Don’t Be That Tourist: 8 Classic Car Rental Mistakes in Iceland (and How to Dodge Them Like a Pro)

Ah, Iceland: where waterfalls erupt from mountains, the sun sometimes forgets to set, and sheep outnumber people by a scandalous margin. It’s a country best explored on four wheels—but let’s be honest, renting a car here is not your average "hop in and go" situation. You’re not navigating LA traffic or zipping between wine tastings in Tuscany. You’re driving through lava fields, over gravel moonscapes, and possibly across a river if you’re feeling bold (and have the right car).

To help you avoid rookie errors (and to keep the Icelandic Search & Rescue team off speed dial), here are 8 common car rental mistakes visitors make—and how to avoid them with the grace and wisdom of someone who definitely read this blog first.

1. Playing Insurance Roulette

You know what's more terrifying than an Icelandic sandstorm? The small print on some rental insurance policies.

Many travelers assume they can wing it with the cheapest coverage. Then they learn about CDW (Collision Damage Waiver), GP (Gravel Protection), SAAP (Sand and Ash Protection), and think: What fresh acronym hell is this?

In Iceland, nature fights dirty. Gravel chips paint. Ash scours windshields. A rogue wind can slam your door the wrong way and bend it like Beckham.

Avoid it: Just book with Zero Car Rental. Full insurance, zero excess, no hidden fees, and no panicked phone calls. You’re covered—period.

2. Renting the Wrong Vehicle (a.k.a. “Can This Toyota Yaris Cross a River?”)

Repeat after us: Not all roads in Iceland are created equal. And not all cars are brave enough to tackle them.

2WD: Great for the Ring Road, paved roads, and people who don’t enjoy heart attacks.

4WD: Mandatory for F-roads, aka Iceland’s mountain rollercoasters. Think unpaved chaos with river crossings for flair.

Planning to conquer the Highlands or reach a remote waterfall where only ravens and geologists go? Get a 4WD. If you're just chasing waterfalls like TLC told you not to, a 2WD might suffice.

Avoid it: Know your itinerary. Check road.is for road conditions. Then rent accordingly—or regret accordingly.

3. Forgetting that Fuel Stations Are as Rare as Icelandic Forests

Look, Iceland is not dotted with gas stations every 10 km. Especially in the north. Or the east. Or basically anywhere not called Reykjavík.

And yes, they’re almost all self-service, so you’ll need a card with a PIN. Bonus points if your bank doesn’t freeze your card when it sees “Neskaupstaður” as a charge location.

Avoid it: Always fill up when you can. And if you rent from Zero, you’ll get fuel discounts, so your wallet doesn’t weep at every pump.

4. Laughing in the Face of Icelandic Weather (Until the Weather Laughs Back)

Icelandic weather doesn’t care that you’re on vacation. Sunshine can become a sandstorm in 15 minutes. Wind will rip your car door open like it’s trying to escape the plot of a disaster movie.

Driving in Iceland means being humble. It means checking vedur.is religiously and accepting that yes, your plan to see “everything in one day” might be replaced by “watching clouds from a hot tub.”

Avoid it: Slow down. Check conditions. Respect the wind. And don’t worry—Zero includes roadside assistance in every rental, just in case nature gets extra sassy.

5. Breaking the (Surprisingly Strict) Driving Laws

Icelanders are chill, but not about driving rules.

Headlights on. Always. Even if it’s bright enough to tan.

Seatbelts? Yes, for everyone. Including your friend “just lying down in the back.”

Off-road driving? Absolute no-go. It wrecks delicate moss that took 100 years to grow and might earn you a hefty fine—and a nationwide scolding.

Avoid it: Read the rules. Follow them. And keep Iceland beautiful for the next curious traveler with a camera and questionable footwear.

6. Thinking “Gravel Road” Just Means Bumpy

You know what makes Icelandic gravel roads exciting? They’re not your local countryside backroad. They curve, they slide, they send rocks flying like popcorn kernels.

Single-lane bridges? Super common. Blind hills? Everywhere. Sheep wandering across the road like they own it? Basically guaranteed.

Avoid it: Drive slow. Be alert. Don’t tailgate. And if you hear a rock ping off your car, silently thank yourself for choosing a rental that includes gravel protection.

7. Cramming 8 Days of Travel Into 3.5 Days of Driving

Iceland’s landscapes are stunning—but driving 6 hours a day just to tick off another waterfall? That’s the fast lane to burnout.

Yes, the island’s smaller than Texas. No, that doesn’t mean you should treat it like a racecourse.

Avoid it: Slow travel is the best travel. Want route ideas? Our Ring Road highlights guide has everything from must-see waterfalls to “wow, how is this even real” stops. Plan smart. Allow for detours and snack stops.

8. Waiting Until the Plane Lands to Book

Newsflash: Iceland is popular. Especially in summer. And nothing screams “rookie mistake” like assuming you can book a 4WD at the last minute and still get a decent price.

Even worse? Landing at midnight with no ride and a very expensive taxi waiting to welcome you.

Avoid it: Book early. And better yet, use Zero’s keybox pickup at KEF Airport. Grab your keys anytime, day or night, and hit the road faster than your luggage hits the carousel.

Final Thoughts: Drive Like a Local, Not Like a Legend

Renting a car in Iceland doesn’t have to be a confusing, contract-laden minefield. It can be simple. Transparent. Dare we say... fun?

Zero Car Rental is built for travelers who want peace of mind without paperwork drama. We’re talking:

• Full insurance, no excess
• Free cancellation
• No deposit required
• Unlimited mileage
• Roadside assistance 24/7

A fleet that includes cars actually suited to Iceland’s roads

So do yourself a favor. Avoid these mistakes. Drive smart. Laugh often. And get ready to make friends with waterfalls, sheep, and the occasional puffin.

Ready to rent like a pro? Book your Zero car now and make your Icelandic road trip the smoothest part of your adventure.