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.
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
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.
Requirements may vary between rental companies. Always confirm details when booking.
Explore reliable global chains or local alternatives for renting a car in Iceland.
Global Chain Companies
Local Brands

Europcar
Locations:
95Prices:
$$Key Advantages
Best for
Leisure travelers and eco-conscious renters
Hertz
Locations:
72Prices:
$$$Key Advantages
Best for
Business travelers and premium vehicle needs
Budget
Locations:
51Prices:
$Key Advantages
Best for
Cost-conscious travelers and families
SIXT
Locations:
20Prices:
$$Key Advantages
Best for
Travelers seeking premium vehicles and flexible rental options
Alamo
Locations:
17Prices:
$$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:
7Prices:
$$Key Advantages
Best for
Budget-conscious travelers and families
SAGA Car Rental
Locations:
1Prices:
$Key Advantages
Best for
Budget-conscious travelers and local rentals
Lava
Locations:
1Prices:
$-$$Key Advantages
Best for
Budget-conscious travelers and local excursionsChoosing the 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.
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.
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.
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.
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.
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.
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
Compact/Economy car with automatic transmission, full-to-full fuel policy.
Reykjavik city explorationMid-size/Full-size car with unlimited mileage, flexible cancellation.
Ring Road excursionsSUV with comprehensive insurance and prepaid fuel option.
Golden Circle and natural sitesCompare with Confidence on QEEQ
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.
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.
Covers damages to the rental car due to a collision, excluding damages to tires, windshields, and the undercarriage.
Covers the cost of the vehicle in case of theft, with a deductible amount.
Reduces the deductible amount significantly for damages covered under CDW.
Covers damages to the car's body, headlights, and windscreen caused by gravel on unpaved roads.
Provides medical coverage for drivers and passengers in case of an accident.
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
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.
Important considerations and potential issues to watch for when renting a car in Iceland (IS) as a traveler from Japan (JP).
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.
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
Generally 90 km/h on highways, 50 km/h in urban areas
Generally 100 km/h on highways, 40 km/h in urban areas
Roundabout Priority
Vehicles inside the roundabout have priority
Vehicles entering the roundabout have priority
Winter Driving Conditions
Mandatory use of winter tires during specific periods
Winter tires are recommended but not mandatory
Road Signage
Signage primarily in Icelandic with international symbols
Signage primarily in Japanese with international symbols
Seatbelt Laws
Mandatory for all passengers
Mandatory for all passengers
Mobile Phone Use
Prohibited unless using a hands-free device
Prohibited unless using a hands-free device
Parking Rules
Follow designated parking signs and zones
Follow designated parking signs and zones