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5 Things to Know Before You Hire a Car in Iceland

As one of the world’s most picturesque countries, Iceland is covered, top-to-bottom, in natural phenomena. From restorative thermal pools to otherworldly volcanic landscapes, the diversity of Iceland’s natural beauty is second to none. Visitors who hire a car will greatly increase the freedom they have to see the sights that most appeal to them, and, most importantly, at their own pace. Iceland’s Route 1 highway encircles the entire island which makes this a prime destination for exploring. Join us today as we run through the things you need to know before hiring your vehicle. And before you begin, be sure to check out our custom Iceland tours –– bespoke itineraries that ensure you have the most unforgettable adventure in the land of fire and ice.

Choose a Car Suitable for Your Needs

Iceland
Iceland

For travellers visiting Iceland during the summer months of July and August, a small two-wheel drive car may be perfectly adequate for your journey, so don’t lose money in booking an off-road vehicle where it isn’t necessary. You will need four-wheel drive, though, if you are looking to get right off the beaten track and into the depths of Iceland’s wilds. Iceland’s mountain roads are known as F-roads…and they are not for everyone. That’s why we always recommend you book a tour with an experienced mountain guide for your safety. If you are travelling during the winter months, share your plans with the hire company, as the treacherous winter conditions will leave some routes inaccessible. At Cool Travel Iceland, we can help you plan your route, identify the right car for your needs, and ensure you have the right insurance for your trip. Contact us any time for professional insight!

You May Not Need a Car for Shorter Stays

Reykjavik
Reykjavik

Due to Iceland’s remote geography, it is often somewhere that guests have been dreaming of visiting for some time. For this reason, many will plan an extended stay that allows them to really delight in the natural wonders the country has to offer. However, if you are time-restricted or have planned a city break in the nation’s capital, Reykjavik, you will still be able to experience the magical beauty of Iceland’s natural wonders. And for this trip, you may not need to hire a car as local transport routes provide easy access to both thermal pools and the Golden Circle. Take a look at our How Many Days Should I Spend in Iceland? guide, which provides an itinerary for those making a shorter trip.

Pack the Car Appropriately

Iceland Horses
Iceland Horses

Conditions in Iceland can be unpredictable. You may be travelling in summer, but you can still find yourself caught in rain showers and high winds. Even if setting off for the day in glorious, sunny weather, always have a hooded weatherproof jacket, warm sweater, hat, gloves, and scarf with you in the car. Pack sturdy hiking boots for exploring on your stops. And have a thermos flask and some food with you for picnics or stretches of the journey through sparsely populated areas where it may not be easy to find a place to eat.

Be Aware of Driving Conditions in Iceland

Snow covered landscapes
Snow-covered landscapes

Driving conditions in Iceland might differ dramatically from the driving you’re familiar with back home, it’s good to research the unique challenges you may encounter driving in Iceland. Be aware that conditions are changeable, so consult local forecasts and be sure to drive especially carefully when the roads are icy and take extra precautions in windy conditions. If visiting out of season, check for road closures and keep your routes to the main roads, though we strongly advise driving holidays are planned for the summer season. As an agricultural country, Iceland is home to large numbers of livestock, and you will encounter them on the roads in the summertime. Look out for signs that indicate that animals may be crossing, especially reindeer in the east.

Know the Terms of Your Rental Agreement

Scenic Iceland
Scenic Iceland

Our last suggestion: pay attention to the terms of your car rental and be aware of what cover you will require for your chosen route. Most companies offer extra insurance for ash and ice damage. Due to Iceland’s natural landscape and unique weather conditions, you will encounter ash and ice which can pose a threat to your car’s windscreen and paintwork in high winds –– this is a worthwhile investment, and essential for those going off-road. Also, be aware that some companies include mileage restrictions in their rental plans and exceeding the limit on your journey could be very costly. Choose an unlimited mileage deal, unless you’re certain of the distances you will cross. Finally, the car companies will provide you with a full tank of gas upon pick-up. Avoid incurring extra charges by returning your rental with the tank filled. 

This brings to a close our tips for renting a car in Iceland. We’re always happy to help you at Cool Travel Iceland to research and plot your route before arrival to ensure you get the very best from your travels in this spectacular country. We can take away all the planning stress and make sure you get the right vehicle for your trip, plus the correct insurance coverage based on our local expertise.You can feel free to contact us here for help planning the perfect Iceland itinerary.