Last updated: June 2026 | Reviewed by the Hertz Iceland Fleet Team
The BMW X3 Plug-in Hybrid is a premium AWD SUV available as a guaranteed model with Hertz Iceland — when you book this category, you receive this exact car. It combines a powerful petrol engine with an electric motor giving 81–90 km of EV range under WLTP conditions, making it well suited to both city driving and longer Ring Road journeys. It is not permitted on F-roads or Highland tracks.
BMW X3 Rental in Iceland: 4×4 Plug-in Hybrid SUV Guide
The BMW X3 Plug-in Hybrid is one of the most versatile choices in the Hertz Iceland Luxury Fleet. It pairs a refined petrol engine with an integrated electric motor, giving you genuine EV capability for city driving and short scenic runs — with the full confidence of a powerful AWD petrol engine for longer days on the Ring Road or the South Coast. For travellers who want premium comfort, intelligent efficiency, and the reassurance of a guaranteed specific model, the X3 PHEV is a natural fit.
Is the BMW X3 Good for Driving in Iceland?
Yes, absolutely. The BMW X3 Plug-in Hybrid handles Iceland’s roads with confidence — from Reykjavík city streets to gravel stretches on the Ring Road and wet, windy conditions on the South Coast.
Safety Tech: Blind-spot warning, automatic emergency braking, and adaptive cruise control reduce fatigue on longer routes.
Real-World Space: Three large hard-shell suitcases plus two smaller bags fit comfortably. Note that the PHEV battery pack sits under the rear seats, so boot space is slightly reduced compared to the standard petrol X3 — pack accordingly for groups of four with large luggage.
Performance: 295 hp combined output and AWD xDrive deliver strong, confident acceleration and grip on Iceland’s paved and gravel roads, in wet weather, and in light winter conditions.
EV Range by Season: Expect 80–97 km in summer/mild conditions (5–15°C), 65–80 km in autumn/spring (0–5°C), and 50–65 km in winter (-5°C to -15°C). Always pre-condition the battery while plugged in before a winter drive.
Cabin Comfort: Heated front seats, a refined premium interior, and BMW’s iDrive system make long 4–6 hour driving days significantly more comfortable.
Hertz Iceland: Locally Operated Since 1971
As Iceland’s premier local experts for over 55 years, we combine international standards with deep-rooted knowledge of Icelandic terrain. Rent with the authority that knows every F-road and weather pattern since 1971.
When Is the BMW X3 the Right Choice?
Summer (May–September): Ideal for full Ring Road journeys (7–10 days), Golden Circle day trips, and South Coast itineraries where you want premium comfort and AWD confidence.
Winter (October–April): Very well suited for [[Link to Winter Driving Guide]] on Iceland’s main roads. Equipped with season-appropriate winter tyres, the X3’s AWD and pre-conditioning capability make it one of the stronger PHEV choices in cold conditions.
⚠️ Not ideal if:
You plan to drive into the Icelandic Highlands or on F-roads (e.g., Landmannalaugar or Þórsmörk). This vehicle is strictly not allowed there.
You are a group of 4 with very large luggage — the PHEV battery reduces boot space versus a non-hybrid X3. Consider the [[Link to BMW X5]] or a [[Link to Land Rover Defender]] for maximum luggage capacity.
Rental Requirements & Restrictions
Minimum Age: 25 years old.
License: Valid driving license held for a minimum of 1 year. An International Driving Permit (IDP) / International Driving License (IDL) is required if your national driving license is not in Roman script.
Payment: Valid credit card under main renter’s name is required.
F-Road Policy: STRICTLY FORBIDDEN. The BMW X3 is not allowed on F-roads (Highland tracks). It is allowed on Road 35 (Kjölur) and Road 550 (Kaldidalur) only when conditions are clear and open.
Inside the BMW X3
Step inside the BMW X3 Plug-in Hybrid and you’re immediately in familiar premium BMW territory — but with a noticeably forward-looking edge. The cabin uses quality materials throughout, with soft surfaces, clear digital instrumentation, and BMW’s iDrive infotainment system laid out intuitively across a central touchscreen.
Heated front seats and three-zone climate control keep the cabin comfortable on Iceland’s cooler driving days, while the well-judged seating position gives you a commanding view of the road — useful whether you’re navigating Reykjavík traffic or reading Iceland’s fast-changing weather on an open stretch of Route 1.
Rear passengers have enough legroom for full-day journeys without discomfort, and the quietness of EV-mode driving in and around town gives the X3 a composure that larger SUVs often can’t match. On winter drives along the South Coast, with the heater running and the landscape turning monochrome outside, the X3’s cabin feels genuinely well-suited to Iceland’s conditions.
