When you are planning a trip through Iceland, chances are high that you will rent a car to explore the land of fire and ice. 90% of all tourists rent a car in Iceland because there is no public transportation outside of Reykjavik, and tours from Reykjavik can be quite expensive. A road trip with a rental car is, therefore, the best and most enjoyable way to travel around Iceland. Driving through Iceland is an absolute delight, as every 5 minutes you encounter another brilliant view of the rugged landscapes that make you want to stop and take a photo. The traffic rules are quite similar to those in the rest of the world, and the roads are never crowded. However, there are a few things you should know before renting a car in Iceland. In this article, you can read about our experiences and get tips for renting and driving a car in Iceland.
How Are the Roads in Iceland?
When you go on a road trip in Iceland, you will likely spend most of your time driving on the ring road. This road circles the entire island and is well paved. Occasionally, you may need to drive a few miles on unpaved roads to reach a particular attraction. If you drive carefully and watch out for potholes, this should not be a problem. The ring road is mostly a one-lane road without a shoulder. Fortunately, the roads are never crowded, and you can safely overtake when necessary. However, the roads in the interior of the country are much less accessible. You may need to cross rivers and the roads are often unpaved.
During winter, the conditions can be completely different, and parts of the ring road may be closed due to snow or heavy rain. Authorities usually clear the major roads as quickly as possible, so the ring road is usually passable even in winter. You can check the status of the roads on this website during winter. The roads in the interior are only accessible between early July and late September. Fortunately, most of the attractions are located along the ring road, so even if you don’t venture into the interior, you will still get a taste of the rugged Iceland.
Pay attention: Crossing a river is not covered by any car insurance, so be sure to check the water level carefully when you need to cross a river in the interior.
Do You Need a 4 x 4 Rental Car in Iceland?
When renting a regular passenger car in Iceland, you are not allowed to venture off the ring road and into the interior. Of course, you can use the small unpaved roads to access attractions. However, the roads in the interior are only accessible with a 4×4 car, and there is a high chance that a regular car may get stuck. Therefore, you are not permitted to enter the interior with a regular car, and you will not be covered by insurance if you attempt to do so. The costs can escalate significantly if they have to tow you out. If your plan is to only drive on the ring road, a regular car is a suitable choice.
Is Driving Safe in Iceland?
Driving in Iceland is indeed safe. As mentioned earlier, the roads are not crowded, reducing the likelihood of accidents. Reykjavik is also not a busy city and can be easily navigated by car. When you venture into the interior with a 4×4 vehicle, the roads become more challenging, and good driving skills are required. Be cautious of sheep on the road as they may suddenly cross your path. It is prohibited to stop your car along the road where there is no designated stop area. This is not only dangerous but also damages the environment. If caught doing so, you may receive a hefty fine, as penalties in Iceland are strict. However, there are plenty of designated places along the road where you can stop your car for photos or lunch. The biggest danger of driving in Iceland is the risk of getting distracted by the stunning landscapes and veering off the narrow road.
Trafficrules, Gasoline and Parking in Iceland
In Iceland, they drive on the right side of the road, and the traffic rules are almost exactly the same. One thing that differs in Iceland is that you are required to have your lights on both day and night. Driving without lights could result in a fine, as the weather can change suddenly, and it can be relatively dark at times. The maximum speed limit is always well indicated in Iceland. In Reykjavik, the maximum speed is 37 mph (60 km/h), and on the ring road, it is 56 mph (90 km/h). Most people adhere to these speed limits because the fines in Iceland are quite steep. So, make sure to follow the speed limits and watch out for speed cameras.
Along the ring road, you will find plenty of gas stations. Most of them accept payment with your debit card, and many have small shops where you can buy sandwiches, snacks, and coffee—ideal for a quick and affordable lunch.
Parking in Iceland is mostly free. Only a few attractions may have parking fees, and even in Reykjavik, you can find free parking almost everywhere.
You can rent a navigation system with your car, but we don’t find it necessary. You can navigate perfectly well using Google Maps on your phone. It’s a good idea to download the map of Iceland in advance while on Wi-Fi, so you can navigate even if you lose network coverage. Also, pin the locations of your pre-booked hotels and the attractions you plan to visit so you won’t need to search for them on the way.
Driving License and Minimum Age to Drive a Car
The minimum age for renting a car in Iceland depends on the rental company. In most cases, you must be at least 20 years old to rent a car in Iceland. However, some rental companies may allow you to rent a car from the age of 18. Keep in mind that drivers under the age of 25 may be required to pay a “young driver surcharge,” which you can find under the specific terms and conditions during the booking process.
International Driving License
An international driving permit is not required in Iceland. Your Dutch driver’s license is valid and sufficient for driving in Iceland.
Recommended: You need a valid credit card in the name of the main driver. This is mandatory for the security deposit, and a credit card under a different name will not be accepted. You won’t be able to pick up the rental car if you cannot present a credit card in the name of the main driver or if the credit card has insufficient balance for the security deposit. Don’t have a credit card yet? Then we recommend this credit card.
Rent a Car in Reykjavik
If you are flying from to Iceland, it cuold be that you land at Keflavik Airport. This airport is located about 31 miles (50 km) southwest of the capital, Reykjavik. Pay attention to the pickup location when renting a car. If you want to pick up and drop off your rental car directly at the airport, choose Keflavik Airport as the location. If you opt for a rental car in Reykjavik, you will need to arrange transportation from Keflavik Airport to Reykjavik on your own.
What Are the Costs to Rent a Car in Iceland?
You can rent a car in Iceland starting from $59 to $65 per day, including insurance. During the summer months, prices can be higher due to increased demand for rental cars. Booking a rental car through Rentalcars.com is highly recommended for Iceland. With a rental car, you always have a chance of damage and problems along the way, which is why it’s smart to book with a reliable party. At Rentalcars, you can always take out a Full Protection Insurance, you can change your booking for free and all conditions are clearly indicated. So you don’t have to worry about snags and if something goes wrong on your trip, everything is always reimbursed and taken care of. This is totally worth it as far as we are concerned, especially on holiday.
Note: Sometimes the local rental company will try to sell you extra insurances. These are absolutely unnecessary as everything is covered with Rentalcars’ Full Protection Insurance. So don’t be fooled because you are 100% covered, even your excess will be refunded in case of damage.
Price hikes due to shortage of cars: There is currently a huge shortage of rental cars worldwide. To survive the corona crisis, car rental companies have had to sell a large portion of their cars. Since demand is rising fast, there are not enough chips for new cars and prices are skyrocketing due to the shortage. As a result, many rental cars are double the price or even fully booked. It’s best to book as early as possible to be sure of a rental car that is still somewhat affordable. At Rentalcars.com, you can currently cancel or change your booking free of charge up to 48 hours in advance, so you are not stuck with anything but still be sure of a rental car.
