Electric vs. 4x4 Rentals in Iceland: Which is Right for Your Trip?

Iceland is a land of extremes — where volcanic highlands meet icy coastlines, and winding fjords give way to sweeping lava fields. It’s a destination that calls out to the curious and rewards the bold. Choosing the right rental car can make the difference between a good trip and an unforgettable one.

At Höldur, we’ve been helping travellers explore Iceland since 1966, offering both electric vehicles (EVs) and rugged 4x4s. But how do you know which is the better fit for your Icelandic adventure? Whether you're chasing the northern lights near Akureyri or cruising along the South Coast from Reykjavík, this guide will help you make an informed, eco-conscious choice.

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Why Your Rental Choice Matters in Iceland

Driving in Iceland isn’t like driving anywhere else. Weather can shift in minutes, road conditions vary drastically between seasons, and some regions — especially the Highlands — are accessible only by specially equipped vehicles. At the same time, Iceland is becoming one of Europe’s leaders in sustainable travel, with growing infrastructure for electric mobility and increasing environmental awareness among visitors.

That means your decision to rent a 4x4 or electric car in Iceland depends on more than just price. It’s about where you’re going, what you plan to do, and how you want to travel — responsibly, comfortably, and confidently.

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Electric Cars in Iceland: Clean, Quiet and Convenient

Best For:

• Travelling along paved roads (e.g., Golden Circle, South Coast)

• Eco-conscious travellers

• City-based trips (Reykjavík, Keflavík, Akureyri)

• Summer road trips

Pros:

• Eco-Friendly Travel: Reduce your carbon footprint and help preserve Iceland’s fragile environment.

• Expanding Charging Network: Iceland has over 400 charging stations, including at hotels, campsites, and major attractions.

• Silent Driving: Electric motors offer a peaceful ride through Iceland’s dramatic, silent landscapes.

• Lower Running Costs: Electricity is cheaper than fuel — and Höldur offers unlimited mileage on most rentals.

• Ideal for Reykjavík and Keflavík Airport pick-up: Most EV rentals are available from these major hubs.

Considerations:

• Winter Range Drops: Cold temperatures can reduce battery range.

• Limited Highland Access: EVs are not suitable for F-roads (mountain tracks only accessible in summer).

• Range Planning Needed: Although charging stations are widespread, you’ll still need to plan your route carefully.

Popular Electric Models at Höldur:

• Volkswagen ID.3

• Volkswagen ID.4

• Tesla Model Y

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4x4 Vehicles in Iceland: Power, Grip, and Go-Anywhere Capability

Best For:

• Highland adventures (e.g., Landmannalaugar, Þórsmörk)

• Winter travel and icy conditions

• Off-the-beaten-path routes

• Travellers with lots of gear (campers, photographers)

Pros:

• Access to F-Roads: The only way to explore Iceland’s interior safely is in a 4x4.

• Superior Winter Handling: Snow tyres + four-wheel drive = peace of mind in rough weather.

• Off-Road Adventures: Reach remote waterfalls, hot springs, and glaciers.

• Room for Everyone: SUVs and larger 4x4s offer ample space for groups or families.

Considerations:

• Higher Fuel Costs: Iceland’s fuel prices are among the highest in Europe.

• Slightly Higher Rental Cost: But well worth it for the versatility and security.

• Larger Size: Bigger vehicles may be trickier to park in cities.

Popular 4x4 Models at Höldur:

• Suzuki Jimny 4x4

• Dacia Duster 4x4

• Toyota Land Cruiser 4x4

Electric vs. 4x4: Side-by-Side Comparison

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So, Which Vehicle is Right for You?

Choose an Electric Car if:

• You’re staying on main roads and visiting top attractions.

• You want to reduce your environmental impact.

• You’re travelling in summer and don’t need to access mountain routes.

Choose a 4x4 if:

• You’re planning to visit the Highlands or drive in winter.

• You need more space or are carrying gear.

• You want full flexibility and peace of mind.

Remember, both options can deliver unforgettable memories — it just depends on your itinerary and travel priorities.

 

FAQs: Choosing Your Rental Car in Iceland

Can I rent an electric car at Keflavík Airport?

Yes! Höldur offers electric vehicle rentals directly from Keflavík International Airport. It’s a seamless pick-up point with EV charging facilities nearby.

Do I need a 4x4 to drive the Golden Circle?

No — the Golden Circle is fully paved and accessible with any vehicle, including electric cars.

What are F-roads, and can EVs drive on them?

F-roads are highland mountain tracks only accessible with 4x4s. Electric vehicles are not permitted or suited for these roads.

Are charging stations easy to find in Iceland?

Absolutely. From Reykjavík to remote parts of the Ring Road, Iceland’s EV network is growing rapidly. Apps like PlugShare and ON Power make it easy to locate chargers.

Is it safe to rent an EV in winter?

Yes, but range is reduced in cold weather. Stick to shorter routes and plan for charging breaks. 4x4s are often better suited for winter conditions.

Can I switch cars during my trip if plans change?

At Höldur, we aim to be flexible. Speak with our team about your itinerary, and we’ll help you find the right vehicle — even mid-trip.

Which option is more budget-friendly in the long run?

While EV rentals may have slightly lower base prices and energy costs, 4x4s offer access to unique experiences that may otherwise require tours or transfers. It’s about value, not just price.

Can I charge my electric car at my hotel?

Many Icelandic hotels and guesthouses now offer EV charging — check in advance when booking accommodation.

Which vehicle is better for summer travel?

Both are great, but summer is the best time to take an electric vehicle road trip due to optimal road and weather conditions.

When you book with Holdur Car Rental you´ll get:

• Our Basic Protection Package. This includes third-party loss.
• Collision damage waiver (CDW)
• Personal Accident Insurance (PAI)
• The option to upgrade your vehicle cover
• -5 ISK Fuel Discount off every liter at N1 gas stations
• Studded Winter Tyres during the snowy season at no additional cost
• Flexible cancellation, with a 100% up to 48 hours prior to pick-up

Plan Your Iceland Road Trip Today

Exploring Iceland by car is an experience like no other. To make the most of your trip, choose a rental vehicle that aligns with your driving skills, travel plans, and preferences. Höldur offers a diverse selection of manual and automatic rental cars, from budget-friendly options to 4x4 SUVs tailored for Iceland’s rugged landscapes.

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