Luxury Car Rental in Iceland — Rent Direct with Hertz Iceland

Iceland’s volcanic landscapes, glacier lagoons, and midnight sun roads deserve to be explored in a vehicle that matches the scenery. Hertz Iceland is Iceland’s leading local car rental company, offering a curated fleet of luxury cars available for pick-up directly at Keflavík International Airport (KEF). Book directly with us — no broker fees, no hidden costs, just transparent pricing that includes unlimited kilometres, CDW, and VAT.

Our Luxury Car Rental Fleet in Iceland

Choose from our premium selection of high-end vehicles — each one inspected and maintained to the highest standard

Rent a BMW X5 in Iceland

The BMW X5 Plug-in Hybrid is the flagship of our Iceland luxury fleet — a full-size premium SUV that combines intelligent xDrive all-wheel drive with a spacious five-seat cabin and plug-in hybrid efficiency. Three-zone climate control, heated seats, and advanced driver-assistance technology make long driving days on the Ring Road genuinely effortless, in any season. If you are looking for the ultimate blend of performance, comfort, and luxury car rental in Iceland, the BMW X5 is the benchmark.

Transmission: Automatic | Drive: 4×4 (AWD) | Fuel: Plug-in Hybrid | Seats: 5 | Min. Age: 25+ | F-Roads: Not permitted

Rent a BMW X3 in Iceland

The BMW X3 Plug-in Hybrid delivers BMW’s acclaimed driving dynamics and xDrive all-wheel drive capability in a more compact, nimble luxury SUV — making it an excellent choice for travellers who want premium performance without the full footprint of a larger vehicle. Sharing the same PHEV technology as the X5, the X3 is equally confident on the Ring Road and the winding coastal roads of the Westfjords, with a refined interior, heated seats, and BMW’s signature driving precision that makes every kilometre a pleasure. The perfect luxury rental for two adults or a small family exploring Iceland at their own pace.

Transmission: Automatic | Drive: 4×4 (AWD — xDrive) | Fuel: Plug-in Hybrid | Seats: 5 | Min. Age: 25+ | F-Roads: Not permitted

Rent a Land Rover Defender in Iceland

Few vehicles are as synonymous with Iceland as the Land Rover Defender. Its legendary 4×4 capability, commanding road presence, and iconic silhouette make it one of the most sought-after luxury rental cars in Iceland — whether you are navigating the lava fields of the Snæfellsnes Peninsula, cruising the South Coast to Jökulsárlón, or simply arriving in style at a remote countryside hotel. Rugged enough for Iceland’s real conditions, refined enough for a premium road trip — the Defender is in a class of its own.

Transmission: Automatic | Drive: 4×4 | Fuel: Petrol/Diesel | Seats: 5 | Min. Age: 23+ | F-Roads: Not permitted

Rent a Land Rover Defender 130 (7-Seater) in Iceland

The Land Rover Defender 130 SUV 7-Seater is the definitive luxury rental for groups and families who refuse to compromise on space or capability. The extended Defender wheelbase delivers three rows of seating for up to seven passengers alongside four large suitcases, all backed by full-time 4×4 traction across Iceland’s varied road surfaces. It is the most practical large-group luxury rental in our fleet — and one of the most iconic vehicles you can arrive in anywhere in Iceland.

Transmission: Automatic | Drive: 4×4 | Fuel: Petrol/Diesel | Seats: 7 | Min. Age: 25+ | F-Roads: Not permitted

 Rent a Land Rover Discovery Sport in Iceland

The Land Rover Discovery Sport PHEV blends premium British refinement with a plug-in hybrid powertrain perfectly suited to Iceland’s mix of city driving and open-road exploration. Its intelligent 4×4 system delivers confident traction on coastal gravel roads and in unpredictable weather conditions, while the elevated seating position gives you commanding views of Iceland’s extraordinary landscapes. Refined, versatile, and beautifully appointed, the Discovery Sport is an outstanding luxury SUV rental choice for couples and small families.

Transmission: Automatic | Drive: 4×4 | Fuel: Plug-in Hybrid | Seats: 5 | Min. Age: 25+ | F-Roads: Not permitted

Rent a Mercedes-Benz GLE in Iceland

The Mercedes-Benz GLE Plug-in Hybrid represents the pinnacle of executive SUV comfort in our Iceland luxury fleet. Its full-time 4×4 system, plug-in hybrid powertrain, and air suspension deliver a ride quality that is unmatched on Iceland’s long-distance routes — whether you are chasing the Northern Lights in the depths of winter or cruising the Ring Road under the midnight sun. With a premium cabin, five generous seats, and Mercedes’ latest driver-assistance technology, the GLE sets the standard for those who demand the very best from a luxury car rental in Iceland.

Transmission: Automatic | Drive: 4×4 | Fuel: Plug-in Hybrid | Seats: 5 | Min. Age: 25+ | F-Roads: Not permitted

Rent an Audi Q7 in Iceland

The Audi Q7 is the ideal executive family SUV for exploring Iceland — combining Audi’s signature Quattro all-wheel drive with a long-wheelbase cabin that comfortably seats five adults with four large suitcases. Whisper-quiet, smooth, and planted on Iceland’s main roads and coastal routes, the Q7 delivers effortless performance from the Golden Circle to the Glacier Lagoon at Jökulsárlón. For travellers who want generous space, Quattro confidence, and understated Audi prestige, this is the most accessible entry point into our Iceland luxury fleet.

Transmission: Automatic | Drive: 4×4 (Quattro AWD) | Fuel: Petrol/Diesel | Seats: 5 | Min. Age: 23+ | F-Roads: Not permitted

Why Rent a Luxury Car Directly with Hertz Iceland?

