Iceland Car Rental Guide: Best Cars for Every Traveler & Trip with Zero Car

Renting the right car can make all the difference on an Iceland road trip. Whether you’re a solo backpacker, a first-time visitor, or traveling with a big family group, Zero Car Rental offers a wide fleet of vehicles for every need and season. In this guide, we’ll recommend the best rental cars in Iceland for different types of trips and travelers – from budget-friendly city cars to rugged 4x4s for the Highlands – all fully insured with zero excess and no hidden fees. Read on to discover what car to rent in Iceland for your adventure and why Zero Car’s hassle-free service makes it the ideal choice for exploring the Land of Fire and Ice.

Small Cars for Solo Travelers & Couples (Budget-Friendly Adventures)

If you’re traveling solo or as a couple and plan to stick to paved roads and popular routes, a small economy car can be your perfect companion. Zero Car Rental’s fleet of compact cars – like the Toyota Aygo or Toyota Yaris – are fuel-efficient, easy to drive, and light on the wallet. These 2WD hatchbacks are ideal for city drives around Reykjavík, the Golden Circle, and the Ring Road in summer months. For example, the Toyota Aygo boasts excellent gas mileage (~4.1 L/100km) and a surprisingly comfortable ride for a mini-car. It’s perfect for budget-conscious travelers who want to explore Iceland’s main sights without spending a fortune on fuel.

Despite their compact size, small cars like the Aygo and Yaris maximize space efficiency. The Toyota Yaris can seat up to 4–5 people and fit a couple of suitcases in the trunk, proving that you don’t need a big vehicle for a road trip for two. Features like Bluetooth connectivity and heated seats (common even in these small models) add comfort and convenience during your journey. If you’re a first-time visitor driving in Iceland during summer on well-maintained roads, a nimble car like the Yaris or the Kia Rio (a similar compact model) will serve you well. They handle paved roads and typical gravel parking areas with ease.

Why choose a small car? 

For one, they are very economical – both in rental rate and fuel costs. You’ll save money that can be better spent on Iceland’s attractions. Parking and maneuvering in towns becomes simpler with a tiny car, and features like automatic transmission (available in models like the Aygo Automatic and Yaris) make them easy to drive for newcomers unfamiliar with manual gears. Just keep in mind that small 2WD cars are not permitted on F-roads (mountain/highland roads) and are best suited to regular highways and city streets. If your itinerary sticks to the Ring Road, Golden Circle, South Coast, and other popular spots, these compact cars are up to the task. For many solo travelers and couples, they strike the perfect balance of comfort, efficiency, and cost-effectiveness for an Iceland adventure.

Comfort for Families – Medium SUVs and Passenger Vans for Group Travel

Traveling with family or a group of friends? You’ll want a vehicle that offers extra space, comfort, and versatility. Zero Car Rental has you covered with mid-size SUVs and multi-seater vans that are perfect for families and small groups. If you have 3–5 people plus luggage, consider a medium SUV like the Toyota RAV4, Kia Sportage, or Suzuki Vitara. These models provide a balance of passenger room and cargo capacity while still being easy to drive. For instance, the Toyota RAV4 is a versatile 5-seater SUV known for its roomy cabin and flexible cargo space – it can fit around four large suitcases especially with the rear seats folded down. That makes it a comfortable choice for a family of four touring the Ring Road or a group of friends on a weekend road trip. The RAV4 (and comparable models like the Sportage or Hyundai Tucson) also come with advanced infotainment (Bluetooth, USB charging, Apple CarPlay/Android Auto) and modern safety features, keeping everyone entertained and safe during the drive.

Another advantage of these mid-size SUVs is their capability in all seasons. All-wheel-drive SUVs like the RAV4 or Suzuki Vitara offer extra stability if the weather turns or if you venture onto gravel side roads. They have higher ground clearance than a small car, which is reassuring when driving on rougher stretches of road or through rain and light snow. If you’re visiting in winter or plan to explore areas like Snaefellsnes Peninsula’s gravel routes, a mid-size 4x4/AWD can provide peace of mind (all Zero’s rentals come with winter tires in winter months by default for safety). Families with kids also appreciate the extra space to spread out on longer drives – no one wants to be cramped for a multi-hour journey to Akureyri or Jökulsárlón.

