24 October 2025
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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
Why Rent a Car in Iceland for Your Road Trip?
There is no better way to explore Iceland than by car. Public transport only connects a few routes, and tours stick to crowded stops. A rental car gives you full freedom to travel at your own pace and reach natural wonders that buses can’t. With Zero Car Rental, you can collect your vehicle at Keflavík Airport or in Reykjavík, saving time and starting your adventure right away. Driving across Iceland lets you pause wherever you like, from roadside hot springs to glacier viewpoints and small fishing villages. For scenic stop ideas and route planning, visit the Driving in Iceland guide.
How to Choose the Right Car for Iceland’s Roads
Electric and Hybrid Cars for Sustainable Travel
Electric and hybrid vehicles are perfect for Iceland’s paved roads and main attractions. Iceland’s charging network is strong, and Zero Car’s electric car rental fleet makes sustainable driving easy and affordable. Charging costs less than fuel, and many hotels offer free charging stations. With Iceland’s renewable energy system, exploring in an EV or hybrid supports low-impact travel and cost savings.
When to Choose a 4x4
If you’re heading into the Highlands, a 4x4 is essential. F-roads like those leading to Landmannalaugar, Askja, or Kerlingarfjöll are unpaved and can include river crossings. Always check conditions on the Icelandic Road Authority website before setting off. For routes off the beaten path, explore the Hidden Gems of Reykjanes Peninsula.
Compact Cars for the Ring Road and City Travel
Compact cars are best for Reykjavík, the Ring Road, and most year-round routes. They’re fuel-efficient and easy to park, handling Iceland’s paved highways comfortably. Travelers focusing on top natural attractions can check the Best Waterfalls in Iceland guide for inspiration.
What Costs and Insurance Should You Know About?
Zero Excess Insurance
Many car rentals in Iceland charge extra for full coverage. Zero Car Rental includes comprehensive insurance with zero excess, so you’re protected against gravel, sand, and wind damage without hidden costs. It’s one of the simplest and safest options available for travelers.
Fuel and Charging Costs
Gasoline prices in Iceland are high compared to Europe, while electricity stays affordable. This makes hybrids and EVs the smarter choice for long trips. See Practical Information for Drivers for charging station maps and updated fuel prices.
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.
How to Plan the Perfect Road Trip Itinerary
A well-planned itinerary helps you balance drive time and sightseeing. Here’s a sample 10-day route:
- Days 1–2: Reykjavík and the Golden Circle.
- Day 3: South Coast to Vík.
- Day 4: Skaftafell and Jökulsárlón Glacier Lagoon.
- Days 5–6: Eastfjords and Egilsstaðir.
- Days 7–8: Akureyri and North Iceland.
- Days 9–10: Return through Snæfellsnes Peninsula.
For more unique routes and inspiration, explore Travel Stories.
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.
When Is the Best Time for a Road Trip in Iceland?
Summer (June–August)
Ideal for long drives, festivals, and 24-hour daylight.
Spring and Autumn (May and September)
Great for lower prices and fewer tourists, with changing colors and crisp air.
Winter (October–April)
Perfect for Northern Lights seekers. For viewing tips, read Hunting the Northern Lights in Snæfellsnes.
How to Make Your Iceland Road Trip Sustainable
Iceland leads the world in renewable energy. Traveling in an EV or hybrid supports this mission and keeps your journey clean and quiet. Check the electric car rental options to plan your eco-friendly route. For cultural insights and responsible travel practices, visit the Icelandic Culture blog.
Quick Takeaways
• Renting a car offers unmatched flexibility in Iceland
• Choose compact cars for cities, 4x4s for Highlands, and EVs for sustainability
• Always check weather and road conditions
• Book early for better deals and availability
• Zero Car Rental provides all-inclusive insurance with zero excess
Conclusion: Drive Freely and Discover Iceland Your Way
A self-drive journey across Iceland is one of the best ways to experience its waterfalls, volcanoes, and glaciers. With Zero Car Rental, you’ll have a reliable, fully insured car and local support from start to finish. Whether you’re exploring the Golden Circle, driving the Ring Road, or chasing the Northern Lights, Iceland’s open roads are ready for you. Learn more in our Driving in Iceland guides and start planning today.
FAQs
1. 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.
2. Do I need a 4x4 for the Ring Road?
No, it’s fully paved. 4x4s are required only for Highlands or F-roads.
3. 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.
4. Can I charge an electric vehicle easily?
Yes, chargers are available across the country. Maps and advice are in our Electric Car Rental guide.
5. What insurance should I choose?
Always select full coverage with zero excess, standard with every Zero Car rental.