Iceland Car Rental
Affordable car rental deals in Iceland with convenient pickup from Keflavík International Airport (KEF), flexible booking, transparent pricing, and reliable vehicles for every journey.
Change of plans? Rent with confidence, cancel anytime. No fee. Final Rentals does not believe in charging any cancellation fee.
Pay full rental amount at the counter. No need to pay online. We work on clear pricing policy, what you see is what you pay.
You can return the car at the same fuel level as it was handed over to you and there will be no charges at all.
Rent a Car in Iceland: Essential Tips
Flexible Travel
Renting a car in Iceland gives you complete freedom to explore the country's dramatic volcanoes, glaciers, waterfalls, black sand beaches, and remote fishing villages without relying on limited public transport. Whether you're driving the famous Ring Road, visiting the Golden Circle, or chasing the Northern Lights, having your own vehicle lets you travel on your own schedule and discover places that tour buses often miss.
Required Documents for Tourists
International visitors must present a valid passport, a valid driver's licence, and a credit card in the main driver's name. Travellers from countries outside the EEA, UK, or Japan are generally recommended to carry an International Driving Permit (IDP), particularly if their licence is not printed in the Latin alphabet. Always verify document requirements before travelling.
Documents Needed for Residents
Residents of Iceland must present a valid Icelandic driving licence together with a national ID or residency documentation. Most rental companies also require the licence to have been held for at least one year.
Credit Card Requirement
A credit card issued in the primary driver's name is required for both payment and the refundable security deposit. Most rental companies do not accept prepaid cards for deposits.
Driving Regulations in Iceland
Driving is on the right-hand side of the road, and headlights must remain on at all times, even during daylight hours. Seat belts are mandatory for every passenger. Speed limits are generally 50 km/h in towns, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Speed cameras are widely used throughout Iceland.
Child Seat Rules
Children under 135 cm must travel in an approved child restraint or booster seat suitable for their age and weight. Rear-facing child seats are required for infants whenever appropriate.
Traffic Laws and Safety Rules
Iceland has one of Europe's strictest drink-driving laws, with a legal blood alcohol limit of 0.02%. Mobile phones may only be used with a hands-free system while driving. Off-road driving is illegal throughout Iceland and carries significant penalties because of environmental protection laws.
Toll Roads and Fuel Costs
Most roads in Iceland are free to use. However, certain routes, including Vaðlaheiðargöng Tunnel, require electronic toll payment. Fuel stations are available throughout the country, although distances between stations can be long in remote areas, so keeping the tank topped up is recommended.
Navigation and Parking Tips
GPS or offline navigation apps are highly recommended, especially in rural regions where mobile coverage may vary. Parking is generally straightforward outside Reykjavík, while paid parking applies in central Reykjavík and some popular tourist attractions.
Driving Conditions and Insurance Coverage
Iceland's roads are generally in excellent condition, but weather can change rapidly throughout the year. Snow, strong winds, gravel roads, and river crossings in the Highlands require additional caution. Comprehensive insurance, including gravel and sand & ash protection where available, is highly recommended for extra peace of mind.
Keflavík International Airport Car Rentals
Best Time to Rent a Car in Iceland
Low Season Rentals Provide the Best Value
Travelling between October and April (excluding holiday periods) often provides the lowest rental prices. Booking early and choosing an economy vehicle can help reduce travel costs significantly.
Summer Months Drive Up Rental Rates
Between June and August, Iceland experiences its busiest travel season. Warmer temperatures, nearly 24-hour daylight, and increased tourism result in higher rental prices and reduced vehicle availability.
June Sees the Highest Rental Costs
June marks the beginning of Iceland's peak tourist season, with demand for rental vehicles increasing sharply. Booking several weeks—or even months—in advance is highly recommended to secure the best selection and pricing.
