This guide provides detailed answers to help Indian travelers embark on their Icelandic adventure with confidence. A quick-reference table at the end summarises all key topics for easy planning.
Yes, Indian travelers can drive rental cars in Iceland when they present the correct documents and meet the age and licence-holding requirements.
Form of ID:
Foreign renters must present a valid physical passport.
Driving licence:
Accepted driving licence include:
• Original driving licence + International Driving Permit (IDP) (IDP is only a translation and must be presented together with your original licence).
Accepted cards:
Physical credit cards in the full name of the main driver are required. Accepted credit cards may include: Visa, MasterCard, American Express, Diners Club, JCB, and Discover, depending on the specific rental offer. Some offers also accept debit cards (Visa or MasterCard) for payment or deposit.
Age requirements:
Depending on vehicle category and offer, the minimum driving age ranges from 20 to 25 years, with maximum ages typically between 69 and 99. In many cases, drivers aged 20–24 (or 20–25 for some offers) may rent for an additional young driver fee, such as about US$ 11.79–17.69 per day, while certain car groups are only available from age 23 or 25.
Requirements may vary between rental companies. Always confirm details when booking.
Choose from trusted global chains or innovative local alternatives. Each offers different advantages for travelers from India visiting Iceland.
Global Chain Companies
Local Brands

Europcar
Locations:
83Prices:
$$Key Advantages
Best for
Leisure travelers and eco-conscious renters
Hertz
Locations:
54Prices:
$$$Key Advantages
Best for
Business travelers and premium vehicle needs
Budget
Locations:
36Prices:
$Key Advantages
Best for
Cost-conscious travelers and families
SIXT
Locations:
19Prices:
$$Key Advantages
Best for
Travelers seeking premium vehicles and flexible rental options
Alamo
Locations:
13Prices:
$$Key Advantages
Best for
Leisure travelers and families
Icerental 4x4
Locations:
2Prices:
$$Key Advantages
Best for
Adventure seekers and winter travel
FAIRCAR
Locations:
6Prices:
$$Key Advantages
Best for
Budget-conscious travelers and local rentals
ACE Rent A Car
Locations:
4Prices:
$$Key Advantages
Best for
Budget-conscious travelers and families
SAGA Car Rental
Locations:
1Prices:
$Key Advantages
Best for
Budget-conscious travelers and local rentals
Lava
Locations:
1Prices:
$-$$Key Advantages
Best for
Budget-conscious travelers and local excursionsChoosing the right rental car can make your journey in Iceland more comfortable, safe, and enjoyable. Think about your travel group, the destinations you'll visit, and the type of driving you'll encounter. With QEEQ, you can compare various car types and policies to find the one that best suits your adventure.
Consider your travel group size and luggage needs
Economy cars (2-4 people, 1-2 suitcases)
Perfect for city driving, short trips, or Reykjavik exploration
Compact cars (4-5 people, 2-3 suitcases)
Good balance of space and fuel efficiency for urban areas
Mid-size cars (5 people, 3-4 suitcases)
Comfortable for longer journeys and countryside visits
Full-size/SUV (5-7 people, 4+ suitcases)
Ideal for families and exploring Iceland's rugged terrain
Choose between automatic and manual transmission
Automatic transmission
Simple and convenient, particularly for city driving and unfamiliar routes
Manual transmission
Often cheaper but requires more skill, suitable for experienced drivers
Most Icelandic drivers are accustomed to both types
Consider the terrain when choosing: automatic is recommended for off-road routes
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 but recommended in Iceland
Gravel protection
Essential for Iceland's gravel roads
Personal insurance
Verify if your Indian insurance or travel insurance extends to Iceland
Understand booking flexibility and fees
Free cancellation
Often available up to 24-48 hours before pickup
Prepaid vs. Pay-at-counter
Prepaid might be less flexible but often cheaper
Change fees
Cost to modify dates, locations, or car type
Travel insurance
Consider coverage for trip cancellations or delays
Check distance restrictions and additional charges
Unlimited mileage
Best for exploring Iceland fully without constraints
Limited mileage
Cheaper daily rate but additional costs for exceeding limits
Consider your travel route, especially visits to remote areas
Factor in mileage policies for total cost comparisons
Understand fuel requirements and costs
Full-to-Full
Return with the same fuel level as pickup, most economical
Full-to-Empty
Pay for a full tank upfront, convenient but might not be cost-efficient
Same-to-Same
Return with the same level as taken
Pre-purchase fuel options
Compare prices with local gas station rates
Quick Decision Guide
Compact/Economy car with automatic transmission, full-to-full fuel policy
Reykjavik, AkureyriMid-size/Full-size car with unlimited mileage, gravel protection, flexible cancellation
Ring Road, Golden Circle4x4 SUV with comprehensive insurance, prepaid fuel option
Highlands, Glacier explorationsCompare with Confidence on QEEQ
Iceland is renowned for its natural wonders and scenic routes. Popular destinations include Reykjavik, the Golden Circle, and the Ring Road. Renting a car allows travelers to explore geysers, waterfalls, and volcanic landscapes with ease.
Driving in Iceland requires at least basic insurance. However, given the unique terrain and weather conditions, additional coverage is highly recommended to safeguard against unforeseen costs.
Covers damage to the rental car caused by collision, typically excluding specific scenarios like off-road damage.
Specific to Iceland, covers damage to the car's paint, windshield, and lights caused by loose gravel.
Covers damage caused by ash or sandstorms, common in certain regions of Iceland.
Mandatory insurance that covers injury or damage to others and their property.
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.
Fully Covered
Fully Covered
Fully Covered
Fully Covered
Fully Covered
Traveling from India to Iceland? Follow these expert tips to ensure you get the best car rental experience without overspending.
Important considerations and potential issues to watch for when renting a car in Iceland.
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.
Indian and Icelandic traffic rules vary significantly in terms of road etiquette, priority rules, and environmental considerations. Understanding these differences is crucial for safe and enjoyable travel.
Right Turn on Red
Not allowed at red lights
Allowed after full stop
Winter Tires
Mandatory during winter months
Not mandatory
Lane Discipline
Strict adherence to lane discipline
Frequently flexible and less enforced
Speed Cameras
Extensively used to monitor and enforce speed limits
Less common, manual speed checks are frequent
Mobile Phone Use
Hands-free only
Hands-free only
Seatbelt Laws
Mandatory for all occupants
Mandatory for all occupants
Parking Rules
Strict regulations, fines for violations
Regulations vary by city, enforcement less consistent
Common questions for travelers from India renting a car in Iceland