads marked F on official maps (i.e. F-roads, Icelandic mountain roads) and KJÖLUR, road nr. 35. and KALDIDALUR nr. 550.
Should these restrictions be ignored all waivers (Third Party Liability, CDW, TP, PAI), if accepted, shall be deemed null and void. The driver will be held fully responsible in case of accidents and will bear all consequences, including the cost of reparation of the damaged vehicle. For further information please contact the Reservation Center.
Please note: Off-road driving is illegal in Iceland. Please ONLY drive on marked roads and tracks at all times. If you drive off-roads, ALL car insurances and coverages you have on the rental car will be deemed null and void, the renter will be responsible for all car damages at full cost.
Please also be reminded that some plug-in hybrid 4×4 cars and electric 4WD cars in our fleet are NOT allowed on F-roads due to the battery position. Please check the rental car description and detail carefully before renting.
Airport Service Charge
An Iceland International airport Service Charge will apply to all rentals with pick-up at Keflavik International airport.
One-Way Rentals
One-way rentals are those customer starts the rental in one location and returns the vehicle to another. Availability is based on the location restrictions and the vehicle type being taken one-way.
One-Way fees
If the car is not returned at the same location as the pick-up took place, there will be added a One-Way fee.
Taxes
All rates are subject to a Government tax (VAT) at 24% and are included in all our rates.
PHEV/EV kilometer tax (road usage tax)
Iceland introduced a road usage tax for hybrid and electric vehicles—when you rent a PHEV from us, we’ll add 500 ISK per day; for an EV, 1,500 ISK per day.
Dropping off the car
Cars are not to be dropped off at hotels, they have to be returned to the rental location according to the agreement. If failed to do so Hertz will charge for the pickup and gasoline.
Opening hours
The car must be returned during office hours of the rental office you choose. Our opening hours can be viewed on our stations locations info page
Cancellation Policy and cancellation fees
You can enjoy a FREE cancellation up to 16 days before your rental time. Reservation that is cancelled more than:
- 16 days before – Free cancellation
- 15-8 days before – 40% of the total reservation value
- 7-2 days before – 50% of the total reservation value
- 1 day before – 80% of the total reservation value
- No Show – 100% of the total reservation value
Vehicles reservation policy
Reservations are made by car category only. The vehicles shown in pricelists are only examples. We cannot guarantee a specific car model. Specific models within a car class may vary in availability and features, such as passenger seating, luggage capacity, and mileage.
Fuel
Hertz vehicles are rented with a full tank of petrol and therefore you are required to return your car with a full tank. A fuel and service charge will apply unless the car is returned with the same amount of fuel as when rented.
Please refers to our ‘car protection and extra items and price list‘ page for more information about the price for extra driver/ equipment rental and the car insurance detail.
Parking, tunnel and processing parking fines and tickets (if any)
The renter is responsible for paying all parking fees, tunnel fees, speeding tickets, and any other fines or tickets incurred during the rental period. These fees are not included in the rental price. Please ensure you make payment when using paid parking areas in Iceland.
If you fail to pay for parking, tunnel fees, or any fines received during your rental, Hertz Iceland will receive a notification from the relevant authorities. In such cases, we will charge your credit card for the outstanding fee PLUS an administrative fee for processing the payment.
- Learn more about Parking in Iceland before visiting.
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.