For large groups (6–9 people) or those traveling with a lot of gear, consider upgrading to a passenger van. Zero Car offers 9-seater vans like the Toyota Proace and Renault Trafic, which are fantastic for keeping everyone together and cutting costs per person. With nine full seats, these vans can accommodate big families or two smaller families traveling together. Importantly, they feature ample luggage room – the Renault Trafic, for example, can fit around nine suitcases in the back, so you won’t have to skimp on luggage. Despite their size, these vans are designed for smooth handling; the Toyota Proace is noted to be “surprisingly nimble on the road”, whether you’re in city traffic or cruising the highway. Both Proace and Trafic come with modern conveniences like Bluetooth connectivity, USB ports for charging devices, and multi-zone climate control so that everyone onboard stays comfortable and entertained.

Road trip tip: If you rent a 9-seater van, you’ll have the advantage of everyone sharing one vehicle (and one fuel bill) rather than splitting into two cars. This can be both more fun and cost-efficient. Just remember that large vans are 2WD and not meant for highland F-roads – they are best kept to the main roads, which is usually fine as most highland routes wouldn’t accommodate such a large vehicle safely anyway. For most family itineraries (Golden Circle, South Coast, Ring Road, etc.), a van or family SUV is perfect. And with Zero’s unlimited mileage, you can drive as far as you want without worrying about extra fees – a huge plus when covering Iceland’s extensive sights. From the kids watching waterfalls out the window to grandparents enjoying the scenery, these family-oriented vehicles ensure everyone has a comfortable seat and room for their belongings on the journey.

Adventure Seekers’ Picks – 4x4 SUVs for Highlands, F-Roads & Winter

If your Iceland plans involve venturing off the beaten path – think highland F-roads, remote hiking trails, or winter travel on icy roads – you’ll need a capable 4x4 vehicle. Zero Car Rental’s fleet features several rugged SUVs that are up for the challenge of Iceland’s diverse terrain. Not only are these the recommended cars for adventurous routes, in many cases they are required by law – remember that any route labeled “F” in Iceland mandates a 4x4 vehicle. Here are some top choices:

Dacia Duster 4x4 – The Duster is “Zero Car’s most popular SUV” and for good reason. This compact SUV has manual 4WD, high ground clearance (~21 cm), and excellent fuel efficiency (~4.7 L/100km). It’s built to handle gravel and mountain roads while sipping fuel, which is ideal for long adventures. The Duster can confidently tackle routes like Landmannalaugar’s F-roads or the rough tracks to the Highlands, all while carrying 5 passengers and 2–3 large suitcases in the back. It’s a no-nonsense, rugged yet affordable 4x4 that gives you access to Iceland’s hidden gems. As a bonus, Zero Car’s Dusters come with modern features (Bluetooth, USB, heated seats) to keep you comfortable during the bumpy rides. Keep in mind all Dusters are manual transmission – great for those who enjoy the control of stick-shift driving on tricky terrain.

Suzuki Vitara (4x4) – Another stellar choice, available in both automatic and manual variants. The Vitara is praised as a “great all-rounder for all seasons in Iceland”. It’s a compact SUV like the Duster but with a slightly more refined interior and an automatic option for those who prefer it. With its advanced 4WD system and 1.6L engine, the Vitara provides confident traction on gravel, snow, or muddy roads. Its fuel economy (~5.7 L/100km) is good for a 4x4, meaning you can roam far without too many fuel stops. The Vitara seats five and has a decent trunk (around 375 liters) – enough for around 3 medium suitcases. If you’re planning a winter trip to chase Northern Lights or want to drive the Kjölur highland route in summer, the Vitara’s blend of efficiency and capability is ideal. It’s truly designed as an all-season, all-terrain SUV that still feels manageable in size for everyday driving.

