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Car Rental Iceland: How to Plan the Perfect Road Trip

6 min read

October 24, 2025

Oscar Briar

Oscar Briar

Verified Local Expert

Oscar Briar is a travel writer and adventurer by heart

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Car Rental Iceland: How to Plan the Perfect Road Trip

Key Summary

  • Learn how to plan your Iceland road trip with the best car rental options and expert tips
  • Discover which car suits Iceland’s terrain, season, and travel style
  • Understand costs, insurance, and EV charging details
  • Travel sustainably with Zero Car Rental, offering zero excess insurance and hybrid or electric options
  • Get more local insights in Practical Information for Drivers and Driving in Iceland

Iceland Road Trip Guide: The Self-Drive Adventure

There is no destination on earth quite like Iceland. A land of fire and ice, its raw, dramatic landscapes, from erupting geysers and massive glaciers to black sand beaches and geothermal hot springs, demand to be explored without the constraints of a group tour. A self-drive Iceland road trip offers the unparalleled freedom and flexibility to discover both the iconic landmarks and the nation's hidden gems at your own pace.

Why a Rental Car is Essential for Your Icelandic Adventure

Choosing a rental car over guided tours is the single most important decision for a truly personal journey across Iceland.

  • Unmatched Freedom: Public transport in Iceland is extremely limited, connecting only major towns and not the natural wonders. Tours stick to rigid schedules and crowded stops. Your own vehicle, secured via an easy keyless pick-up at Keflavik Airport (KEF) or in Reykjavik, gives you the power to pull over for a photograph of an impromptu Northern Lights show, spend an extra hour at a serene waterfall, or visit an out-of-the-way local farm.
  • Access to Remote Beauty: Many of Iceland’s most stunning locations, from quiet coastal villages to spectacular glacier viewpoints, are inaccessible by bus. Driving allows you to tailor your journey, ensuring you see the unique sights you care about most.
  • Efficiency and Comfort: With Zero Car Rental, you save precious vacation time. The convenient collection process and all-inclusive packages mean you can start your adventure immediately, knowing you have a reliable, comfortable vehicle. Plan your route and discover scenic stop ideas with the Driving in Iceland Guide.

Choosing the Perfect Rental Car for Iceland's Diverse Roads

The best vehicle for your trip depends entirely on your itinerary, the season, and your commitment to sustainable travel.

Electric and Hybrid Vehicles for Eco-Friendly Travel

Iceland’s electricity is generated almost entirely from renewable hydro and geothermal sources. Choosing an electric or hybrid car rental with Zero Car Rental is the perfect way to embrace low-impact travel and actively support the country's sustainable energy mission.

Optimal for Main Routes: These vehicles are ideal for the paved Ring Road, the Golden Circle, and accessing most top attractions year-round.

Strong Charging Infrastructure: Iceland boasts a robust and expanding EV charging network, with over 400 stations available nationwide. Charging costs are significantly lower than high gasoline prices, making EVs the economically smarter choice for long road trips. Many hotels and guesthouses offer free charging stations too. Find detailed information on charging locations and costs in the Electric Car Rental Guide.

 

Image of a 4x4 driving in Iceland F-Roads

When to Insist on a 4x4 or AWD Vehicle

Certain routes and seasons require extra traction and ground clearance.

Icelandic Highlands and F-Roads

  • Mountain roads (marked with an “F”) such as those to Landmannalaugar or Askja require a proper 4x4.
  • These routes are only open in summer and often involve river crossings.
  • Rent a capable 4x4 before attempting any highland drive.

Winter Travel (October to April)

  • Even on paved roads, expect snow, ice, and strong winds.
  • A 4x4 with winter tires provides better safety and stability.
  • For guidance, check road conditions on the Icelandic Road Authority (https://www.road.is)

Compact Cars for the Ring Road and City Exploration

If your trip stays mainly on paved roads and around cities:

  • Choose a compact or economy car for comfort and efficiency.
  • Perfect for the Ring Road, Reykjavik, and Golden Circle.
  • Easier to park and more fuel-efficient in summer conditions.

Explore top stops along the way in the Best Waterfalls in Iceland guide.

