10 Things You Should Know About Iceland Car Rental Services

Iceland car rental

Did you know that in 2019, the number of foreign tourists in Iceland was more than 2 million? In 2020, the number declined due to the pandemic.

People love to explore Iceland.

If you’re considering a trip to Iceland, be ready for a memorable experience. One way to explore the country is by renting a car and visiting the numerous waterfalls and hot springs.

If you are traveling on a budget, you don’t have to pay for expensive hotels. You can hire a car and have your camping tent with you.

Learn more about Iceland car rental.

Why You Should Rent a Car in Iceland

Iceland is well-known for its wild and beautiful landscape, rich culture, and delicious cuisine. The island has become a popular tourist destination in recent years.

The number of visitors doubled from 2.1 million to 4.3 million between 2007 and 2015.

Among the most popular activities for tourists to Iceland are whale watching, hiking, and exploring the waterfalls.

One activity people overlook is renting a car in Iceland to explore the country on their own time.

People think renting a car in Iceland is outrageously expensive. That’s not the case. There are some significant discounts to be had if you know where to look.

Renting a car in Iceland can be one of the most exciting things to do on your trip. The majestic scenery, winding roads, and vastness of the land are impressive. It is something you’ve never seen before.

Many tourists want to drive around Iceland. They are deterred by the idea that it’s a four-wheel-drive only country. The thing is, you don’t need a four-wheel-drive!

Things to Consider When Renting a Car in Iceland

Renting a car in Iceland can be incredibly convenient and cost-effective. The country is challenging to navigate, and public transportation is limited. But it can be costly if you don’t know what to expect.

Here are some tips to keep in mind before renting a car in Iceland.


The road system in Iceland is excellent, but it’s not perfect. Driving around the country requires visitors to have a good knowledge of the roads and weather conditions. This is why getting insurance when hiring a car in Iceland is so important.

There are several insurance companies in Iceland offering car rental services. The price range is between 1200-1400 ISK per day.

But what are you getting for this money?

The cheapest option will cover you for liability and collision. The most expensive one will also cover theft, fire, and windshield damage. It is also possible to purchase insurance that covers every danger to passengers and damage to the car.

Which Car to Hire: 4WD or 2WD?

You’ve probably seen the photographs. One of Iceland’s moonscapes, with vast expanses of unequaled natural beauty.

What you see in those pictures is just a fraction of what there is to see and do in Iceland. But what if you don’t have your car or are short on time? Are public buses enough to see all the sights, or will you need to rent a 4WD or 2WD?

The answer depends on the season that you choose to visit the country. In the summertime (June-August), road conditions are best for 4WDs.

During the winter (September-May), 2WDs are best. You will need a 4WD with snow tires and chains in the winter.

Car Rental Pricing in Iceland

Renting a car in Iceland can be pricey. However, there are ways to make it more affordable without sacrificing quality. If you are thinking of going on a road trip around the country, you want to ensure that you’re not overpaying for rental cars.

Rates start at around $50 a day, but it’s possible to get them as low as $30. Rates are higher for 4WD vehicles and during the peak season between June and August.

The rates vary depending on age, type of vehicle, and whether you have a local driver’s license.

Many Icelandic companies don’t accept credit cards. Make sure you have cash for the deposits and fees.

International or National Driving License?

Do you need an international or national driving license to rent a car in Iceland?

Everyone wants to rent a car when they travel, but the process can be difficult. There are so many things you should do before renting a car in Iceland.

You need to have a driving license, a passport, proof of insurance, and some money to pay the deposit.

If you are not a resident, you will need an international driving license to rent a car in Iceland. National driving licenses are not accepted.

Is a valid driver’s license all you need for car rental in Iceland? The answer is no. You also need to be at least 21 years old and have adequate insurance coverage.

GPS or Wi-Fi?

When you’re traveling in Iceland, should you rent a car with GPS or Wi-Fi? You might think that the answer is obvious.

Wi-Fi allows you to navigate with Google Maps. It also gives you access to other useful apps, like language translation.

But what if we told you that GPS and Wi-Fi are the same?

The new GPS comes with built-in Wi-Fi access. This means travelers can get directions as usual. They can also connect to the internet to do whatever else they need.


The weather in Iceland is notoriously unpredictable. Some months are better than others for renting a car in Iceland.

The worst months for renting a car in Iceland are January to March. It’s cold and wet. Here is a summary of the weather outlook.

  • June-August

The summer months in Iceland are the most popular time to travel. There is a milder climate and less snowfall. The weather in Iceland remains mostly sunny and warm during this season.

  • September-October

The weather starts to cool in September. It makes September-October one of the best times to visit Iceland. The temperatures usually drop below the freezing point at night.

During the day, they rise to a comfortable level.

  • November-December

The weather in Iceland starts to get colder in November. However, the temperatures are still comfortable.

It is a great time to visit Iceland if you want to see the Northern Lights. They are most active during this season.

Fuel in Advance

In Iceland, there is no petrol available at the drive-through stations. You should fill up the car before leaving Reykjavik.

You will notice that Iceland is one of the most expensive countries for gasoline. The price of gas per liter can be compared to the price of wine or champagne! Fuel is cheaper in the capital than in other locations.

Is it worth filling the tank? You will have to decide that for yourself. However, if you plan to visit many hot springs and rent a car, we recommend that you fill up the tank.

Drivers in Iceland are required to carry a minimum of 20 liters of fuel in their vehicles at all times. If you get stuck on a remote mountain pass, be prepared for it by carrying enough fuel.

Speed Limits

Iceland’s maximum speed limit on paved roads in open country and built-up areas is 90 km/h (56 mph). If there are no suitable alternatives, 100 km/h (62 mph) is allowed.

The minimum speed limit is 30 km/h (19 mph) on all roads with a “30” sign. Stay within the speed limits to avoid fines.

Mileage Limit

When traveling, you need to know how to get the most out of your money. One way to avoid overspending is by knowing each rental car’s mileage and time limits.

Most people don’t bother looking at the fine print. They sometimes find out that they have spent more than they could have if they had taken a few minutes to read the terms first.

Some Iceland car rental companies don’t allow you to drive past some regions. If you go past your package, be ready to pay extra charges.

Iceland Car Rental Company

How do you know which is the best car rental in Iceland? You need to evaluate the reputation, services offered and quality of the cars.

Do your due diligence before renting a car. It helps avoid the frustrations of overpricing or poor service. Check Iceland car rental reviews or ask family and friends.

Hire a Car in Iceland Today

Traveling is supposed to be an experience. However, most people go to the same places every time they travel. They are missing out on some of the best experiences in life because they never try anything new.

Sometimes you have to go out of your way, rent a car, and drive across Iceland. It allows you to explore the island at a higher level.

Choose a competent Iceland car rental company for convenience and to cut costs.

Circle Car Rental offers high-quality car rental in Iceland at great prices. We offer unlimited mileage, insurance, and no hidden fees. Contact us today for inquiries about car rentals in Iceland Reykjavik.

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