Undoubtedly, renting a car and self-driving is the optimal approach to explore Iceland. Planning a road trip requires careful consideration of key factors to ensure a smooth journey. Reflecting on my 8-day exploration of Iceland’s south coast region, I’ve assembled the indispensable tips for car rental in Iceland along with the dos and don’ts when driving in the country.
Let’s get to it!
Before we talk technicalities, let’s understand roads and infrastructures.
To drive safely in Iceland, it’s important to stay informed about the current road and weather conditions. This is why it is crucial to consult reliable Icelandic websites for the latest updates before starting your journey. I would recommend keeping an eye on Vegagerðin’s website. It is the Icelandic entity responsible for building, maintaining, and overseeing roads and related infrastructure in rural and urban areas. Regarding the traffic and road conditions throughout Iceland, I would advise you look at their traffic info section.
Another option would be Safetravel, your go-to source in Iceland you need for your trip. Their conditions map gives you real-time updates on road closures, wind speed, traffic, and webcams, ensuring you’re well-informed before you travel. If you sign-up for their free SMS service, you will be instantly notified of any changes.
To help you prep for the road ahead, Safetravel provides multiple resources to help you learn about driving in Iceland, including tips for highland driving, explanations of road signs, speed limits, and helpful video tutorials. Make sure to check them!
Iceland roads, everything you need to know.
In Iceland, there are three primary types of roads: paved, gravel, and F-roads. The most important one being, Highway no. 1, known as the Ring Road or Route 1. This road encircles Iceland over 1322 kilometers. It is fully paved, and typically accessible year-round, though temporary closures may occur due to winter conditions.
On the other hand, F-Roads, or mountain roads, lead to Iceland’s interior and are usually open during summer. Travelers venturing into the highlands should use four-wheel-drive vehicles with adequate ground clearance. For these roads, we were advised to always consult with our rental agency for the best vehicle choice and refer to Epic Iceland Epic Iceland for additional guidance on mountain road navigation.
What about the speed limit?
Whether you will be taking the Ring Road or the F-roads, Iceland’s maximum speed limit is generally 90 kilometers per hour (approximately 56 miles per hour) outside urban areas. However, the speed limits can vary depending on road conditions and specific areas, so it’s essential to watch for signage indicating the current speed limit. Whitin the urban areas, the speed limit is typically 50 kilometers per hour (approximately 31 miles per hour), unless otherwise posted.
Car Rental in Iceland, the available options.
Driving along the Ring Road is generally smooth. As a major road, it’s well-maintained and suitable for a standard 2-wheel drive vehicle.
When it comes to car rental in Iceland, there are several options available depending on one’s preferences and needs. Aside from well-known rental companies such as Hertz, Sixt, Europcar, etc, there is an abundance of local companies to consider. We began our search by visiting guide to Iceland website to have an overall idea about the car rental industry and the expected prices for a rental vehicle. After this, we had to check the available rental types and the suitable options for the winter weather conditions. We also looked at other factors such as rental terms, insurance coverage, and additional services.
In general, you will have a range of vehicle types available for rent: Sedans, SUVs, camper vans, and RVs.
Sedans and cars are the cheapest options and are suitable for regular roads in good weather conditions. On the other hand, SUV, Jeeps, and 4x4s are the most rented options in Iceland. They are robust vehicles which makes them ideal for multiple roads and weather conditions. RVs and Camper Vans rank as the most expensive rental options. However, they make up the expenses by covering the accommodation costs.
[Keep in mind] Celebrated for their van life experience, campers are quite popular during summertime. In the cold season, campsites close starting September. This limits the camping options and the high risk of the vehicle flipping due to strong winds makes this kind of rental quite risky.
Car Rental requirements and insurance.
To make it simple, I listed the 5 most important things to check before you proceed with car rentals in Iceland.
First, your driver’s license needs to be in Roman English letters; if not, you could get an International one. Bring the physical license, and check whether the company requires you to have held it for the last 12 months.
Second, the age requirements are usually 20-23 for the main driver and 19 for the secondary one, but it varies depending on the car rental company.
Time to talk deposit. The companies require a credit card; it’s handy for perks like waived fees and extra car insurance. Before renting your car, make sure to always confirm these details with the rental company you pick. If you opt for insurance through credit cards or third parties, confirm coverage details and reimbursement processes with the car rental company, since damage costs are paid upfront and later reimbursed through insurance.
Now, let’s move to the insurance. It’s crucial not to overlook car rental insurance in Iceland. The potential for vehicle damage is high and the cost of insurance is a worthwhile investment compared to the potential expenses from a damaged car. Each car rental company varies in costs and coverage, so when comparing prices, it’s essential to consider these expenses alongside the base rental price.
Last but not least, pay attention to the deductible cost, as many insurance plans have one for any damages upon return. Reading the fine print is also vital. Coverage may not exempt you from certain situations like high water crossing or collisions with animals.
Our car rental experience.
After some digging, we decided to rent from Icerental 4×4. We took a Suzuki Vitara for our 7 days winter trip to the South Coast of Iceland and paid around 350 euros. The base cost for the car was 250 and the rest was for the insurance fees (silver insurance). The process was very straightforward through their website, and they provided a complimentary airport pickup/drop-off without any additional fees. Their customer service was really quick and friendly. On the second day, we noticed the heater wasn’t working, so we gave them a call. We were impressed by how swiftly they resolved the issue. They requested us to return the car to the office and provided us with a new one.
[Travel tip] Winter in Iceland means snow, road closures, and less daylight. Rental cars have winter tires, but if you’re not used to winter driving, it’s better to hire an experienced guide or driver.
What you need to know before driving in Iceland!
When driving in Iceland, it’s important to adhere to both the dos and the don’ts to keep yourself safe.
Make sure to follow Iceland’s driving regulations and stay informed about weather warnings and road closures to navigate effectively. Remember to fuel up before leaving urban areas and always carry emergency supplies, including warm clothing and a first aid kit, especially when venturing into remote regions where assistance may be limited. [In case of emergency, call 112].
Conversely, avoid stopping in the middle of the road or drive off designated roads. While the first could result in fatal collisions, the second threatens fragile ecosystems and result in environmental damage. Speeding and ignoring road signs are also prohibited, as they endanger both yourself and others on the road.
I know Iceland screams adventure, but maintaining a rational mindset ensures not only your own safety but also the safety of those around you.
With this being said, we wrap up the essential tips for car rental and driving in Iceland. Now that you’re equipped with all the necessary information, it’s time to start planning your trip to Iceland! Check out these resources to kick-start your journey:
Flight: Iceland has two main commercial airlines: Icelandair and PLAY. Icelandair is the larger of the two, offering extensive global coverage, while Play provides a budget-friendly option. Both airlines offer travel options within Iceland. Check Skyscanner or Expedia to look for good deals before buying your flight tickets.
Accommodation: Airbnb and Booking were our reference platforms to find accommodation, however you could also consult Hostelworld for affordable hostels and lower prices.
Tickets: Attraction tickets and Tiqets are the best when it comes to purchasing entrance tickets in Iceland but also around the world.
Useful websites: When in Iceland, these four websites are your best friends: Safetravel, Road, Vedur, WET. These will keep you updated about roads traffic and conditions.
Further readings
Want to read more about Iceland? Be sure to check out these articles: Our 101 Iceland travel guide, and our Must try foods in Iceland.
If you are planning your next road trip to Iceland, here is our one-week itinerary for a self-driven road trip throughout the South Coast of the Ring Road.
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