Car Rental in Iceland for Austrian Travelers

Embarking on an adventure in Iceland is exhilarating, but renting a car for the journey involves understanding various local practices.
If you're traveling from Austria, you might be asking:

Is an Austrian driving license valid in Iceland?
What insurance is necessary for driving in Iceland?
What costs can I expect for renting a car?
Can I rent a car and return it in another location in Iceland?
Are there unique traffic rules or hazards in Iceland?

This guide offers all the essential information you need for a seamless car rental experience in Iceland, ensuring you can explore its breathtaking landscapes with ease.

Can Austrian Citizens Drive in Iceland?

Yes, Austrian travelers can rent and drive cars in Iceland with the proper EU/EEA driving licence and standard identity and payment documents. Age limits and young driver surcharges may apply depending on the rental offer.

Form of ID:
A valid passport is required at pickup.
Driving licence:
The main and any additional drivers must present a full physical driving licence held for at least 1 year, with no major endorsements. Accepted driving licence include:
• EU/EEA Driving License
• Original driving licence + International Driving Permit (IDP) (IDP is only a translation and must be shown together with the original licence).
Accepted cards:
Physical credit cards in the full name of the main driver are required. Accepted cards may include Visa and MasterCard, and in some offers also American Express, Diners Club, or Discover. Debit cards are not accepted for these rentals.
Age requirements:
Depending on the specific offer, the minimum driving age ranges between 18 and 25, and the maximum between 80 and 99. Some offers allow drivers from 18–20 or 19–22 years with an additional young driver fee (for example about US$ 8.34 per day in ISK, or around US$ 11–14 per day in EUR). Certain offers also apply surcharges for older drivers from 80–85 years. Exact applicable limits and fees depend on the chosen car and supplier.

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Requirements may vary between rental companies. Always confirm details when booking.

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Which Car Rental Companies Are Best?

Choose from trusted global chains or innovative local alternatives. Each offers different advantages for travelers from Austria visiting Iceland.

Global Chain Companies

Local Brands

Europcar
global
8.5
Locations:
83
Prices:
$$
Key Advantages
- Wide range of vehicles
- Flexible pick-up and drop-off locations
- Loyalty program for frequent renters
- Excellent customer service
Best for
Leisure travelers and eco-conscious renters
Hertz
global
8.5
Locations:
54
Prices:
$$$
Key Advantages
- Largest fleet in USA
- Premium vehicle selection
- Gold Plus Rewards loyalty program
- Express rental counters
Best for
Business travelers and premium vehicle needs
Budget
global
8.5
Locations:
36
Prices:
$
Key Advantages
- Competitive pricing
- Convenient locations
- Excellent customer service
- Loyalty rewards program
Best for
Cost-conscious travelers and families
SIXT
global
8.5
Locations:
19
Prices:
$$
Key Advantages
- Wide selection of premium and luxury cars
- Flexible rental terms
- Easy online booking
- Excellent customer service
Best for
Travelers seeking premium vehicles and flexible rental options
Alamo
global
8.5
Locations:
13
Prices:
$$
Key Advantages
- Great value for money
- Quick and easy booking process
- Excellent customer service
- Wide range of vehicle options
Best for
Leisure travelers and families

Icerental 4x4
local
8.5
Locations:
2
Prices:
$$
Key Advantages
- Specialized in 4x4 and SUV rentals
- Knowledgeable staff on winter conditions
- Competitive pricing for long-term rentals
- Flexible pick-up and drop-off options
Best for
Adventure seekers and winter travel
FAIRCAR
local
8.5
Locations:
6
Prices:
$$
Key Advantages
- Competitive pricing
- Personalized customer service
- Convenient pickup and drop-off locations
- Wide range of vehicle options
Best for
Budget-conscious travelers and local rentals
ACE Rent A Car
local
8.5
Locations:
4
Prices:
$$
Key Advantages
- Competitive pricing
- Customer-friendly service
- Flexible rental options
- Special deals for long-term rentals
Best for
Budget-conscious travelers and families
SAGA Car Rental
local
8.5
Locations:
1
Prices:
$
Key Advantages
- Personalized customer service
- Convenient local locations
- Competitive pricing
- No hidden fees
Best for
Budget-conscious travelers and local rentals
Lava
local
8.5
Locations:
1
Prices:
$-$$
Key Advantages
- Personalized customer service
- Convenient pickup and drop-off locations
- Competitive pricing
- Local knowledge and recommendations
Best for
Budget-conscious travelers and local excursions

