Renting a car in Iceland: All you need to know
Iceland is a vast country where you will have to travel a lot to see as much of the country as possible. The easiest way to make a trip through Iceland is to rent a car. Renting a car in Iceland is the most efficient way to travel here. Although there is an excellent public transportation network, it only takes you to villages and towns. This makes it often difficult to reach the attractions. Therefore we recommend traveling by car, as this is the most efficient way. Furthermore, we rent our car well in advance so that we have the certainty of transportation.
Renting a car in Iceland
With a rental car, you can get around Iceland most easily. Especially the ring road 1, which goes around the whole of Iceland, is ideal to drive as you’ll notice if you follow our 16 days itinerary. In addition, there are many roads that lead from the ring road to the places and attractions. It may sometimes be necessary to take an F-road to an attraction and this is only allowed with a 4×4 due to the accessibility. An F-road is forbidden to drive with a normal car, so we therefore recommend booking a 4×4 through Discover Cars. There is also already insurance included when you book here and you will definitely need it if you are driving in Iceland.
How old do you have to be to rent a car in Iceland?
In Iceland, you can rent a car from the age of 20. Also you must have held a driving license for at least one year. For four-wheel drive cars, you often need to be 23 years old, or you will need to pay a surcharge. We have not been able to find a maximum age. However, it is possible that this may vary depending on the supplier, so always check the terms and conditions of the rental company.
Bring your credit card
If you want to rent a car in Iceland, you will need a credit card from almost all rental companies. Often this the card of the main driver(s). The deposit will be reserved on this card. Make sure you have enough space on your credit card, otherwise you will probably not get the car. There is a possibility to rent without a deposit on your credit card from Discover Cars. You can choose the “no deposit” filter. This will show you all the cars that you can rent without a deposit. During the rental process, you will receive a link that you must complete at least 48 hours before the start date. Discover Cars will then stand as guarantor for the deposit.
Do you need an international driving license?
In Iceland, you do not need an international driving license (IDP). If you have a driving license in your own country, it is enough. It does have to be in Latin, otherwise you need to get an IDP with the Icelandic Embassy in your country.
Don’t get any additional insurance
Through Discover Cars, you are fully insured. You do not need additional insurance. If they offer this at a local rental company, you do not have to take it out on the spot. The insurance from Discover Cars ensures that everything is covered, even the deductible in case of damage.
Is renting and driving a car in Iceland safe?
Drivers in Iceland drive very courteously. This is because there are many unpaved roads and gravel can be on the road. It happens that roads are damaged during the winter months and therefore there are many loose stones on the road. To reduce the risk of damage, everyone drives slowly when passing each other. The weather can cause more problems, so check the current weather and traffic conditions on road.is and safetravel.is before departure. If you rent a car, make sure to take a photo of all damage to the car before you leave.
The rules are generally the same as most countries. Some things to keep in mind are:
- Alcohol in traffic is severely punished, do not drink if you have to drive.
- You must always drive with your headlights on
- You may encounter cyclists on all roads, you must leave 1.5 meters of space when overtaking.
- Make sure to adjust your speed when oncoming traffic is on gravel roads due to the splashing of stones.
- In winter, snow chains are compulsory in some places.
- The landscape in Iceland is beautiful, but stopping is not allowed along the road. Only stop at parking lots to take pictures.
- Buses have priority in Iceland, be careful if you encounter them on the road.
- It is forbidden to park on the “wrong” side of the road. You may only park in the direction of travel.
- Proactive honking is allowed in Iceland. This applies to bends and other dangerous situations.
- There is one toll road in Iceland, from Akureyri to Husavík. This can be bypassed via roads 83 and 84 in good weather.
How are the roads?
The ring road 1 is generally in good condition. So the smaller roads are less well maintained, and they can be damaged by the winter weather. Be careful on roads with a lot of gravel to adjust your speed when an oncoming vehicle approaches. You may also come across bridges where you have to wait and drive slowly. These are the so-called einbreidbrú, literally translated as single-lane bridges.
In addition to the paved roads, there are also F-roads. This stands for Fjallvegir and means that you are driving on a mountain road. You can only drive here with a 4×4. You can get a hefty fine if you drive here without a 4×4.
Speed limits
Within built-up areas you can drive 30 or 50 km/h.
On gravel roads, outside buil-up areas 80 km/h.
On paved roads, outside built-up areas 90 km/h.
Outside built-up areas you can even go 110 km/h on some roads, if this is indicated.
How to navigate in Iceland
You can use Google Maps or Maps.me to navigate in Iceland. We recommend turning them on always, because the turnoffs are not always very clearly marked. This can be done online with your own bundle, but you can also download the maps offline.
Renting a car in Iceland is the easiest way to explore the country. Drive slowly and follow the rules. Then you can enjoy Iceland and your beautiful rental car in the best way possible. Check out our articles about the Diamond and Golden Circle, 16 days or 9 days itineraries, to see where you can use your rental car!
