Driving and Renting a Car in Iceland

Iceland, where it’s you and your car against the elements and if you and your car aren’t leveled up enough, the elements will win.
When we first rented our car we were given a safety rundown with a warning that if we did not follow, serious repercussions would occur. I remember chuckling to myself as I was told my car door could get ripped apart or thrown off the road. A car door? Please.

Renting a car in Iceland Wandering Chocobo

Driving and renting a car in iceland wandering chocobo

My mind quickly changed after driving 30 minutes off road down a rough black sand beach to the DC plane crash. We parked. I cracked my window open and stuck my hand out. The strength of my arm barely pushed against the wind. We reversed and positioned with the wind pushing against the door. My boyfriend carefully exited his side of the car then came over to help me. Staggering toward the wreckage I looked over and saw an unfortunate couple battling the same battle I just had, but their car was already severely damaged and parked in the wrong direction. The door was hanging from the hinges and would neither shut nor open. I also remembered several cars in the ditch, stuck in snow and sliding over ice and I pitied the drivers, since they probably didn’t receive the proper training we got from KuKu campers. Or perhaps, they were trying to save a few dollars renting the cheap option.

Everything you need to know about renting and driving a car in Iceland

1. Rent a 4×4 Car in Iceland

Whether it’s summer or winter renting a 4×4 is the way to go.

In the summer, many of the roads are for 4×4 and off roading only. Most maps of Iceland list what roads are considered off-road.

In the winter even the main roads, can be covered in inches of solid ice or snow. The extra strength helps you maintain control over the car and from sliding off, but in the off chance you go into the snowy banks the 4×4 is easiest to help you maneuver your way out.

If you find your car stuck in a snow ditch what should you do?

First, don’t panic and attempt to speed out or spin your tires excessively!

A. Check your exhaust pipe. If it’s covered in snow, clear it to prevent toxic chemicals from building up in your car.

B. Clear the snow away from your tires. Use a shovel if you have one. If you don’t use your hands and stomp with your boots. Straighten your tires and rock the car back and forth carefully by shifting from drive to reverse. Make sure the path is flat and straight as possible. Break up any ice with any type of sharp tool in your car. The pieces provide traction.

C. Lay traction. This could be dirt you can find from near by, granola, floor mats, a line of twigs or smaller rocks.. anything.

D. Access the easiest way out. You want to keep your tires straight, with that being said is it easier to go straight out or straight ahead? This will be determined by the angle of your car and side with the least amount of snow or debris blocking it.

E. Rock and Gain Momentum. If you’re alone, slowly begin you rock your car. This time instead of going from drive to reverse utilize the gas peddle allowing your car to gain momentum as you rock. If the direction you want to go is forward apply gas in drive, if backward reverse accelerating in the right direction. If you have a buddy have them push from behind or forward for the extra push when needed.

2. Wind Safety While Driving in Iceland

Wind is a serious concern when driving in Iceland. The wind can create gusts of 30 m/s or 120k/h which is crazy! When I said the door could get ripped off I meant it! Wind can also be hard to predict, often changing haphazardly. To prevent wind damage park your car as best you can with the wind pushing the car door closed, not open. Roll down the window and test the wind, re-position your car as needed. CAREFULLY open the door with a hand supporting from inside and the other hand supporting the outside. Make sure you’re strong enough to open the door and hold it from closing on your leg or flying open. Open it as little as you can while squeezing out. Don’t open both doors at the same time, or things will fly off the dash board.

Driving Renting a Car in Iceland

3. Insurance for your Car in Iceland

This can be rather complicated and stressful as there are many additional options, such as sand damage and ash damage. There’s a lot of debate back and forth about the insurance as Iceland differs from most places you might rent a car. It’s advised to always get the general protection and CDW insurance. Check with your credit card company, as many of them provide CDW if you rent a car and it is much cheaper. Do you need any of the extra stuff? Probably not, but it’s up to you.

If a volcano has a chance of erupting ash protection might be needed, otherwise ash isn’t that common. Sand and rocks are common, especially during storms, but they rarely cause too much damage. As a rule of thumb, stay on main roads during storms and or wait out the storm in a safe harbor. That being said, it’s up to you to determine the cost of the insurance vs the cost of any possible repair. For some, paying $5 extra dollars is worth the potential of paying out $10,000.

Did you know that in Iceland if you hit a sheep the farmer can charge you $500 for loss of assets. You can also purchase additional insurance for that. In winter while driving I saw a total of 0 sheep crossing the road, so I doubt it is needed. Also, car thefts are very rare in Iceland and you most likely won’t need this insurance. Overall, your best bet is to DRIVE SAFE AND SLOW. Don’t drive through a storm if you notice heavy dust wind. Drive slow if you’re off-roading, so you don’t bottom out.

4. Book your Car with an Online Pick up in Iceland

The airport is about an hour away from Reykjavik and a shuttle bus is about 20 euros, make sure if you book with a company outside the airport the include a hotel pick up, some companies offer free pick up.

Often times you can find a better deal online than in person. I would recommend booking online in advance if you find a good deal.

