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’
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).
- Category A – not recommended for more than 2 adults when touring
- Categories K – with a full compliment of 7 passengers, luggage capacity is severely reduced
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 very special addition to our list of vehicles above, is the Land Rover superjeep from ISAK. This may be used on any of our self-drive itineraries but is generally aimed at 4WD routes and the Iceland Superjeep Adventure as it is allowed for Highland driving.
Please note that our iDiscover service is not available with ISAK Superjeep hire.
There are plenty of other types of vehicles available – 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.
- Use of exclusive digital travel app iDiscover
- Rental of the car for the agreed period on an unlimited mileage basis
- Semi-comprehensive insurance – no charge for second driver
- Icelandic VAT
- Fuel and oil
All rentals include a standard insurance policy and include Collision Damage Waiver (CDW). This CDW insurance waives liability in case of damage to the rental vehicle in excess of approx. £880 for standard vehicles (cat. A-D) and approx. £1,565 for all other vehicles (cat. E-X). 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. Whilst it is possible to purchase Excess Waiver Insurance at the time of collecting your vehicle, this can also be expensive and generally only reduces the excess. You should consider taking out cover before your depart and one UK company offering excess waiver insurance is Insurance4CarHire. This policy covers you for reimbursement of the insurance excess, accidental damage to the vehicle, windows, tyres and damage caused by sand and ash, loss of car keys, plus many other benefits.*
* Please note Terms and conditions apply
- Insurance4CarHire excess insurance excludes motorhomes, camper-vans and accidental damage to the interior or contents of the vehicle.
- The insurance policy must be taken out in the same name as the lead passenger on the car hire booking.
- You must take out this cover at least the day before collecting your vehicle.
- The policy is only applicable for people aged 21-85 years inclusive and you must also be permanent residents of the European Economic Area (EEA). These policies are always subject to the same exclusions and conditions as stated in the standard insurance provided by the car hire company (unless specifically noted otherwise).
For full details and options please visit Insurance4CarHire or call direct on 01242 538 475
A charge of approx. £6 per day (max £36) is payable locally for a child seat or booster seat which must be ordered in advance. GPS is also available at approximately £12 per day (max £100).
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 and the Isak Superjeep) 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.