Luxury Car Rental in Iceland

Iceland’s volcanic landscapes, glacier lagoons, and midnight sun roads deserve to be explored in a vehicle that matches the scenery. Hertz Iceland’s luxury car rental fleet is available for pick-up directly at Keflavík International Airport — book direct with no broker fees, no hidden costs, and transparent pricing that includes unlimited kilometres, CDW, and VAT.

Our luxury car rental service is built specifically for Iceland’s terrain: every model in the fleet is a premium 4×4 SUV, chosen for the comfort and stability that long Ring Road days and unpredictable weather demand. If you’re searching for a luxury sedan rental, it’s worth knowing that Iceland’s gravel roads, winter conditions, and coastal winds make a 4×4 SUV the far more practical — and genuinely more comfortable — choice; our entire premium lineup reflects that.

Whether you need a luxury suv rental for a family Ring Road circuit or simply want the most comfortable way to arrive from KEF, luxury car hire with Hertz Iceland means a newer, reliable vehicle, backed by a local team that’s been on Icelandic roads since 1971.

Our Luxury Car Rental Fleet in Iceland

Every vehicle in our luxury fleet is a premium 4×4 SUV, individually chosen for how it performs on Icelandic roads — not just how it looks in the driveway. Here’s what makes each one worth booking.

BMW X5 Plug-in Hybrid

The flagship of our Iceland luxury fleet — a full-size premium SUV combining 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 Ring Road days genuinely effortless, in any season. If you want the ultimate blend of performance, comfort, and luxury car hire in Iceland, the X5 is the benchmark.

Transmission: Automatic Drive: 4×4 (AWD) Fuel: Plug-in Hybrid Seats: 5 Min. Age: 25+

❌ F-Roads Not Permitted

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BMW X3 Plug-in Hybrid

Delivers BMW’s acclaimed driving dynamics and xDrive all-wheel drive in a more compact, nimble luxury SUV — ideal 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 and heated seats. The perfect luxury suv rental for two adults or a small family.

Transmission: Automatic Drive: 4×4 (xDrive AWD) Fuel: Plug-in Hybrid Seats: 5 Min. Age: 25+

❌ F-Roads Not Permitted

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Land Rover Defender

Few vehicles are as synonymous with Iceland as the Defender. Its legendary 4×4 capability, commanding road presence, and iconic silhouette make it one of the most sought-after vehicles in our luxury car rental fleet — whether you’re navigating the lava fields of Snæfellsnes, 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.

Transmission: Automatic Drive: 4×4 Fuel: Petrol/Diesel Seats: 5 Min. Age: 23+

❌ F-Roads Not Permitted

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Land Rover Defender 130 (7-Seater)

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, backed by full-time 4×4 traction across Iceland’s varied road surfaces. The most practical large-group luxury car 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

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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, while the elevated seating position gives you commanding views of Iceland’s landscapes. Refined, versatile, and beautifully appointed — an outstanding luxury suv rental for couples and small families.

Transmission: Automatic Drive: 4×4 Fuel: Plug-in Hybrid Seats: 5 Min. Age: 25+

❌ F-Roads Not Permitted

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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’s unmatched on Iceland’s long-distance routes — whether you’re chasing the Northern Lights in 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 a luxury car rental service in Iceland.

Transmission: Automatic Drive: 4×4 Fuel: Plug-in Hybrid Seats: 5 Min. Age: 25+

❌ F-Roads Not Permitted

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Audi Q7

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 Jökulsárlón. For travellers who want generous space, Quattro confidence, and understated Audi prestige, this is the most accessible entry point into our Iceland luxury car rental fleet.

Transmission: Automatic Drive: 4×4 (Quattro AWD) Fuel: Petrol/Diesel Seats: 5 Min. Age: 23+

❌ F-Roads Not Permitted

View Details & Pricing →

The Real Cost: 2026 Road Usage Charge

Important 2026 update: as of January 1, 2026, the Icelandic government replaced older fuel taxes with a kilometre-based Road Usage Charge, which applies to every vehicle on the road — including all luxury rentals.

Fuelling Your Luxury Rental in Iceland

Whether you’re driving a plug-in hybrid model or one of our petrol/diesel luxury SUVs, keeping your vehicle fuelled in Iceland is straightforward. Here’s what to expect.

Petrol & diesel models (Land Rover Defender, Defender 130, Audi Q7) refuel exactly like any conventional car — self-service pumps accept international cards, and stations are common along every main route.

Plug-in hybrid models (BMW X5, BMW X3, Land Rover Discovery Sport, Mercedes-Benz GLE) give you the flexibility of both worlds: charge via Type 2 cable at public charging points or your accommodation overnight for near-silent electric driving through towns and scenic areas, then rely on the petrol engine for open-highway stretches — no range anxiety, no compromise.