5. Budgeting and Date Selection

Car rentals vary based on type of car (4×4 vs 2 door… etc) and also vary based on time of year. If budgeting is important to you and you want to rent a car the time of year can be an important decision. Peak season in Iceland is from middle of June to end of August, with the slow season from beginning of November to end of April. A mid prices season falls during all other dates. The cost difference for my 4×4 Dodge Durango camper went from 250 euro per day to 160 euro per day. (keep in mind this was a camper, so this price included all my sleeping budget too) With smaller vehicles ranging from 35-150 euros per day based on season.

Driving Renting a Car in Iceland

6. Speed Limits and Traffic in Iceland

Speed limits may appear to be very slow for some. That is for your safety. Also, with a lack of police in the country it may be tempting to speed, but don’t. Hardly anyone does and often the roads will change from 2 lanes to one lane.
Residential areas- 30km
Populated areas- 50km
Main gravel roads- 80km
Paved main roads- 90km

Most off-roads are called F roads. These are the most difficult to travel and can often be closed. Make sure you check all roads before planning your trip and always have a plan B, in case weather does not allow plan A. Most F roads open around June and close around September. It’s important to drive slow to avoid bottoming out. Avoid thick mud and only cross rivers at designated crossing areas. All F roads are closed in the winter. In the winter many roads are also closed including some smaller roads to popular destinations. If you start sliding in the winter, don’t panic and slowly correct yourself.

Visibility can also be low during storms.

Check all Driving Conditions here. This should be checked daily. Also check Weather Conditions Heredaily.

Pay attention to all signs and warnings and do not push your luck.


7. Map a Route Before Driving in Iceland

Map your route with plan A and plan B for every day. Most car rental companies put a limit on the amount of km you can drive per day and it’s around 300km. No, you can not drive around the entire country in 5 days, unless you always want to be in the car. I know it seems do-able, but even in the summer it’s not. Google maps is becoming better with Iceland navigation, but it can struggle with the native language and mis-directs you. Rent a GPS if you can, or pre-map out a google map route and save it. Always have a hand map on you in case something goes terribly wrong. Routes work best if you start in Reykjavik and work your way right toward Vik. These are easier roads and you can get a feel for your comfort level.


Bonus Tips


A. Gas prices equate to about $6-7 a gallon in Iceland. They are standardized and don’t change much throughout the country.
B. Never use the fill up option when getting gas, it holds a set amount of money on your card, usually more than you want to pay or have held.
C. While several gas stations are open 24 hours, some only open at 4AM while others open at 9AM and close at 10PM. My rule of thumb is never leave a town with a gas station with less than half a tank of gas to be safe.
D. Highlands vs. Lowlands. Weather in the Highlands can be very volatile and with unmaintained roads it’s the more risky route. Be prepared for snow, rain, wine and potholes, no matter the time of year.
E. To save money most bridges are built as one-land roads with pull outs for longer bridges. Slow down and look for headlights coming toward you.
F. Always carry one day supply of food, water and warm blankets in your car if going off road. It also doesn’t hurt to let the rental company or a hotel front desk where you plan to head for the day.

We rented from KuKu Campers! They were friendly knowledgable and local, so they helped us plan a great trip! Check them out here

19 thoughts on “Driving and Renting a Car in Iceland

    1. Wandering Chocobo Post author

      At least you won’t have all the snow to deal with in June! I want to go back in the summer with a 4×4 so I can get to all the awesome hidden hot springs we missed out in the winter. Let me know if you have any questions along the way. I am happy to help if I can! Hope you enjoy your trip.

  1. Melai

    Thanks for all the tips. We’re doing the road trip on October and hopefully the weather will be friendly. 🙂 Which month of the year did you go? And what was the most challenging part of your drive? 🙂

  2. Bee

    I like passing by every gas station I see if I’m doing a long trip in any place I don’t know well cause you never know when you’ll run out of gas and where the next station is. Perfect tips. Thank you.

  3. Bee

    Thanks for the post. A lot of good information here. I’ve never been to Iceland and I’m sure I will visit either next year or in 2018

  4. Penelope

    Ah what a great article! I don’t drive but I’ve always wanted to do a road trip in Iceland – I visited January last year and I’m going back for a few days in September, not sure if we will have time to drive around but if we do then I’ll show my parents this article. Thanks!

  5. Malissa

    Hello there! I was wondering where you rented your car from? I know I want to get a 4×4 but just wondering where you got those prices from?

    1. Wandering Chocobo Post author

      Hi Malissa, we rented a camper van from Kuku Campers. They were fairly reasonably priced, considering it was our sleeping arrangements as well. Here is a link I wrote as a review of the company. You can also find them at https://bookings.kukucampers.is/
      Prices do vary by season as well. So, the prices in the summer will be more, and in the fall and winter the cost decreases.
      Let me know if you have any other questions!

  6. Jojo

    Your post has such great information I have not seen in most other places. The tip about the wind and parking the car is so smart! I remember a time when the car door also clipped my leg really hard because of how hard the wind was.

    Hitting a sheep, huh? I saw a cute sheep on the side of the road was I drove by once. It looked my direction, waited for me and the car behind to pass, looked both ways then crossed when it was clear. Hahh I checked the rear view mirror to make sure it crossed okay.


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