Explore Iceland behind the wheel of a smarter, more fuel-efficient vehicle with Hertz Iceland’s selection of hybrid rental cars. From the capable Hyundai Tucson PHEV ideal for the South Coast and Golden Circle, to the commanding Land Rover Defender PHEV for those seeking a full size hybrid car rental with genuine 4×4 capability, we have the right hybrid car hire option to match your itinerary and budget.

Booking hybrid cars to rent in Iceland is not just the environmentally conscious choice — it is the financially smarter one. Fuel prices in Iceland can add up quickly over a long road trip, and the plug-in hybrid powertrain means you drive on electric power for shorter stretches and switch to the petrol engine seamlessly on longer ones, spending less at the pump without sacrificing range, comfort, or performance.

Whether you are planning a Ring Road circuit, a week exploring the Westfjords, or a weekend along the south coast, our car rental hybrid vehicles are newer, reliable, and fully prepared for Iceland’s variable conditions — from summer gravel roads to winter ice and coastal wind.

Why Rent a Hybrid Vehicle in Iceland?

Iceland’s road network and travel patterns make plug-in hybrid cars a natural fit for most visitors. Fuel stations on the Ring Road are well-spaced for conventional refuelling, and the electric-first drive mode of a PHEV means you cover town sections, national park entrances, scenic viewpoints, and coastal slow roads on near-silent electric power — saving both fuel and noise in Iceland’s most extraordinary environments.

Choosing hybrid car hire in Iceland also means quieter, smoother driving through some of the world’s most dramatic landscapes. Slow passes next to waterfalls, low-speed lava field traversals, and early-morning drives past glaciers all benefit from the hushed, refined character of a plug-in hybrid powertrain. It is simply a better way to experience Iceland.

The Fuel Savings (Petrol vs. Hybrid) Driving 100 km on the Ring Road

Let’s look at the real cost difference between a conventional petrol SUV and a PHEV hybrid SUV on a typical Iceland driving day:

• Petrol SUV: A standard petrol SUV consumes approximately 9–10 litres per 100 km. At ~290 ISK/litre, that costs you roughly 2,610–2,900 ISK per 100 km.
• PHEV Hybrid SUV (mixed driving): A plug-in hybrid SUV consumes approximately 5–7 litres per 100 km on mixed petrol/electric driving. At the same fuel price, that costs you roughly 1,450–2,030 ISK per 100 km.
• The Result: You save approximately 30–45% on fuel every day by choosing a PHEV over a conventional petrol equivalent — more if you charge regularly overnight.

Sustainable Experience

Iceland generates nearly 100% of its electricity and a significant share of its heating from geothermal and hydropower. Driving hybrid car rental vehicles in Iceland within this context means meaningfully lower tailpipe emissions per kilometre, particularly during the electric-only portions of your journey through towns, national park zones, and populated coastal areas.

Beyond the environmental benefit, hybrid cars to rent in Iceland deliver a noticeably quieter, more refined driving experience — letting Iceland’s volcanic landscapes, glacial rivers, and birdlife do the talking as you move through them. And because plug-in hybrid efficiency is built into every kilometre, the savings are real from the moment you leave KEF Airport.

The Real Cost

Important 2026 Update: The Kilometer Tax

As of Jan 1, 2026, the Icelandic government introduced a “Road Usage Charge” to replace older fuel taxes. This applies to all vehicles on the road, including hybrid rental cars.

• Government Tax: 6.95 ISK per km
• Hertz Admin Fee: 1.40 ISK per km (+ VAT)
• Total Charge: Approx. 8.35 ISK per km

How you pay: This fee is calculated automatically based on your usage and added to your final invoice when you return the car.

The Verdict: Since you pay the kilometre tax regardless of whether you rent a petrol or hybrid car, the significant savings on fuel make the hybrid the clear budget winner for most Iceland road trips.

Hybrid Car Availability and Roads in Iceland

Iceland has one of the highest rates of hybrid and plug-in vehicle adoption in the world, and the road infrastructure increasingly supports this. Iceland’s paved road network — including the entire Ring Road (Route 1) and the main routes to the Golden Circle, South Coast, Snæfellsnes Peninsula, and the North — is where car rental hybrid vehicles deliver their best efficiency. Smooth tarmac, long open stretches, and the frequent low-speed scenic sections are ideal conditions for PHEV powertrains to alternate efficiently between electric and petrol drive.

Models like the  BMW X5 PHEV and 4×4 Hyundai Tucson Hybrid stand among the best hybrid cars to rent for travel in Iceland. Both offer real-world fuel consumption well below their petrol equivalents, generous luggage space for Ring Road packing, and the raised ground clearance and traction control needed for Iceland’s gravel stretches and occasional winter conditions. A full size hybrid car rental like the Land Rover Defender PHEV takes this further, combining plug-in electric range for silent city driving with genuine low-range 4×4 capability for those venturing beyond the main roads.

For a hybrid car road trip in Iceland, the combination of electric-first town driving and efficient petrol cruising on open highways is a practical and cost-effective approach. Most car rental hybrid SUV models also come equipped with built-in navigation to support route planning, keeping the experience seamless from Reykjavík to the Eastfjords and everywhere in between.

Charging & Fuelling Made Easy With Hertz Hybrid Rental Cars

Iceland’s combination of a growing public charging network and a well-maintained national petrol station network makes managing your PHEV rental straightforward from day one.

1. Charging Your PHEV (The “Charge & Go” Advantage)

Every plug-in hybrid in the Hertz Iceland fleet supports Type 2 AC charging, and your rental includes a Type 2 charging cable as standard.

• How it works: Connect your Hertz PHEV to any Type 2 public charging station using the included cable. The majority of N1 and ON Power stations along main routes have AC charging bays available.
• The process: Download the N1, ON Power, E1, or Íssorka app before your trip and link your payment card. Connect the cable to the car and the station socket, activate the session in the app, and charging begins automatically.
• Payment: Charging costs are billed directly through the app to your payment card — keeping all energy costs transparent and easy to track throughout your rental.

2. Fuelling Your PHEV (The Petrol Backup)

Because every Hertz hybrid rental car is a plug-in hybrid, you can also refuel at any petrol station exactly like a conventional car — no range anxiety, no compromises on longer driving days.

• Where to find fuel: N1, Orkan, and ÓB stations are the most common stops and are found at petrol stations, supermarkets, and along all main routes throughout Iceland.
• How to pay: Use your payment card directly at the pump — all major stations across Iceland accept international cards.
• Pro Tip: On gravel road sections and remote north or east coast stretches, fuel up at the last confirmed station before your turn-off. Your PHEV’s petrol engine gives you full long-distance range, so a full tank before any remote section is all you need.

3. Overnight Charging (Wake Up Full)

The most convenient way to maximise your PHEV’s electric range is to charge while you sleep. Many hotels, guesthouses, and Airbnb rentals in Iceland now offer Type 2 destination charging or standard outlet access.

• The Benefit: Plug in when you check in at night, and wake up with your battery at full capacity — ready for a full day of near-silent electric driving through Iceland’s towns and scenic areas before the petrol engine is needed at all.

Tips on Renting a Hybrid Car in Iceland

Before you rent a hybrid car and hit the road, here is what to keep in mind for a confident, well-planned Iceland trip:

• Charge every night at your accommodation. When you rent a hybrid car in Iceland, overnight charging is the single most effective habit for maximising electric range and minimising fuel costs. Ask your hotel or guesthouse about Type 2 or standard outlet access when you book.
• Plan your route around fuel stations for longer remote stretches. On paved main roads, N1 and Orkan are consistently present. On longer gravel detours or remote north and east coast roads, check your fuel level before turning off the main highway — your PHEV’s petrol engine gives you full conventional range as a reliable backup.
• Confirm your charging cable before pick-up. A Type 2 cable DOES NOT comes standard with PHEV rental at Hertz Iceland. If you wish to have a cable for your rental, it is possible to add it as an extra item during the booking process on hertz.is to ensure your vehicle is ready for charging upon arrival.
• Avoid F-roads entirely. No plug-in hybrid in our fleet is cleared for highland F-road tracks. These are unpaved, remote mountain interior roads requiring specialist high-clearance 4×4 vehicles. If your plans include the highland interior, book a dedicated 4×4 instead.
• Account for cold weather impact on battery range. In winter or shoulder season, sustained cold temperatures can reduce your PHEV’s electric-only range by up to 20–25%. The petrol engine takes over seamlessly, but planning fuel stops with a comfortable buffer is good practice in colder months.

How Can I Charge and Fuel My Rental Hybrid Vehicle in Iceland?

Iceland’s charging and fuel network is reliable and straightforward to use. Here is how to manage energy for your hybrid rental car every time:

1. Find a nearby charging or fuel station. Use the N1, ON Power, or ABRP app to locate the closest charge point or petrol station. Both apps show real-time availability and allow filtering by connector type or fuel type.
2. Connect the charging cable or pull up to the pump. For electric charging, use the included Type 2 cable — connect one end to your car’s charging port and the other to the station socket. For petrol refuelling, use a standard pump (confirm fuel type in your rental documents — all Hertz PHEVs use petrol).
3. Activate the session. Charging sessions activate via the N1, ON Power, or Ísorka app linked to your payment card. Petrol pumps activate with any international payment card directly at the terminal.
4. Monitor and complete. Track your charging progress on the car’s dashboard display or in the app. Once complete, unplug the cable and store it in the boot, or replace the pump nozzle — and you are ready to continue.

Explore Our Hybrid Rental Fleet

At Hertz Iceland, our entire hybrid fleet consists of plug-in hybrid (PHEV) vehicles. Enjoy electric power for shorter drives with the seamless backup of a petrol engine for the Ring Road. No range anxiety. No compromise.

Compact PHEV

Renault Captur PHEV

Ideal for couples and city-focused itineraries around Reykjavík and the Golden Circle.

EV Range Up to 50 km

Drive FWD / Auto

View Details & Pricing

Mid-Size PHEV SUVs

Hyundai Tucson PHEV

A top choice for Ring Road travellers, combining 268 hp with practical AWD capability.

Boot Space 587 Litres

Power 268 hp / AWD

View Details & Pricing

Kia Sorento PHEV

Most family-friendly option with 6-7 seats. Perfect for groups with significant luggage.

Capacity 6-7 Seats

EV Range ~55 km

View Details & Pricing

BMW X3 PHEV

Longest EV range in class (up to 90 km). Premium luxury meets efficient xDrive AWD.

EV Range 81-90 km

Charging 2.25h (AC)

View Details & Pricing

Full-Size & Premium PHEV

BMW X5 PHEV

Our flagship premium hybrid. Twin-turbo inline-six performance with elite cabin comfort.

Power 483 hp

Battery 25.7 kWh

View Details & Pricing

Mercedes-Benz GLE PHEV

Spacious luxury supporting 60 kW DC fast charging. Among the highest EV ranges available.

EV Range Up to 77 km

DC Charge Yes (60 kW)

View Details & Pricing

Land Rover Defender PHEV

The ultimate 4×4. Terrain Response 2 system for gravel roads with 400 hp combined power.

4×4 System Low-range

Towing 3,500 kg

View Details & Pricing

Range Rover Sport PHEV

The longest range in our fleet (~85 km). Whisper-quiet electric luxury with 543 hp.

EV Range ~85 km

Battery 32 kWh

View Details & Pricing

Discovery Sport PHEV

Versatile family SUV supporting 35 kW DC fast charging. Perfect for mixed road types.

