Tips to hire a car in Iceland

Iceland

Iceland is the perfect destination for a road trip. Its roads wind through stunning landscapes of volcanoes, glaciers, and waterfalls, attracting thousands of adventurers every year. By hiring a car in Iceland, you can explore at your own pace, steering clear of the usual tourist crowds.

But what type of vehicle should you choose? What insurance is truly necessary? And how do petrol stations work in Iceland? These are just a few of the questions to consider before booking your car. To help you sidestep potential pitfalls and make the most of your journey, we’ve put together some practical tips to ensure smooth travels on Icelandic roads. Whether you're planning to drive around the entire island or simply venture out on the Golden Circle, these pointers will help you embark on your adventure with confidence.

Why rent a car in Iceland?

Iceland is a land of dramatic contrasts, where volcanoes, glaciers, fjords, and black sand beaches come together to form breathtaking landscapes. To explore this stunning scenery with complete freedom, hiring a car is essential. With your own vehicle, you can travel at your own pace—pausing to admire cascading waterfalls, venturing off to less touristy spots, or waiting for the perfect moment to catch the northern lights.

Unlike organised tours, driving in Iceland offers the flexibility to savour the journey without strict schedules or the need to rush. The well-maintained road network, including the iconic Route 1, makes it easy to navigate the island even in a conventional car. Outside Reykjavík, public transport options are limited, so hiring a car ensures comfort and freedom to uncover Iceland's natural wonders.

CarJet makes it simple to find the perfect car at the best price, comparing options from multiple agencies and offering flexible booking terms. Plus, with their extensive network, you can pick up your rental car wherever it suits you—be it Keflavik International Airport, Reykjavík Domestic Airport, Egilsstaðir, or Ísafjörður —allowing your adventure to begin the moment you touch down.

What do I need to know before renting a car in Iceland?

What type of car should I choose?

Renting a car is undoubtedly the best way to explore Iceland at your own pace, but choosing a vehicle suited to your itinerary and local driving conditions is key. Here are a few things to consider:

If your journey focuses on the famous Route 1, a small car is a practical and economical option to cover these well-maintained roads. For those prioritising comfort and safety, an SUV is the ideal choice—perfect for immersing yourself in Iceland's rugged natural beauty.

If you're unfamiliar with winding roads, opting for an automatic vehicle can make driving more comfortable and enjoyable. Be sure to select this option when making your reservation for a stress-free experience.

Which fuel policy to choose?

Deciding on the right fuel policy is essential for your trip. Here are the two most common options:

1. Full/Full

You’ll receive the car with a full tank of petrol and must return it full, ensuring the gauge matches the same level. This is a fair and economical choice but requires time to refuel before dropping off the car.

2. Full/Empty

The car is handed over with a full tank, but you’re free to return it at any fuel level—even empty. Keep in mind, this option often involves higher fees, as rental companies charge for the refuelling service, typically at a premium.

What about mileage?

Unlimited mileage is a great option if you plan to explore far and wide across Iceland, such as a road trip around the island or visits to remote sites. It lets you travel freely without worrying about how many kilometres you cover.

If your itinerary is shorter—focused on day trips near Reykjavík or nearby locations—a limited mileage plan might suffice, offering potential savings.

Anything else I need to know?

Check the weather conditions

Iceland's weather is famously unpredictable, so it's crucial to stay informed. Before hitting the road, check the latest forecasts and heed local warnings. In case of adverse conditions, slow down or adjust your plans—having a rental car gives you the flexibility to adapt your journey with ease.

Plan your itinerary

A well-prepared itinerary is essential for making the most of your Icelandic adventure. The country's diverse landscapes are awe-inspiring, but distances between locations can be significant, and weather can shift quickly. Planning ahead lets you pinpoint must-see spots, map out reasonable driving times, and locate service stations and accommodation along the way. Good preparation ensures a stress-free and memorable journey.

Follow the regulations

Iceland enforces specific driving rules to keep everyone safe. Always drive with your headlights on, even during the day, and stick to the speed limits: 50 km/h in urban areas, 80 km/h on gravel roads, and 90 km/h on paved roads. Respecting these rules helps you stay safe on your trip.