A trip to Iceland should be on everyone’s bucket list. And the best way to experience its volcanoes, glaciers, waterfalls, black sand beaches, canyons, and wildlife is to drive it all yourself! I’ve been to Iceland on a few occasions and drove the Ring Road. From my personal experience, here are the key considerations before renting a car in Iceland.
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Key takeaways
- You need to rent a car in Iceland to see the country’s best sights. Public transport isn’t very extensive beyond Reykjavik.
- Icelanders drive on the righthand side and the roads are pretty chill — wide and without heavy traffic. However, winter driving in Iceland can be challenging and requires a sturdy 4×4 or AWD vehicle.
- Renting a car in Iceland is more expensive during the peak summer season, ranging from around 50,000 ISK to 150,000 ISK for a week. ($400 to $1,200 USD)
Renting a car in Iceland lets you access beautiful places like these!
Is renting a car in Iceland a must?
Yes, renting a car in Iceland is pretty essential unless you’re staying in Reykjavik the entire time. While you can get away with basing yourself in the capital and doing day trips, having the flexibility to move around at your own pace is so worth it.
As you can imagine, the public transport system around Reykjavik is great but doesn’t really extend beyond the city. If you want to see Skogafoss, any of the ice caves, or the famous Reynisfjara black sand beach, they’re all within a couple of hours of Reykjavik but require a car.
Choosing the right rental car
No matter what’s on your Iceland itinerary, you should definitely rent an SUV. This is especially important for winter visits. But even if it’s the middle of summer you’ll be more comfortable in a sturdy SUV.
We drove the entire Ring Road in April and rented a Kia Sportage, which was perfect. It snowed a couple of times and we had to manoeuvre pretty bumpy roads to reach some waterfalls and even one of our hotels.
Renting an electric car is becoming increasingly feasible. In fact, Iceland’s government aims to ban new gas and diesel cars by 2030!
But whenever you rent an electric car, it requires additional road trip planning. You need to make sure you take advantage of charging stations whenever you can, as you can find yourself completely alone on long stretches of road. But more and more stations are being installed all the time. Iceland is incredibly expensive, so renting an electric car is a great way to save money.
Top rental car companies in Iceland
Hertz, Saga, Enterprise, GoldCar, Lava, and Europcar are among the most reputable, well-rated car rental companies in Iceland. I used Hertz and had a great experience from start to finish.
Saga lets you rent with 0 deposit and has unlimited kilometers. They also have some Ford Broncos, which are perfect for rugged Iceland exploration. Similarly, Europcar has 4×4 or AWD Land Rovers, Mitsubishi Outlanders, and Suzuki Jimnys that would be perfect for your road trip. Most companies now offer electric vehicles as well.
I use DiscoverCars to compare providers. There’s also ZeroCar, which I haven’t personally tried. But it markets itself on zero excess and a seamless keybox (aka humanless) pickup system at Keflavik Airport.
The Ford Bronco looks very intrepid for your Insta posts.
Cost of renting a car in Iceland
This is obviously pretty hard to pinpoint. But I’ll do my best! Lots of people visit Iceland in the winter, but fewer are brave enough to drive in the more challenging conditions. So prices tend to be cheaper, while the summer is definitely the most expensive time to rent a car in Iceland.
Here are some examples of costs, companies, and car models. Prices are accurate as of January 2026.
One week in February 2026:
- Flizzr: Toyota Aygo X hybrid-electric city car — 20,000 ISK ($160 USD)
- Lava: 4×4 Toyota Rav4 SUV — 72,000 ISK ($570 USD)
- Saga: 4×4 Ford Bronco luxury SUV — 170,000 ISK ($1,350 USD)
One week in July 2026:
- Goldcar: Toyota Aygo city car — 50,000 ISK ($400 USD)
- Goldcar: Suzuki Jimny mini SUV — 90,000 ISK ($720 USD)
- Europcar: 4×4 Tesla Model Y electric crossover — 170,000 ISK ($1,350 USD)
Example DiscoverCars rental car in Iceland
There are two payment options when you use DiscoverCars:
- Partial prepayment: You pay part of the total car rental price when you book and the rest at pick up.
- Full prepayment: You pay the full price of the rental when you book, but can still cancel for a refund up to 48hrs before booking.
Fuel costs
Gas usually hovers around 300 ISK ($2.50 USD) per litre. So not cheap! If you rent an electric car, you’ll save tons of money on petrol as charging is way more affordable. Though it also requires a lot more planning and time spent charging. A hybrid electric might be a good happy medium for something fuel efficient but still quick and easy to fill up.
For reference, we spent 50,000 ISK ($400 USD) over 10 days of driving the full Ring Road. Painfully expensive but entirely worth it.
You can use a fuel cost calculator like this to get a loose estimate of what you’ll spend. And I use TravelSpend for trip budgeting to see what I actually spend when all is said and done.
Parking
Unfortunately, parking fees are becoming more and more popular across Iceland. You’ll need to pay to visit several waterfalls (including Skogafoss, Seljalandsfoss, and Kirkjufellsfoss), the old plane wreck on the beach, Jökulsárlón Glacial Lagoon, and many more hotspots.