Recommendations for Austrian Travelers

Choose Global Chains If:

It's your first time renting in Iceland
You need reliable nationwide coverage
You want 24/7 customer support
You're traveling for business or important purposes

Choose Local Brands If:

You want to save money
You're staying in major cities or popular tourist areas only
You're looking for unique vehicle options like camper vans
You're comfortable with app-based services and limited support

How to Choose the Right Car?

Choosing the right rental car can make your journey more comfortable, safe, and enjoyable. Think about your travel group, the destinations on your route, and the type of driving you'll be doing. With QEEQ, you can compare multiple car types and policies to find the one that best suits your journey.

Seating and Luggage
Consider your travel group size and luggage needs
- Economy cars (2-4 people, 1-2 suitcases)
  Perfect for city driving and short trips
- Compact cars (4-5 people, 2-3 suitcases)
  Good balance of space and fuel efficiency
- Mid-size cars (5 people, 3-4 suitcases)
  Comfortable for longer distances
- Full-size/SUV (5-7 people, 4+ suitcases)
  Ideal for families and group travel
Transmission Type
Choose between automatic and manual transmission
- Automatic transmission
  Easier for city driving and traffic, more common in USA
- Manual transmission
  Often cheaper, better fuel economy, more control
- Most Polish drivers prefer automatic for USA road trips
- Consider your comfort level with left-hand driving and automatic cars
Insurance Included
Check what insurance coverage comes with your rental
- Basic liability
  Covers damage to other vehicles and property, usually included
- Collision Damage Waiver (CDW)
  Covers damage to your rental car, often optional
- Theft protection
  Protects against car theft, may be included or additional
- Personal insurance
  Check if your Polish insurance or travel insurance covers rentals
Cancellation Policy
Understand booking flexibility and fees
- Free cancellation
  Usually available up to 24-48 hours before pickup
- Prepaid vs. Pay-at-counter
  Prepaid often cheaper but less flexible
- Change fees
  Cost to modify dates, locations, or car type
- Travel insurance
  Consider coverage for trip cancellations or delays
Mileage Policy
Check distance restrictions and additional charges
- Unlimited mileage
  Best for long road trips and cross-country travel
- Limited mileage
  Cheaper daily rate but extra charges for excess miles
- Consider your planned route distance and potential detours
- Factor in mileage costs when comparing total rental prices
Fuel Policy
Understand fuel requirements and costs
- Full-to-Full
  Return with same fuel level, most economical option
- Full-to-Empty
  Pay upfront for full tank, convenient but often more expensive
- Same-to-Same
  Return with same level as pickup, fair pricing
- Pre-purchase fuel options
  Compare costs with local gas station prices

Quick Decision Guide

City Travel
Compact/Economy car with automatic transmission, full-to-full fuel policy
Reykjavík
Road Trip
Mid-size/Full-size car with unlimited mileage, flexible cancellation
Golden Circle, Ring Road
Vacation
SUV with comprehensive insurance, prepaid fuel option
Blue Lagoon, Akureyri

Compare with Confidence on QEEQ

Don't settle for the first option you find. QEEQ makes it easy to compare car types, policies, and total costs from multiple providers. See all fees upfront, read real customer reviews, and choose the perfect car for your adventure.

Compare all car rental deals
No hidden fees
Real customer reviews

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What Are the Popular Destinations in Iceland?

Iceland offers stunning landscapes ranging from glaciers to volcanic beaches, perfect for road trips. Popular routes include the Golden Circle and the Ring Road, which provide breathtaking views and unique experiences.

What Insurance Do I Need?