BMW X3 Dimensions, Seating and Luggage For Your Trip
Available at pickup desk, from 990 ISK/day with MAX Coverage
The BMW X3’s boot fits 3 large hard-shell suitcases plus 2 smaller soft bags — well suited to couples on longer Ring Road itineraries or families on shorter trips. Note that the PHEV battery pack is mounted under the rear seats, which reduces total boot volume slightly compared to the standard petrol X3. For couples, folding the rear seats creates useful additional space for bulky gear or cold-weather clothing.
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Hertz Insider Tip
“In Iceland, drive the BMW X3 Plug-in Hybrid on electric mode in Reykjavík and on shorter scenic stretches — then let the petrol engine take over for long Ring Road days. You don’t need to plan around chargers. The hybrid system manages itself automatically, so you can focus on the road ahead. Pre-condition the battery while still plugged in at your hotel before winter drives for the best EV range.”
Roadside Assistance
Help when you need it most — for common situations on the road.
What’s covered
⬤ Locked out of your vehicle
⬤ Flat or punctured tyre
⬤ Drained battery
⬤ Run out of fuel
⬤ Towing to a nearby garage if needed
Pricing
Stand-aloneRoadside Assistance
1,990 kr./day
With Max CoverRoadside Assistance
990 kr./day
Best ValueAdd to Max Cover and save 1,000 kr./day
Pro Tip: The Hertz Iceland Difference
Travel with peace of mind. We offer a Newer, Reliable Fleet (under 2 years old, low mileage), a Prime Location (inside Keflavik Airport (KEF) arrival hall), and comprehensive, cross-country Nationwide Support with premium customer service—just a phone call away.
Why Rent a BMW X3 in Iceland with Hertz Iceland?
At Hertz Iceland, we go beyond just offering premium rental cars—we provide a seamless and stress-free rental experience tailored for travelers. Here’s why you should rent your BMW X3 in Iceland with us:
Choosing Hertz Iceland means renting from a locally owned operator with over 50 years of experience, operating in Iceland since 1971.
Guaranteed Model: The BMW X3 is one of a small number of vehicles in our fleet booked as a guaranteed model — when you book this category, you receive this exact BMW X3, not a substitute.
Safety First: Every BMW X3 is equipped with season-appropriate tyres (studded in winter if needed) and backed by 24/7 emergency phone assistance across the entire island.
Convenience: Pick up your car directly at KEF Airport Arrival Hall or our downtown Reykjavík office.
Roadside Assistance
Help when you need it most — covering the towing fees for common situations on the road.
What’s covered
This add-on strictly covers the towing fee to a nearby garage in the event of the following common breakdowns:
⬤ Locked out of your vehicle
⬤ Flat or punctured tyre
⬤ Drained battery
⬤ Running out of fuel
⚠️ Important Exclusion: Towing required due to accidents or driver fault is not covered.
*This includes, but is not limited to: loss of car keys, rim damages, water damage, filling the tank with the wrong fuel, and any other rental car damage caused by the driver.
💳 Refund Process (How it works):
If you require a tow, you will need to pay the third-party service provider directly on-site first. YOU MUST KEEP YOUR RECEIPT! Present this receipt to our team when you return your rental car, and Hertz Iceland will refund the eligible towing fee directly back to your card.
Pricing
Stand-aloneRoadside Assistance
1,990 kr./day
With Max CoverRoadside Assistance
990 kr./day
Best ValueAdd to Max Cover and save 1,000 kr./day
Pro Tip: The Hertz Iceland Difference
Travel with peace of mind. We offer a Newer, Reliable Fleet (under 2 years old, low mileage), a Prime Location (inside Keflavik Airport (KEF) arrival hall), and comprehensive, cross-country Nationwide Support with premium customer service—just a phone call away.
History of BMW
BMW, which stands for Bayerische Motoren Werke, was founded in 1917 through a merger of several German companies including Rapp Motorenwerke and Bayerische Flugzeugwerke. In its earliest years, the company focused on aircraft engines, railway brakes, and farm equipment, contributing to both World War efforts.
BMW’s transition into passenger vehicles began in 1928, though it was not until the 1960s that the brand truly found its identity. The launch of the Neue Klasse range of sports sedans defined the direction BMW would take for decades: high-performance, driver-focused vehicles that didn’t compromise on luxury or style. From that point forward, BMW grew into one of the world’s most respected automotive manufacturers.
Hiring a BMW X3 rental in Iceland means getting behind the wheel of a true icon.
