Your Guide to Car Rental in Iceland with Europcar

What is the best car for driving on Iceland's F-roads?

To legally drive on Iceland's designated mountain roads (F-roads), you must rent a 4x4 SUV. These roads are unpaved, rugged, and often involve river crossings. We offer a wide selection of capable 4x4 vehicles designed to handle the challenging highland terrain safely. Passenger cars are strictly prohibited on F-roads.

Are your rental cars equipped with winter tires?

Yes, safety is our priority. All our vehicles are equipped with high-quality studded winter tires from November 1st to April 15th, as required by Icelandic law. This service is included at no extra cost to ensure you have the best possible traction and safety during winter driving conditions.

Do I need a 4x4 for driving in Iceland during winter?

While not mandatory for all roads, a 4x4 SUV is highly recommended for winter travel in Iceland. It provides better grip, stability, and clearance on snowy or icy surfaces, especially if you plan to venture outside of the main Ring Road.

What kind of vehicle should I rent for the Ring Road?

For traveling the Ring Road during summer (May-September), a standard passenger car is generally sufficient as the route is fully paved. In winter, a 4x4 is recommended for enhanced safety. For larger groups or families, a minivan or large SUV will provide more comfort and luggage space.

Can I drive on Iceland's beaches with a rental car?

Driving on beaches is prohibited in Iceland to protect the environment. Stick to marked roads and trails to avoid fines and damage to the vehicle.

What should I do if I encounter a river crossing?

If you're driving on F-roads and encounter a river crossing, assess the depth and flow before proceeding. Only attempt crossings in a 4x4 vehicle, and avoid crossing if you're unsure. For safety tips, check our guide to River Crossings in Iceland.

Are there any restrictions on where I can drive in Iceland?

Yes, off-road driving is strictly prohibited and punishable by law. Additionally, some roads may be closed during winter or due to weather conditions. Always check road conditions at road.is before traveling.

What happens if I return the car late?

In most cases, our rates are daily rates where a day is considered as 24 hours, counted from the time the rental starts. If you return the car late, your rate will be recalculated, adding an extra day for each additional 24 hours you have kept the car. Each 24 hour period started counts as a whole rental day. In fact we offer you 30 minutes grace period after the 24 hours are up, just to give you a bit more time. So a rental of 24 hours and 30 minutes still counts as a one day rental.

IMPORTANT: Remember that your insurances only cover you for the period mentioned on the Rental Agreement you made when you picked up the car. So if you decide to return the car later than first planned, please drop into the rental station (or call) to amend the Rental Agreement.

What is the minimum age to rent a car in Iceland?

To rent a passenger car or an SUV, you'll need to be at least 20 years old with a valid driver's license held for one year or more. If you're interested in larger vehicles like motorhomes, minivans, or luxury cars, the minimum age requirement is 23.

What documents do I need to rent a car?

You will need to present a valid driver's license that you have held for at least one year, a passport, and a credit card in the main driver's name.

Do I need an International Driving Permit (IDP)?

An International Driving Permit is not required if your national driver's license is printed in English or uses the Latin alphabet. If your license is in a different alphabet (such as Cyrillic or Chinese), you must provide an IDP along with your original license.

Is it possible to modify / cancel my reservation after it is confirmed?

Pre-paid reservations can only be amended or canceled by contacting our customer services by phone tel +354 461 6000 during office hours on weekdays (9am - 5pm GMT). Please note that the cancelation policy of this website may apply to your booking. Note that you can ONLY modify or cancel the reservations which have been made online by yourself on this website. For changes to reservations made via a Travel Agency, Tour Operator or Car Rental Broker site please contact the relevant agent. You will receive a confirmation of amendment or cancellation by e-mail. You should print these and keep them for your records.

Can I rent a car without a credit card?

A credit card in the main driver's name is required for the security deposit. Debit cards are not accepted for this purpose.

Do you offer discounts for long-term car rentals?

Yes, we provide special rates for long-term rentals. Contact our customer service team for more details on extended rental discounts.

