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Embarking on a journey to explore the stunning landscapes of Iceland from Mexico can be thrilling but comes with its unique set of queries and considerations for renting and driving a car.
  • Can I drive in Iceland with my Mexican driver's license?
  • What should I know about Icelandic car rental insurance policies?
  • What are the average daily rental costs for a vehicle in Iceland?
  • Are there specific traffic regulations in Iceland that differ from Mexico?
  • Can I pick up a rental car in one city and return it in another?

This guide provides comprehensive answers and crucial tips to ensure your Icelandic road trip is smooth and enjoyable. Detailed information on various aspects, from licenses to local driving practices, is included here to make you fully prepared for your adventure.

Can Mexican Citizens Drive in Iceland?

Yes, Mexican 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. Accepted cards include Visa, Master, DinersClub, and AMEX.

  • Age requirements:

    Drivers must be between 18 and 80 years old. Young drivers aged 18-20 may incur a fee of US$ 8.35 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 top global car rental chains and local Icelandic providers to find the best fit for your travel needs. Each has distinct offerings suited to various preferences and itineraries.

Global Chain Companies

Local Brands

  • Europcar

    global
    8.5

    Locations:

    83

    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:

    54

    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:

    36

    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:

    19

    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 Travelers from Mexico
Choose Global Chains If:
  • You prioritize brand familiarity and trust.
  • You seek comprehensive insurance options.
  • 24/7 multilingual customer service is important to you.
  • You require a wide range of vehicle types, including luxury options.
Choose Local Brands If:
  • You aim to save on rental costs.
  • You are looking for vehicles optimized for Iceland's unique terrain.
  • You want to support local businesses.
  • You prefer options tailored to Icelandic travel, such as 4x4s for exploring the highlands.

How to Choose the Right Car?

Choosing the right rental car can make your trip 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 manual driving on Iceland's roads

  • 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 Mexican 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 exploring Iceland's vast landscapes

    • 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

    Ring Road, South Coast
  • Vacation

    SUV or 4x4 with comprehensive insurance, prepaid fuel option

    Golden Circle, Highlands

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 boasts breathtaking landscapes and unique experiences, ranging from the Golden Circle to the remote Westfjords. Travelers can explore Reykjavik, the capital city, or venture into natural wonders like the Blue Lagoon and glacier lagoons.

What Insurance Do I Need?

You'll need at least basic insurance to legally drive in Iceland, but for peace of mind on a long road trip, additional coverage is strongly recommended. Insurance rules vary, and what's included in your rental price may be minimal. Choosing the right protection can save you from high out-of-pocket costs in case of an accident or theft.

Types of Insurance Coverage
  • Collision Damage Waiver (CDW)

    Covers damage to the rental car from collision or theft.

    MXN 270-450/day
    Essential
  • Theft Waiver (TP)

    Protects against theft of the rental vehicle.

    MXN 90-145/day
    Essential
  • Liability Insurance

    Covers injury or damage to others and their property.

    Often included
    Included
  • Personal Accident Insurance (PAI)

    Covers medical expenses for you and your passengers.

    MXN 90-180/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$6,000.00
Theft Protection

Fully Covered

US$0.00 - US$5,350.00
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

Smart Car Rental Tips for Traveling from Mexico to Iceland

Save money on your Icelandic car rental by planning ahead and making informed decisions. Iceland can be expensive, but smart choices can significantly reduce your costs.

Booking Tips for lower Prices
  • Book in Advance
    Rental prices in Iceland peak during the tourist season. Booking at least 4-6 weeks ahead ensures access to better rates and vehicle options.
    Save up to 35%
  • Use Comparison Platforms
    Websites like DiscoverCars and Rentalcars help you compare prices across various providers to find the best deals.
    Save up to 20%
  • Opt for Full-to-Full Fuel Policy
    Choose car rentals that operate on a 'full-to-full' fuel policy to avoid extra charges. Plan to refuel at cheaper stations before returning the vehicle.
    Save MXN $370-740
  • Consider Off-Airport Locations
    Renting a car from locations outside Keflavík International Airport often comes with lower prices and additional discounts.
    Save up to 15%
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
    Be cautious of extra charges not included in the base rental price.
    • Airport surcharges (can be $10-20/day)
    • Young driver fees for travelers under 25
    • Charges for additional drivers
    • Rental fees for equipment like GPS or child seats
    • Potential high costs for toll transponders
  • Insurance Options
    Rental agencies may push costly insurance at pickup.
    • Verify coverage from your personal insurance or credit card
    • Third-party insurance can often be purchased at a lower rate
    • Understand the terms and coverage of offered insurance
  • Fuel Policies
    Different fuel policies can impact your rental costs.
    • Full-to-full policy is usually the most economical
    • Prepaid fuel options may be overpriced
    • Locate nearby fuel stations for easy refueling
    • Keep receipts for fuel as proof of refill
  • Car Condition Documentation
    Inspect the car thoroughly before and after rental.
    • Take photos or videos of any existing damage
    • Check for operational issues like tire condition and lights
    • Verify the cleanliness and interior state
  • Contract Terms
    Review the agreement carefully to avoid unexpected charges.
    • Check mileage restrictions
    • Verify geographic limitations for driving
    • Understand return policies, including timing and fees for delays
  • Pickup and Return Timing
    Timing can affect your rental experience and costs.
    • Plan to pick up during normal business hours to avoid delays
    • Late returns can incur additional fees
    • Allow for sufficient time for car inspection during return
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.