Jeep Renegade 4x4 – For those who want a bit of style and fun in their adventure vehicle, the Jeep Renegade is a compact crossover with real off-road chops. The Renegade features a smart 4x4 system that can switch between 2WD and 4WD on the fly. This means you can save fuel on easy highways (using 2WD) and engage 4WD when you hit the rough stuff – the best of both worlds. The Renegade is approved for F-roads and has a turbocharged engine providing plenty of pep for climbing mountain tracks. It comfortably seats 5 and has about 380 liters of cargo space, comparable to the Vitara. Features like a touchscreen nav system, Bluetooth, and heated seats come standard, so you’re not sacrificing comfort despite the Renegade’s adventurous persona. This SUV is perfect if you plan to explore areas like Þórsmörk, Kjölur, or the Westfjords’ rough roads, or if you just like the Jeep vibe for cruising around.

Toyota RAV4 4WD – We mentioned the RAV4 for families, but it’s equally suited to adventure travel. The latest RAV4 in Zero’s fleet is “authorized for all roads in Iceland, including F-roads” and provides a bit more size and power than the subcompact SUVs. With a smooth automatic transmission and a balanced mix of power and efficiency, the RAV4 can take you from Reykjavík’s streets to the highland trails of Askja without breaking a sweat. It has slightly more luggage room than the smaller SUVs (room for up to 4 large suitcases), which helps if your adventure involves camping gear or photography equipment. The RAV4 is known for a comfortable ride and lots of tech (many models include Apple CarPlay/Android Auto and advanced driver aids). This makes it a great choice if you want the rugged capability of a 4x4 but also extra comfort for long drives. It’s a favorite for all-season travel – handling winter snow and summer gravel in equal measure.

Toyota Land Cruiser 150 – For the ultimate Iceland expedition, look no further than the Land Cruiser. Often called the king of Icelandic roads, the Land Cruiser is a full-size 4x4 SUV with serious off-road pedigree. It’s fully allowed on all F-roads and practically built to conquer the toughest highland challenges – steep mountain tracks, river fords (shallow ones), and rocky trails. With a powerful 2.8L diesel engine, high ground clearance, and advanced 4WD, a Land Cruiser will get you to remote destinations like Þórsmörk, Landmannalaugar, or the interior Sprengisandur route with ease. It seats five in plush comfort (and some models have an extra jump seat or two for kids), and its cargo area can swallow a ton of gear – up to five large suitcases plus equipment. Despite being a large SUV, it’s engineered to be stable and surprisingly easy to handle for its size; plus, features like cruise control and Bluetooth connectivity make long drives pleasant. The Land Cruiser is overkill for sticking to the Ring Road, but if your itinerary is all about those hard-to-reach highland spots or winter travel in severe conditions, it’s worth the investment for the peace of mind and capability. As Zero Car puts it, this vehicle is “built to dominate every terrain from gravel tracks to highland passes”, truly the go-anywhere, do-anything SUV.

No matter which 4x4 you choose, a few points to remember: Driving off-road (i.e., not on a marked track) is illegal in Iceland, even in a 4x4, and it’s also forbidden (and dangerous) to cross deep rivers, so always stick to legal roads. F-roads often have unbridged streams – only cross if you’re confident and it’s allowed with your vehicle. Zero Car Rental clearly indicates which models are permitted on F-roads and provides guidelines so you won’t accidentally violate your rental agreement. All the 4x4s in Zero’s fleet come with studded winter tires in winter (Nov–Apr) and all-season tires in summer, so your vehicle is equipped for the conditions. For adventure seekers, these SUVs unlock the real Iceland – the volcanoes, valleys, and highland vistas that regular cars can’t reach. Plus, you get unlimited mileage and 24/7 roadside assistance included, so you can push your exploration without worry. With a capable 4x4, Iceland’s rough roads and wild landscapes are yours to discover.

Pro Tip: We ofer an even more prepared version, with the Toyota Land Cruiser Adventure "35 sporting 35 inch tires, snorkel and ready to take anything and anywhere and too the new version of the Toyota Landcruiser 250!  