Operates only upon receipt of confirmed bookings. Must book in advance. Contact to confirm: hertz@hertz.is
Important: New Iceland Road Tax (2026)
As of January 1, 2026, the Icelandic government requires a mandatory Kilometer Tax on this vehicle type. This replaces traditional fuel taxes with a usage-based fee.
✔ Transparent Pay-Per-Km Pricing
Government Road Tax:6.95 ISK / km
Hertz Service Fee:1.40 ISK / km (+ VAT)
*Approx. 0.056 USD/km (Gov) + 0.011 USD/km (Service). Charged based on actual distance driven at the end of your rental.
Questions? For inquiries regarding the Icelandic Road Tax or billing specifics, please contact our dedicated support team at:
roadtax@hertz.is
Road Trips with the BMW X3
Road Trips with the BMW X3
The X3’s PHEV system earns its keep most on shorter daily loops where EV mode does the heavy lifting — and the AWD petrol engine takes over seamlessly on longer stretches.
The Golden Circle
ReykjavíkÞingvellirGeysirGullfossReykjavík
The Golden Circle is where the BMW X3’s plug-in hybrid system makes the most obvious sense. Leave Reykjavík on electric power, switch seamlessly to petrol as you push further into the interior, and return to the city on EV mode. The 300 km loop through Þingvellir National Park, Geysir, and Gullfoss waterfall stays entirely on paved roads — a natural match for the X3’s road-focused AWD setup and premium cabin.
Best Time: Year-round. Charge fully before departure to maximise EV range on the Reykjavík city sections.
One of Iceland’s most dramatic drives, the South Coast route passes two of the country’s most photographed waterfalls, the black sand beach at Reynisfjara, and ends at the glacier lagoon at Jökulsárlón. At roughly 600 km return from Reykjavík, the petrol engine comfortably handles the distance while the X3’s AWD provides confidence on any gravel stretches near the lagoon. The premium cabin makes the long driving days noticeably more comfortable than in a smaller SUV.
Best Time: May–October for best road and weather conditions. Allow 2 days to avoid rushing the return.
Reykjavík to Akureyri via the Ring Road
ReykjavíkBorgarnesBlönduósGoðafossAkureyri
The 390 km drive north from Reykjavík to Akureyri along Route 1 passes lava fields, the waterfall at Goðafoss, and arrives in Iceland’s charming northern capital. The X3’s petrol-electric AWD handles the route’s varied road surfaces with ease, and the eight-speed automatic keeps long motorway-style stretches refined and unhurried. Drop the car at Hertz Akureyri Airport when you’re ready to continue or fly back south.
Best Time: June–August for the full route in a single day; allow more time in shoulder seasons for weather changes.
Yes. When you book this category with Hertz Iceland, you are guaranteed to receive a BMW X3 Plug-in Hybrid — not a substitute or similar vehicle. This is one of a small number of guaranteed-model categories in our fleet.
Yes. The BMW X3 PHEV is well suited for winter driving on Iceland’s main roads. Its xDrive AWD system and our season-appropriate winter tyres provide confident traction in snow and ice. Pre-condition the battery while plugged in before departure to maintain EV range in cold temperatures — expect 50–65 km of electric range at -5°C to -15°C.
The BMW X3 Plug-in Hybrid comfortably fits 3 large hard-shell suitcases plus 2 smaller soft bags. Note that the PHEV battery pack sits under the rear seats, which reduces boot volume slightly compared to the standard petrol X3. Folding the rear seats creates additional room for bulky items like winter clothing or camera gear.
No. The BMW X3 is strictly forbidden on F-roads and Highland tracks such as the routes to Landmannalaugar or Þórsmörk. It is permitted on Road 35 (Kjölur) and Road 550 (Kaldidalur) only when conditions are clear and open.
Both are guaranteed-model AWD PHEVs suited to Iceland’s main roads — neither is permitted on F-roads. The BMW X3 is the more efficient choice with a longer EV range (81–90 km WLTP) and a slightly more compact footprint, making it ideal for couples or small families. The BMW X5 offers more power (390+ hp vs 295 hp), a more commanding presence, and a larger cabin — better suited to longer Ring Road itineraries where outright comfort and performance matter most.
Yes. Roadside Assistance covering the towing fee can be added at the rental desk when you pick up your BMW X3 — it is not available to book online in advance. It costs 1,990 ISK/day standalone, or 990 ISK/day when added with MAX Coverage. Pay the towing fee at the time of service and bring your receipt when you return the car — we’ll refund the covered amount to your card on file.