When renting a car in Iceland, it's essential to understand the insurance options available. Iceland has unique road conditions, including gravel roads and unpredictable weather, so ensuring adequate coverage can save you from unexpected expenses.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car from collision or theft. However, it often excludes damages caused by driving off-road or crossing rivers.
€15-25/day
Essential
Theft Protection (TP)
Protects against theft of the rental vehicle and its parts.
€5-10/day
Essential
Sand and Ash Damage Waiver (SADW)
Covers damage caused by sandstorms and volcanic ash, which are common in Iceland.
€10-15/day
Recommended
Third-Party Liability Insurance
Covers injury or damage to others and their property. Often included in the base rental agreement.
Included
Included
Gravel Protection (GP)
Protects against damage to the car's body, tires, and windshield caused by gravel roads.
€8-12/day
Recommended
Personal Accident Insurance (PAI)
Provides coverage for medical expenses due to accidents for you and your passengers.
€5-8/day
Optional

QEEQ's Complete Protection Solutions

Perfect for travelers who want comprehensive protection without the complexity. One price covers everything, and AXA's trusted network ensures reliable claims processing throughout Iceland. Get comprehensive coverage online for about 50% less than counter rates.

Coverage Feature

QEEQ Full Coverage

Basic Rental Company

Collision Damage Waiver

Fully Covered

US$0.00 - US$11,910.33

Theft Protection

Fully Covered

US$0.00 - US$11,910.33

Personal Accident Insurance

Fully Covered

Not Covered

Tire, Window, Mirror Damage

Fully Covered

Not Covered

Roadside Assistance

Fully Covered

Not Covered

Know more About QEEQ Full Coverage

How to Save Money While Renting a Car in Iceland?

Car rentals in Iceland can be expensive due to high demand and seasonal fluctuations. Travelers from Austria can save significantly by planning ahead and following smart booking strategies.

Booking Tips for lower Prices

Book in Advance
Reserve your rental car at least 4-6 weeks ahead to secure lower rates and ensure availability during peak seasons.
Save up to 25%
Utilize Comparison Platforms
Explore comparison websites like RentalCars or QEEQ for competitive pricing and exclusive discounts.
Save up to €40 per day
Choose a Full-to-Full Fuel Policy
Opt for rentals with a full-to-full fuel option and refuel at local stations for better pricing.
Save €10-20 per refill
Avoid Airport Pickups
Renting a car directly at the airport often incurs additional fees. Consider picking up your car from city locations.
Save up to €50 per rental
Select Economy Cars
Choose smaller, fuel-efficient cars suitable for Icelandic roads to reduce rental and fuel costs.
Save €15-30 per day

QEEQ's Money-Saving Features

Diamond Membership
Save up to 20% on every booking - free trial available below.
View Details
Price Drop Protector
If your booked car price drops, QEEQ automatically rebooks it at the lower rate and refunds the difference to you.
View Details
One-Dollar Freeze
Lock in today's price with just $1 upfront and pay the rest later.
View Details
Flexible Payments
Pay with credit/debit cards or even cryptocurrency via BitPay.
View Details

What Should You Pay Attention To?

Important considerations and potential issues to watch for when renting a car in Iceland.

Weather Conditions
Iceland's weather can change rapidly and affect driving conditions.
- Be prepared for icy roads, even in spring.
- Highland roads may be closed during winter.
- Strong winds can make driving challenging.
- Always check weather forecasts before trips.
- Consider renting a 4x4 for better traction.
Road Regulations
Iceland has specific driving rules to ensure safety.
- Always drive on the right side of the road.
- Seat belts are mandatory for all passengers.
- Off-road driving is prohibited and heavily fined.
- Headlights must be on at all times, even during daylight.
- Driving under the influence has zero tolerance.
Gravel Roads and F-Roads
Many roads in Iceland are unpaved and require special attention.
- Drive slowly on gravel roads to avoid damage.
- F-roads (mountain roads) require 4WD vehicles.
- Check road conditions before traveling on F-roads.
- Insurance may not cover damage on these roads.
- Be cautious of sudden dips and curves.
Insurance Coverage
Ensure you have the right coverage for driving in Iceland.
- Consider gravel protection insurance.
- Sand and ash damage is common in certain areas.
- Third-party liability insurance is mandatory.
- Check if your credit card covers car rental insurance.
- Understand the deductible costs and exclusions.
Fuel and Refueling
Fueling stations are sparse in rural areas.
- Fill up whenever possible, especially in remote areas.
- Gas stations may require a credit or debit card with a PIN.
- Diesel cars are common; ensure you use the correct fuel type.
- Keep track of where stations are located along your route.
- Receipts can be useful for expense tracking.
Navigation and GPS
Accurate navigation is crucial for Iceland's unique road system.
- Cell coverage can be weak in remote areas.
- Download offline maps before your trip.
- Rental GPS devices may not be updated.
- Road signs are in Icelandic, so familiarize yourself beforehand.
- Plan routes carefully to avoid unnecessary travel.

