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 D – unsuitable for severe off-road conditions
- Categories M & I – with a full compliment of passengers (6 & 7 respectively), 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.
- Loan of iPad Air loaded with our exclusive digital travel guide 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
You may want to consider taking an upgraded cover with Insurance4CarHire, which must be purchased before your departure from the UK. Take advantage of an excess protection package from just £2.99 per day or an annual policy from £42.99.
How does Excess Reimbursement Insurance work?
Excess Reimbursement Insurance is a voluntary insurance, which is useful if there is an excess applicable to your car hire. The cover applies to the individual, so you are covered, even if you change the car hire company or the type of car that you have hired.It is designed to repay the excess or repair costs you have to pay under the terms of the rental agreement following damage to the rental vehicle. The reimbursement of the excess is subject to the exclusions detailed in the terms and conditions.
The policy can be bought up to 364 days in advance, right up to before you collect the rental vehicle.You can choose to buy either an Annual policy, which will provide cover for multiple hires throughout the period of cover, or a Daily policy which will provide cover specifically for the days that you request it.
What is covered
Key features and benefits include:
- Excess on damage and theft up to £6,500 per year
- Drivers aged 21 to 85 years old (inclusive)
- Covers damage to the windows, undercarriage, roof, tyres and headlights, not otherwise covered by damage waivers from car hire companies
- Damage caused by using the wrong type of fuel: up to £500 per claim and £2,000 per year
- You (the policyholder), plus up to seven additional drivers named on your rental agreement
What is not covered
Please be aware that for this policy is only valid for residents of the United Kingdom, Spain, France, Italy, Germany, Ireland, Sweden or the Netherlands. Coverage exclusions include:
- Damage to the interior or contents of the car
- Drivers must be aged between 21 and 85 years of age
- Rentals contracts cannot be longer than 60 continuous days
- Where damage is the result of driving off-road
- If the market value of the Rental Vehicle exceeds £120,000
Full details of what is and isn’t covered can be found in the policy wording. The policy documents are available in English, Spanish, French, German, Italian, Swedish and Dutch. These can be found on the product description pages of the insurance4carhire website.
You can buy this insurance through the following link: www.insurance4carhire.com/discovertheworld or call 0844 892 1770.
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.
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.