What Type of Car Should I Rent in Iceland?

Without a doubt, hiring a vehicle is one of the best ways to make the most of your time in Iceland. The winding roads and remote destinations mean that driving is not only a joy but also sometimes the only way to reach the places you’re keen to tick off your bucket list. However, choosing the right model and type of car can make or break your time on this curious island. You’ll need to consider factors like time of year, weather conditions, your trip type, and more to ensure a comfortable and safe adventure. Let’s take a look at the ins and outs of this important decision.

But First - Should I Rent a Car in Iceland?

Before deciding whether or not it is worth renting a car in Iceland for your personal experience, there are a few things to consider:

• Is there a confident driver in your group who will be happy to drive? Driving in Iceland can be challenging due to the unpredictable weather conditions, however, it is possible to stick to roads more traveled, which are typically easier to handle.
• Who are you traveling with? If you are heading to Iceland with young children, it’s worth considering the benefits of being able to travel where and when you want.
• What sights do you want to see? Whilst there are tours and trips available to popular tourist destinations, you may struggle to find suitable alternative transport options if you’re planning on heading off the beaten track.
• How long is your vacation? If you’re limited to a few days, you’ll want to create a personalized action-packed itinerary.

What are the Benefits of Renting a Car in Iceland?

Now you’ve had the chance to think about whether hiring a car is suitable for your group, here are all the details you’ll need to make a final decision!

1. You Can Create A Personalized Itinerary

This is one of the biggest advantages of having your own set of wheels in Iceland - complete freedom to explore. Having access to a car to get around Iceland gives you the ultimate flexibility to plan your itinerary and activities exactly as you wish. Want to head to the Blue Lagoon? No problem, you can stop off anywhere you like on the way back, too!

When you hire a car, you are not limited to those attractions that large companies have planned group tours to. You are free to research those off-the-beaten-track locations and head there instead! For those more adventurous and keen to experience something unique, a rental car might just be the perfect choice!

The flexibility of a rental car lends itself to shorter trips in Iceland, too. Even if you are on a layover, there are lots of incredible things to do near Keflavík Airport. Having a rental car means you can take advantage of those hours.

2. You Can Travel in Comfort

A vacation in Iceland is often packed full of hiking and exploring, which can be tiring for everyone involved. Figuring out public transport with your backpacks and any other luggage in tow, after a day in the wilderness, is the last thing you need. And sharing a minivan with other travelers, who also all have large day packs, isn’t appealing to everyone!

With your rental car by your side, you can hop in and relax whenever you need after a day out walking or sightseeing. Plus, on your own time, there is no rush to get back to a shared transport vehicle - you can spend as long as you want at each destination, and even stop whenever you want for snacks or to stretch your legs!

3. You Can Enjoy Unlimited Space

Unlike group tours or public transport, a hire car provides you with a space that is your own. Families with young children often have lots of things to carry with them: toys, a baby carrier, unlimited snacks, and more, which means you’ll likely be at capacity with luggage.

Plus, the changeable weather in Iceland means that layering is an absolute must for staying comfortable throughout your trip. Raining one minute, sunny the next, you’ll want to pack for every eventuality. Bulky boots, coats, and scarves take up room in your backpack, valuable space that can be freed up by utilizing your car trunk! With space in the trunk, as well as your back seats, you won’t need to worry about overpacking. Plus, there is no need to unpack everything at the end of every day, because your vehicle is your own and everything will be there waiting for you in the morning to start a new adventure.

4. You Can Dive into The Driving Experience

For some people, driving is part of the adventure! After all, it’s not about the destination, it’s often about the journey itself. And there’s nothing greater than hitting the open road in Iceland. Road trips are popular, and there is a range to discover from Iceland’s capital.

One of the most popular road trips is the Ring Road, taking travelers around the country in its entirety at their own pace. The road is well-maintained, traffic is typically light, and the views speak for themselves. The Golden Circle is great for those who don’t have long to spend in Iceland, incorporating 3 of the most popular attractions in South Iceland.

Want a more challenging drive? Heading up into the Highlands is only possible in the summer when the F-Roads are open, and you will be rewarded with rugged terrain, winding roads, river crossings, and remote attractions with fewer tourists.

Considerations for Renting a Car in Iceland

Of course, there are also some considerations when it comes to car rentals in Iceland:

1. The Cost

One of the main concerns that you might have about car rental here is the price. Iceland is known for being an expensive place, and the idea of hiring a car for days on end might make you clutch your wallet. But in actual fact, compared to other means of travel, it’s likely that car rental will save you in the long run.

Here are a few tips when considering budgets and car rental in Iceland:

• Insurance: Though it may seem like an extra upfront cost, it’s always recommended to get insurance on your hire car while in Iceland to save you should the unexpected happen.
• Check Reviews: Selecting a reputable local rental car company is the best way to go, so make sure you don’t necessarily go with the smallest upfront cost, as this might cost you in the long term.
• Compare Dates & Models: There is also merit in swapping models and dates around to make sure you’re getting the best price for your trip.

2. Hidden Costs

An additional worry for many people when renting a car in Iceland is that there will be hidden costs upon returning the car or following a traffic incident. You have no doubt heard horror stories about rental companies charging for damage that the lessee was not responsible for. This is easily avoided by opting for a reputable car company with positive reviews - and of course by driving carefully.

