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Embarking on a journey to explore Iceland's stunning landscapes can be exhilarating, especially for visitors coming from Greece. However, you might be wondering:
  • Can I use my Greek driving license in Iceland?
  • What are the local insurance options available?
  • How much do rentals generally cost in Iceland?
  • Are one-way rentals offered?
  • What unique rules do Icelandic roads have?

This guide serves as your go-to resource for car rental in Iceland, ensuring you're well-prepared for the adventure. By the end, you'll find a quick recap summarizing all essential details.

Can Greek Citizens Drive in Iceland with a Rental Car?

Yes, Greek travelers can rent and drive cars in Iceland by presenting a valid Greek or EU/EEA driving licence and standard identity documents. Age limits and young/old driver surcharges may apply depending on the rental company.

  • Form of ID:

    Foreign renters must present a valid passport at the rental counter.

  • Driving licence:

    Accepted driving licence include:
    • A full, physical EU/EEA driving licence held for at least 1 year, with no major endorsements.

  • Accepted cards:

    Physical credit cards in the full name of the main driver are required. Accepted cards typically include Visa and MasterCard; some offers may also accept AMEX, Discover or DinersClub depending on the specific rental company. Debit cards are generally not accepted for deposit.

  • Age requirements:

    Depending on the specific offer, the minimum and maximum driving ages range broadly between 18–99 years. Common standard ranges include 19–74, 20–99, 21–80/99, 23–70/99 and 25–80. Young driver surcharges may apply, for example: 18–20 years (about US$ 8.37 per day in ISK), 19–20 years (about US$ 11.35–14.07 per day in EUR), 20–22 years (about US$ 8.37 per day in ISK), 21–24/25 years (about US$ 7.03–11.73 per day in EUR), or 23–25 years (about US$ 21.11 per day in EUR). In some UK-priced offers, surcharges of around US$ 67.56 per day may apply for drivers 19–21/23, and US$ 54.04 per day for drivers 80–85. Exact applicable age band and fee depend on the chosen rental supplier and car group.

Ready to Rent?

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

Check Rates

Which Car Rental Companies Are Best?

Choose from trusted global chains or innovative local alternatives. Each offers different advantages for Greek travelers 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 Greek Travelers
Choose Global Chains If:
  • First time renting in Iceland
  • Need reliable nationwide coverage
  • Want 24/7 customer support
  • Business or important travel
Choose Local Brands If:
  • Want to save money
  • Staying in Reykjavik or main tourist areas
  • Interested in unique vehicle experiences
  • Comfortable with app-based services

How to Choose the Right Car?

Choosing the right rental car can make your trip 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 Iceland

    • Manual transmission
      Often cheaper, better fuel economy, more control

    • Consider your comfort level with different types of transmissions

  • 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 Greek 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 exploring Iceland's scenic routes

    • 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

    Reykjavik, Akureyri
  • Road Trip

    Mid-size/Full-size car with unlimited mileage, flexible cancellation

    Ring Road, Golden Circle
  • Vacation

    SUV/4WD with comprehensive insurance, prepaid fuel option

    Vatnajökull National Park, Westfjords, Highlands

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
Check Rates

Discover Iceland's Top Destinations

Iceland captivates visitors with its stunning landscapes and unique travel experiences. Explore the Golden Circle, the South Coast, or Reykjavik for unforgettable adventures.

What Insurance Do I Need?

You'll need at least basic insurance to legally drive in Iceland, but for peace of mind on a long road trip, extra coverage is strongly recommended. Insurance rules vary, and what's included in your rental price may be minimal. Choosing the right protection can save you from high out-of-pocket costs in case of an accident or theft.

Types of Insurance Coverage
  • Collision Damage Waiver (CDW)

    Covers damage to the rental car from collision or theft.

    €13-21/day
    Essential
  • Theft Waiver (TP)

    Protects against theft of the rental vehicle.

    €4-7/day
    Essential
  • Liability Insurance

    Covers injury or damage to others and their property.

    Often included
    Included
  • Personal Accident Insurance (PAI)

    Covers medical expenses for you and your passengers.

    €4-9/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$4,693.14
Theft Protection

Fully Covered

US$0.00 - US$11,732.87
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 Renting a Car in Iceland?