Comparing Traffic Rules Between Mexico and Iceland

The traffic regulations in Mexico and Iceland differ significantly in road signs, speed limits, and alcohol tolerance levels, catering to their unique driving cultures.

  • Turning on Red

    IS

    Turning on red is generally not allowed unless explicitly permitted by signage.

    MX

    Turning on red is allowed after a complete stop unless restricted by a sign.

  • Road Signs

    IS

    Road signs are in Icelandic with international symbols.

    MX

    Road signs are in Spanish with international symbols.

  • Blood Alcohol Limit

    IS

    Strictly 0.02% BAC.

    MX

    Generally 0.08% BAC (may vary).

  • Weather Considerations

    IS

    Winter driving conditions with ice and snow are common.

    MX

    Driving conditions vary greatly by region, but snow is rare in most areas.

  • Mobile Phone Use

    IS

    Hands-free use only.

    MX

    Hands-free use only.

  • Seatbelt Laws

    IS

    Mandatory for all passengers.

    MX

    Mandatory for all passengers.

  • Parking Rules

    IS

    Parking is regulated with signs, and special rules apply in urban centers.

    MX

    Parking regulations vary, but signs indicate restrictions.

  • Remember
    • • Familiarize yourself with Icelandic road signs and their meanings.
    • • Be prepared for sudden weather changes affecting driving conditions.
    • • Carry your driving license and rental agreement at all times.
    • • Respect local traffic laws to ensure a smooth driving experience.
Voices of our customers

Frequently Asked Questions

Common questions for travelers from Mexico renting a car in Iceland

Do I need an International Driving Permit (IDP) to rent a car in Iceland if I have a Mexican driver’s license?

Yes, it is highly recommended. Although the Mexican license uses the Latin alphabet, it is not fully in English. To avoid issues with the rental company or the police, get an International Driving Permit (IDP) in Mexico before your trip.

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

Generally, the minimum age is 20 for standard cars and 23–25 for 4x4 or larger vehicles. Drivers under 25 usually pay an additional “young driver” fee.

Does my Mexican driver’s license need to be a certain age?

Yes, most agencies require that your license has been valid for at least one year.

Is a credit card mandatory to rent a car?

Yes, it is essential. You will need a credit card in your name for the security deposit. Debit cards or cash are almost never accepted.

What documents do I need to present when picking up the car?

Passport, Mexican driver’s license, International Driving Permit (IDP), and the credit card in the main driver’s name.

Can I add an additional driver? What do they need?

Yes, you can. The additional driver must be present at pickup and present their passport and driver’s license (with IDP if it is Mexican). There is usually an extra daily fee.

When is the best time to reserve my rental car?

As early as possible. In summer, cars—especially 4x4s—sell out quickly. Book 3–6 months in advance for better prices and options.

Where do you recommend searching and booking my car?

Use the QEEQ platform to compare prices and options from local and international providers. It is easy to use and clearly shows insurance and vehicle types.

Do I really need a 4x4 vehicle (four-wheel drive)?

It depends on your route and season. In winter it is essential because of snow and ice. In summer, if you only drive the Ring Road, a 2WD can be enough, but for the Highlands or F-roads a 4x4 is mandatory.

Which type of car is better: diesel or gasoline?

Diesel is usually cheaper and more fuel-efficient. When booking, confirm the fuel type and double-check before filling up with gasoline or diesel.

Manual or automatic? I prefer automatic.

Choose an automatic for greater comfort and safety, especially if you have little experience on difficult roads. Book in advance on QEEQ because automatics sell out faster.

Are there any specific car brands you recommend?

More than the brand, the type and age of the car matter. Dacia, Suzuki, Kia, and Hyundai are popular and reliable in Iceland.

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

It is basic collision insurance that limits your financial liability. It is included by law, but the deductible is usually high (up to USD 3,500).

What is SCDW (Super Collision Damage Waiver)? Is it worth it?

It is an upgrade to CDW that reduces the deductible and yes, it is well worth it. A single scratch can cost hundreds of dollars.

Is Gravel Protection (GP) necessary if I only drive on the main road?

Yes, it is essential. Even the Ring Road has gravel sections and stone damage is not covered by CDW/SCDW.

What is Sand and Ash Protection (SAAP)?

It is crucial, especially on the south coast in spring or autumn. It covers very expensive damage caused by volcanic sand and ash, which is not covered by other insurances.

