Exploring Iceland by car is more than just convenient. We have said it over and over and it’s the key to unlocking the most breathtakingly, remote, and unforgettable corners of this extraordinary country. From roaring waterfalls and volcanic craters to tranquil fjords and glacial lagoons, the true essence of Iceland reveals itself when you take the road less travelled. And with the right car rental, Iceland becomes a playground for adventure, flexibility, and discovery.Whether you’re a travel enthusiast hungry for scenic routes, an adventure seeker planning an epic off-road journey, or a budget-conscious tourist searching for value without compromise, this guide is designed for you. Let’s explore how the freedom of the open road — paired with the reliability of Zero Car Rental — can help you experience Iceland like never before.Why rent a car in Iceland?Car rental in Iceland is one of the smartest decisions a traveler can make. Public transport barely scratches the surface of the country’s majestic landscapes, and while guided tours have their place, they tie you to tight schedules and predetermined stops.Renting your own vehicle gives you the power to pause at every roadside glacier, linger longer at hidden hot springs, or detour to secret viewpoints. Whether you’re setting off on a one-day road trip around the Golden Circle or planning a multi-day loop of the Ring Road, a rental car puts you in control of the journey.Booking your rental vehicleBooking a rental vehicle in Iceland is best done in advance — especially during the busy summer or Christmas travel periods. Early booking ensures the widest choice of vehicles, the best prices, and peace of mind knowing your transport is secured.Zero Car Rental makes it even easier by offering online booking with instant confirmation. Once you land at Keflavik International Airport, your vehicle will be ready for pick-up via secure keybox, no waiting in line, no unnecessary paperwork. Delivery to your accommodation can also be arranged in some cases, giving you even more flexibility.All you need is a valid driver’s license, a credit card, and to meet the minimum age requirement. In Iceland, the minimum age to rent a vehicle is typically 20 years, with some 4x4 or premium models requiring drivers to be 23 or older. And yes — tourists can absolutely rent a car with a foreign driver’s license.Types of vehicles availableRental companies in Iceland offer a wide range of vehicles tailored to every type of adventure. From compact cars ideal for urban trips to SUVs that are built for Iceland’s more rugged terrain, your rental vehicle should match the route you plan to take.For most summer road trips on paved roads, a 2WD vehicle will do just fine. However, if you’re venturing into the highlands or driving in winter, a 4x4 vehicle with proper tires is strongly recommended. These vehicles are better equipped to handle the snow, ice, and gravel that you’re likely to encounter on less-traveled paths — especially if you’re planning to drive on an F-road.Zero Car Rental offers an entire fleet of well-maintained vehicles, including electric models for eco-conscious tourists, and rugged SUVs for those looking to explore off-road locations in Iceland. And the best part? Every rental includes full insurance with no excess and 24/7 roadside assistance at no extra cost — unlike many rental companies that charge a premium for this peace of mind.Driving in Iceland: what you should knowDriving in Iceland is safe, but it’s not without its challenges. Weather conditions can change rapidly, and many roads — especially in the countryside — are gravel or narrow. Always drive cautiously, especially when conditions are icy or windy.You must keep your headlights on at all times, even during the long daylight hours of summer. Seatbelts are mandatory, and using a mobile phone while driving is strictly prohibited unless you have a hands-free setup. GPS devices are helpful, but having an offline map is also wise, especially in remote areas.Driving off-road is illegal and causes severe damage to Iceland’s fragile environment. Stick to marked routes and check daily road conditions on umferdin.is or SafeTravel.is. If you're heading into the highlands or anywhere that requires navigating an F-road, make sure your 4x4 vehicle is permitted and prepared.Understanding car rental insuranceInsurance is a major consideration when choosing a rental company. Iceland’s landscape — from gravel roads to strong winds — can pose real risks to your vehicle.Some companies advertise low daily rates but then upsell insurance coverage at the counter. Others charge high deductibles or exclude roadside assistance. That’s why Zero Car Rental includes full insurance with no deductible and roadside assistance with zero excess in every booking — giving you a truly all-inclusive price with no unpleasant surprises.Before you drive off, inspect your vehicle for any pre-existing damage and make sure it’s documented. Returning the car with a full gasoline tank is usually required — refuel at the nearest station before drop-off to avoid penalties.How much does car rental in Iceland cost?The average cost of car rental in Iceland varies depending on vehicle type, season, and rental duration. Economy vehicles can start around €40 per day, while larger 4x4 models may range from €90 to €150 per day. Electric vehicles tend to cost slightly more but offer savings on fuel.Zero Car Rental offers transparent, all-inclusive pricing — there are no hidden fees, no charges for roadside support, and no excess on your insurance. It’s one of the smartest ways to save on your trip.Seasonal tips and dealsIf you’re looking to stretch your budget further, keep an eye out for seasonal promotions. Zero frequently offers discounts for early bookings, multi-day rentals, and special holiday campaigns. Unlike other companies that restrict offers to "pay later" bookings, Zero often applies discounts even to prepaid rentals — maximizing value for budget-conscious travelers.Top 10 must-see sights with a rental carNow for the fun part — the 10 must-see destinations in Iceland you can access easily with your own rental vehicle. With the right car, every one of these remarkable locations becomes part of your journey.1. The Golden CircleHome to Thingvellir National Park, Gullfoss waterfall, and the erupting geysers of Haukadalur, this iconic route is a must-see. Ideal for first-time tourists and those on a tight