Rental cars in Iceland
Experience Iceland with a rental car on one of our self-drive tours. The mouth-watering scenery is an adventure in itself, with volcanic craters, lava flows, hot springs and geysers, glaciers, and stunning waterfalls offering a new view around every corner. For individual travelers, the best holiday can be achieved on a self-drive tour with a rental car or campers. You can find a good selection of self-drive tours in our holiday packages. If you desire, we will check if we can exchange the included rental car category for another.
The road system in Iceland is extensive, nevertheless some roads are more challenging to negotiate. About 70% of the roads are tarmaced, including ring road No. 1. Some areas have gravel roads with potholes or tracks. Roads with one- or two-digit numbers are no problem for normal cars.
Rental Car Information
Driving across the highlands, where the roads have 3-digit numbers, has to be planned differently since the highlands are uninhabited and services are not readily available. These highland routes can only be mastered in 4-wheel drive vehicles. Furthermore, we have compiled general information for you on the topics of driving in Iceland and environmentally friendly travel in Iceland.
See the actual road conditions, which are always updated by the Icelandic Road Administration, and view our detailed map of Iceland.
Rental Car Categories
Here, you can find an overview of the different rental car categories, which we can offer you for your rental car adventure in Iceland. If you would like to book a rental car as a single element (without flight or accomodation), you can find the list of the daily rates here.
Category Z or Z1
Model: Toyota Aygo, Kia Picanto or similar, Cat. Z1 (Automatic)
Seats: 4 - recommended for trips with max. 2 people
Doors: 3
Luggage: 1-2 small to medium sized suitcases
Suitable for highlands: no


Category A
Model: Hyundai i20, Toyota Yaris, Suzuki Swift or similar
Seats: 4 - recommended for trips with max. 3 people
Doors: 5
Luggage: 2-3 small to medium sized suitcases
Suitable for highlands: no
Category B or BB
Model: Kia Ceed, VW Golf, Toyota Auris or similar, Cat. BB (4x4) i. e. Suzuku S-Cross 4x4
Seats: 5 - recommended for trips with max. 3 people
Doors: 5
Luggage: 3 small to medium sized suitcases
Suitable for highlands: no


Category N or DD
Model: Kia Ceed Sportswagon, Cat. DD Skoda Octavia or similar
Seats: 5 - recommended for trips with max. 5 people
Doors: 5
Luggage: 3-4 small to medium sized suitcases, Cat. DD 5 medium sized suitcases
Suitable for highlands: no
Categors FFG
Model: Dacia Duster 4x4 or similar
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: yes


Category GG
Model: Toyota Rav 4x4, Kia Sportage 4x4 or similar, Cat. G1 (Automatic)
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: yes
Category HH (Automatic)
Model: Kia Sorento 4x4 or similar
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: yes


Category II (Automatic)
Model: Toyota Landcruiser 4x4, Mitsubishi Pajero 4x4 or similar
Seats: 5- recommended for trips with max. 5 people
Doors: 5
Luggage: 5 small to medium sized suitcases
Suitable for highlands: yes
Category RR (Automatic)
Model: VW Touareg 4x4 or similar
Seats: 5- recommended for trips with max. 4 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: yes


Category J
Model: Toyota ProAce or similar
Seats: 9 - recommended for trips with max. 9 people
Doors: 5
Luggage: 5 small to medium sized suitcases
Suitable for highlands: yes
Category JJ
Model: Volkswagen Caravelle 4x4, Toyota Hiace 4x4 or similar
Seats: 9 - recommended for trips with max. 9 people
Doors: 5
Luggage: 6 small to medium sized suitcases
Suitable for highlands: yes

Electric vehicles

Category EB1 (Electric)
Model: E-Golf, Nissan Leaf, Kia Soul, Kia e-Niro or similar
Seats: 5 - recommended for trips with max. 3 people
Doors: 5
Luggage: 3 small to medium sized suitcases
Suitable for highlands: no
Category ESS3 (Electric)
Model: Tesla Model 3 or similar
Seats: 5 - recommended for trips with max. 5 people
Doors: 5
Luggage: 5 small to medium sized suitcases
Suitable for highlands: no


Category EGGY (Electric)
Model: Tesla Model Y or similar
Seats: 5 - recommended for trips with max. 3 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: no
Hybrid vehicles
Category TGG1 (Plug-in-Hybrid)
Model: MMC Outlander 4x4 or similar
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 4 small to medium sized suitcases
Suitable for highlands: yes


Category TB1 (Plug-in-Hybrid)
Model: Kia Niro or similar
Seats: 5 - recommended for trips with max. 3 people
Doors: 5
Luggage: 3 small to medium sized suitcases
Suitable for highlands: no
Category TN1 (Plug-in-Hybrid)
Model: Kia Ceed Wagon or similar
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 5 small to medium sized suitcases
Suitable for highlands: no