And Theft Protection (TP)?

It is generally included. Car theft is rare in Iceland, but it is good to have it.

What is third-party liability insurance?

It is legally required and always included. It covers damage to other people or property.

Are “Premium” or “Zero-Risk” insurance packages worth it?

Yes, they are the best option for tourists without experience in Iceland. They include all key coverages and a low or zero deductible.

Is my credit card insurance enough?

Probably not. Credit cards often exclude 4x4s/campers and common types of damage in Iceland. Also, you usually have to pay upfront and then claim reimbursement, which is complicated.

How much is the security deposit blocked on my card?

It depends on the insurance. With basic coverage it can be the full deductible (USD 2,000–3,500). With premium/zero-risk insurance it is reduced or almost eliminated.

Is fuel pricing similar to Mexico?

No, it is much higher—usually about double. Plan a generous fuel budget.

Are there toll roads in Iceland?

Only the Vaðlaheiðargöng tunnel near Akureyri has a toll. You pay online at veggjald.is within 24 hours. If you do not, the rental company will charge you with a surcharge.

What happens if I receive a traffic ticket?

Fines are very expensive. The police notify the rental company, which will charge the amount plus an administrative fee directly to your card.

Are there any other hidden costs I should know about?

Yes: additional driver, GPS rental, child seats, returning the car without a full tank, among others. Read the rental agreement carefully.

Is it better to pick up the car at Keflavík Airport or in Reykjavík?

Picking it up at the airport is most convenient. There are desks and shuttle services. Only pick it up in the city if you will spend some days in Reykjavík without a car.

What is the car pickup process like?

You go to the counter, present your documents, sign the rental agreement, and receive the keys. Then they direct you to the car.

What should I do before leaving the parking lot with the car?

Inspect it thoroughly. Take photos and videos of all existing damage and make sure the agent notes everything in the rental agreement.

What is the fuel policy?

Normally “Full to Full”: you receive the car with a full tank and must return it full. If not, you will be charged extra for the missing fuel.

Is the return process complicated?

No, it is simple. Go to the return area, they inspect the car and, if everything is in order, the deposit is released within a few days.

What are the speed limits?

50 km/h in urban areas, 80 km/h on gravel roads, 90 km/h on paved roads outside towns. There are many speed cameras, so always respect the limits.

Do headlights need to be on at all times?

Yes, it is the law. You must keep the front lights on 24 hours a day, all year round.

What are “F-roads”?

They are mountain roads in the Highlands marked with an “F”. By law you may only drive them with a 4x4, and they are only open in summer.

Can I cross rivers with my rental 4x4?

Be very careful. Water damage is never covered by any insurance. If you do not have experience, it is better not to attempt it.

The wind in Iceland is very strong. Any tips?

Yes: park facing the wind, open the doors with both hands, and pay attention to wind warnings. Wind damage is not covered by CDW insurance.

How do single-lane bridges work?

The first car to arrive has the right of way. Slow down and wait if another car is approaching.

Can I stop anywhere on the road to take photos?

No. It is dangerous and prohibited. Stop only at viewpoints, rest areas, or designated pull-outs.

What is “off-road” driving and why is it prohibited?

Driving outside marked roads is illegal and heavily fined. Iceland’s ecosystem is extremely fragile.

Are there animals on the road?

Yes, mainly sheep. If you see one, slow down because they can suddenly cross the road.

What is “black ice”?

It is an invisible layer of ice on the asphalt, very dangerous. It is common in winter and on bridges or shaded areas. Drive with great caution.

How do self-service gas stations work?

You need a credit card with a 4-digit PIN. Insert your card, enter the PIN, select the amount, choose the pump, and refuel.

Will my Mexican credit card work at self-service gas stations?

Sometimes yes, sometimes no. If it is declined, buy prepaid fuel cards at larger gas station shops.

What is the emergency number in Iceland?

The universal number is 112 for police, ambulance, and fire services.

Which apps should I download for my trip?

SafeTravel.is (safety alerts), Veður (weather), and Road.is (road conditions) are essential.

How does parking work in cities like Reykjavík or Akureyri?

Most parking is paid. Use “Pay and Display” machines, pay by card or coins, and place the ticket on the dashboard.

Do I need a GPS?

Not necessarily. Google Maps or Waze work well. Download offline maps and make sure you have mobile data.

Are there many roundabouts? How do they work?

Yes. Vehicles already inside the roundabout have priority. If there are two lanes, the inner lane has priority when exiting.

Can I drink alcohol and drive?

No. Iceland has near zero tolerance. The limit is 0.02% BAC. Penalties are very severe.

What are toilets like along the road?

Gas stations, cafés, and visitor centers have clean toilets. There are few rest areas with toilets between towns.

What is the most important advice for a Mexican driver in Iceland?

Respect the weather and nature. Be flexible, drive carefully, and prioritize safety over your itinerary. Enjoy the trip!

Still have questions?

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