itinerary, this loop from Reykjavík delivers stunning natural wonders within a single day. With your own vehicle, you can beat the tour bus crowds, visit the lesser-known Secret Lagoon in Flúðir, or extend your drive to the crater lake Kerið. Learn more about the Golden Circle.2. Seljalandsfoss & SkogafossTwo of Iceland’s most photographed waterfalls on the South Coast, these towering cascades are powerful and picturesque. Seljalandsfoss offers a rare chance to walk behind a waterfall, while Skogafoss’s dramatic drop creates constant rainbows in the mist. Just nearby is the Skógar Museum and the hidden gem Kvernufoss — only a short walk from the Skogafoss car park. These stops are easily reached with a rental car and offer fantastic picnic opportunities. See more about Seljalandsfoss and Skogafoss.3. Reynisfjara Black Sand BeachNear the charming town of Vík, Reynisfjara is one of the most dramatic beaches in the world. The black volcanic sand, powerful Atlantic waves, and striking basalt columns make for an unforgettable sight. A rental car allows you to explore the area at your own pace, including the nearby Dyrhólaey promontory with puffin-viewing opportunities in summer. Caution: keep a safe distance from the sea, as sneaker waves are dangerous. Reynisfjara info from Visit South Iceland.4. Jökulsárlón Glacier LagoonLocated at the foot of the Breiðamerkurjökull glacier, this lagoon is filled with glistening icebergs that drift out to the ocean. It’s one of Iceland’s most photogenic sites, paired perfectly with a stroll along Diamond Beach across the road. Driving here allows for spontaneous stops at nearby wonders like Fjallsárlón, Svartifoss, and the dramatic lava fields near Skaftafell. Explore Jökulsárlón via Visit Vatnajökull.5. Snæfellsnes PeninsulaNicknamed “Iceland in Miniature,” Snæfellsnes offers a taste of everything — from windswept beaches and lava caves to glacier-capped volcanoes. Sites like the black church at Búðir, the fishing village of Arnarstapi, and the eerie Londrangar cliffs are must-sees. With a rental car, you can loop around the peninsula in a day or stay overnight to experience its quieter magic. Explore Snæfellsnes on Visit West Iceland.6. WestfjordsThe Westfjords are Iceland’s remote frontier — a land of empty roads, deep fjords, and untamed beauty. From the dramatic Dynjandi waterfall to the puffin-covered Látrabjarg cliffs, this region is a paradise for solitude seekers. It’s less visited due to longer travel times, but well worth the journey. A rental vehicle gives you the independence to explore tiny fishing villages, soak in geothermal pools like Hellulaug, and experience Iceland’s quiet side. Learn more on Visit Westfjords.7. Dettifoss WaterfallEurope’s most powerful waterfall is found in the north, thundering 45 meters into the Jökulsárgljúfur canyon. The route to Dettifoss — particularly from the east — requires careful driving, and is best handled with a well-equipped vehicle. Pair this stop with nearby Ásbyrgi canyon or the geothermal area of Hverir for a full northern adventure. We covered Dettifoss on this Zero Car Dettifoss guide8. Lake MývatnGeologically active and richly biodiverse, Mývatn is a region of pseudocraters, lava fields, and bubbling geothermal areas. A rental car allows you to hop between Dimmuborgir’s eerie formations, the boiling mud pools at Hverir, and the calming waters of Mývatn Nature Baths — the north’s answer to the Blue Lagoon. Visit North Iceland on Mývatn.9. LandmannalaugarAccessible only by high-clearance 4x4 vehicles, Landmannalaugar rewards those willing to venture off the beaten path. The rhyolite mountains glow in hues of orange, green, and purple, especially at sunrise and sunset. There are trails for all hiking levels, and soaking in the natural geothermal river is a rite of passage. Plan carefully and always check F-road conditions before heading out. Visit Iceland’s Landmannalaugar guide.10. The HighlandsVast, wild, and virtually untouched, Iceland’s Highlands are the soul of the country’s raw nature. Expect stark landscapes, glacier rivers, and a sense of profound isolation. Destinations like Askja caldera, Hveravellir hot springs, and Þórsmörk are accessible only in summer and require careful planning. A well-maintained 4x4 rental vehicle makes it possible to venture into these mystical terrains safely and comfortably. Visit Iceland’s Highland overview.Final thoughts: Iceland, your wayRenting a car in Iceland isn’t just about transportation — it’s about unlocking the full potential of your adventure. With your own vehicle, every detour becomes a discovery, every roadside stop a story. From the tranquil stillness of fjords to the rumbling thunder of waterfalls, having the freedom to drive where you want, when you want, transforms a vacation into a personal journey.Whether you're gliding across the South Coast in a compact electric vehicle, heading into remote valleys in a 4x4, or planning a cross-country route with spontaneous overnight stays, the right car rental makes it all possible. It means sunrise hikes without waiting for the tour bus, impromptu dips in hot springs, and the joy of reaching those off-the-map places that most tourists never see.Zero Car Rental is more than just a provider — it’s your partner on the road. You’re not just getting keys to a vehicle; you’re getting peace of mind, flexibility, and support at every step. Here's why Zero stands out:Full insurance with no excess, so you're covered from the start — no hidden terms, no surprisesFree 24/7 roadside assistance included in every rental, with no excess nor deductible (this is what sets Zero apart from the competition)Hassle-free airport pickup with secure keybox access, so you can skip the queues and hit the road fasterA fleet of modern, eco-conscious vehicles including electric models, so your adventure is as sustainable as it is scenicThousands of travellers have trusted Zero to help them navigate Iceland’s unpredictable weather, winding F-roads, and spontaneous moments — from glacier-side picnics to unexpected aurora sightings. Renting with Zero means planning less and experiencing more.So start your engine, open the map (or GPS), and get ready to make Iceland your own. The adventure isn’t just in the destination — it’s in the journey. And with Zero Car Rental, every road leads to something unforgettable.So start your engine, turn up your GPS, and let Iceland unfold before you — one road trip at a time.