Travelers from Greece visiting Iceland can save significantly on car rentals by following simple strategies tailored to this destination. Rental car prices in Iceland can vary widely depending on season, demand, and rental duration.

Booking Tips for lower Prices
  • Book Early
    Reserve your car weeks in advance to secure better rates and availability, especially during peak travel seasons.
    Save up to 35%
  • Compare Rental Platforms
    Use comparison websites like RentalCars or QEEQ to find competitive deals across multiple providers.
    Save up to 20%
  • Opt for Full-to-Full Fuel Policy
    Choose a rental plan with a full-to-full fuel policy and refuel at local stations before returning the car.
    Save €15-30
  • Avoid Extra Insurance Fees
    Ensure your credit card or travel insurance covers rental car damage to avoid purchasing additional coverage from the rental company.
    Save €50-100
  • Select Vehicles Wisely
    For Iceland, consider renting a 4x4 vehicle if traveling outside main roads, but stick to smaller cars for urban areas to reduce costs.
    Save €50/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.

  • Hidden Fees
    Be aware of additional costs not included in the initial price.
    • Airport pickup fees
    • Young driver surcharges (under 25)
    • Extra driver fees
    • Winter equipment rentals (tires, chains)
    • Insurance add-ons
  • Insurance Options
    Review insurance options carefully to ensure proper coverage.
    • Check if your existing policy covers international rentals
    • Credit cards may provide some coverage
    • Understand what is mandatory in Iceland
    • Consider gravel protection due to road conditions
    • Avoid duplicating existing coverage
  • Fuel Policies
    Understand the fuel return policy to avoid penalties.
    • Full-to-full is typically the best value
    • Prepaid fuel plans may cost more
    • Keep receipts as evidence
    • Locate nearby gas stations before return
    • Check if diesel or gasoline is used
  • Vehicle Inspection
    Document the car's condition before and after use.
    • Take photos of any dents or scratches
    • Check the tires and windshield for damage
    • Test headlights and indicators
    • Record mileage and fuel level
    • Report discrepancies immediately
  • Contract Terms
    Read through the rental agreement thoroughly.
    • Understand mileage limits
    • Check geographical restrictions (e.g., highland roads)
    • Note late return fees
    • Be aware of the age requirements
    • Review cancellation and modification policies
  • Pickup and Return Times
    Plan your schedule to avoid unexpected charges.
    • Ensure pickup and return within business hours
    • Account for traffic or weather delays
    • Know the grace period for returns
    • Avoid late penalties
    • Check early return policies
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.

Differences and Similarities Between GR and IS Traffic Rules

Traffic rules in Greece (GR) and Iceland (IS) differ in areas such as parking regulations, speed limits, and winter driving requirements, but share similarities in seatbelt laws and mobile phone usage policies.

  • Parking Regulations

    IS

    Strict regulations, especially in urban areas. Unauthorized parking can result in fines.

    GR

    Parking is less regulated in rural areas. Urban zones may have specific restrictions.

  • Winter Driving

    IS

    Mandatory use of winter tires during cold seasons.

    GR

    No mandatory winter tire regulations.

  • Speed Limits

    IS

    Limits are generally 90 km/h on rural roads and 50 km/h in urban areas.

    GR

    Higher rural speed limits, often exceeding 100 km/h on main roads.

  • Seatbelt Laws

    IS

    Mandatory for all occupants in the vehicle.

    GR

    Mandatory for all passengers regardless of seating position.

  • Mobile Phone Use

    IS

    Use of handheld devices is prohibited while driving.

    GR

    Hands-free devices are required while operating a vehicle.

  • Traffic Signals

    IS

    Strict compliance with traffic lights is enforced.

    GR

    Similar adherence to traffic signals is expected.

  • Remember
    • • Iceland has many single-lane bridges—approach with caution.
    • • Always carry an international driving permit (IDP) when traveling.
    • • Check your car rental agreement for specific rules on fuel and tolls.
    • • Fines for traffic violations are enforced strictly in both countries.
Voices of our customers

Frequently Asked Questions

Common questions for travelers from Greece renting a car in Iceland

Do I need an International Driving Permit (IDP) to rent and drive in Iceland with a Greek (EU) license?

No, you do not need an IDP if your Greek license is in Latin letters and valid. You just need to show your original license when picking up the car.