DC Charge Yes (35 kW)

Power 227 kW

View Details & Pricing

*Fleet availability varies by season. Models listed are subject to availability at the time of booking.

Everything You Need To Know About Hybrid Car Hire

Driving Range of PHEVs — Factors That Affect Performance

Modern PHEV models in the Hertz Iceland fleet offer a combined real-world range of 600–900 km (electric + petrol) on a full charge and tank, which is more than enough for full Ring Road driving days. That said, several factors can affect how far your electric range takes you:

• Temperature
  Cold weather can reduce battery-only range by up to 25%. In winter, allow an extra buffer and prioritise overnight charging to start each day with a full battery.
• Speed and terrain
  Driving at higher speeds above 90 km/h and on hilly roads draws more power from the battery. Coastal and highland stretches will use more electric range than flat motorway driving.
• Heating and cabin use
  Running cabin heating at full power on Iceland’s cooler days draws from the battery. Use seat heating over cabin blowers where possible to preserve electric range.
• Load and passengers
  A fuller vehicle uses slightly more energy per kilometre. Factor this in when estimating electric range for larger groups travelling with luggage.

Charging Type — How to Charge Your PHEV

Iceland has a well-developed charging network for hybrid rental cars, supported by providers including N1, Orkan, ON Power, and Ísorka.

• Type 2 AC public chargers (all Hertz PHEV models):
  Found at petrol stations, supermarkets, and car parks across Iceland. Download the N1, ON Power, or Íssorka app before your trip and connect your payment card for easy app-activated charging. Look for the orange “Hraðhleðsla” sign at N1 and Orkan stations for the fastest speeds.
• Overnight charging at accommodation:
  Most hotels and guesthouses offer EV/PHEV charging. If you added a Type 2 when creating the reservation on hertz.is just plug in each evening and wake up with a full battery ready for the next day.
• Petrol refuelling (backup — always available):
  Pull up to any N1, Orkan, or ÓB petrol station and refuel like a conventional car. Your PHEV’s petrol engine ensures you always have full conventional range as a backup, regardless of battery charge level.

How Long Does It Take to Charge a PHEV?

The charging time of hybrid car hires depends on the charger speed and the PHEV’s battery size. Here is a general guide for the most common scenarios in Iceland:

Where Can I Find Charging Stations and Fuel?

Iceland now has over 450 fast-charging ports across the island, and over 550 petrol stations nationwide. N1 and Orkan are the most common stops along main routes, with charging bays and fuel pumps at most locations. Supermarkets like Krónan and Bónus also offer charging bays, and most hotels along the Ring Road corridor have PHEV charge points on site.

Before you set off, download the N1, ON Power, E1, or Íssorka app to locate chargers in real time and pay directly from your phone. For petrol stops, all major stations accept international payment cards at the pump.

Quick Comparison: Which Vehicle Type Suits You?

PHEV Rental Requirements in Iceland

Before you get ready to collect your Hertz hybrid rental car in Iceland, here is what you must know:

• Charging costs are paid directly by the renter through a public charging app such as N1, ON Power, E1, or Ísorka. Download your preferred app and link your payment card before you travel for the smoothest experience.
• A Type 2 charging cable is available to add to your booking as a paid extra during the reservation process. Hertz Iceland does not include a charging cable as standard with PHEV rentals, so if you plan to use public charge points, we strongly recommend adding it at the time of booking.
• PHEVs are not cleared for F-roads or Iceland’s highland interior tracks. These are unpaved, remote mountain routes, and any vehicle damage sustained on unpaved terrain is not covered. If your plans include the highland interior, please book a dedicated fuel 4×4 instead.
• All PHEV rentals run on petrol as their primary long-distance fuel source. Fuel costs throughout the rental period are the renter’s responsibility and are paid directly at petrol stations using your own payment card.
• The vehicle should be returned with a reasonable fuel level. Returning a PHEV with a near-empty petrol tank may incur a refuelling handling fee.

