Car Rental in Iceland for Malaysian Travelers

Embarking on an adventure to Iceland—the land of stunning landscapes and natural wonders—is an exhilarating experience for travelers from Malaysia. Before you hit the Icelandic roads, you might be wondering:

Do I need a special license to drive in Iceland as a Malaysian traveler?
What insurance options should I consider for renting a car?
What is the average cost of renting a vehicle in Iceland?
Are one-way rentals available for exploring distant locations?
What local driving rules should I be aware of?

This guide provides clear answers to these questions, equipping Malaysian travelers with the necessary knowledge for a safe and enjoyable driving experience in Iceland. Refer to the summary table at the end for quick insights.

Can Malaysian Citizens Drive in Iceland?

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

Form of ID:
A valid passport
Driving licence:
Accepted driving licence include:
• Original driving licence + International Driving Permit (IDP)
or
• 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. Supported cards include Visa, Master, DinersClub, and AMEX.
Age requirements:
Drivers must be between 18 and 99 years old. Young drivers aged 18-20 may incur a fee of US$ 8.40 per day.

Ready to Rent?

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

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Which Car Rental Companies Are Best?

Choose from trusted international chains or innovative local options for renting a car in Iceland. These companies cater to a wide range of needs and preferences, offering travelers from Malaysia reliability and convenience.

Global Chain Companies

Local Brands

Europcar
global
8.5
Locations:
84
Prices:
$$
Key Advantages
- Wide range of vehicles
- Flexible pick-up and drop-off locations
- Loyalty program for frequent renters
- Excellent customer service
Best for
Leisure travelers and eco-conscious renters
Hertz
global
8.5
Locations:
58
Prices:
$$$
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:
40
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:
21
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 Malaysian Travelers

Choose Global Chains If:

This is your first time renting in Iceland
You require comprehensive nationwide coverage
You prefer 24/7 customer support
Your trip involves business or critical schedules

Choose Local Brands If:

You are looking for more budget-friendly options
Your travel itinerary is confined to urban areas
You want to experience unique vehicles or services
You are comfortable using app-based services for bookings

How to Choose the Right Car?

Choosing the right rental car can make your journey 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 unfamiliar roads and driving conditions
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 local 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 cross-country travel
- 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
Golden Circle, Ring Road
Vacation
SUV with comprehensive insurance, prepaid fuel option
Blue Lagoon, Jökulsárlón Glacier Lagoon

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.

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No hidden fees
Real customer reviews

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What Are the Popular Destinations in Iceland?

Iceland is renowned for its breathtaking landscapes, including glaciers, geysers, and volcanic terrains. Popular routes include the Golden Circle and Ring Road, offering unique travel experiences for adventurers from Malaysia. Renting a car provides the flexibility to explore these destinations at your own pace.

What Insurance Do I Need?

When renting a car in Iceland as a traveler from Malaysia, it is important to ensure you have suitable insurance coverage for a safe and stress-free journey. Iceland's unique environment and unpredictable weather make additional coverage highly recommended.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car caused by collision or theft.
RM70-120/day
Essential
Theft Waiver (TP)
Protects against theft of the rental vehicle.
RM25-40/day
Essential
Third-Party Liability Insurance
Covers injury or damage to others and their property.
Often included
Included
Personal Accident Insurance (PAI)
Provides coverage for medical expenses for you and your passengers.
RM30-50/day
Optional
Sand and Ash Damage Waiver
Covers damage caused by volcanic ash or sand, which is common in Iceland.
RM50-80/day
Highly Recommended

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$1,612.50 - US$4,204.00

Theft Protection

Fully Covered

US$0.00 - US$4,204.00

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?

Renting a car in Iceland is essential for exploring its beautiful landscapes. Here are smart tips for Malaysian travelers to save money while ensuring a smooth rental experience.