Navigating Costs and Insurance

Understanding true costs helps you avoid surprises.

Zero Excess Insurance Advantage

  • Icelandic conditions include gravel, wind, and volcanic ash.
  • Many companies charge high deductibles, but Zero Car Rental’s insurance policy includes:
    • Gravel Protection (GP)
    • Sand and Ash Protection (SAAP)
    • Collision Damage Waiver (CDW/SCDW)
  • Zero excess means no hidden fees and full coverage.

Fuel vs. Charging Costs

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Avoiding Hidden Fees

Always read your rental terms carefully. Some companies add costs for GPS or extra drivers. At Zero Car, GPS, full coverage, and unlimited mileage are standard features.

Check out our pick-up and drop-off process and more.

Where to Start Your Iceland Road Trip

Most visitors begin in Reykjavík or Keflavík, close to the international airport. From there, several iconic routes await: the Golden Circle, the South Coast, or the full Ring Road. Each offers a different Icelandic experience. Learn about key stops such as Thingvellir, Gullfoss, and Geysir in the Golden Circle travel guide.

Planning the Perfect Self-Drive Itinerary

Most trips begin around Reykjavik or Keflavik Airport, giving quick access to iconic routes:

Top Routes

  • Golden Circle: Thingvellir, Geysir, Gullfoss
  • South Coast: Reynisfjara Beach, Skogafoss, Seljalandsfoss, Jokulsarlon Glacier Lagoon
  • Ring Road (Route 1): 7–14 days around the entire island

Explore:

What to Know About Road Conditions and Safety

Driving is straightforward but conditions can shift quickly.

Road Types

Main roads are paved, but gravel roads and mountain tracks exist. F-roads open in summer and require 4x4 vehicles. Off-road driving is illegal and harms Iceland’s fragile terrain.

Weather and Daylight

Check forecasts on en.vedur.is before every trip. In summer, daylight can last nearly 24 hours, while winter days are short. Road updates from the Icelandic Road Authority are essential before driving long distances.

Safety Tips

Keep headlights on at all times, drive slower on gravel, and avoid stopping on the road for photos. Download offline maps before heading into remote areas. Read more driving advice in Practical Information for Drivers.

Road Conditions and Safety Tips

Icelandic weather changes fast so preparation is essential.

Safety Essentials

For detailed seasonal advice, visit the Driving in Iceland guide.

When to Go: Matching Season to Experience

Summer (June–August)

  • 24-hour daylight, open Highlands, puffin season.
  • Ideal for EVs, hybrids, or compact cars.

Spring and Autumn (May, September)

  • Fewer crowds, beautiful colors, moderate weather.
  • Compact cars or AWD recommended for stability.

Winter (October–April)

  • Ice caves, snow-covered landscapes, Northern Lights.
  • 4x4 or AWD required for safety.

Learn more in Hunting the Northern Lights in Snaefellsnes.

Image of beautiful scenery in Iceland with a Land Cruiser 4x4 Rental driving.

Drive Freely and Discover Iceland Your Way

A self-drive trip is the ultimate way to experience Iceland’s beauty.
With Zero Car Rental, you get a reliable vehicle, zero-excess coverage, and the freedom to explore at your own pace.

Whether circling the Golden Circle in an EV or tackling rugged highland roads in a 4x4, your Icelandic adventure begins behind the wheel.

Learn more in the Driving in Iceland guide and explore Icelandic heritage in the Icelandic Culture blog.
 

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FAQ for the Perfect Road Trip in Iceland

FAQ for the Perfect Road Trip in Iceland

  • What is the minimum age to rent a car in Iceland?

    Most companies require drivers to be 20 years or older with at least one year of driving experience.

  • Do I need a 4x4 for the Ring Road?

    No, it’s fully paved. 4x4s are required only for Highlands or F-roads.

  • How much does it cost to rent a car in Iceland?

    Expect about €70–€120 per day depending on model and season. EVs are often cheaper to run.

  • Can I charge an electric vehicle easily?

    Yes, chargers are available across the country. Maps and advice are in our Electric Car Rental guide.

  • What insurance should I choose?

    You always have full coverage included with zero excess, at no extra cost.