Remember

Being prepared and knowing what to expect can save you hundreds of dollars and prevent stressful situations. Take time to understand all terms and inspect your rental thoroughly.

Comparing Traffic Rules Between Austria and Iceland

Austria and Iceland have distinct traffic regulations, especially regarding speed limits, road conditions, and driving etiquette. This guide highlights key differences and similarities for travelers.

Speed Limits
IS
50 km/h in urban areas, 90 km/h on rural roads, 90 km/h on gravel roads.
AT
50 km/h in urban areas, 100 km/h on rural roads, 130 km/h on highways.
Winter Tires
IS
Mandatory during winter months.
AT
Mandatory from November 1 to April 15 in snowy conditions.
Passing Etiquette
IS
Passing on the left only.
AT
Passing on the left, but more regulated in urban traffic.
Mountain and Gravel Roads
IS
Many roads are unpaved; 4x4 vehicles are recommended.
AT
Mostly paved roads with some alpine routes.
Mobile Phone Usage
IS
Hands-free devices only.
AT
Hands-free devices only.
Seatbelt Laws
IS
Mandatory for all passengers.
AT
Mandatory for all passengers.
Parking Rules
IS
Parking in marked areas only, fines are strictly enforced.
AT
Parking in designated areas with strict enforcement.
Remember
- • Iceland enforces strict speed limits, especially on gravel roads.
- • Always carry your driving license and rental agreement.
- • Be cautious of sudden changes in weather and road conditions in Iceland.
- • Follow all road signs as they provide critical safety and navigation guidance.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from Austria renting a car in Iceland

Do I need an International Driving Permit (IDP) to rent a car in Iceland with my Austrian (EU) license?

No, you do not need an IDP. Your Austrian EU license, as long as it uses Latin script and is valid, is fully accepted in Iceland.

What is the minimum age to rent a car in Iceland? Are there extra fees for younger drivers?

The minimum age for standard cars (2WD) is usually 20. For 4WD or larger vehicles, the requirement is often 23 or 25. If you are under 25, expect to pay a Young Driver Surcharge.

How far in advance should I book my rental car in Iceland?

Book as early as possible—ideally 3-6 months ahead, especially for summer (June-August). Car supply is limited and prices rise closer to travel dates.

Is a credit card required to rent a car? Can I use my Austrian debit card?

A credit card in the main driver's name is required, as a security deposit is pre-authorized. Debit cards, even with Visa/Mastercard logos, are generally not accepted for deposits.

Which rental platform is recommended for booking a car in Iceland?

QEEQ is the only recommended platform. It offers easy comparisons, transparent insurance packages, and consolidates local rental options.

What documents do I need to bring to pick up my rental car in Iceland?

Bring your valid Austrian license, your passport or EU ID, a credit card in the main driver’s name, and your booking confirmation (printed or digital).

Should I choose a manual or automatic car? I’m used to manual in Austria.

Manual cars are common and usually cheaper. If you’re comfortable with manual, it’s a good way to save. For more comfort, especially in cities or frequent stops, choose automatic.

Can I add an additional driver? What are the requirements?

Yes, you can add extra drivers. All drivers must be present at pick-up with valid licenses and ID. There’s usually a daily fee for each additional driver.

Will paying in euros (EUR) affect my expenses in Iceland since local currency is ISK?

You can pay in euros when booking on QEEQ, but all local transactions (fuel, parking, shopping) will be in ISK. Your credit card will convert currencies and may charge a small conversion fee.

Can I cancel or modify my booking if my travel plans change?

Usually yes. Most bookings can be cancelled or changed up to 48 hours before pick-up. Always check the specific cancellation policy on QEEQ.

Do I really need a 4WD vehicle, or is a 2WD enough?