Booking Tips for lower Prices

Book Well in Advance
Ensure your car rental is booked at least 2-3 months prior to your travel. Prices tend to increase closer to the rental date.
Save up to 25%
Use Price Comparison Tools
Platforms like Kayak or Skyscanner can help you compare prices across multiple rental companies in Iceland.
Save up to 20%
Opt for Fuel Policies Wisely
Choose a full-to-full fuel policy and refuel at local gas stations for better rates compared to rental company prices.
Save MYR 90-150
Check Insurance Options
Verify if your credit card offers rental insurance coverage to avoid paying additional for coverage at the rental desk.
Save MYR 200-300

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
Keep an eye out for extra charges that may not be included in the initial quote.
- Insurance upgrades
- Additional driver fees
- Charges for GPS rental or WiFi
- Winter equipment fees (e.g., snow chains)
- Airport pickup/drop-off fees
Insurance Coverage
Understand the types of insurance offered and what is actually necessary.
- Collision damage waiver (CDW) is common
- Consider gravel protection for Icelandic roads
- Credit card insurance may provide coverage
- Excess fees can be high without proper coverage
- Always confirm coverage details
Fuel Policies
Know the rental company's fuel policy to avoid unnecessary charges.
- Full-to-full is the standard policy
- Prepaid fuel rates are often higher
- Find nearby fuel stations for easy refueling
- Save receipts for proof of refueling
- Check fuel type required for the rented vehicle
Vehicle Condition
Inspect the car thoroughly before driving off.
- Take photos of exterior and interior
- Document all scratches and dents
- Check tire conditions
- Ensure all lights and electronics are functioning
- Verify mileage and fuel levels
Understanding Terms and Conditions
Carefully review the rental agreement to avoid misunderstandings.
- Mileage limits and fees for exceeding them
- Restrictions on driving in certain areas
- Return time policies and penalties
- Cancellation or modification policies
- Procedures for reporting damage
Rental Timings
Plan your pickup and drop-off times wisely.
- Ensure pickup aligns with your travel schedule
- Late returns may result in additional charges
- Early returns might not be refunded
- Check business hours for rental offices
- Plan extra time for airport returns

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.

Comparison of Traffic Rules: Malaysia vs Iceland

Key differences and similarities between traffic regulations in Malaysia and Iceland for travelers.

Driving Side
IS
Drive on the right side of the road.
MY
Drive on the left side of the road.
Winter Tires
IS
Mandatory during winter months (November to April).
MY
Not mandatory.
Speed Limits
IS
Urban areas: 50 km/h, rural roads: 90 km/h, highways: 90-100 km/h.
MY
Urban areas: 60 km/h, rural roads: 90 km/h, highways: 110 km/h.
Seatbelt Laws
IS
Mandatory for all vehicle occupants.
MY
Mandatory for all vehicle occupants.
Phone Usage
IS
Use of hands-free devices only.
MY
Use of hands-free devices only.
Remember
- • In Iceland, headlights must be on at all times, even during daylight.
- • Be cautious of wildlife, especially sheep, on rural roads.
- • Parking in Reykjavik may require payment; check for signs and meters.
- • Always carry your driving license, an international driving permit, and vehicle registration documents.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from Malaysia renting a car in Iceland

How far in advance should I book a rental car for Iceland?

It’s strongly recommended to book your rental car at least 3-6 months in advance, especially for peak seasons (June-August, December holidays). Early booking ensures better car selection and lower prices.

Where is the best place to book a rental car for Iceland as a Malaysian traveler?

For international travelers, especially those from Malaysia, the ONLY recommended platform is QEEQ. It allows you to compare prices across major Icelandic rental companies, offers user-friendly interfaces, and often has exclusive deals.

What are the benefits of booking through QEEQ?

QEEQ offers English/Chinese interfaces and customer support, frequent special insurance packages, and a clear booking process. It allows you to manage your order easily and get peace of mind before your trip.

Should I finalize flights and accommodation before booking the car?

Once you have your general itinerary and flights, book your car immediately. Rental cars are more limited than accommodation in Iceland, especially during high season.

How many kilometers should I plan to drive per day in Iceland?

In summer, 200-250 km per day is reasonable. In winter (short daylight, complex road conditions), keep it to 150-200 km. Allow extra time for sightseeing and weather changes.

Do I need to rent a GPS navigation device?

Not necessarily. You can use Google Maps or Waze on your phone. Download Iceland’s offline maps in advance and bring a phone mount and car charger.

Is it necessary to add an additional driver to the rental?

If your travel companion is eligible, it’s highly recommended to add them as an extra driver. Long drives can be tiring, and sharing driving duties increases safety. Unregistered drivers void your insurance.

Can I drive in Iceland with a Malaysian driver’s license?

Yes, if your license has English information and is a full license (not provisional or learner’s). If not, you must have an International Driving Permit (IDP) alongside your Malaysian license.

Do I really need to get an International Driving Permit (IDP)?