First-Time Visitors – How to Choose the Right Car in Iceland

If it’s your first trip to Iceland, you might be unsure what type of car you really need. The answer depends on when and where you plan to drive. Here are some tips for first-time travelers renting a car in Iceland:

For Summer & Main Tourist Routes: If you’re sticking to popular destinations like the Golden Circle, South Coast (Route 1), Snæfellsnes Peninsula, and towns around the Ring Road during summer, a 2WD vehicle is usually sufficient. The major roads to these attractions are paved or well-graveled, and in summer there’s no snow or ice to contend with. First-timers can confidently rent a small car (as mentioned earlier, e.g. a Toyota Yaris or Kia Rio) or a family sedan and enjoy the freedom of the open road. A smaller car will be easier to handle if you’re not used to driving abroad, and you’ll enjoy better fuel economy. Zero Car’s small and medium cars all come with unlimited kilometers and full insurance, so you can take that impromptu detour to a waterfall without any second thoughtss. If budget is a concern, remember that rental cars in Iceland are a great option for first-time travellers because splitting costs (if you have travel partners) often makes it cheaper than tours – plus you get the flexibility to go at your own pace.

For Winter or Unpredictable Weather: If it’s your first time in Iceland and you’re visiting in winter or early spring, or you simply aren’t sure about driving in Iceland’s quickly changing weather, it’s wise to rent a 4x4 SUV for extra safety. Icelandic winters can be harsh – icy roads, strong winds, snowstorms – so an AWD/4WD vehicle like a Suzuki Vitara, Dacia Duster, or Toyota RAV4 will give you better traction and stability on slick surfaces. Even if you plan to stay on the main roads, a sudden snow squall can make driving tricky; a 4x4 with winter tires can handle these conditions more confidently. First-timers may not be familiar with gravel roads either – note that even the Ring Road has gravel stretches in the east. An SUV’s suspension and higher clearance will make those segments less intimidating. Zero Car equips all rentals with appropriate tires for the season (studded winter tires when required), so you’ll have the right footwear, so to speak, for the car.

Considering Manual vs Automatic: Many European cars are manual (stick shift), including some of Zero’s fleet like the Dacia Duster and manual Vitara. If you are not comfortable driving a manual, be sure to book an automatic car. Zero Car clearly labels which models have automatic transmissions – for example, the Toyota Yaris and Tesla Model Y are automatics, and there are automatic options in the SUV category like the Vitara Auto or RAV4. Automatics might be slightly more expensive to rent, but for a first-time visitor, the ease of an automatic transmission lets you focus on enjoying the scenery and navigating, rather than shifting gears.

Ask: Do I need a 4x4 for my itinerary? Many first-timers ask this common question. If you are only doing the standard tourist routes (no interior highlands) in summer, you do not strictly need a 4x4 – a 2WD will do just fine on paved roads. However, if your plans include any F-roads (like going into the Central Highlands, e.g. Landmannalaugar, Kerlingarfjöll) or if you’re visiting outside the summer months, then renting a 4x4 is strongly recommended or required. It’s always better to err on the side of caution – you don’t want to miss out on a destination because your rental car can’t handle the road. Check your planned route against maps or with Zero Car’s customer support if unsure; they can tell you which car groups are allowed on which roads.

Peace of Mind with Zero’s All-Inclusive Policy: One thing that really helps first-time renters relax is knowing that Zero Car Rental includes full insurance with zero deductible (zero excess) on all cars. This means you won’t be hit with surprise charges for scratches or gravel dings – a common worry when driving in Iceland, where strong winds and gravel can occasionally chip paint or windshields. With Zero, those protections (Gravel Protection, Sand and Ash Protection, etc.) are already in your rate. First-timers often feel relieved that when they pick up the car, there’s no hard sell for add-ons or insurance, unlike many other rental agencies. Unlimited mileage, 24/7 roadside assistance, and no security deposit required are also part of the package. All of this means you can focus on the fun part – driving around Iceland’s beautiful landscapes – rather than worrying about fine print.

In summary, for your first Iceland trip, choose a vehicle that matches the season and your comfort level. Many newcomers find that a compact SUV provides a nice balance of safety and ease, even if not strictly necessary – for example, a Kia Sportage or Nissan Qashqai gives a bit more ground clearance and AWD without being too large or costly. Others who visit in mid-summer and stick to main roads are perfectly happy with a small car like a Toyota Yaris for a couple or a sedan for a family. And if you’re nervous about winter driving, consider timing your driving for daylight hours and sticking to main routes, or even hiring a guide for a day or two to get used to conditions. With the right rental car and Zero’s support, even first-timers can confidently enjoy an Iceland self-drive adventure.

