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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:

    82

    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:

    52

    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:

    37

    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:

    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 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.

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.
Voices of our customers

Frequently Asked Questions

Common questions for travelers from Japan renting a car in Iceland

Is it recommended for first-time visitors to Iceland to go sightseeing by rental car?

Yes, it is recommended. With a rental car, you can enjoy the scenery at your own pace, stop freely for photos, and access places that bus tours cannot reach.

When is the best time for Japanese tourists to drive around Iceland?

It depends on your purpose. Summer (June–August) offers easier driving and all roads are open. In winter (October–March) you can see the Northern Lights and ice caves, but driving conditions are more difficult.

How many days do I need to drive around Iceland on the Ring Road?

In summer, you need at least 7–8 days, and 10–14 days is recommended if you want a relaxed schedule. In winter, due to weather and limited daylight, plan for at least 10 days.

Besides clothing, what should I bring for a road trip in Iceland?

A valid Japanese driving licence and an International Driving Permit (IDP), a credit card with PIN, offline maps, a car charger and power bank, sunglasses, a water bottle, and waterproof trekking shoes, among others.

Is it easy to find gas stations in Iceland?

Along the Ring Road and in towns there is usually one every 50–100 km, but they are very scarce in remote areas. Always keep your fuel above half a tank.

Can I use Japanese credit cards at gas stations? What is a PIN?

Visa and Mastercard are widely accepted at unmanned fuel pumps, but you need a 4‑digit PIN code. Set your PIN with your card issuer before departure. If you do not have a PIN, prepaid fuel cards can also be used.

When is the best time to book a rental car?

During peak seasons such as summer and Christmas, it is best to reserve 3–6 months in advance. Automatic cars in particular must be booked early.

Which rental car booking site do you recommend for Iceland?

QEEQ is recommended. You can compare rates from multiple rental car companies and find the lowest price.

What are the advantages of booking with QEEQ?

You can compare multiple companies, choose special packages and insurance options, and receive clear support in English or Japanese, which provides peace of mind.

Which is better, a local rental company or an international brand?

Local companies often offer newer cars and packages that include insurance, while international brands are more familiar. You can compare both and check conditions on QEEQ.

Which is cheaper, renting a car on arrival at the airport or booking in advance?

Booking online in advance is significantly cheaper and secures your desired car type. If you wait until arrival, prices are higher and availability is limited.

What does “Unlimited mileage” mean? Is it necessary?

It means there is no limit on the distance you can drive. Since driving around Iceland covers long distances, it is included in almost all plans and is essential.

I only have a Japanese driving licence. Can I drive in Iceland? Do I need an International Driving Permit?

An International Driving Permit (IDP) is mandatory. A licence in Japanese only is not accepted, and rental car companies will require you to present both documents.

Where can I obtain an International Driving Permit in Japan?

At your prefectural driving licence centre or police station. It is issued on the same day or within a few days.

What is the minimum age to rent a car in Iceland?

Typically from 20 years old. For 4WD and larger vehicles, the minimum age may be 23 or 25. Drivers under 25 may incur a young driver surcharge.

How long must I have held my driving licence?

Many rental companies require that you have held your driving licence for at least 1 year.

What type of car is recommended for summer trips (June–August)?

For the Ring Road and paved roads only, a small 2WD car (e.g., Toyota Yaris, VW Golf) is sufficient.

What type of car is recommended for winter?

A 4WD (four‑wheel drive) vehicle is recommended. In winter, roads can be icy or snow‑covered, so 4WD is essential for stability and safety.

What is an F‑road? Do I need a special car?

These are unpaved highland mountain roads open only in summer. A 4WD vehicle is legally required; entering with a 2WD is illegal and voids your insurance.

Japan uses right‑hand‑drive cars. Is driving a left‑hand‑drive car in Iceland difficult?

It can be confusing at first, but you will adapt if you stay attentive. Pay particular attention to roundabouts and driving on the right side of the road.

Which should I choose, manual or automatic?

Choose the type you are used to. Manual cars are cheaper, but if you are not confident, book an automatic early.

Do you recommend campervans?

They are convenient because they combine transportation and accommodation, but you may only park overnight at campsites. Wild camping is illegal.

Is CDW (Collision Damage Waiver) always included?

Yes. By law, basic CDW is included with all rentals, but the deductible (your own risk) is high.

Is SCDW (Super CDW) necessary?

