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Embarking on a journey in Iceland offers stunning landscapes and unique challenges. As a traveler from Japan, you might be wondering about important details and requirements for car rentals and driving in this beautiful destination.
  • Can I drive in Iceland with my Japanese driver's license?
  • Is an International Driving Permit necessary?
  • What insurance options should I consider?
  • How do rental costs compare?
  • Are there specific driving rules or winter road precautions to be aware of?

This guide provides concise answers and practical advice, empowering you to navigate Iceland with ease. At the end, you'll find a summary of key points for quick reference and planning.

Can Japanese Citizens Drive in Iceland?

Yes, Japanese travelers can legally drive in Iceland with the proper documentation. Age restrictions and additional document requirements may apply.

  • Form of ID:

    A valid passport is required.

  • Driving licence:

    Accepted driving licence include:
    • Original driving licence + International Driving Permit (IDP)
    • EU/EEA Driving License

    Notes: Please note that an International Driving Permit(IDP) is only a translation. You must present your original driving licence with the original IDP at the counter. EU/EEA driving licenses are valid for car rental across the EU/EEA, as well as in Switzerland and the United Kingdom.
  • Accepted cards:

    Physical credit cards in the full name of the main driver. Accepted cards include Visa, Master, and AMEX.

  • Age requirements:

    Drivers must be between 20 and 99 years old. Young drivers aged 20-24 may incur a fee of US$ 11.83 per day.

Ready to Rent?

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

Check Rates

Which Car Rental Companies Are Best?

Explore reliable global chains or local alternatives for renting a car in Iceland.

Global Chain Companies

Local Brands

  • Europcar

    global
    8.5

    Locations:

    95

    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:

    72

    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:

    51

    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:

    20

    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:

    17

    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:

    7

    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 Japanese Travelers
Choose Global Chains If:
  • Prefer internationally recognized standards
  • Require extensive coverage across regions
  • Need dedicated customer support
  • Plan to travel extensively across Iceland
Choose Local Brands If:
  • Looking for cost-effective options
  • Focusing on specific Icelandic areas
  • Interested in unique vehicle types
  • Comfortable with localized service models

How to Choose the Right Car?

Choosing the ideal rental car for your journey to Iceland ensures comfort, safety, and an enjoyable experience. Consider your travel group size, the destinations on your itinerary, and the type of driving conditions you'll encounter. With QEEQ, you can compare a variety of car types and policies to find the best match for your trip.

  • Seating and Luggage

    Think about the number of passengers and luggage capacity needed.

    • Economy cars (2-4 people, 1-2 suitcases)
      Suitable for city exploration and short journeys.

    • Compact cars (4-5 people, 2-3 suitcases)
      A balance of space and fuel efficiency.

    • Mid-size cars (5 people, 3-4 suitcases)
      Comfortable for longer distances or mixed travel.

    • Full-size/SUV (5-7 people, 4+ suitcases)
      Perfect for families or group travel.

  • Transmission Type

    Choose a transmission type based on your driving preferences and Icelandic roads.

    • Automatic transmission
      Easy to use, especially in city traffic or for less experienced drivers.

    • Manual transmission
      Cost-effective, often with better fuel economy for rural drives.

    • Consider the terrain
      Automatic cars might be preferred for challenging roads or unfamiliar driving conditions.

  • Insurance Included

    Review insurance coverage options to ensure a worry-free experience.

    • Basic liability
      Covers third-party damages and is usually included.

    • Collision Damage Waiver (CDW)
      Optional coverage for your rental vehicle.

    • Theft protection
      May be included or available for a fee.

    • Personal insurance
      Verify if your Japanese insurance or travel policy extends to rentals.

  • Cancellation Policy

    Understand the flexibility of booking and associated fees.

    • Free cancellation
      Generally available up to 24-48 hours before pick-up.

    • Prepaid vs. Pay-at-counter
      Prepaid options are cheaper but less flexible.

    • Change fees
      Fees for modifying details such as dates or vehicle type.

    • Travel insurance
      Consider coverage for trip interruptions.

  • Mileage Policy

    Evaluate distance restrictions and additional charges for your planned route.

    • Unlimited mileage
      Best for extensive exploration or cross-country trips.

    • Limited mileage
      Lower daily rates but charges for exceeding limits.

    • Plan your route
      Consider detours and unplanned excursions.

    • Compare mileage costs
      Include potential excess charges in your budget.

  • Fuel Policy

    Choose a fuel policy that aligns with your convenience and budget.

    • Full-to-Full
      Refill to the same level at return, often the most economical.

    • Full-to-Empty
      Pay upfront, convenient but can be pricier.

    • Same-to-Same
      Return with the same level as pick-up for fair pricing.

    • Local fuel prices
      Compare pre-purchase options with nearby station rates.

Quick Decision Guide

  • City Travel

    Compact/Economy car with automatic transmission, full-to-full fuel policy.

    Reykjavik city exploration
  • Road Trip

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

    Ring Road excursions
  • Vacation

    SUV with comprehensive insurance and prepaid fuel option.

    Golden Circle and natural sites

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

What Are the Popular Destinations in Iceland?

Iceland is known for its breathtaking natural landscapes and unique routes, such as the Golden Circle and Ring Road. Travelers from Japan will find the country's scenic drives and cultural experiences unforgettable.

