Renting a Car in Iceland

Renting a car in Iceland is easy but more expensive than in the United States. IST can arrange for you to rent just about any kind of vehicle for pick up at the airport, delivery to your hotel in Reykjavík or pick up at other locations in Iceland.

IST can arrange for your rental car needs with one of several reputable firms based in Iceland and pre-pay your estimated costs. You may have additional cost as noted below. Check with IST for car types, prices and terms and conditions.

Cars are well maintained, generally one to two years old and come in a large variety of types and brands…from small four-seaters to large nine passenger four wheel drive vans with camping trailers. Prices are determined by the number of days rented (discounts usually apply when renting for more than 6 days) and for the per day kilometer option selected (100, 200 or unlimited). The driver has the option to select collision damage waiver for an additional fee. Prices are higher for summer months (June - August) than off-season months.

Requirements/information:

• The driver(s) must be 20 years or older. For larger 4WD vehicles the driver must be 23 or older.
• The driver(s) must have a valid US state-issued drivers license.
• Off-road driving and highland road driving is restricted based on vehicle type.
• Automatic transmission vehicles are available but not plentiful, usually come in one or two model types only and are more expensive.
• Minimum one-day rental.

Prices include:

• Icelandic VAT (24.5%)
• Third Party Liability Insurance
• Car pick-up and drop-off at Airport or Reykjavík hotel

Not included:

• Fuel and oil fill up
• Collision Damage Waiver coverage
• Damage to underside of vehicle is never covered by insurance

Separate charges may be levied for expanded CDW, additional drivers, refueling, after hours return and delivery and one way rentals. Additional equipment can be rented as follows:

• Trailers/modified campers with tents
• Baby seats
• Sleeping bags
• Foam mattresses
• Portable car phone (GSM or NMT)
• Roof rack
• Extra fuel tanks
• Ropes and shovels
• Luggage trailers

Driving in Iceland

• Right hand drive
• Maximum speed of 90 km/hrs.
• In towns 55 km/hrs down to 30 km/hrs
• Driver and all passengers are required by law to use seat belts
• As elsewhere in the world, driving under the influence of alcohol is forbidden
• Use of headlights at all times of day and night is required

All roads in the interior of Iceland have a surface of loose gravel. The same applies to sections of the national highways, which also have long stretches of asphalt. 98% of the ring road (Route 1) is paved. The surface of gravel roads is often loose, especially along the sides of the roads, so drive carefully and slow down whenever approaching an oncoming car. The roads of the interior are often very narrow, and are not made for speeding. The same goes for many bridges, which often are only wide enough for one car at a time. Driving through rivers and streams is not recommended unless a suitable vehicle type is rented and local advice is sought.

Gas stations are plentiful in the greater Reykjavík area and spread out in the country. Most are open seven days a week and many until 10:00 pm. Self serve pumps are available throughout the southwest and in a few major towns elsewhere. Octane levels are 95 for regular unleaded and 98 for premium unleaded.