In the event of an accident or damage due to weather conditions, there may be additional costs. To overcome this, you should look to purchase additional insurance that will provide protection against events such as theft and gravel damage, and reduce your excess should the worst happen.

Find out more about what car insurance is right for you in our blog.

3. Weather Conditions

The weather in Iceland can be unpredictable and harsh. Windy conditions, snow, and ice can all make driving more of a challenge and can disrupt your plans. It’s worth noting, however, that this is always a risk when visiting Iceland, particularly in winter, and public transport can be affected by adverse conditions too. Hiring a car even gives you the flexibility to change your plans should the weather disrupt Plan A.

To minimize the disruption felt by poor weather when driving in Iceland, you should:

• Keep an eye on driving conditions via Road.is and follow weather forecasts via the Icelandic Met Office.
• Acquire adequate insurance to protect against sand and gravel damage while on the road.
• Always obey local driving laws and drive with care in poor visibility conditions.

4. Safety on The Road

General safety when driving around Iceland might also be a concern for those who have not been before. It’s perfectly normal to feel nervous about getting behind the wheel, particularly when you’re in a new country, on roads you're unfamiliar with! Some tips for ultimate peace of mind on the road include:

• Take care at all times (this may seem obvious, but it is most important).
• Choose the most experienced driver as the lead driver for your car rental.
• Stick to speed limits at all times - speeding tickets are particularly harsh, and the limits are there to keep all drivers safe.
• Take extra care when driving past animals, as accidents involving sheep or other grazing animals will be your responsibility.
• Utilize headlights at all times, even during the day.
• Do not drive off-road if you do not have a 4x4, including on F-Roads.

Deciding Which Type of Car to Rent in Iceland

So if you’ve decided that renting a car in Iceland is the right option for your visit, you now might need a bit of help selecting which car will be right for you and your group. There are a few things you should consider that can help you choose the right vehicle. 

Iceland’s Weather Conditions

We’ve already touched on Iceland’s unpredictable weather. Precisely what time of year you’ve planned to visit can mean radically different vehicle choices for you and your fellow holiday-goers. Take into account whether you’re likely to encounter icy conditions, warmer weather, rain, and so on. This will help you decide on the right vehicle.

Terrain Variation

Where you visit should be as much of a factor in your rental car selection as when you visit. This might go without saying, but you need to think about the terrain you are likely to encounter on your trip. If you only have a few days and will be sticking to the paved and maintained roads of Reykjavik or the Golden Circle, then your small car should be sufficient. But if you want to expand your trip into the rugged Highlands or even further East to where fewer people roam, the terrain is much more challenging. For the Highlands especially, a 4WD is imperative.

Seasonal Changes

It’s also worth remembering that during the Winter months, the F-Roads in Iceland’s Highland areas will be closed. This might influence your decision to plan a longer road trip and, therefore, the need for four-wheel drive.

Choosing the Right Car for Your Itinerary

One of the main perks of hiring a car in Iceland is that it allows you to explore according to your own schedule. Therefore, your vehicle should match the itinerary you have planned for your time in Iceland.

• Reykjavík City Break: Reykjavík is a quirky and charming city, easily explored within a weekend or a few days. This will only require a hatchback or a fairly small car to complete.
• Ring Road Sightseeing: If you plan to stick to paved roads but perhaps a little further afield, you might need to look at weather and road conditions for your trip to make a more informed rental vehicle decision.
• Highland Exploration: The Highlands call many adventurers to its peaks and valleys, and it’s a stipulation that 4WD vehicles are required on F-Roads in these areas.

Iceland Hire Car Comparison

Not sure what your options are? There is a wide selection of car types available when looking to rent a car in Iceland - let’s take a look at the most common:

Small Cars

Our small hire cars typically fit at least 4 people with minimal space for luggage, available with manual or automatic transmission. Small cars or hatchbacks are great for keeping fuel costs low, as they are on the more efficient side. These are ideal for city driving or day trips on paved roads in good weather. We stock reliable brands including Mazda, Hyundai, and Toyota.

Mid-size/Large Cars

If you’re traveling with more members of the family or a group of friends, you might need a little more luggage space or more seats. If you’re sticking to main roads but still wish to maintain fuel efficiency, our mid-size models are ideal for your Iceland journey. Again, manual and automatic models are available from GO Iceland’s fleet. We stock brands including Renault, Mazda, and Ford.

4WD

If you want to be ready for anything or if the Highlands are on your Iceland itinerary, 4WD SUVs are the rental vehicle choice for you. Winter driving conditions might also warrant a four-wheel drive for ultimate peace of mind. Our 4WD models include Dacia, Hyundai, and Mazda.

Campervans

If you’re interested in saving on accommodation and combining your travel and stay in Iceland, campervans might be the option for you. What’s more, we also offer 4WD campervans so you can take to the F-Roads in your rental camper. Our camper models include reliable brands like Renault and VW.

Regardless of the type of car you choose, all of our rental vehicles include our additional services, such as:

• CDW Insurance
• Fully inclusive prices
• Free airport pickup
• Free cancellation (until 25 hours before pickup)
• No deposit

Browse our full range of rental models today and ensure you make the most of your time in Iceland. The open road awaits!