It is optional extra insurance that significantly reduces the deductible. It is strongly recommended for peace of mind.

Is GP (Gravel Protection) necessary?

Yes, it is essential. Damage from gravel roads and stone chips is not covered by CDW/SCDW, so you need GP to cover it.

What is SAAP (Sand and Ash Protection)? Is it necessary?

It covers expensive damage caused by sandstorms and volcanic ash, especially along the South Coast. CDW does not cover this, so it is recommended, particularly outside of summer.

Is TP (Theft Protection) necessary?

Crime rates in Iceland are very low, so it is not essential, but it is included in many insurance packages.

What is Zero Deductible or Platinum Insurance?

This top‑tier plan includes SCDW, GP, SAAP and TP, reducing your deductible to zero. It is expensive but offers maximum peace of mind.

Can I rely on the insurance attached to my Japanese credit card?

In many cases it does not cover 4WD vehicles or special types of damage (sand, ash, river crossings, etc.). You must take out sufficient insurance locally.

What types of damage are not covered by insurance?

Damage to tyres and wheels, the underside of the car, water damage from river crossings, entering F‑roads with a 2WD, door damage from strong winds, and damage caused by drunk driving or gross negligence are generally excluded.

Where do I pick up the car at Keflavík Airport?

Some companies are in the arrivals hall, while others are in the nearby rental car area accessible by free shuttle bus or a 5‑minute walk. Your booking voucher has detailed instructions.

What should I pay attention to at pick‑up?

Take photos and videos of the entire exterior and interior, report any scratches or dents to the staff, and have them recorded in the paperwork.

What documents are required at the rental counter?

Your booking voucher, Japanese driving licence, International Driving Permit (IDP), a credit card in the main driver’s name with sufficient credit limit, and your passport.

What is a security deposit?

A few hundred euros will be pre‑authorised on your credit card. If there are no issues at return, the hold is released after a few days.

What is the procedure when returning the car?

You usually need to return the car with a full tank. Staff will inspect the vehicle. Having your pick‑up photos makes the process smoother. Allow 30–45 minutes before your flight.

What are the speed limits in Iceland?

50 km/h in urban areas, 80 km/h on unpaved roads, and 90 km/h on paved rural roads. Speed enforcement is strict.

Do I need to keep my headlights on at all times?

Yes. By law, headlights must be on 24 hours a day all year round.

What are some unique road hazards in Iceland?

In summer, watch out for sheep crossing, single‑lane bridges, blind hills, sudden weather changes, and door damage from strong winds.

Is off‑road driving illegal?

Yes. Driving off designated roads is considered environmental damage and is punishable by heavy fines. F‑roads are designated roads and are not considered off‑road.

What are the rules for roundabouts?

Enter counter‑clockwise. Vehicles already in the roundabout have priority. On two‑lane roundabouts the inner lane has priority, and you must signal when exiting.

Are there toll roads in Iceland?

There is mainly one toll tunnel near Akureyri in the north. You must pay online within 24 hours after passing through.

Is using a smartphone for navigation sufficient?

Google Maps and Waze work well. Download offline maps before departure for extra security.

Is gasoline expensive in Iceland?

Yes, it is more expensive than in Japan or the US. It will be a major part of your travel budget, so plan accordingly.

Are there any hidden extra costs?

There may be fees for speeding tickets or unpaid tolls, young driver surcharges for under‑25s, one‑way rental fees, and airport surcharges.

What is the emergency number in Iceland?

Dial 112 for police, ambulance, and fire services. You can also send your location using the 112 Iceland app.

What should I do if the car breaks down?

Stop in a safe place, switch on the hazard lights, and call the rental company’s 24‑hour roadside assistance. The number is on your rental contract.

What should I do in case of an accident?

Ensure safety, call 112 if needed, take photos of the scene and damage, exchange details with the other party, fill in the accident report form in the car, and contact the rental company.

What happens if I get a speeding ticket?

The rental company will pay the fine on your behalf and later charge the fine plus an administrative fee to your credit card.

Do I need a GPS device, or is a smartphone enough?

Along the Ring Road, offline maps on your smartphone are usually sufficient. If you are concerned about battery life or coverage, consider renting a GPS unit as well.

Is drinking and driving acceptable in Iceland?

Absolutely not. The legal blood alcohol limit is 0.02%, which is extremely strict, and penalties are severe.

Still have questions?

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