Best Car Rental Offers for Iceland Road Trip
Enjoy freedom to travel at your own pace and to seek out the unique experiences Iceland has to offer. Discover our different mileage options for your Icelandic road trip and select your rental car from our diverse fleet of new and well-equipped vehicles.
Variety of cars available from small eco-friendly to larger station wagons.
Our fleet of 100% electric vehicles just keeps growing.
No one offers better range of new and well maintained 4x4 SUVs.
We offer a range of minivans for hire, seating between 7 & 9 people.
Multi-month car rentals in Iceland ranging from 12 to 36 months.
Questions and answers about the car rental process
The only ISO 14001 certified car rental in Iceland
Höldur Car Rental is your trusted partner for car rental in Iceland, offering the widest selection of rental cars in the country. With a fleet of over 8,000 vehicles and numerous rental locations nationwide, we make it easy for you to explore Iceland your way. Whether you need a compact car, a family-sized SUV, or a camper van, we’ve got the perfect vehicle for your adventure.
As the local franchisee for Europcar, Goldcar and Touringcars, Höldur brings decades of expertise and global support to ensure a seamless experience. Operating since 1966, we’ve earned a reputation as Iceland’s leading car rental provider, combining reliability, safety, and sustainability in every aspect of our service.
Book your car rental in Iceland today and discover why travelers have trusted Höldur for 60 years.
To rent a standard 2WD car with Höldur Car Rental, the minimum age is 20 years old. For larger vehicles, including 4x4 SUVs, minibuses, and luxury cars, the minimum driver age is 23 years old. All drivers must have held a valid driver’s license for at least one year.
If you plan to stay on the paved Route 1 (The Ring Road) or visit the Golden Circle during the summer, a 2WD car is sufficient. However, if you are traveling during winter (November to April) or plan to explore the Icelandic Highlands, a 4x4 vehicle is highly recommended for safety and mandatory for F-roads.
You can only drive on F-roads (unpaved highland roads) if you rent a permitted 4x4 vehicle. Driving a 2WD vehicle on F-roads is strictly prohibited, illegal, and voids all rental insurances. F-roads are only open during the summer months.
To pick up your car in Iceland, you must present a valid driver's license (printed in Latin characters), a physical credit card in the main driver's name, and a valid passport or ID. Digital driver's licenses are not accepted.
A valid physical credit card in the main driver's name is required at pick-up to hold a security deposit. While you can often pay for the final rental cost with a debit card, the initial guarantee must be made with a credit card.
Basic Collision Damage Waiver (CDW) and Third-Party Liability are standard. However, because of Iceland’s unique weather and volcanic terrain, we highly recommend upgrading to full coverage. This should include Gravel Protection, Sand and Ash Damage Waiver (SADW), and Super CDW to ensure zero-liability peace of mind.
We offer convenient pick-up and drop-off locations across Iceland, including directly at Keflavík International Airport (KEF), in downtown Reykjavík, and at regional airports such as Akureyri and Egilsstaðir.
In Iceland, you drive on the right. Headlights must be turned on at all times, day and night. Off-road driving is strictly illegal and carries massive fines to protect fragile nature. The general speed limit is 50 km/h in cities, 80 km/h on gravel roads, and 90 km/h on paved highways.
Iceland’s new road tax is a "pay-as-you-use" model based on the distance you drive. The rate is ISK 8.81 per kilometer (approx. €0.06 / $0.07) for all vehicles under 3.5 tons, including electric, hybrid, petrol, and diesel cars. This amount includes administration, collection fees, and tax. Höldur Car Rental calculates your total distance at drop-off and charges the tax directly to your credit card. To balance this tax, the government has significantly lowered fuel prices at the pump.
Legal information
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