iceland north east myvatn road at sunset rth

Car Rental in Iceland

Home Destinations Nordic Europe Iceland Car Rental in Iceland

We use the local franchise holders of internationally known Europcar. The majority of vehicles are not older than three years old and many are brand new. Depending on your itinerary, vehicles may be collected on arrival at Keflavik, Reykjavik City, Akureyri, Egilsstadir or Isafjordur airports (where rental documentation and formalities are handled upon collection of keys).

When staying in Reykjavik and Akureyri, you will be collected from your hotel and taken to the car rental depot (close to the centre) to complete the rental documentation. And if required, have a briefing on the vehicle’s controls and driving in Icelandic conditions.

Download a handy summary of ‘Things you need to know’.

Vehicle Categories

Please note vehicle types may vary (below are guidelines, and similar makes and models are also distributed for each category; we reserve the right to substitute an alternative vehicle of the same or higher category).

iceland europcar group a vw polo

A - VW Polo 1.2 5dr

  • Manual/Automatic transmission
  • 26 mpg / 10 gallon tank
  • NOT ALLOWED FOR HIGHLAND DRIVING
iceland europcar group b vw golf

B - VW Golf 1.6 5dr

  • Manual/Automatic transmission
  • 29 mpg / 12 gallon tank
  • NOT ALLOWED FOR HIGHLAND DRIVING
iceland europcar group d skoda octavia

D - Skoda Octavia Combi 4WD 5dr

  • Manual transmission
  • 30 mpg / 14 gallon tank
  • NOT ALLOWED FOR HIGHLAND DRIVING
Vitara

F - Suzuki Vitara 5dr 4WD

  • Manual/Automatic transmission
  • 29 mpg / 14 gallon tank
  • ALLOWED FOR HIGHLAND DRIVING
Group G

G - Toyota RAV4 5dr 4WD

  • Manual/Automatic transmission
  • 40 mpg / 15 gallon tank
  • ALLOWED FOR HIGHLAND DRIVING
iceland europcar group h kia sorento

H - Kia Sorrento 5dr 4WD

  • Automatic transmission
  • 43 mpg / 20 gallon tank
  • ALLOWED FOR HIGHLAND DRIVING
land Rover defender

R2 - Landrover Discovery 5dr 4WD

  • Automatic transmission
  • 27 mpg / 21 gallon tank
  • ALLOWED FOR HIGHLAND DRIVING
Europcar VW ID3

EB - VW ID3

  • Automatic transmission
  • Electric vehicle
  • NOT ALLOWED FOR HIGHLAND DRIVING
2022 tesla model y

ESSY - TESLA model Y 4x4 automatic

  • Automatic transmission
  • Electric vehicle
  • NOT ALLOWED FOR HIGHLAND DRIVING
volvo XC60 4x4 hybrid europcar iceland

TQ - Volvo XC60 4x4 auto Hybrid

  • Automatic transmission
  • Hybrid vehicle
  • ALLOWED FOR HIGHLAND DRIVING

Notes

  • Category A – not recommended for more than 2 adults when touring

Other vehicles

There are plenty of other types of vehicles available, including Hybrid and Electric vehicles – if you can’t find quite what you are looking for here then please contact our team.

Vehicle Rental Terms

Below are the main terms which apply when renting a vehicle in Iceland. Should you have any specific requirements just let us know. We will endeavour to provide the requested vehicle. However, if this isn’t possible, we reserve the right to provide an alternative of a similar or superior standard. If you have any questions please don’t hesitate to contact us. You can also read the full rental terms of Europcar.

Included

  • Rental of the car for the agreed period on an unlimited mileage basis
  • Semi-comprehensive insurance – no charge for second driver
  • Icelandic VAT

All rentals include a standard insurance policy and include Collision Damage Waiver (CDW) which limits excess for accidental damage. Excess charges vary depending on car group and are stated on your rental document that you will receive when collecting your car. Excesses are charged locally in Icelandic Krona. Clients should take careful note of the standard exclusions that apply to vehicles hired in Iceland.

Exclusions include but are not limited to:

  • Driving under the influence of any intoxicants
  • Driving in or across rivers or any kind of waterways. Such driving is totally the responsibility of the lessee
  • Damage caused by sand or ash*, gravel, pumice, or other kinds of earth material being blown onto the vehicle
  • Driving in banks of snow and ice
  • Vehicle use that contravenes Icelandic law and/or the provisions of the lease
  • Damage to the underside of the vehicle
  • Off road driving or driving on F Class roads unless as specified in the Rental Terms and Conditions

*Sand and ash damage insurance cover can be purchased from Europcar when you collect your vehicle.

Careful notice should also be taken of the additional exclusions that apply to the CDW section of the cover.

If you damage a rental vehicle the excess charges can be very high. You may wish to purchase excess waiver insurance at the time of collecting your vehicle or consider taking out cover before you travel with one of the UK companies offering excess waiver insurance.

Child car seats or booster seats and GPS can be added to your rental, these are payable locally but must be ordered in advance. Please contact your travel specialist for a quote.

A second named driver is free of charge but must be declared direct to Europcar when you collect your vehicle.

You must be 20 years of age and to have held a full driving licence for a minimum of 12 months prior to renting a vehicle in Iceland. To rent a luxury vehicle (including, but not limited to groups R, J, L you must be 25 years of age and to have held a full driving licence for a minimum of 12 months.

A valid Visa or Mastercard credit card is required by the car rental company (please note that a debit card will not be accepted). A credit card imprint will be taken at the start of all rentals for security reasons, even when a booking covers the cost of the rental. This credit card imprint may be used to pay all extra charges, including extra km, extra insurance, parking tickets, damages, tank refill or any cost due to the use of the rented vehicle.