Compare every car rental in Iceland in just one search

Just in case, quite literally.

Drive without the “what-ifs.”

Not the most exciting part of planning a trip, we know, but it might still be the most important. Because Iceland's roads are beautiful, but they can also be unforgiving. Here’s what you need to know.

The basics are included.

Every rental through us comes with two types of coverage at no extra cost:

• CDW (Collision Damage Waiver): This covers damage to the car itself if you get into an accident. It's the standard. You're covered.
• PAI (Personal Accident Insurance): This covers medical expenses for you and your passengers in case of injury. Also included.

The middle tier

Most providers on our website offer a medium package that adds a new layer of protection for the things standard CDW doesn't cover.

• Gravel Protection (GP): Iceland has a lot of gravel roads, and gravel roads throw rocks. Rocks crack windshields and chip paint. Well, this covers that.
• Sand and Ash Protection (SAAP): Iceland also has sandstorms and, occasionally, volcanic ash. This is not a joke. Windblown particles can strip paint. SAAP is the type of insurance that covers this type of damage.
• Theft Protection: Covers you if the car is stolen. Very, very rare in Iceland, but better safe than sorry, er það ekki?

These coverages do come with deductibles, and the amount varies according to the provider and vehicle type. Please be sure to read the full terms and conditions, found during the booking process, before completing your reservation on our website.

There you'll find what's covered, what's not, and any possible fees for things like late returns or policy violations. We show you everything upfront, and luckily for you, a quick read is all it takes.

The top tier

The crème de la crème, or may we say Það besta af því besta, of the insurance packages. This tier offers everything we mentioned above plus one very nice feature: zero deductible.

Normally, if something happens, you pay a certain amount out of your pockets before the insurance kicks in. That’s what we call a “deductible.” With zero deductible, you pay nothing as the insurance covers you.

This tier may also come with added perks and coverage, like tire and wheel protection, so it's worth checking out.

The necessary evil, explained

It's less complicated than you think

Veggjald or road tax, has now become a part of renting a car in Iceland since January 1 2026. Let’s walk through it together.

So, what changed?

The Icelandic government introduced a new per-kilometer road tax this past January, and it applies to all rental vehicles, regardless of the company, office location, or type of vehicle. Think of it as a small contribution toward maintaining the very roads you came to drive. The Ring Road, the mountain passes, the tunnels…well, someone has to take care of them.

Here's why this happened. For a long time, Iceland's road maintenance was paid for through taxes on diesel and gas, but then more travelers and locals started switching to electric vehicles. Fewer people buying fuel meant less money for the roads. So the government introduced this per-kilometer tax to keep the roads in good shape for everyone, including you.

And how does it work?

This new tax is calculated based on how many kilometers you drive. The exact payment method depends on the vehicle you select. Some providers will include it in the daily rate. Others may charge it separately at the end of your rental. Either way, you'll see exactly how it works before you book. No surprises.

The good news

While the road tax is new, fuel prices have gone down. Gas and diesel are now cheaper than they have been in a while. That means your overall driving costs may not change much, if at all. A small step in one direction, a small step in the other. Það jafnast út (it balances out).

What to expect from Travel to Iceland

It’s not like we love taxes, but we do love Iceland's roads. And this one helps keep them safe, drivable, and open for travelers like you.

You'll see the road tax clearly stated during the booking process. No hidden fees. No last minute surprises. Just a simple, transparent cost of driving in one of the most beautiful places on earth.

The most common questions we get

…and the answers you were about to Google

How far ahead should I book a rental car?

The simple answer is as early as you can. For summer travel (June to August), we recommend booking at least six months in advance. That's when you'll find the best selection and the most competitive prices.

Can I pick up and drop off the car in different locations?

Já, many of our trusted providers offer one-way rentals. The most common setup is between Reykjavík and Keflavík Airport, in either direction. You can pick up your bílaleiga (car rental) at the airport and return it in the city, or the other way around. Handy if you're starting or ending your trip somewhere other than where you landed.

How old do I need to be to rent a car in Iceland?

Most providers require you to be at least 20 years old for a standard car. For larger SUVs or more powerful vehicles, the minimum age is usually 23. That said, each provider sets its own age limits. Some have different rules, especially for younger drivers or premium models. You'll always see the specific requirements clearly during booking, before you commit.

What documents do I need to pick up the car?

To pick up your bílaleiga, you'll need three things:

• A valid ID or passport, so the provider knows it's actually you.
• An original driver's license that you've held for at least 12 months. No photos, no paper or digital copies, no screenshots.
• A valid credit card in the name of the main driver.

If your driver's license is not in the Latin alphabet (for example, Chinese, Japanese, or Russian) and does not have an English translation, you must bring an International Driving Permit (IDP) alongside your original license.

Where can I pick up and drop off the car?

Most of our trusted providers have locations in two key spots:

• Near Keflavík Airport (KEF)
• Downtown Reykjavík

We always show the exact address and hours during booking, so you know exactly where to go.

Is there a deposit? How much is it, and how long is it held?

Usually, já. The deposit amount depends on the provider and the insurance level you choose. In some cases, if you opt for a zero-deductible package, the provider may waive the deposit entirely. Every provider handles deposits differently. Take a moment to check their specific terms before you book. We show them clearly during the booking process, right on the vehicle page. The deposit is held for the entire rental period. Once you return the vehicle and everything checks out, it gets released back to you.

Do you offer roadside assistance?

Every rental comes with access to a roadside assistance line, but whether or how much you pay for the help depends on the type of incident. Some providers include roadside assistance at no extra cost if you've opted for a higher insurance level. Others may charge a fee for a tow, a battery jump, or lockout service.

What is the fuel policy?

Most providers operate on a ‘same to same’ policy. Pick up the car with a full tank? Return it full. Half full at pickup? Bring it back half full. Simple as that!

What if I return the car early or late?

Returning early is fine, but most providers won't refund unused days. Returning late is trickier. Most providers offer a short grace period, especially during rough weather or road conditions. But if you miss your agreed drop-off time without warning, you'll typically be charged for an extra rental day.

Is unlimited mileage included, or is there a daily limit?

Unlimited mileage is included with every rental. No daily limits. No surprise fees per kilometer.