It depends on your route and season. In summer, a 2WD is sufficient for the Ring Road and paved routes. In winter or for highland/F-roads, a 4WD is strongly recommended or required by law.

What are F-roads in Iceland? Can I drive them with a regular car?

F-roads are unpaved highland roads, often with river crossings. Only 4WD vehicles are legally allowed on F-roads. Using a 2WD is illegal and voids all insurance.

How do Icelandic F-roads compare to Alpine mountain roads?

Unlike well-maintained Alpine roads, F-roads are rough, unpaved, lack barriers, and often require river crossings—much riskier and with minimal facilities.

How can I visit the highlands if I don’t want to drive F-roads myself?

Take a Highland Bus or join a Super Jeep tour—both are safe, guided options to access the interior without self-driving.

Is renting a campervan a good idea for Iceland?

Yes, it offers flexibility, but wild camping is illegal. You must overnight at registered campsites. Campervans come in both 2WD and 4WD versions; choose based on your route.

Will my winter rental car come with winter tires? Is there an extra fee?

All rentals in winter (Oct-April) are legally required to have winter tires, often studded, at no extra cost.

What’s the difference between gravel roads and F-roads? Can 2WD cars use gravel roads?

Many secondary roads are unpaved gravel (not marked with 'F'). 2WD cars can use these with caution—drive slowly and keep distance to avoid stone chips. F-roads are rougher and strictly for 4WD.

We’re four people with four large suitcases. What size car do we need?

A compact car will be cramped. Choose at least a mid-size SUV or station wagon. Always check luggage capacity before booking.

What is CDW insurance? Is it enough?

CDW (Collision Damage Waiver) is mandatory and included, but comes with a high deductible (usually €1500-3000). Alone, it’s not sufficient for full protection.

What is SCDW insurance? Should I buy it?

SCDW (Super CDW) greatly lowers your deductible (to €200-500). Highly recommended as the basic level of protection in Iceland.

Do I really need Gravel Protection (GP) if I’m only driving the Ring Road?

Yes! Even the Ring Road can have gravel sections. Stone chips from other vehicles can easily damage your car. GP covers these repairs.

What is Sand and Ash Protection (SAAP)?

SAAP covers damage from volcanic ash or sandstorms—common in southern and eastern Iceland. Such damage is not covered by CDW/SCDW. If visiting these areas, SAAP is essential.

Is Theft Protection (TP) important in Iceland?

TP is usually included. Car theft is extremely rare in Iceland, so it’s less critical compared to GP or SAAP.

Should I choose a zero-deductible or premium all-inclusive insurance package?

Strongly recommended. These packages bundle all key protections and reduce your liability to zero, saving you from unexpected high costs.

Does my Austrian credit card’s included rental insurance work in Iceland?

Check carefully. Many credit card insurances don’t cover Iceland-specific risks (4WD, gravel, sand, ash, etc.). Get written confirmation of coverage, but best practice is to buy local full insurance.

What damages are never covered by any insurance?

Key exclusions: water damage from river crossings, undercarriage damage, tire damage (unless you buy tire insurance), wind-damaged doors, and off-road driving.

What is a deductible/self-risk?

It’s the maximum out-of-pocket amount you pay for covered damages. For example, if your deductible is €300 and repairs cost €1000, you pay €300, insurance covers the rest.

What if I decline all extra insurance?

The rental company will block a large deposit (up to €3000) on your credit card, and you risk significant out-of-pocket expenses for any damage. This is not recommended.

Where are the car rental desks at Keflavik Airport (KEF)?

Some large companies are inside the terminal, but most are nearby with free shuttle buses (5-10 mins). Your QEEQ booking will specify where to go.

What’s the most important thing to do when picking up my rental car?

Thoroughly inspect the car, take detailed photos and videos of all scratches, dents, wheels, glass, and lights, and ensure all damage is documented with the rental company.

What should I pay special attention to during the vehicle check?

Check the windshield for chips, tires for wear/damage, all electronics inside, interior cleanliness, and ensure the fuel tank is full.

How is the security deposit handled?

A pre-authorization (not an actual charge) is placed on your credit card, amount varies by insurance level. It’s released 7-14 days after return if no damage is found.

What are the steps for returning the car?