Can I add an additional driver to my rental agreement?

Yes, additional drivers can be added for a small daily fee. They must meet the same age and license requirements as the main driver.

How is my rental rate calculated?

Your total rental rate is calculated based on the information provided at the time of booking. The quoted total rate will include any extras you select during the booking process. Our counter agents will review all charges with you to ensure that your total charges meet with your approval when you pick up your car.

How will I know that my reservation is confirmed?

At the end of the reservation process you will receive a "Reservation Confirmation" page with the reservation number highlighted. You will also receive a confirmation e-mail containing the details of your reservation. You should save these to your phone or print out and keep them for your records.

Is insurance required for car rentals in Iceland?

At Höldur Car Rental (Europcar Iceland), every rental automatically includes:

• CDW (Collision Damage Waiver): Protects against major collision costs. You’ll still pay an excess/deductible if damage occurs, but you’re not liable for the full value of the car.
• Third-Party Liability Insurance: Covers injuries or damages you might cause to others — required by law.
• PAI (Personal Accident Insurance): As required by Icelandic law, our rates include Personal Accident Insurance (PAI). This coverage protects you and your passengers in the event of injury, providing compensation for disabilities or, in the unfortunate case of a fatal accident, a lump sum indemnity.
• Theft Protection: Included in our rates and covers you against theft of the vehicle.

Find out more in our guide to vehicle cover.

What other insurance should I consider?

We strongly recommend additional coverage for a worry-free trip. Popular options include Super Collision Damage Waiver (SCDW) to lower your deductible, Gravel Protection (GP) for damage from unpaved roads, and Sand and Ash Damage Waiver (SADW), which is crucial for traveling along the South Coast.

What is Gravel Protection, and do I need it?

Gravel Protection (GP) covers damage to the car's body, windshield, and headlights caused by loose gravel on unpaved roads. It's highly recommended, as many roads in Iceland are gravel.

Can I add or upgrade insurance at Keflavík Airport (KEF)?

Of course. You can add upgrades when you pick up your vehicle at KEF, Reykjavík, or any of our other stations. Our team will be happy to help you select the right coverage for your trip.

What happens if I get a flat tire?

Flat tires are not included under standard insurance coverage. However, every vehicle is equipped with either a repair kit or a spare tire, along with the necessary tools for replacement. For added convenience, roadside assistance is available at an additional cost.

How are Fines, Parking Tickets, Tolls, and Traffic Violations Handled?

Parking tickets, road-tolls and any traffic violations are the responsibility of the renter who must pay them before returning the vehicle. Congestion charges or fines received by us after the rental will be charged directly to the renter, including a surcharge for late payment, if there are any. A local administration fee applies: this will be charged in addition to the fines. Find out more in our guide Parking in Iceland: What You Need to Know.

Can I pick up my car at Keflavík Airport (KEF)?

Absolutely. We have a rental desk conveniently located in the arrivals hall at Keflavík International Airport. This allows you to pick up your vehicle as soon as you land and begin your Icelandic journey without delay.

Is it possible to pick up and return the car at different locations?

Yes, we offer one-way rentals between our many locations across Iceland. This provides the flexibility to plan your road trip without needing to backtrack. Please note that a one-way fee may apply depending on the locations.

What fuel policy do you have?

Our vehicles are provided with a full tank of fuel and should be returned with a full tank. If the vehicle is returned with less fuel, a refueling charge will be applied. For our electric vehicles, we ask that you return them with at least a 60% charge.

Can I return my rental car outside of office hours?

Yes, we offer after-hours drop-off at select locations. Please inform us in advance to arrange this service.

Do you provide child seats or booster seats?

Yes, we offer child and booster seats for rent. These must be reserved in advance to ensure availability.

Are there charging stations for electric vehicles in Iceland?

Yes, Iceland has a growing network of EV charging stations. You can find charging points at major towns, gas stations, and some hotels. Use apps like PlugShare to locate stations during your trip.