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

It is highly recommended to book as early as possible—ideally 3-6 months ahead, especially for summer travel, 4x4 vehicles, or campervans. Early booking ensures better prices and availability.

Should I rent a 2WD or a 4x4 vehicle?

Choose based on your route and season: 2WD is fine for the Ring Road and paved roads in summer. You must rent a 4x4 if you plan to drive on F-roads (highland roads) or visit in winter for better safety on icy roads.

Are manual or automatic cars more common in Iceland?

Manual cars are more common and cheaper. If you prefer automatic, filter for it during booking, as automatics are limited and in high demand.

Is renting a campervan in Iceland a good idea?

Yes, especially for flexibility and saving on accommodation. However, you must stay overnight at designated campsites; wild camping is illegal.

What are the main differences between summer and winter driving in Iceland?

Summer offers long daylight and open roads, while winter brings short days, unpredictable weather, and possible road closures. Cars will have winter tires in winter by law.

What are the minimum age requirements to rent a car?

Most companies require drivers to be at least 20 years old for standard cars, with a license held for at least one year. Larger vehicles or 4x4s may require drivers to be 23-25 years old. Young driver fees may apply for those under 25.

How many days do I need to comfortably drive the Ring Road?

Plan for at least 8-10 days to enjoy the sights, do short hikes, and accommodate possible weather delays.

Is it practical to rent an electric vehicle (EV) in Iceland?

It's increasingly feasible, especially along the Ring Road. However, charging infrastructure is still sparse in remote areas, so plan your route carefully if driving an EV.

Is diesel or petrol better for driving in Iceland?

Both are widely available. Diesel is usually cheaper and more fuel-efficient for long trips. Always double-check the fuel type before filling up to avoid costly mistakes.

Where should I book my rental car? Any platform recommendations?

Use QEEQ, which compares prices from multiple local and global companies, offers various insurance packages, and has a user-friendly booking process.

Why use QEEQ to book my rental car?

QEEQ provides price comparisons, bundled insurance deals, a transparent interface, and smooth booking from comparison to payment.

What kind of credit card do I need for booking and pickup?

You need a credit card (not debit) with raised numbers, in the main driver's name. The company will put a hold on your card for a security deposit.

What is included in the basic rental price?

The price usually includes the rental fee, third-party liability insurance, basic collision damage waiver (CDW with high excess), unlimited mileage, and VAT.

Can I add extra drivers to my rental?

Yes, you can add additional drivers for a daily fee. All drivers must be present at pickup with valid licenses and passports.

Why is insurance coverage in Iceland so important and complicated?

Iceland’s weather and road conditions are extreme. Many types of damage are not covered by standard insurance, making it crucial to choose the right coverage to avoid expensive repair bills.

What is CDW and SCDW insurance?

CDW (Collision Damage Waiver) reduces your liability for collision damage but still leaves a high excess. SCDW (Super CDW) further lowers this excess—often to a few hundred euros. SCDW is highly recommended.

What is Gravel Protection (GP) and do I need it?

Yes, you need it! GP covers damage from flying stones, which are common on Icelandic gravel roads. Without it, repairing a windshield can cost over €800.

What is Sand and Ash Protection (SAAP)? When should I get it?

SAAP covers damage from volcanic ash and sand, which can severely scratch your car—especially in the south. This type of damage is expensive to fix and not covered by basic insurance. Highly recommended for southern routes.

Is tire insurance necessary?

Absolutely. Punctures are common on gravel roads and volcanic rocks. Standard insurance doesn’t cover tires, so tire insurance gives peace of mind.

What is 'zero excess' or 'platinum' insurance?

This package usually bundles SCDW, GP, SAAP, theft protection, etc., and reduces your excess to zero—meaning you pay nothing for covered damages. It’s ideal for worry-free travel.

Does insurance cover river crossing damage?

No! Any damage from river crossings is 100% at your own risk—costs can be several thousand euros. Avoid river crossings unless you are experienced.

Is undercarriage damage covered by insurance?

Usually not. Even for 4x4s, undercarriage damage is excluded. Drive carefully, especially on rough roads.

Can I use the car rental insurance from my Greek credit card?

Technically yes, but it’s tricky. You must check if it covers Iceland-specific risks and 4x4s, decline all rental insurance, pay in full with that card, and handle any claims yourself after returning home.

