Iceland

Iceland

Pickup

  • Keflavík International Airport
    Keflavík
  • Free Delivery in Keflavik
    Keflavík
  • Free Delivery in Reykjavik
    Reykjavik

Drop-off

  • Please select pickup location first.

Date &Time

06/21/2025 10:00 AM 06/22/2025 10:00 AM
Free Cancellation

Free Cancellation

Change of plans? Rent with confidence, cancel anytime. No fee. Finalrentals does not believe in charging any cancellation fee.

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Fair Fuel Policy

You can return the car at the same fuel level as it was handed over to you and there will be no charges at all.

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No Hidden Charges

Pay full rental amount at the counter. No need to pay online. We work on clear pricing policy, what you see is what you pay.

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Iceland

Flexible Travel

Renting a car in Iceland lets you experience the country’s striking volcanic scenery, quiet seaside towns, and lively cities on your terms, without being tied to public transport schedules.

Documents for Tourists

Visitors must have their original passport, a valid visa if required, and a driving license from their home country. An International Driving Permit (IDP) is typically recommended for drivers from outside the EEA, the UK, or Japan, but it is not mandatory for those with licenses from these areas.

Documents for Residents

Residents must show a valid Icelandic driving license held for a minimum of 12 months, together with their national ID and a valid residency permit, in order to rent a car.

Credit Card Requirement

To guarantee a smooth rental experience, a credit card in the renter’s name is needed for deposits and payments.

Driving Regulations

In Iceland, driving is on the right side, and all passengers must wear seatbelts. Speed limits are typically 50 km/h in towns, 80 km/h on gravel roads, and 90 km/h on paved rural roads, with speed cameras frequently used to monitor compliance.

Child Seat Regulations

Children under 135 cm must use a suitable child or booster seat. Infants under 9 kg should be secured in a rear-facing seat, and those below 135 cm are not allowed in the front seat if the airbag is active.

Traffic Rules

The legal blood alcohol limit is 0.02%, and drivers may only use mobile phones with a hands-free system. It's crucial to follow all traffic laws to avoid significant fines.

Toll Roads and Fuel Costs

Iceland does not have tolls on most roads, but certain tunnels like the Vaðlaheiðargöng Tunnel require a separate fee. Make sure to check if your rental covers this. While fuel can be expensive, gas stations are easy to find and often self-service.

Navigation and Parking

Using GPS and navigation apps is advisable because of the complex road network. Parking is usually accessible, but fees often apply in busy cities and shopping malls. Traffic delays are common in larger cities, particularly during rush hours.

Driving Conditions and Insurance

Roads in Iceland are generally well-maintained, but the rugged terrain and unpredictable weather can make driving difficult. Therefore, comprehensive insurance is highly recommended. Be sure to confirm your coverage with the rental company and think about adding extra protection if needed.

Best Time to Rent a Car in Iceland

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Low Season Rentals Provide the Best Value

For the most affordable rates in Iceland, book your rental car early in the off-season and opt for an economy vehicle to keep costs low.

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Summer Months Drive Up Rental Rates

Between June and August, rental prices in Iceland usually increase as visitors take advantage of the mild weather and flock to explore its stunning landscapes and natural attractions.

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June Sees the Highest Rental Costs

June kicks off the busy travel season, resulting in increased demand and higher prices.

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Finalrentals is Clear in Terms of Rental Policy

Iceland

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