Get Today’s Best Iceland Car Rental Deals
Best Iceland Car Rental Deals
Free Cancellation
Change of plans? Rent with confidence, cancel anytime. No fee. Finalrentals does not believe in charging any cancellation fee.
Fair Fuel Policy
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.
No Hidden Charges
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.
Things to Know Before Renting a Car in Iceland
Flexible Travel Options
Renting a car in Iceland gives you the freedom to explore volcanic landscapes, charming coastal villages, and vibrant cities at your own pace. With your own wheels, you're not limited by public transport schedules, making it easier to reach remote attractions and scenic routes across the country.
Required Documents for Tourists
Tourists must present a valid passport, a visa if required, and a driver’s license from their home country. Drivers from outside the EEA, UK, or Japan are advised to bring an International Driving Permit (IDP), although it's not always mandatory. Always confirm with your rental company beforehand.
Documents Needed for Residents
Residents of Iceland must provide a valid Icelandic driver’s license that has been held for at least 12 months, along with a national ID and a current residency permit. These documents ensure compliance with local regulations when renting a vehicle.
Credit Card Requirement
A credit card in the renter’s name is essential for payment and deposit purposes. Most car rental companies in Iceland require this to secure bookings and cover potential damages or additional fees that may occur during the rental period.
Driving Regulations in Iceland
In Iceland, vehicles drive on the right-hand side of the road. All passengers must wear seatbelts. Speed limits are generally 50 km/h in urban areas, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Speed cameras are standard, so staying within limits is crucial.
Child Seat Rules
Children under 135 cm in height must use a child or booster seat. Infants weighing less than 9 kg should be secured in a rear-facing car seat. Children under this height limit are not permitted to sit in the front seat if the airbag is active.
Traffic Laws and Safety Rules
The legal blood alcohol limit is 0.02%, strictly enforced by law enforcement. Mobile phone use while driving is only allowed via hands-free systems. Obeying all traffic rules is vital to avoid heavy fines and ensure safety.
Toll Roads and Fuel Costs
Most Icelandic roads are toll-free, but some tunnels, like Vaðlaheiðargöng, charge a fee. Confirm whether this is included in your rental. Fuel prices can be high, though gas stations are widely available and often self-service.
Navigation and Parking Tips
Using GPS or navigation apps is highly recommended due to Iceland’s complex road system. Parking is usually accessible, but city centres and malls may charge fees. Expect occasional traffic delays in larger towns during peak hours.
Driving Conditions and Insurance Coverage
Driving Conditions and Insurance Coverage Icelandic roads are well-maintained; however, the weather and terrain can create challenges. Comprehensive insurance is strongly advised. Review your policy with the rental agency and consider adding extra coverage for peace of mind.
Keflavík International Airport Car Rentals
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Renting a car at Keflavík International Airport offers the ultimate convenience for travellers arriving in Iceland. Skip the waiting lines and public transport hassles—book with Final Rentals and start your adventure the moment you land.
With a wide selection of vehicles, including compact cars, SUVs, 4x4s, and campervans, we cater to every type of journey. Whether you're exploring the Golden Circle, chasing waterfalls along the South Coast, or soaking in the geothermal wonders of the Blue Lagoon, we have the perfect vehicle for you.
Our airport location ensures quick and easy access to Iceland’s most iconic destinations, all while offering competitive rates and exceptional service. Final Rentals is the ideal choice for foreign travellers seeking reliable, affordable, and flexible car rentals in Iceland.
Drive confidently, discover freely, and make the most of your Icelandic getaway with seamless pick-up and drop-off options designed for your convenience.
Best Time to Rent a Car in Iceland
Peak vs. Off-Peak Pricing Trends
Renting a car in Iceland during peak season (June to August) typically costs 30–50% more than off-peak months due to high demand and favourable weather conditions. Average daily rates for compact cars can rise from €40 in winter to over €70 in summer, while SUVs may exceed €120 per day.
Weather Impact on Driving Conditions
From October to April, icy roads, snowstorms, and limited daylight hours increase the risk of driving. However, rental prices drop significantly—by up to 40%—and crowds are minimal. Four-wheel drive vehicles become more essential during this period, with many travellers opting for rugged SUVs or winter-equipped models, which make up nearly 60% of rentals in colder months.
Seasonal Availability & Holiday Demand Spikes
The winter months (November–March) see reduced fleet availability, with only about 70% of car types offered, compared to the summer months. Campervans and motorhomes are rarely rented in winter, while automatic sedans and all-wheel-drive vehicles are the most popular choices. Iceland also experiences significant rental demand surges around Christmas, New Year, and Easter, with prices rising by 25–40%.
Finalrentals is Clear in Terms of Rental Policy
Reliable, professional, and helpful team. Made our Iceland road trip planning so much easier—big thanks to Final Rentals and the team.
What People Ask About Car Rental in Iceland
What documents are required to rent a car in Iceland?
You must have a valid driver’s license (held for at least one year), a passport, and, in some cases, an International Driving Permit (IDP), depending on your country of origin. A credit card in the driver’s name is also required for deposits.
Can I rent a car at Keflavík International Airport?
You can book rental cars online at Keflavík International Airport through Final Rentals, offering convenient pick-up and drop-off services for both arriving and departing travellers.
Do I need an International Driving Permit (IDP) in Iceland?
Drivers from outside the EEA, UK, or Japan are typically advised to bring an IDP, although some companies may accept a valid national driver’s license alone—always confirm with your rental provider beforehand 17.
Is car rental insurance necessary in Iceland?
Yes, comprehensive insurance is highly recommended due to unpredictable weather and road conditions. Many rentals include basic coverage, but additional protection, like gravel and glacier protection, can be added.
What types of cars are available for rent in Iceland?
Options range from compact cars and sedans to SUVs, 4x4 vehicles, and even campervans. The type of terrain and season will influence the best choice for your trip.
How much does it cost to rent a car in Iceland?
Prices vary by season and vehicle type. On average, compact cars cost around €35 per day in winter and can exceed €70 per day in summer, while SUVs may reach above €120 per day during peak season.
Can I drive a rental vehicle off-road in Iceland?
No, off-road driving is strictly illegal and is heavily fined. It damages fragile landscapes and voids most rental insurance policies 6.
Is it possible to rent a car in Iceland without credit card insurance?
Car rentals in Iceland require a credit card (in the driver’s name) to cover deposits and insurance excess. Debit cards are sometimes accepted but often require additional security checks or deposits.
Do I need special tires or equipment for winter driving in Iceland?
From November to April, many roads are icy or snow-covered. Rental cars typically come equipped with winter tires, which are mandatory during this period. Studded tires may be offered as an option for added safety.
Can I return my rental car late at night or outside office hours?
You can avail after-hours returns, but you must notify them in advance. Always check drop-off times and procedures when booking to avoid late fees or complications 8.
Are there age restrictions for renting a car in Iceland?
Rental companies require drivers to be at least 20 years old, and those under 25 may face additional fees. Senior drivers over 70 may also encounter restrictions, depending on the rental provider.
Can I add an additional driver to my rental agreement in Iceland?
Yes, additional drivers can be added at pickup or during booking, usually for a small fee. All drivers must present valid documentation and meet the age requirements.
Can I cross borders with a rental car from Iceland?
No, rental cars from Iceland cannot be taken to other countries. The vehicle must remain within Iceland throughout the rental period 7.