What is the best insurance strategy for first-time Iceland self-drivers?

Choose a gold or platinum package with SCDW, GP, and SAAP for maximum protection and peace of mind.

How do I find my rental car company at Keflavík International Airport (KEF)?

Some companies have desks in the terminal. Most operate from a nearby rental area—take the free shuttle bus from the arrivals hall to reach them.

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

Thoroughly inspect and document the car’s condition. Take videos and close-up photos of any existing scratches or damage and ensure they are noted on the contract.

What documents do I need to present at pickup?

Bring the main driver’s passport, valid Greek license, credit card, and your booking confirmation (printed or digital).

What should I double-check before signing the rental contract?

Verify that all insurance and extras you purchased are included, no unwanted charges are added, fuel policy is correct, and all existing damage is recorded.

Should I check the tires and spare tire?

Yes! Inspect all tires for wear and pressure, confirm there’s a spare and tools, and make sure you know how to use them.

What are the main speed limits in Iceland?

50 km/h in towns, sometimes 30 km/h in residential areas; 90 km/h on paved roads; 80 km/h (or less) on gravel roads. Always obey limits—fines are very high.

Are there any special rules about headlights?

Yes. It’s mandatory to keep your headlights on at all times, day or night, in any weather.

What is unusual about roundabouts in Iceland?

On two-lane roundabouts, the inner lane has right of way. If you’re in the outer lane, yield to cars exiting from the inner lane.

What are F-roads?

F-roads are mountain roads leading to Iceland's highlands, only open in summer. They are rough, unpaved, and may require river crossings. Only 4x4 vehicles are legal and insured on F-roads.

Can I drive off-road in Iceland?

Absolutely not. Off-road driving is illegal and severely fines. It damages fragile moss and ecosystems that can take decades to recover.

What should I do at one-lane bridges?

The first car to arrive has the right of way. Slow down, check for oncoming traffic, and yield if necessary.

How do I refuel? Are gas stations open 24/7?

Most rural stations are self-serve and open 24/7 but require a card with a 4-digit PIN. Urban stations may have attendants during business hours.

How should I handle Iceland’s strong winds?

Hold car doors firmly when opening, park facing the wind, and keep both hands on the wheel when driving. Wind can damage doors and make driving hazardous.

What should I do if I encounter sheep on the road?

Slow down and stop if necessary. Do not honk; wait patiently for them to cross. Hitting sheep is dangerous and you must compensate the owner.

What are the most important winter driving tips?

Check road.is and safetravel.is daily, keep your itinerary flexible, carry food and warm clothing, and never attempt risky roads if you lack experience.

How do I decide whether to cross a river while driving?

If you have no experience, do not cross rivers. If you must, only cross at marked points, assess conditions first, and follow experienced vehicles.

How does parking and payment work in Reykjavik?

City center parking is zoned and priced by area (P1, P2, P3, etc.). Pay at meters (cash or card) or use apps like Parka.is. Some areas are free at night or weekends—check the signs.

What is Iceland’s emergency number?

Dial 112 for police, fire, or medical emergencies.

Are traffic fines expensive in Iceland?

Yes, very! Speeding fines start at several hundred euros. Fines are charged to your credit card with an admin fee from the rental company.

What useful apps or websites should I use?

Use road.is for road conditions, vedur.is for weather, and download offline maps (such as Google Maps) since mobile coverage is limited in remote areas.

What is the process for returning the car?

Return the car to the designated point, where staff will check the car’s condition, mileage, and fuel. Ensure the tank is full or you’ll be charged at a premium rate.

Do I need to clean the car before returning?

Keep the car reasonably clean inside and out. Excessive dirt may incur a cleaning fee. A quick wash is a good idea.

What if the rental company charges me for damage after I return the car?

This is where your pickup photos/videos are crucial. If damage was pre-existing, email your evidence to dispute charges. Zero excess insurance means you’re covered.

What should I do if I receive a traffic fine from the rental company?

You must pay it. The rental company is obligated to provide your details to the authorities and will deduct the fine and an admin fee from your credit card.

How long does it take for my credit card deposit to be released after returning the car?

The hold is usually released within a few business days once the car is cleared of damage, fines, and the tank is full. The exact time depends on your bank, typically 5-15 days.

Still have questions?

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