Best Car Rental Offers for Iceland’s Summer Adventures

Summer in Iceland invites the spirit of adventure — from midnight sun drives to glacier-fed waterfalls, the land of fire and ice is made to be explored on four wheels. At Höldur Car Rental, we specialise in helping travellers experience the freedom of the open road with tailored car rental deals designed for every type of journey, from urban day-trippers to Highland adventurers.

Here’s everything you need to know to choose the best vehicle and mileage plan for your unforgettable Icelandic summer road trip.

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1. Mileage Plans Made Simple: 100 km, 200 km or Unlimited

Choosing the right mileage package is key to planning your trip around your pace and budget:

• 100 km per day – Ideal for those staying around Reykjavík or visiting popular day-trip destinations like the Golden Circle. A cost-effective choice for short scenic drives.

• 200 km per day – Perfect for Ring Road explorers who plan to drive moderate distances each day. It offers a balance between value and flexibility for multi-day adventures.

• Unlimited kilometres – Best suited for those craving complete freedom. Whether you're exploring the remote Westfjords or multiple national parks, this plan ensures you're never counting kilometres.

All plans come with essential insurance coverage — including VAT, Collision Damage Waiver, Personal Accident Insurance, and Theft Protection — so you can focus on the road ahead, not the fine print.

 

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2. Matching Vehicles to Your Travel Style

Whether you’re travelling solo, with a group, or venturing off-road, Höldur has the perfect vehicle to match your plans and terrain.

 

3. Understanding Iceland’s Terrain: Ring Road vs F-roads

The Ring Road (Route 1)

This 1,322 km loop connects Iceland’s most iconic sights — waterfalls, glaciers, fjords, and coastal towns. It is fully paved and suitable for all vehicle types, including compact cars and electric vehicles. It’s a popular summer route for self-drivers wanting to experience Iceland’s full range of landscapes.

F-roads (Mountain Tracks)

F-roads are unpaved, often rugged tracks leading into Iceland’s Highlands. Accessible only during summer and only with 4x4 vehicles, these roads feature river crossings, gravel hills, and uneven surfaces. Travellers must take extra care — water damage and off-road driving are not covered by insurance.

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4. Recommended Combinations: Vehicles & Mileage Plans

For budget-friendly trips, pair a compact car with 100 km per day. For a balanced Ring Road adventure, opt for an SUV or EV with 200 km per day. Planning a rugged off-road journey? Only a 4x4 SUV with unlimited kilometres will do.

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5. Essential Safety & Driving Tips

Driving in Iceland offers unforgettable experiences, but safety and awareness are key:

• F-road rules: Only accessible with 4x4 vehicles. Driving a 2WD on F-roads is illegal.

• River crossings: Always assess before driving through. Water damage is not covered by insurance.

• Off-road driving: Strictly prohibited to protect Iceland’s fragile nature and heavily fined.

• Headlights: Must be turned on at all times, day or night.

• Speed limits: 90 km/h on paved roads, 80 km/h on gravel.

• Tunnel and bridge etiquette: Be cautious and yield where necessary.

• Roundabouts: Inner lane has right of way — a common confusion point for visitors.

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7. Höldur’s Summer Promise: Adventure with Peace of Mind

With Höldur, you’re not just getting a vehicle — you’re getting a trusted travel companion. From our expert team to our eco-conscious fleet, we’re here to ensure your journey is as smooth as the road ahead.

Whether you’re tracing waterfalls on the South Coast or braving the Highlands, our vehicle selection and mileage plans offer flexibility, value, and peace of mind. Start your summer in Reykjavík, and let Iceland’s wonder unfold at your own pace.

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FAQs about Renting a Car in Iceland with Höldur

Can I rent a car in Reykjavík and return it in another city?

Yes. Höldur offers flexible pick-up and drop-off locations across Iceland.

What’s the best mileage plan for a Ring Road trip?

The 200 km per day plan is usually ideal. For added freedom, choose unlimited kilometres.

Can I use an electric car for long drives?

Yes. Iceland has a strong EV charging network, making electric vehicles a smart choice for paved road travel.

Do I need a 4x4 to explore Iceland?

Not for the Ring Road or main tourist areas. But for F-roads and Highland regions, a 4x4 is mandatory.

Is insurance included in the rental price?

Yes. All rentals include basic insurance coverage. Additional options are available at booking.

Are river crossings allowed?

Only in 4x4 vehicles and at your own risk. They’re not covered by insurance.

Can I drive on gravel roads with any vehicle?

Yes, but drive carefully and consider Gravel Protection insurance for extra peace of mind.

Are there any hidden fees?

No. Our pricing is transparent and includes VAT and basic protections. Fuel, tolls, and optional extras are clearly listed.

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Ready to Begin Your Icelandic Road Adventure?

Let your journey start with Höldur — where local knowledge meets international standards. Book early to access the best summer rental deals in Reykjavík and choose a car that suits your spirit of adventure. Whether you’re circumnavigating the island or venturing into the Highlands, we’ll help make every kilometre count.

At Höldur, we are proud to be Iceland’s largest car rental operator, with a fleet of over 8,000 vehicles and rental locations across the country. As the official Europcar franchisee in Iceland, we offer reliable and professional service you can count on.

We are also one of only three authorized car rental providers located directly inside Keflavik Airport. Our rental desk is conveniently located in the arrivals hall, just to the left after Customs. Your car will be ready for pickup in the airport car park, just a short walk from the terminal.

Renting a car in Iceland with Höldur gives you the freedom, flexibility, and peace of mind to explore safely and confidently — no matter the season.

So pack smart, drive safely, and get ready for the journey of a lifetime. Your Icelandic adventure starts here — and we’ll be right by your side.

Book now!