Refuel to full, keep your fuel receipt, clean the car if very dirty, and allow at least 30 minutes for the return inspection.

What happens if new damage is found at return?

If you have photos from pick-up showing the damage, present them. If not, you’ll pay the deductible as per your insurance. The company deducts this from your deposit.

Can I return the car outside office hours?

Yes, via key-drop boxes. But you won’t have a staff member check the car with you, so take comprehensive photos/videos of the car, fuel, and mileage at drop-off.

What are the speed limits in Iceland? Are there speed cameras?

90 km/h on paved roads, 80 km/h on gravel, 50 km/h in towns (sometimes 30). There are many speed cameras and fines are high.

Is it mandatory to use headlights at all times in Iceland?

Yes, headlights must be on at all times, day or night, regardless of weather.

What are single-lane bridges and how do they work?

Many bridges are single-lane. The first vehicle to arrive has priority; always slow down and ensure no oncoming traffic before crossing.

Can I stop anywhere on the road to take photos?

Absolutely not. Stopping on roads or shoulders is illegal and dangerous. Only stop at marked viewpoints, parking lots, or lay-bys.

What should I do if sheep are on the road?

Slow down immediately and be prepared to stop. Sheep frequently cross roads unpredictably. Hitting a sheep means you are liable for compensation.

How strong is the wind in Iceland? What precautions should I take?

Winds can be extremely strong, especially in winter and on the south coast. Hold doors tightly when opening, park facing the wind, and drive cautiously.

What are 'blind hills' in Iceland?

Blind hills (Blindhæð) are crests where you can’t see the other side. Always slow down and keep right to avoid collisions.

Are there special rules for double-lane roundabouts in Iceland?

Yes. The inner lane has priority when exiting. If not leaving at the first or second exit, enter the inner lane and be aware of cars in the outer lane.

What are the consequences of off-road driving in Iceland?

Driving off marked roads is illegal, causes severe environmental damage, and results in heavy fines. It also voids your rental contract and insurance.

Where can I get up-to-date road and safety information before driving each day?

Check these daily: road.is (road conditions), safetravel.is (safety alerts), and vedur.is (weather forecasts).

How expensive is fuel in Iceland and how do I pay?

Fuel is very expensive (about €2.2–2.5/liter). Most stations are self-service and require a credit or debit card with a 4-digit PIN. If you don’t have a PIN, buy a prepaid fuel card inside the shop.

Are there toll roads or tunnels in Iceland?

Almost all roads are free. The only major toll is the Vaðlaheiðargöng tunnel near Akureyri. Pay online at tunnel.is within 24 hours, or face additional fees from the rental company.

Is parking easy in Reykjavik? How do I pay?

Parking in central Reykjavik is paid and divided into P1–P4 zones (P1 is most expensive). Pay at meters with a credit card/coins or via the Parka.is app. Nights and Sundays are often free.

What hidden fees should I watch out for beyond rental and insurance?

Possible extras: cleaning fees if car is returned very dirty, high refueling fees if tank isn’t full, fines/handling fees for traffic tickets, and tunnel toll penalty fees.

What is the emergency number in Iceland?

Dial 112 for any emergency. Download the SafeTravel.is app to send your GPS location and check in before challenging hikes or drives.

Still have questions？

Contact QEEQ via online chat or hotline for specific advice. Contact Support

Car Rental in Iceland for Austrian Travelers

Embarking on an adventure in Iceland is exhilarating, but renting a car for the journey involves understanding various local practices. If you're traveling from Austria, you might be asking:

Can Austrian Citizens Drive in Iceland?

Ready to Rent?

Which Car Rental Companies Are Best?

Recommendations for Austrian Travelers

How to Choose the Right Car?

Quick Decision Guide

Compare with Confidence on QEEQ

What Are the Popular Destinations in Iceland?

What Insurance Do I Need?

Types of Insurance Coverage

QEEQ's Complete Protection Solutions

How to Save Money While Renting a Car in Iceland?

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Comparing Traffic Rules Between Austria and Iceland

Remember

Frequently Asked Questions

Other Popular Destinations

Embarking on an adventure in Iceland is exhilarating, but renting a car for the journey involves understanding various local practices.
If you're traveling from Austria, you might be asking: