Car Rental Iceland – The Ultimate Guide for International Travelers

Planning a trip to Iceland? One of the best decisions you can make is to explore this breathtaking country by car. Car Rental Iceland experiences offer unparalleled freedom – imagine cruising along the Ring Road, stopping by cascading waterfalls or hidden hot springs whenever the mood strikes. This guide is designed for travelers from the US, UK, Canada, Spain, Italy, and across Europe, blending friendly advice with must-know tips and Zero Car Rental’s unique perks. By the end, you’ll know exactly why over half of Zero’s customers say they booked because of its excellent reviews, and how to make your Iceland road trip smooth, safe, and unforgettable.

Why Iceland by Car?

Iceland’s magic lies in its wild landscapes and the freedom to roam. While tour buses stick to tight schedules, renting a car lets you set your own pace. Want to pause for photos of shaggy Icelandic horses or take a detour to a cozy countryside café? With your own wheels, you’re in control. Driving in Iceland is an experience in itself – the open roads are well-maintained and scenic, often with sweeping views of mountains, glaciers, and coastlines around every bend. From the famous Golden Circle route to the remote reaches of the Westfjords, a car gives you access to places tour groups might skip.

Another perk for international travelers is convenience. Keflavik International Airport, where most visitors land, is about a 45-minute drive from Reykjavík. Grabbing a rental car straight at the airport means you can hit the road immediately instead of waiting for shuttles or transfers. Driving also makes it easier to chase the Northern Lights on a whim or soak in that secret hot spring you heard about. In short, exploring Iceland by car turns your trip into a personal adventure – you decide where to go, when to stop, and what sights to savour.

What to Know Before Renting

Renting a car in a foreign country can feel daunting, but a bit of local know-how goes a long way. Here are essential things to consider before you rent a car in Iceland:

Road Types and 4x4 Necessity: Iceland’s road network ranges from smooth paved highways to rugged mountain trails. The famous Ring Road (Route 1) is paved and drivable year-round in a normal car, but if you plan to venture onto F-Roads – the unpaved roads into the highlands marked with an “F” – you will legally need a 4x4 vehicle (How to Find the Best Iceland Rental Car (2025 Guide)). These highland roads are only open in summer and involve crossing rough terrain (even shallow rivers). In winter, even some main roads can be snowy or icy, so a 4x4 or all-wheel drive is highly recommended for safety. Many travelers find a small SUV (like a Dacia Duster or Toyota RAV4) is sufficient for most adventures, while hardcore highland explorers might opt for a larger Jeep or Land Cruiser. Remember, off-road driving (going off marked roads) is illegal in Iceland and carries heavy fines, so stick to the trails.

Weather and Road Conditions: The weather in Iceland is famously unpredictable – sunny one minute, stormy the next. Always check the weather forecast and road conditions before a long drive. The Icelandic Meteorological Office (vedur.is) and the Road Administration (road.is) publish up-to-date warnings about storms, ice, or closures. Wind is a serious consideration: a sudden gust can blow a car door open or even push vehicles on an exposed road. A good rule: park your car facing the wind (to avoid the door issue) and hold onto doors when opening. Also be cautious on one-lane bridges, common in the countryside – slow down and yield to the car already on the bridge (signs will indicate right-of-way. If traveling in winter, note that daylight hours are very short (as little as 4–6 hours of light in December, so plan your driving accordingly to avoid being on unfamiliar icy roads in the dark.

Insurance Types in Iceland: Car rental insurance works a bit differently in Iceland, thanks to the island’s unique hazards. Aside from standard Collision Damage Waiver (CDW) and Third-Party Liability, you’ll encounter optional coverages like Gravel Protection (GP) and Sand and Ash Protection (SAAP). Why? Because gravel, volcanic ash, and sand can wreak havoc on cars here. A passing vehicle can send pebbles flying into your windshield or paint (the most frequent type of damage, according to local rental companies, and strong winds can sandblast your car’s exterior. Repairs in Iceland are exceptionally expensive, so even though buying extra insurance might feel like a cash grab elsewhere, it’s considered wise here. Zero Car rental simplifies this for you, including all insurances with Zero Deductible and Roadside assistance in all prices so you are fully covered in all cases. 

Manual vs. Automatic: Cars with manual transmission are common in Iceland and often cheaper to rent. If you only drive automatic, be sure to book well in advance, especially for summer trips, as automatics are in higher demand and short supply. The extra cost is worth it if it means you’re comfortable behind the wheel.

Fuel Costs and Types: Gas (petrol) and diesel prices in Iceland are high – roughly double what you might pay in the U.S. Fuel up when you can, especially in rural areas where stations can be far apart. Many stations are self-service and accept credit cards with a PIN. Some rentals, like Zero, even offer fuel discounts to cushion the cost. If you’re considering an electric vehicle, know that while EV rentals are available, charging takes time and stations might be sparse in remote regions. It can be a great eco-friendly choice for Reykjavík and the south where infrastructure exists, but on a full Ring Road trip, you’ll need to plan charging stops carefully (and have patience).

Driver’s License and Rules: You can use your valid foreign driver’s license in Iceland as long as it’s in a language using Latin characters (so licenses from the US, Canada, EU, UK are fine). There’s no need for an International Driving Permit if your home license is in English or an EU language. The driving age for rentals is usually 20 years (and 23-25 for bigger vehicle classes), and you must have held your license for at least a year. Headlights must be on at all times, day or night – it’s the law, given frequent fog and low light conditions. Seatbelts are compulsory. Speed limits are typically 90 km/h on paved rural roads, 80 km/h on gravel, and around 50 km/h in towns. Speed cameras do exist (even if police presence is sparse), so don’t push your luck. Also, be alert for roaming sheep or even reindeer on roads in the countryside – hitting an animal can be dangerous (and insurance usually won’t cover animal collision damage. In short, drive cautiously and assume the unexpected will happen at some point.

Booking and Pick-up Logistics: Car rental demand in Iceland is high, especially from May through September. Book early to lock in a better rate. When reserving, note where you want to pick up the car – Keflavik Airport (KEF) is most convenient if you’re flying in, but some budget rentals require a shuttle to an off-site lot. If you’re staying in Reykjavík first, you might pick up in the city. Zero Car Rental, for instance, offers key pickup right at KEF Airport or in downtown Reykjavík, giving you flexibility. Increasingly, companies use self-service kiosks or key boxes for after-hours pick-ups. That means if you arrive on a midnight flight, you can still grab your car without waiting for a desk agent – a huge plus for tired travellers. Just make sure you’ve completed any online check-in and have the pin code or instructions for the key box in advance.

By keeping these points in mind, you’ll be well-prepared to choose the right vehicle and rental company for your Iceland adventure. Now, let’s look at what makes one particular option – Zero Car Rental – stand out from the crowd.

Why Zero Car Rental is a Trusted Choice

With so many rental companies vying for your attention, why go with Zero Car Rental? The short answer: they’ve built a service that addresses nearly all the pain points travellers usually face. Zero’s entire philosophy is about removing hassle (fitting, given the name). Here are some reasons travellers from around the world are choosing Zero, making it one of the top-rated “Car Rental Iceland” choices in recent years:

All-Inclusive Pricing – No Surprises: Zero Car Rental bundles in all the major insurance coverage with zero excess (meaning no deductible) on every booking. This is a game-changer for peace of mind. You won’t arrive at the counter and get hit with a hard sell for Gravel Protection or worry that declining insurance will leave you on the hook for thousands. What you see in your quote is what you pay – no hidden fees, no deposits, unlimited mileage, and even roadside assistance all included. Travelers often rave about this transparency because it removes the “unexpected charges” surprise that is a common complaint in car rental reviews.

Zero Waiting Time: Tired of standing in line after a long flight? Zero has streamlined the process so you check in online before you even depart. When you arrive, skip the rental desk altogether. Head to the key box pickup at Keflavik Airport, enter your code, and grab your car keys – you’ll be on the road in minutes. This 24/7 self-service pickup is perfect for late arrivals and means no need to plan your flight around rental office hours. (If you prefer human help, they have friendly staff downtown and a help line – but most customers love the speed and independence of the key box system.)

Quality Cars & 4x4 Options: Zero’s fleet ranges from efficient compact cars to spacious 4x4 SUVs equipped for Iceland’s toughest roads. Many repeat customers have noted the vehicles are new or low-mileage and in great condition. For example, one traveller rented a Dacia Duster and reported it “never missed a beat” throughout his trip. Another drove a hybrid 4x4 with winter tires and loved that pickup and drop-off were right by the airport. Whether you need a reliable economy car for city hopping or a rugged 4x4 for F-roads, Zero has you covered – and if you’re visiting in winter or hitting the Highlands, they’ll ensure you get the right AWD vehicle for safety.

Trust and Top Reviews: A company can advertise great service, but reviews tell the real story. Zero Car Rental has quickly earned a glowing reputation. In fact, 54% of Zero’s customers say they booked because of its excellent reviews – and it shows. On independent platforms like Trustpilot and Google Reviews, Zero consistently scores high marks, with customers praising its clear communication, value, and stress-free process. Travelers often mention how comforting it was to have no surprise fees and how responsive and helpful the support team was when small issues arose. Choosing a rental company that others wholeheartedly recommend is a smart move, and Zero’s focus on customer satisfaction is evident in these testimonials. (As one travel tipster advises: always read rental reviews before booking – some companies in Iceland serve customers much better than others, and Zero’s reviews set it apart.)

No Deposit & Flexible Booking: Unlike many rentals that block a hefty deposit on your credit card, Zero requires no deposit when you book. This is a relief for travelers who don’t want a big chunk of their credit line frozen during the trip. They also offer a choice between discounted pre-paid rates or a pay-on-arrival option with free cancellation. Plans changed? If you booked a refundable rate, you can cancel up to 24 hours before and get a full refund. It’s a level of flexibility and trust that frequent travellers appreciate.

Local Expertise, Global Convenience: Zero Car Rental may be a relatively new name, but it’s backed by local Icelandic rental expertise (their downtown office even shares a location with the well-known Blue Car Rental). This means you get the benefit of a trusted local operation with years of experience, combined with a modern, traveller-friendly approach. Support is available 24/7 if you need it, and roadside assistance is included and on-call in case of any hiccup – whether you get a flat tire on a country road or need a jump-start on a cold morning, help is just a call away, at no extra cost.

In short, Zero Car Rental has crafted a car rental Iceland experience that meets the needs of today’s travellers: it’s convenient, transparent, and reliable. But don’t just take our word for it – listen to what real customers have to say.

Real Stories from Real Travelers

One of the best ways to judge a car rental company is by hearing from people who’ve actually used it during their Iceland trip. Here are a few genuine customer experiences from Zero Car Rental users that capture what the experience is like:

“Great value car rental, easy to deal with and very clear communication by email. Hired a Dacia Duster which never missed a beat and really let us enjoy our Iceland holiday to the full. Would definitely recommend.” – James S., Zero Car customer

“The previous trip was a Dacia Duster 4x4 and this time a Kia Hybrid 4x4 with winter tires. Vehicles in good condition, few kilometers and pick-up and drop-off very close to the airport.” – Joaquim R., Zero Car customer

“No lines, no hidden fees, just grab the keys and go – it felt like borrowing a car from a friend. Best rental experience I’ve had in Iceland!” – (Feedback from a Zero Car user on Google Reviews)

These testimonials echo a common theme: Zero delivers exactly what it promises. Travelers love the combination of competitive pricing and top-notch service. Many mention that having full insurance included was a lifesaver – one reviewer noted that a flying pebble cracked their windshield on day 3, but it didn’t cost them a dime or any hassle to resolve, thanks to Zero’s coverage. Others talk about the relief of arriving late at night to find their car ready and waiting, allowing them to drive off into the midnight sun (or moonlight, as it may be) without delay.

It’s also telling that a lot of Zero’s customers are repeat visitors to Iceland. They tried other rentals on earlier trips and then switched to Zero Car Rental and wouldn’t go back. When a company earns that kind of loyalty in the travel community, you know they’re doing something right. As you plan your own journey, these real-world experiences can give you confidence that you’ll be in good hands.

Final Tips for a Smooth Ride

Before you rev that engine and start your epic Iceland road trip, here are some final tips to ensure everything goes off without a hitch:

Book Early & Smart: As soon as you know your travel dates, reserve your rental car. Iceland’s popularity means the best deals get snapped up fast . Aim for a flexible booking (free cancellation) so you can adjust if needed, but lock in that car, especially if you need an automatic or a 4x4 in peak season.

Inspect Your Car on Pickup: Whether you’re grabbing keys from a Zero keybox or a rental counter, take a few minutes to walk around the car and inspect it. Note any pre-existing scratches or dents (take photos if possible). While Zero’s full insurance means you’re covered, it’s still good practice with any rental to be aware of the car’s condition. Also familiarize yourself with the vehicle – adjust mirrors, know where the lights and gas tank release are, etc., before you drive off.

Stay Connected & Navigate: Cell coverage in Iceland is generally good along the main roads. Consider getting a local SIM or renting a hotspot if your plan doesn’t cover Iceland, so you can use GPS and stay in touch. Google Maps works well, and apps like Vegagerðin (Iceland road info) or SafeTravel can send alerts about weather/road hazards. Download offline maps just in case. And always have a paper map or an offline backup – some highland areas are remote.

Plan Fuel Stops: Keep your tank at least half https://safetravel.is/full, especially when exploring outside Reykjavík or doing long stretches (e.g., across the Eastfjords or heading to Dettifoss). It’s common courtesy (and sometimes required) to return the car with the same fuel level you started with. Zero Car Rental provides a fuel discount card, so take advantage of that to save a few krónur at N1 or Olís stations.

Mind the Signs and Speed: Pay attention to road signs – many are universal (stop, yield) but some Iceland-specific ones indicate things like single-lane bridge ahead, gravel road begins, or strong crosswinds in certain areas. If you see a warning for winds, slow down and grip the wheel – those areas are where gusts often sweep across. Stick to speed limits not just to avoid tickets but because conditions can change quickly. A safe speed gives you more reaction time if a sheep wanders onto the road or if you hit a patch of loose gravel.

Weather Changes – Be Flexible: If the forecast predicts a severe storm or heavy snow on the day you planned to drive to, say, Jökulsárlón glacier lagoon, be ready to shuffle your itinerary. It’s better to reschedule a day’s plans than to risk driving through dangerous weather. Iceland will wait for you – that volcano or waterfall isn’t going anywhere! Always err on the side of caution, and use websites like vedur.is for weather and road.is for road closures. There’s also a phone number (1777) for road condition info in English.

Respect Nature and Local Rules: Iceland’s nature is fragile. Never drive off-road onto mossy fields or beaches – not only is it illegal, it can cause lasting damage to the environment. Stick to marked parking areas. If you venture onto a gravel track and feel unsure, turn around. Yield to oncoming traffic on narrow roads and bridges where only one car can pass at a time. Basically, drive as the locals do: with patience and respect for the land.

Enjoy the Journey: Finally, remember why you chose to rent a car – to enjoy the journey as much as the destination. Some of your best memories might be the spontaneous stops: a herd of reindeer grazing in a field, a stunning sunset viewed from a coastal cliff, or that tiny roadside bakery with delicious fresh bread you stumbled upon. Give yourself the freedom to savour these moments. With a reliable car and comprehensive support from Zero Car Rental, you can focus on the experience and not worry about the logistics.

By following these tips and partnering with a trusted company, your road trip in Iceland is bound to be the adventure of a lifetime. Car rental in Iceland unlocks so many possibilities that most travellers can’t imagine seeing this country any other way. With the open road ahead and the comforts of Zero Car Rental’s service backing you up, you’ll be ready to discover “The Land of Fire and Ice” on your own terms. So pack your bags, make that playlist for the drive, and get ready – Iceland by car is calling your name. Gleðilega ferð (happy travels)!