Money-saving tip: every Hertz Iceland rental comes with an ÓB/Olís discount keychain attached to the key. Scan it at the pump sensor at any ÓB or Olís station for a small discount on every refill. For full details on pricing and station locations, see our guide to gas stations and fuel prices in Iceland.

Tips on Renting a Luxury Car in Iceland

• Check the minimum age for your model. Most luxury vehicles require drivers to be 23 or older; some models — including the Discovery Sport, GLE, X5, X3, and Defender 130 — require 25+. Check the individual vehicle card before booking.
• Bring two credit cards. Every luxury rental at Hertz Iceland requires two credit cards in the lead driver’s name at pick-up, due to the higher security deposit on premium vehicles. Debit cards are not accepted for this deposit.
• Book well in advance — availability is limited. Unlike our standard fleet, luxury vehicles are a small, high-demand category. We recommend booking at least 4–8 weeks ahead, especially for summer (June–August) and Northern Lights season (September–March).
• Review your coverage before you drive. CDW is included as standard, but Iceland’s gravel roads and weather make additional protection worth considering — ask our team about upgrade options at pick-up.
• Charge PHEV models overnight where possible. If you’re driving one of our plug-in hybrid SUVs, ask your hotel about Type 2 charging access to maximise electric-only driving the next day.

Luxury Fleet at a Glance

Explore Iceland’s Most Iconic Routes in a Luxury Rental

Luxury Car Rental Requirements in Iceland

• Minimum age is 23 for the Land Rover Defender and Audi Q7, and 25 for the BMW X5, BMW X3, Land Rover Discovery Sport, Land Rover Defender 130, and Mercedes-Benz GLE. All drivers must hold a valid licence for a minimum of 1 year.
• Two credit cards in the lead driver’s name are required at pick-up for every luxury rental, due to the higher security deposit on premium vehicles. Debit cards are not accepted.
• Collision Damage Waiver (CDW), unlimited kilometres, and VAT are included as standard on every luxury rental. Optional additional protection packages are available at checkout.
• No luxury model in our fleet is permitted on F-roads. If your itinerary includes the Highland interior, book a dedicated 4×4 rental instead.
• Luxury vehicles have limited availability. We recommend booking at least 4–8 weeks in advance, especially for summer and Northern Lights season.

Pick Up Locations for Your Luxury Rental

• Keflavík International Airport (KEF): Collect your luxury vehicle directly in the Arrivals Hall immediately after landing — no shuttle buses required.
• Reykjavík City (Downtown): Staying in the city first? Pick up your luxury rental at our downtown office before heading to the countryside.
• Reykjavík Domestic Airport (RKV): Convenient for those flying domestically to or from other parts of Iceland.

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. The Land Rover Defender and Audi Q7 require drivers to be at least 23; the BMW X5, BMW X3, Land Rover Discovery Sport, Defender 130, and Mercedes-Benz GLE require 25. All drivers must hold a valid driver’s licence for a minimum of 1 year.
    
    Pro Tip: The Hertz Iceland Difference – When you book with us, your luxury car comes from our Newer, Reliable Fleet, meaning it will be under 2 years old, have low mileage, and be expertly maintained.

• • Do I need two credit cards to rent a luxury car in Iceland?
    Yes. Every luxury rental at Hertz Iceland requires two credit cards in the lead driver’s name at pick-up, to cover the higher security deposit on premium vehicles. Debit cards cannot be used for this deposit, so please plan accordingly before you travel.

• • Are luxury rental cars in Iceland 4×4?
    Yes — every vehicle in our Iceland luxury fleet, including the BMW X5, BMW X3, Land Rover Defender, Land Rover Defender 130, Land Rover Discovery Sport, Mercedes-Benz GLE, and Audi Q7, is full-time 4×4.

• • Can I take a luxury rental car on F-roads in Iceland?
    No. F-roads (Highland roads) are restricted to approved 4×4 vehicles, and no model in our luxury fleet is currently permitted on them. If your itinerary includes the Highland interior, book a dedicated 4×4 rental instead.

• • 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), as well as our Reykjavík Downtown and Reykjavík Domestic Airport locations.
    
    Pro Tip: The Hertz Iceland Difference – Take full advantage of our Prime Location. Because our main rental desk is directly inside the KEF arrivals 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).

• • Does Hertz Iceland offer a luxury sedan rental?
    Our luxury fleet in Iceland is entirely SUV-based rather than sedans. Iceland’s gravel roads, winter conditions, and coastal weather make a 4×4 SUV a genuinely more practical and comfortable choice than a traditional luxury sedan, so we’ve built our premium lineup around vehicles like the BMW X5, Audi Q7, and Land Rover Defender.

• • 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 above 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.