It’s strongly advised. Some rental desk staff may insist on it, and having an IDP avoids complications at pick-up. Apply for it at Malaysia’s JPJ before your trip.

What are the age requirements for renting a car in Iceland?

You must be at least 20 years old for most cars and have held your license for at least one year. For SUVs or 4WDs, the minimum age might be 23 or 25. Drivers under 25 may be charged a Young Driver Surcharge.

Do I need a credit card to rent a car, or can I use a debit card?

A credit card is almost always required. The card must be in the main driver’s name for the security deposit. Debit cards are generally not accepted.

What credit card limit should I have for the deposit?

Ensure your card has a limit of at least €1,500-€3,000. The deposit amount depends on vehicle type and insurance coverage. With full insurance, the required deposit may be much lower or waived.

What documents do I need when picking up the car?

You’ll need: 1) Main driver’s passport, 2) Main driver’s valid credit card, 3) Malaysian driver’s license (with IDP if required), and 4) Rental confirmation from QEEQ.

Do I need a 4WD car if I’m only driving the main Ring Road in summer?

No. A standard 2WD car is sufficient for the Ring Road and main routes in summer. 2WDs are more budget-friendly.

Is it necessary to rent a 4WD in winter?

Strongly recommended, almost mandatory. Winter roads can have snow and ice, so 4WD with winter tires (usually standard) gives much better traction and safety.

What are F-roads, and can I access them with a regular car?

F-roads are Icelandic highland mountain roads, often unpaved with river crossings. Only 4WD vehicles are allowed by law. Driving a 2WD on F-roads is illegal, uninsured, and dangerous.

Should I choose manual or automatic transmission?

If you’re used to automatic at home, definitely choose automatic in Iceland. Manual cars are more common and cheaper but harder to drive on Iceland’s challenging roads.

What car size is suitable for four adults with four large suitcases?

Choose a mid or large SUV or a station wagon. Always check luggage capacity on QEEQ—don’t rely only on seat count.

Which is more economical in Iceland: diesel or petrol cars?

Diesel is typically cheaper and more fuel-efficient, especially for long distances. Always confirm the fuel type with staff; misfuelling is costly to fix.

What is Collision Damage Waiver (CDW), and is it included?

CDW is basic insurance that reduces your liability for collision damage to a fixed excess. It’s usually included in the rental, but the excess can still be €2,000-€3,000.

What is Super Collision Damage Waiver (SCDW)?

SCDW is an upgrade that lowers your excess further, sometimes to zero. It’s highly recommended for unfamiliar drivers in Iceland.

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

Highly recommended! Many roads are gravel, and flying stones can damage windshields and paint. GP covers these damages, which standard CDW does not.

What is Sand and Ash Protection (SAAP)?

Strong winds in Iceland’s south and east can blast sand and volcanic ash, causing severe car damage. SAAP covers this and is wise if visiting those regions.

Is Theft Protection (TP) important in Iceland?

Car theft is rare in Iceland. TP is usually bundled with CDW and not a major concern.

What’s the difference between QEEQ’s “Super Insurance” and insurance at the rental desk?

QEEQ’s Super Insurance often covers more (including tires, underbody, glass) and is cheaper. If you claim, you pay the rental company first, then claim reimbursement from QEEQ’s insurer.

If I buy QEEQ’s full insurance, do I need more insurance at the counter?

No. Politely decline counter offers and explain you already have third-party full coverage. The standard deposit may still apply.

Are tires and underbody damage covered by insurance?

Most standard rental insurances do NOT cover tires, underbody, or water damage. QEEQ’s Super Insurance or the rental company’s top-tier package is the only way to get these covered.

What is the rental deposit, and when will it be refunded?

The deposit is a frozen amount on your credit card for potential damages or fines. It’s released 15-30 business days after return, once the car is checked and fines cleared.

How expensive is fuel in Iceland, and are gas stations easy to find?

Fuel is expensive by global standards. While stations are common on the Ring Road, they’re sparse in the east and Westfjords. Always refuel when the tank is half full.

Are there toll roads or tunnels in Iceland?

Almost all roads are free. The exception is the Vaðlaheiðargöng tunnel in north Iceland—pay online within 3 hours after use to avoid steep rental company administrative fees.

What hidden costs should I watch for?

Potential extras include: additional driver fee, young/old driver surcharges, equipment rental, airport pickup, fuel charges if not refueled, overtime fees, traffic fines with admin fees.