What Insurance Do I Need?

When renting a car in Iceland, it is mandatory to have insurance coverage. Basic insurance is often included, but additional optional coverage can help mitigate costs and risks associated with driving in varying weather conditions and on rugged terrains.

Types of Insurance Coverage
  • Collision Damage Waiver (CDW)

    Covers damages to the rental car due to a collision, excluding damages to tires, windshields, and the undercarriage.

    ¥2250-3750/day
    Essential
  • Theft Waiver (TP)

    Covers the cost of the vehicle in case of theft, with a deductible amount.

    ¥750-1200/day
    Essential
  • Super Collision Damage Waiver (SCDW)

    Reduces the deductible amount significantly for damages covered under CDW.

    ¥1500-3000/day
    Recommended
  • Gravel Protection (GP)

    Covers damages to the car's body, headlights, and windscreen caused by gravel on unpaved roads.

    ¥750-1500/day
    Highly Recommended
  • Personal Accident Insurance (PAI)

    Provides medical coverage for drivers and passengers in case of an accident.

    ¥750-1500/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.

Insurance Coverage Comparison
Coverage Feature
QEEQ Full Coverage
Basic Rental Company
Collision Damage Waiver

Fully Covered

US$0.00 - US$4,952.09
Theft Protection

Fully Covered

US$0.00 - US$4,735.74
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 When Renting a Car in Iceland?

Smart planning and careful choices can help Japanese travelers save significantly on car rentals in Iceland, where costs can vary widely depending on seasonality and demand.

Booking Tips for lower Prices
  • Book in Advance
    Secure your rental car 1-2 months ahead, especially for travel during peak seasons like summer.
    Save up to 25%
  • Use Price Comparison Tools
    Platforms like Skyscanner or DiscoverCars provide a comprehensive comparison of rental car deals.
    Save up to 20%
  • Opt for Smaller Cars
    Unless necessary, choose compact cars to reduce rental fees and fuel consumption.
    Save up to ¥5,000-¥10,000 per rental
  • Check for Inclusive Rates
    Ensure rates include insurance, taxes, and unlimited mileage to avoid hidden charges.
    Save ¥2,000-¥5,000 in additional fees
  • Full-to-Full Fuel Policy
    Select rentals with a full-to-full fuel policy and refill at local stations before returning.
    Save ¥1,500-¥3,000 per rental
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 (IS) as a traveler from Japan (JP).

  • F-Road Travel Restrictions
    Not all rental cars are allowed on Iceland's F-roads (highland roads).
    • Confirm if the car you rent is permitted on F-roads.
    • Driving on these roads in non-approved vehicles may void insurance.
    • Be aware of specific terrains and conditions.
  • Winter Driving Precautions
    Iceland's weather can be unpredictable, especially in winter.
    • Ensure your rental car has proper winter tires.
    • Check weather and road conditions before traveling.
    • Avoid driving during severe weather advisories.
  • Crossing Rivers
    Many highland roads require river crossings.
    • Check if the rental agreement permits river crossings.
    • Consider taking a 4x4 vehicle for such travel.
    • Seek guidance on safe crossing techniques.
  • Vehicle Inspection
    Thoroughly inspect the vehicle before departure.
    • Check for existing damages and document them with photos.
    • Test essential functionalities like lights and brakes.
    • Ensure the car's emergency kit is included.
  • Insurance and Coverage
    Understand the scope of insurance provided.
    • Confirm if gravel protection is included.
    • Check for coverage related to sand and ash damages.
    • Consider additional insurance for peace of mind.
  • Fuel Stations
    Fuel stations can be sparse in rural areas.
    • Plan your refueling stops in advance.
    • Be aware of self-service stations that accept cards only.
    • Keep an emergency fuel reserve if traveling remote.
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 in Traffic Rules Between Japan and Iceland

Traffic regulations in Japan and Iceland differ mainly in road signage, speed limits, and driving norms. However, there are similarities in safety measures and vehicle operation standards.

  • Speed Limits

    IS

    Generally 90 km/h on highways, 50 km/h in urban areas

    JP

    Generally 100 km/h on highways, 40 km/h in urban areas

  • Roundabout Priority

    IS

    Vehicles inside the roundabout have priority

    JP

    Vehicles entering the roundabout have priority

  • Winter Driving Conditions

    IS

    Mandatory use of winter tires during specific periods

    JP

    Winter tires are recommended but not mandatory

  • Road Signage

    IS

    Signage primarily in Icelandic with international symbols

    JP

    Signage primarily in Japanese with international symbols

  • Seatbelt Laws

    IS

    Mandatory for all passengers

    JP

    Mandatory for all passengers

  • Mobile Phone Use

    IS

    Prohibited unless using a hands-free device

    JP

    Prohibited unless using a hands-free device

  • Parking Rules

    IS

    Follow designated parking signs and zones

    JP

    Follow designated parking signs and zones

  • Remember
    • • Always carry your international driving permit and car rental documents.
    • • Familiarize yourself with local road signs and driving practices.
    • • Check weather conditions before planning long drives, especially in winter.
    • • Ensure your rental car is equipped with necessary safety features for Icelandic terrains.
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