Frequently Asked Questions – Hybrid & PHEV Car Rental in Iceland

• • Can I drive a hybrid rental car on Iceland’s Ring Road?
    Yes, all PHEV models in the Hertz Iceland fleet are well-suited for the Ring Road. They run on petrol for long open highway sections and switch to electric power on shorter in-town and scenic slow-speed stretches. Fuel stations are well-distributed along Route 1, so range is never a concern on paved roads.

• • Do I need to charge a PHEV rental car in Iceland?
    No, charging is optional — not required. Every PHEV in our fleet runs on petrol as its primary power source, giving you full conventional range at any petrol station in Iceland. Charging the battery when convenient improves fuel efficiency, but the car functions perfectly without it.
    
    Pro Tip: The Hertz Iceland Difference – By choosing from our Newer, Reliable Fleet, you are driving the latest PHEV technology. These vehicles are highly efficient even when running solely on petrol, ensuring your journey remains uninterrupted by charging stops unless you choose them.

• • Does Hertz Iceland provide a charging cable with PHEV rentals?
    A Type 2 charging cable is available as a paid add-on and can be added to your booking during the reservation process. It is not included as standard with PHEV rentals. If you plan to use public charging stations, we strongly recommend adding the cable at the time of booking to ensure it is ready at pick-up.

• • Where can I pick up my hybrid rental car in Iceland?
    You can pick up your vehicle at our Prime Location directly inside the arrivals hall at Keflavík International Airport (KEF). You can walk straight from baggage claim to our counter—no shuttle buses or waiting outside required. We also offer pick-up from our Reykjavík city location.

• • Are hybrid rental cars more expensive to hire than regular petrol cars?
    Not necessarily. Pricing is primarily determined by the car class and seasonal demand. A compact PHEV like the Renault Captur is priced within the compact class, while premium SUVs like the Range Rover Sport PHEV sit in higher categories. Peak summer (June–August) generally sees higher rates than winter.

• • What is the difference between a hybrid car (HEV) and a plug-in hybrid car (PHEV)?
    All hybrids in the Hertz Iceland fleet are Plug-in Hybrids (PHEV). Unlike standard hybrids (HEV), a PHEV has a larger battery you can plug in to charge, offering 40–90 km of electric-only range. Once the battery is depleted, it functions exactly like a standard hybrid using the petrol engine.
    
    Pro Tip: The Hertz Iceland Difference – Whether you are driving silently through Reykjavík or exploring the coast, our Nationwide Support is always a phone call away, providing premium assistance regardless of which power mode you are using.

• • Can I take a PHEV hybrid rental car on F-roads in Iceland?
    No. F-roads require specialist high-clearance 4×4 vehicles. No PHEV model in our fleet is approved for F-roads. If your itinerary includes the highland interior, please book a dedicated high-clearance 4×4 instead to ensure you are fully covered by insurance.

• • What happens with the 2026 kilometre tax when I rent a hybrid car?
    The 2026 Icelandic road usage charge applies to all vehicles, including PHEVs. The total charge is approx. 8.35 ISK per km (incl. admin fees and VAT). This is calculated automatically based on your mileage and added to your final invoice upon return.

• • Is a full-size hybrid SUV available to rent in Iceland?
    Yes. We offer several full-size PHEV SUVs including the Land Rover Defender, Range Rover Sport, BMW X5, and Mercedes-Benz GLE. These combine plug-in efficiency with premium AWD capability suited for Iceland’s longer inter-regional drives.
    
    Pro Tip: The Hertz Iceland Difference – Our premium SUV fleet is part of our Newer, Reliable Fleet, meaning your vehicle will be under 2 years old, low mileage, and expertly maintained for the best possible experience in the Icelandic landscape.

• • Are PHEV hybrid rental cars available year-round?
    Yes, our hybrids are available year-round, including winter. While cold temperatures can reduce battery range by 20–25%, the petrol engine operates without restriction. All models feature modern AWD and stability control systems for winter safety.