Parking fees range from 200 ISK to 1,000 ISK ($1.50 to $8 USD) and usually don’t have a time limit. But in my opinion, these fees are pretty crazy and definitely add up.
Hot tip: Parking at the Skogar Museum (where you’ll also park to access Kvernufoss) is paid — 750 ISK. But if you’re going to the museum, your ticket includes free parking — so don’t pay twice! The indoor/outdoor museum is 2,750 ISK for adults and super cute so definitely worth a visit.
Best drives around Iceland
You actually can’t go wrong when planning your itinerary in Iceland. The entire country is spectacular and the landscapes are always changing. But for some inspo, here are some of the most epic routes with great stops along the way. Distances are based on a round trip from Reykjavik and super approximate.
- Snaesnafelles Peninsula (200 kms): A compact loop with a glacier-capped volcano, fishing villages, and the Shark Museum — where you can try fermented shark!
- Golden Circle (300 kms): By far the most popular loop near Reykjavik with Gullfoss, the Kerid Crater, and Thingvellir National Park.
- South Coast (600 kms): It’s busy, but you’ll hit some major Iceland bucket list spots here. Skogafoss, Seljalandsfoss, Diamond Beach, Jökulsárlón Glacier, and more.
Skogafoss. Rent a car so you can get here early, before the tour buses!
- Northern Iceland (800 kms): Godafoss, whale watching in Húsavik, Skútustaðagígar “pseudocraters,” and the Myvatn Baths are just a few highlights. You could fly from Reykjavik to Aykureyi if you don’t have time to drive all the way up.
- Eastfjords (1,000 kms): The most quiet and underrated area of the country with tons of cute fishing villages among fjords. We saw reindeer and whales, and stopped at the geothermal Vök Baths, built into a lake if you like a cold plunge.
- Ring Road (1,500 kms): The ultimate trip! You’ll go on so many side quests it’s actually more like 2,500 kms, so make sure you get unlimited mileage when you rent a car in Iceland.
Don't forget an eSIM for your Iceland trip!
You’ll want consistent internet access to map your driving route. Some rental cars offer a little wifi device (usually around 1000 ISK extra per day). But an eSIM costs even less and means you’ll have data wherever you go — even as soon as you land at Keflavik.
Essential requirements for renting a car in Iceland
- Valid driver’s licence: You must hold a full, valid licence. And you may require an International Driving Permit if your license isn’t in English.
- Passport: Often required to verify your identity at pickup.
- Credit or debit card: Make sure the name on the card matches the main driver’s name! This is required for payment and/or the security deposit, which is typically blocked (not charged) on your card until the car is returned undamaged.
- Minimum age: Most rental companies require drivers to be at least 20 years old, with higher age limits for larger vehicles or 4x4s. You can filter for this on DiscoverCars.
Iceland rental car booking checklist
- Use the filters to find suppliers with an 8.0+ rating for the best experience.
- Check the mileage policy. (I highly recommend unlimited mileage!)
- Choose a suitable type of car. (4×4 or AWD if you’re deviating from main roads.)
- Consider getting Full Coverage.
- Read the Rental Conditions before booking.
- Take a few minutes to read about Iceland’s road rules.
- Bring your booking confirmation details when you pick up the car.
- Take detailed photos of the car’s condition before you start driving.
FAQs about renting a car in Iceland
Here are some answers to questions you may have before you’re ready to book your Iceland rental car.
Do I really need to read the Rental Conditions?
Before renting a car in Iceland, make sure you read the Rental Conditions. You don’t have to go through everything with a fine-toothed comb, but all rental companies differ and you should understand the conditions before you hit the road.
Do I need Full Coverage?
I always think it’s worth opting for Full Coverage through DiscoverCars when you rent a car in Iceland. (Or anywhere else for that matter.)
It’s never crazy expensive and covers the deductible for theft, damage, and things like repairs, towing, and key loss/lock out. It’s just extra peace of mind. You can always find the details of what this includes before you book.
Can I rent a car in Iceland if I'm under 25?
Yes, you can drive a rental car in Iceland if you’re under 25. However, some companies may put restrictions on this or charge a “Young Driver Fee.” You’ll find all this info in the Rental Conditions. But you can also input your age when you search on DiscoverCars so it will only show you rental cars in Iceland that accept young drivers.
(Fun fact: Some rental companies also have a maximum age!)
Do I need a credit card to rent a car in Iceland?
Not always, but it depends. Most car rental companies accept debit cards for payment but might require a credit card for the deposit. And even when they let you pay the deposit with a debit card, it might be more than the hold on your credit card.
Check out the Security Deposits section in the Rental Conditions. And to avoid surprises when you pick up your Iceland rental car, use DiscoverCars’ debit card filter when you search.
Is Iceland worth visiting if I can't drive?
Absolutely yes! If you don’t have a license or have another reason you can’t rent a car in Iceland, you have options. Base yourself in Reykjavik and catch day tours from there. There are tons of options on Get Your Guide ranging from big tour buses and small group tours to to private trips.
You can also look into multi-day tours that includes transport, hotels, and meals. Reykjavik has lots of fun things to do. But renting a car in Iceland is the best way to see the best of the country — one of the most beautiful in the world!