Eco-Friendly Touring – Electric and Hybrid Car Rentals in Iceland

For the environmentally conscious traveler (or anyone curious about driving an EV), Zero Car Rental offers electric and hybrid vehicles that let you explore Iceland with a smaller carbon footprint. Iceland’s electricity is almost 100% renewable (hydro and geothermal), so driving an electric car here is a great way to travel with zero emissions. Two standout options in Zero’s fleet are the Tesla Model Y and the MG EHS Hybrid:

Tesla Model Y (RWD) – This all-electric SUV combines cutting-edge technology with sustainable travel. The Model Y can go up to 560 km on a single charge under ideal conditions, which is plenty for a day’s journey (for context, Reykjavík to Vík and back is around 400 km). It comfortably seats 5 passengers and has a spacious interior with a panoramic glass roof – perfect for admiring Iceland’s midnight sun or even the northern lights from within your car. First-time EV drivers will find the Tesla intuitive: a large 15-inch touchscreen controls navigation (with built-in maps of charging stations), music, climate, etc.. The driving experience is smooth and almost silent, with instant acceleration that’s handy for merging onto highways. If your itinerary involves the Ring Road, know that Iceland now has a fairly well-developed network of charging stations around the country. Zero provides a Type 2 charging cable with the car and a QR code list of recommended charging spots, so planning your charge stops is easy. One thing to note: the Tesla (like most EVs) is not allowed on F-roads, both because of ground clearance and lack of spare tire (and you wouldn’t want to get an EV wet in rivers). But for all paved routes, the Model Y is a fantastic choice – you’ll save on fuel costs and enjoy high-tech features. Just remember to return it with at least 70% charge (as per Zero’s policy) to avoid a fee, and factor in charging time (fast chargers can top up 80% in about 30-40 minutes, which you can do during a lunch stop). Driving a Tesla in Iceland is not just eco-friendly, it’s also quite fun and luxurious, making your road trip feel extra special.

MG EHS Hybrid – The MG EHS is a plug-in hybrid SUV that offers the best of both worlds: you get an electric motor combined with a traditional engine. It’s one of the newest additions to Zero’s fleet and is highlighted for its fuel efficiency (around 4.9 L/100km) and eco-friendly performance. This vehicle can run on electric for short distances and use its efficient petrol engine for longer drives, which means fewer stops at the pump. Uniquely, Zero Car notes that the MG EHS is the only 2WD vehicle in their fleet approved for F-roads. That’s a surprising twist – it means the EHS, despite not having 4x4, has been deemed capable of certain easier F-roads (likely due to good ground clearance and testing by the rental provider). So if you’re an adventurer who wants to be green but still maybe tackle a mild highland road, the EHS could be an interesting option. The MG seats 5 and has a comfortable, modern interior with about 448 L of trunk space (enough for ~3 medium suitcases). It also features all the modern comforts like heated seats, Bluetooth, and an automatic transmission for ease of use. Driving the MG EHS around Iceland means significantly reduced fuel consumption – great for both the environment and your budget on a long trip. And when you do need to fill up, you’re using less fuel than a regular SUV of similar size. Just remember, even though it’s approved for F-roads, always check conditions and avoid any terrain that seems too challenging – as with any car, driver judgment is key to safety.

Charging & Fueling Infrastructure: If you rent an EV or plug-in hybrid, you might wonder about charging availability. Besides the major towns, even many smaller villages in Iceland now have charging stations (thanks to initiatives by companies like ON Power and others). Along the Ring Road, you can typically find at least a Level 2 or fast charger every 100-200 km, and most accommodations will help you find a place to charge overnight if needed. Zero Car’s Tesla rentals come with at least 70% charge at pickup so you can start your journey right away. The MG EHS being a hybrid can use gasoline (and as a bonus, Zero provides a free fuel discount key fob usable at Olís/OB stations to save a bit on fuel). An important note: cold weather can reduce EV range, so in winter the Tesla’s real-world range will be less than the max – but with planning, it’s still very feasible to do a winter electric road trip, as many have done. If you plan to do so, allow extra time for charging and use the car’s pre-heating features while plugged in.