Can I use my Malaysian credit card to pay at Icelandic gas stations?

Usually yes, but many unmanned pumps require a 4-digit PIN. Set up a PIN with your bank before departure, or buy prepaid fuel cards in gas station shops.

How do I pick up my car at Keflavik International Airport (KEF)?

Some companies have desks inside the terminal; others operate nearby with free shuttle buses. Check your QEEQ booking confirmation for precise instructions.

What should I check when inspecting the rental car at pick-up?

Photograph and video every angle, noting all scratches, dents, windshield chips, tire wear, and interior condition. Confirm all damage is marked on the handover sheet.

What if I find damage not listed on the rental sheet?

Immediately inform staff or call the rental company before leaving. Have them update the paperwork to avoid being charged for pre-existing damage on return.

What’s the car return process, and how much time should I allow?

Return the car to the specified location, where staff will inspect it and check the fuel. Take your own photos as evidence. Allow 15-30 minutes, and extra time if you need to catch a shuttle to the terminal.

Do I need to refuel before returning the car?

Most rentals follow a ‘full-to-full’ policy. Refuel at the nearest station to the return location and keep the receipt, or you’ll be charged extra.

Can I pick up or return the car outside regular hours?

Most airport rental locations offer 24-hour service. Enter your flight details and pick-up/drop-off times accurately on QEEQ. Out-of-hours service may incur extra fees.

What are the most important traffic rules in Iceland?

Always wear seat belts, use headlights at all times, never drive under the influence, don’t use your phone while driving, and obey speed limits (50km/h in town, 90km/h on highways, 80km/h on gravel).

Which side of the road do Icelanders drive on?

Iceland drives on the right, with the steering wheel on the left—opposite to Malaysia. Practice in the parking lot before heading out, especially for roundabouts.

How do I navigate roundabouts in Iceland?

Inner lane has priority. Use the outer lane for first or second exits and inner for later exits. Signal and change lanes carefully before exiting.

Is it dangerous to pull over for photos on the roadside?

Yes! The Ring Road often has no shoulder. Never stop on the road; always use marked viewpoints or parking areas.

How do I check real-time road and weather conditions?

Visit road.is for road status, safetravel.is and vedur.is for weather and safety alerts. Check these every day before you drive.

What’s the biggest challenge of driving in Iceland?

The weather—especially strong winds. Always hold the door and steering wheel firmly, as wind can damage car doors or affect driving stability.

What should I do if animals cross the road?

Slow down and be ready to stop. Sheep are common on rural roads. Hitting an animal is dangerous and may require compensation to farmers.

Any tips for driving on gravel roads?

Reduce speed even if the limit is 80km/h, keep a safe distance from the car ahead to avoid flying stones, and avoid sudden braking or sharp turns to prevent skidding.

What should I know about river crossings on F-roads?

Only attempt with a suitable 4WD and experience. Never cross fast or deep rivers. Watch other drivers, use low gear, and keep moving steadily. If unsure, turn back.

What if I have an emergency like a flat tire or car breakdown?

Pull over safely, use hazard lights, wear your reflective vest, set up the warning triangle, and call the rental company’s 24-hour emergency number.

Are there many speed cameras? Are fines expensive?

Yes, especially on the Ring Road and town entrances. Fines are very high (hundreds of euros), and the rental company will add an administrative fee. Always obey speed limits.

What’s the most important advice for Malaysian first-timers driving in Iceland?

Respect nature, stay humble, and prioritize safety. Don’t overestimate your driving skills, especially in winter or bad weather. Use reliable platforms like QEEQ, buy comprehensive insurance, and check road.is and safetravel.is daily.

Still have questions？

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

Car Rental in Iceland for Malaysian Travelers

Embarking on an adventure to Iceland—the land of stunning landscapes and natural wonders—is an exhilarating experience for travelers from Malaysia. Before you hit the Icelandic roads, you might be wondering:

Can Malaysian Citizens Drive in Iceland?

Ready to Rent?

Which Car Rental Companies Are Best?

Recommendations for Malaysian Travelers

How to Choose the Right Car?

Quick Decision Guide

Compare with Confidence on QEEQ

What Are the Popular Destinations in Iceland?

What Insurance Do I Need?

Types of Insurance Coverage

QEEQ's Complete Protection Solutions

How to Save Money When Renting a Car in Iceland?

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Comparison of Traffic Rules: Malaysia vs Iceland

Remember

Frequently Asked Questions

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