• Direct supplier pricing : no broker commission, you pay the real rate
• Airport convenience: luxury vehicles in the Arrivals Hall at KEF, parked steps from the exit
• Fully transparent pricing: unlimited kilometres, CDW, and VAT all included
• Iceland expertise since 1971: our team knows every road condition, season, and route
• Dedicated customer service: available 24/7 for any emergency assistance during your rental
• 24/7 emergency assistance: peace of mind across all of Iceland

Luxury Car Rental Iceland — What’s Included in the Price?

Explore Iceland’s Most Iconic Routes in a Luxury Rental Car

The Ring Road (Route 1)

At 1,332 kilometres, Iceland’s Ring Road is the ultimate self-drive adventure — and a luxury SUV like the BMW X5 or Land Rover Defender transforms it from a long-distance challenge into a genuinely pleasurable journey. The adaptive suspension, heated leather seats, and whisper-quiet cabins of our premium vehicles absorb Iceland’s varied road surfaces — from smooth asphalt to coastal gravel — so that every hour behind the wheel feels as comfortable as the first. For a 7–10 day Ring Road circuit, there is simply no better way to travel.

 The Golden Circle

Iceland’s most iconic day route begins just 45 minutes from Keflavík International Airport, making it the perfect first drive in your luxury rental — and first impressions matter. Arriving at Þingvellir National Park, the erupting Geysir hot spring, and the thundering Gullfoss waterfall in a BMW X5 or Audi Q7 sets the tone for the entire trip — unhurried, premium, and entirely on your own terms. The Golden Circle is short enough to cover in a half-day, yet spectacular enough to linger over, and a luxury vehicle makes every stop feel like an occasion.

South Coast & Glacier Lagoon (Jökulsárlón)

The South Coast drive from Reykjavík to Jökulsárlón Glacier Lagoon covers roughly 380 kilometres and takes around four hours — a route where the comfort and capability of a luxury 4×4 makes a genuine difference on long stretches of the coastal highway. The Land Rover Defender in particular is almost made for this landscape: its bold silhouette against the black sand beaches of Reynisfjara, the ice-blue expanse of Jökulsárlón, and the scattered icebergs of Diamond Beach creates some of the most striking travel photography possible in Iceland. Plan for a full day, allow time to stop at every pull-off, and let the car be part of the story.

Snæfellsnes Peninsula

The Snæfellsnes Peninsula is Iceland in miniature — a 90-kilometre stretch of coastline, lava fields, fishing villages, and the glacier-capped volcano Snæfellsjökull, all within two hours of Reykjavík. The roads here mix smooth tarmac with narrow coastal tracks and volcanic gravel, making it a route where a luxury 4×4 like the Land Rover Discovery Sport or BMW X3 earns its keep — delivering the ride quality and AWD confidence to explore every corner of the peninsula without hesitation. It is one of Iceland’s most rewarding self-drive routes, and one best experienced at a leisurely pace in a premium vehicle.

Frequently Asked Questions – Luxury Car Rental Iceland

• • What is the minimum age to rent a luxury car in Iceland?
    The minimum age depends on the model. Most luxury vehicles at Hertz Iceland require drivers to be at least 23 years old. Some premium models such as the Land Rover Discovery require a minimum age of 25. All drivers must hold a valid driver’s licence held for a minimum of 1 year.
    
    Pro Tip: The Hertz Iceland Difference – When you book with us, you are guaranteed a premium experience with a vehicle from our Newer, Reliable Fleet, meaning your luxury car will be under 2 years old, have low mileage, and be expertly maintained.

• • Are luxury rental cars in Iceland 4×4?
    Most luxury vehicles in our Iceland fleet — including the BMW X5, Range Rover Sport, Land Rover Defender, and Audi Q7 — are full-time 4×4. The Mercedes-Benz E Class is 2WD and is best suited for paved roads.

• • Can I take a luxury rental car on F-roads in Iceland?
    F-roads (highland roads) are restricted to approved 4×4 vehicles only. Luxury models such as the Mercedes-Benz E Class are NOT permitted on F-roads. Check the individual vehicle page for specific restrictions before booking.

• • Does the luxury car rental price in Iceland include insurance?
    Yes. All Hertz Iceland luxury car rentals include Collision Damage Waiver (CDW), unlimited kilometres, and VAT. Optional additional protection packages are available at checkout.

• • Where can I pick up my luxury rental car in Iceland?
    Luxury vehicles are available for pick-up directly in the Arrivals Hall at Keflavík International Airport (KEF) — Iceland’s main international airport. No shuttle required.
    
    Pro Tip: The Hertz Iceland Difference – Take full advantage of our Prime Location. Because our main rental desk is directly inside the Keflavík Airport (KEF) arrival hall, you can skip the shuttle buses and get behind the wheel of your luxury vehicle immediately.

• • How far in advance should I book a luxury car rental in Iceland?
    Luxury vehicles have limited availability. We recommend booking at least 4–8 weeks in advance, especially for summer (June–August) and Northern Lights season (September–March).

• • Is it worth renting a luxury car in Iceland?
    Iceland’s dramatic terrain, long driving distances, and extreme weather conditions make a luxury 4×4 a genuinely practical choice — not just a treat. The added comfort on 6–8 hour driving days, superior suspension, and all-wheel drive capability make luxury vehicles an especially smart choice for self-drive Ring Road itineraries.
    
    Pro Tip: The Hertz Iceland Difference – As you embark on your luxury road trip, enjoy total peace of mind knowing our comprehensive Nationwide Support and premium customer service are always just a phone call away.

 Book Your Luxury Car Rental in Iceland

Ready to explore Iceland in style? Browse our luxury fleet below and book directly with Hertz Iceland — Iceland’s longest-established car rental company, operating since 1971. All bookings made on hertz.is include our lowest direct rate guarantee, with no broker fees and immediate confirmation.