Choosing an EV or hybrid for your Iceland trip is a wonderful way to travel sustainably. You’ll enjoy silent drives past waterfalls and emit no exhaust as you roll through Iceland’s pristine nature. Plus, electric torque can make mountain roads feel effortless. With Zero Car Rental’s EV offerings, you don’t compromise on experience – the Tesla Model Y, for instance, offers both luxury and zero emissions for an unforgettable journey. Just plan your charging like you would plan rest stops, and you’ll find an electric road trip in Iceland can be as smooth as the traditional kind.

Why Choose Zero Car Rental? – Hassle-Free, All-Inclusive Service

Beyond the specific car models, it’s worth highlighting what makes Zero Car Rental stand out as a company – especially for those seeking a stress-free Iceland car rental experience:

All-Inclusive Pricing: With Zero, the price you see is the price you pay. Every rental includes full insurance coverage with zero excess (zero deductible), which means you’re financially protected if anything happens. CDW, SCDW, Gravel Protection, Sand & Ash Protection, theft protection, and more are already in the rate, so there’s no upselling at the counter and no surprise fees when you return the car. This is a huge relief in Iceland, where weather and road conditions can be tough – you can relax knowing you won’t be charged extra for a minor chip or dent. Moreover, no security deposit is required on your credit card, and there’s free cancellation with flexible booking options. This transparency and flexibility can be a lifesaver if your plans change or flights get rescheduled.

Wide Range of Vehicles for Every Need: As we’ve detailed above, Zero’s fleet truly has “a car for every budget, every adventure, and every traveler.” Whether you need a tiny city car or a giant 4x4, they have it – all modern and well-maintained. The cars come with useful features (many have heated seats, Bluetooth, USB, etc., which are great in Iceland’s climate) and unlimited mileage so you can drive the entire Ring Road or more without tallying kilometers. They even include a free fuel discount card to save a bit at gas stations. Knowing that “our fleet includes vehicles suitable for solo travellers, couples, families, and groups” as one Zero blog put it, you can be confident you’ll find a suitable match.

Hassle-Free Pickup & Drop-off: Zero Car Rental operates a convenient self-service pickup system with keyboxes at Keflavík International Airport and their Reykjavik city office. This means no waiting in rental lines – perfect after a long flight. You simply get a keycode via email and retrieve your car key from a secure box. Many travelers arriving on early morning or late-night flights love this, as you can grab your car 24/7 without an agent present. Drop-off is similarly easy and 24/7 hassle-free – no surprise inspections to haggle over since everything’s covered. Zero is essentially combining the best of local service with modern automation for customer convenience.

Reliable Support: All rentals include 24/7 roadside assistance. In case of any issue – a flat tire, a mechanical problem, or if you just need travel advice – help is just a phone call away, any time of day. This is reassuring, especially if you’re driving in remote areas. Additionally, Zero is a local Icelandic company partnered with the reputable Blue Car Rental as the provider of the vehicles, so you’re in good hands with a team that knows Iceland’s roads inside and outzerocar.is. They also equip all cars with seasonal tires (studded winter tires between Nov 1 and Apr 14) automatically for your safetyzerocar.is, and even provide things like ice scrapers (and sometimes mobile WiFi units as an add-on) to make your trip easier.

Positive Reviews and Trust: Many travelers have reported great experiences with Zero Car, noting the easy booking, no hidden fees, and peace of mind with full coverage. The company’s philosophy of “Zero hassle” really shines through. As one customer review highlighted, it “felt good being completely covered” and being able to pick up the car and drop it off without issues or pressure to buy extras. This kind of trust and reliability is what you want when renting a car abroad.

In summary, Zero Car Rental in Iceland offers not just a vehicle but a holistic, hassle-free service. From the moment you book to the moment you return the keys, they aim to make the process as smooth as possible – Zero waiting, zero excess, zero stress.