Category THH1 (Plug-in-Hybrid)
Model: Kia Sorento 4x4 or similar
Seats: 5 - recommended for trips with max. 4 people
Doors: 5
Luggage: 5 small to medium sized suitcases
Suitable for highlands: yes
Rental car information
Terms of Lease
a) Categories: The advertised models are just examples for the size of the vehicles and may vary. It is not possible, to reserve a specific model.
b) Driving off the beaten track is strictly prohibited in Iceland. Those drives are not insured and may result in high punishments.
c) The minimum rental period is 1 day/24h. The lease is calculated by every partially fractured 24hours. The time of the pick-up is essential for the beginning of the renting.
d) The date of the pick-up determines the season and is essential for the price of the whole tenancy.
e) When picking-up the rental car a valid credit card (Visa, Mastercard, Diners Club, Eurocard), which is issued on the main tenant, needs to be deposited for security reasons. This will be debited with a deposit of $ 572. If no charges are incurred, the amount will be refunded after the vehicle has been returned. Prepaid credit cards or EC cards are not accepted.
f) Driving license/Driver: minimum age: 20 years (or 19 years with additional fee, only possible in cat. Z, A, B, N, DD) with at least 1 year of driving experience.
g) The included CDW insurance (deductible cat. Z, A, B, N: ISK 250,000, other cat. ISK 450,000) covers all damage with the exception of damage to the underbody, batteries, tires and damage caused by river crossings, animals or sandstorms. Additional insurance possible, see below.
h) Gas is not included in the rental price. You can find current prices in ISK under www.gsmbensin.is. Every rental car needs to be delivered with a full tank, otherwise the credit card is charged with 25% added on pump price.
Europcar's current rental conditions apply, which you will receive and sign when you pick up the rental car.
24 % Icelandic VAT on rental cars is included in the prices
Insurance
The following insurance coverage (with excess) is included in all bookings:
- CDW-Insurance: included
- Part insurance cover: included
- Liability insurance: included
- Theft insurance: included
- Passenger insurance: included
- Deductible in the event of damage/theft: Cat. Z-T: ISK 250,000, other categories/motorhomes: ISK 450,000
Additional Insurance
Different additional insurances exist which reduce excess or covers other damages:
1) S-CDW-Insurance (bookable at pick-up)
Offered by Europcar. Reduction of excess to:
rental car without 4-wheel drive (incl. D): $ 300 - $ 10 per day
rental car with 4x4/campers: $ 580 - $ 15 per day
Also the excess for rockfall damage to spotlight and breakage of glass of windows and front shield will be reduced to $ 155 (cat. Z-D) respectively $ 250 (other cat.). All damages named in g) under terms of lease are still excluded.
2) Additional insurance sand and ashes (SADW)
Covers all damages, which might originate from sand or ash storms (bookable in advance or at pick-up).
Rental car without all-wheel drive (incl. Z-T): $ 33 per rental day
All-wheel drive vehicles / motorhomes: $ 49 per rental day
All other damages mentioned under point g) in the rental conditions remain excluded.
Additional Fees
- Airport pick-up fee when picking up/dropping off the car in Keflavik: $ 35
- Additional driver: $ 40 one-off per person
- VIP service (Fast Lane Keflavik): $ 28 one-off
- One way rental Cat. Z-I/port fee Seydisfjördur: $ 220, others on request
- Baby seat/child seat: $ 9 per rental day/max. $ 80
- Refueling fee (when returning without a full tank): 25% plus fuel costs (will be charged to the credit card)
- Fee for young drivers (19 years) with at least 1 year driving license, $1 7 per rental day (only cat. Z, A, B, N and DD allowed!)
Motorhomes and campers in Iceland
Another alternative for traveling Iceland comfortably and independently is a motorhome or camper. You can also get into vans that have been converted into campers; a cheap and flexible way to travel through Iceland.
On the following pages you can find more information about motorhomes and campers as well as our travel packages motorhomes and campers in Iceland.

Roads in Iceland
Ring road no. 1 is open all year round. The ring road is also cleared of snow in winter.
From mid-September until the end of June or later, it is to be expected that the highland routes will still be closed because rivers or mud make them completely impassable. When these roads are open to traffic, most of them can only be negotiated by four-wheel drive vehicles; some should always be shared by at least two vehicles.
We have provided you with detailed information on this topic on our Driving in Iceland page.
Trips into the highlands - guided super jeep tours
Trips to the Icelandic highlands in an off-road 4x4 rental car are only possible during the summer months and when the highland roads are open. The tracks are often rough and difficult to drive on, and the weather conditions can be very changeable.
A good alternative for trips to the highlands in a hire car are guided tours in a super jeep. With experienced drivers and specially equipped highland vehicles, trips to the remote highland areas of Iceland can be undertaken all year round.
How about a Superjeep tour to the Icelandic highlands of Landmannalaugar, the Eyjafjallajökull volcano or the Thosmörk glacier valley? We also offer super jeep tours to the Golden Circle with the Langjökull glacier. Get in touch with us!
