Car rental in Iceland
Choose a city to see cars from local rental companies with prices and terms. Book online in minutes.
Cities with car rental in Iceland
Each city lists cars from local rental companies with prices and terms.
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Cars in Iceland
Choose a city and dates — the form shows available cars from local companies, total price, deposit and insurance.
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Driving in Iceland: licence and road rules
What you need to rent a car and drive here as a visitor. Rules change — check with your rental company before the trip.
An EU/EEA licence is fully valid in Iceland, just like at home.
A UK licence is valid on its own in Iceland — no IDP needed.
A US licence is valid on its own in Iceland — no IDP needed.
Licences printed in Latin letters are accepted; otherwise an IDP is required. Rental companies may ask for an IDP for non-Western licences.
No toll booths; the Vaðlaheiðargöng tunnel near Akureyri is paid online within 24 h (some rentals handle it).
Tip: Highland F-roads are for 4x4 only and open only in summer; check road.is and safetravel.is for wind and closures, and hold doors firmly in strong winds.
How to rent a car
Four steps from choosing a city to getting the keys in Iceland.
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Choose a city and dates
Pick where and when to collect the car. You can return it to the same place or, with many companies, in another city.
Pick-up and drop-off in the form -
Compare the cars
Each car shows the total price for your dates, the deposit, insurance, mileage limit and driver requirements.
All terms before you book -
Book online
The rental company confirms the booking. Usually a small prepayment online and the rest on pick-up.
Confirmed by the company -
Get the keys
Bring your passport and driving licence. The car is handed over at the office, the airport or, often, at your hotel.
Passport + licence
Car rental FAQ
The essentials, so you can plan your trip with confidence.
Do I need an International Driving Permit to rent a car in Iceland?
EU/EEA licence: An EU/EEA licence is fully valid in Iceland, just like at home. UK licence: A UK licence is valid on its own in Iceland — no IDP needed. US licence: A US licence is valid on its own in Iceland — no IDP needed. Licences printed in Latin letters are accepted; otherwise an IDP is required. Rental companies may ask for an IDP for non-Western licences.
Where do I get an International Driving Permit?
Get it at home before the trip: in the UK at PayPoint shops, in the US through AAA, in EU countries from the licensing authority or national automobile club. It is a translation of your licence and is valid only together with it.
What are the speed limits in Iceland?
Typically 50 km/h in towns, 90 km/h outside towns. 80 on gravel roads; no motorways. Always follow the signs — cameras are common and fines reach you via the rental company.
Are there toll roads or vignettes in Iceland?
No toll booths; the Vaðlaheiðargöng tunnel near Akureyri is paid online within 24 h (some rentals handle it).
What is the drink-driving limit?
The limit is 0.2 ‰ blood alcohol. The safest rule is not to drink at all before driving.
Where can I pick up a car?
Hveragerdi, Keflavik & Reykjavik.
Can I return the car in another city?
Many companies allow it, sometimes for a fee. You can choose the drop-off location in the booking form.