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Discovering Iceland's breathtaking landscapes is best done at your own pace. If you are traveling from Norway, you might be wondering about the specific requirements and overall car rental process.
  • How can I book a car rental in Iceland before arrival?
  • Is my Norwegian driver's license valid for use in Iceland?
  • What level of insurance is recommended for driving in Iceland?
  • Are there any special rules or tips for driving on Icelandic roads?
  • How does the fuel pricing or system work in Iceland?

With the right preparation and knowledge, renting a car in Iceland as a Norwegian traveler is straightforward. This guide aims to equip you with all the necessary information for a smooth and enjoyable experience on Iceland's awe-inspiring roads.

Can Norwegian Citizens Drive in Iceland?

Yes, Norwegian travelers can legally drive in Iceland with the proper documentation. Ensure you meet the minimum age and document requirements.

  • Form of ID:

    A valid passport.

  • Driving licence:

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

  • Accepted cards:

    Physical credit cards in the full name of the main driver. Accepted credit 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$ 8.34 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 the options for car rental companies in Iceland. Choose between global chains and local brands to find the best fit for your travel needs.

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:

    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:

    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 Norwegian Travelers
Choose Global Chains If:
  • It's your first time renting in Iceland
  • You require broad coverage across the country
  • 24/7 customer support is essential
  • You're traveling for business or other important purposes
Choose Local Brands If:
  • You want more budget-friendly options
  • You're staying primarily in urban areas
  • You seek unique vehicle types or experiences
  • You're comfortable using app-based services

How to Choose the Right Car?

Choosing the right rental car can make your trip more comfortable, safe, and enjoyable. Consider your travel group size, the destinations on your route, and the type of driving you'll be doing. With QEEQ, you can compare multiple car types and rental policies to find the one that best suits your journey.

  • Seating and Luggage

    Evaluate your travel group size and luggage requirements

    • Economy cars (2-4 people, 1-2 suitcases)
      Great for city drives and short trips

    • Compact cars (4-5 people, 2-3 suitcases)
      Ideal for balancing space and fuel efficiency

    • Mid-size cars (5 people, 3-4 suitcases)
      Comfortable for longer journeys

    • Full-size/SUV (5-7 people, 4+ suitcases)
      Perfect for families and larger travel groups

  • Transmission Type

    Decide between automatic and manual transmission

    • Automatic transmission
      Simplifies city driving and traffic navigation

    • Manual transmission
      Typically more economical and offers better fuel efficiency

    • Most drivers in Iceland prefer manual transmission

    • Select based on your comfort level and driving confidence

  • Insurance Included

    Understand the coverage provided with your rental

    • Basic liability
      Covers third-party damages, usually included

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

    • Theft protection
      Covers vehicle theft, may be included or extra

    • Personal accident insurance
      Consider if your travel insurance covers this

  • Cancellation Policy

    Be aware of booking flexibility and associated fees

    • Free cancellation
      Usually possible up to 24-48 hours before pickup

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

    • Modification fees
      Costs for changing dates, locations, or vehicle type

    • Insurance options
      Consider additional coverage for trip changes

  • Mileage Policy

    Review mileage restrictions and potential extra costs

    • Unlimited mileage
      Best for extensive road trips and exploring rural areas

    • Limited mileage
      Lower daily rates but fees for extra miles

    • Plan your route to estimate total mileage

    • Compare mileage terms when choosing

  • Fuel Policy

    Understand fuel-related terms and costs

    • Full-to-Full
      Return with a full tank, most cost-effective option

    • Full-to-Empty
      Prepay for fuel, convenient but typically more expensive

    • Same-to-Same
      Return with the same fuel level as pickup

    • Consider costs at local stations versus rental provider

Quick Decision Guide

  • City Travel

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

    Reykjavik, Akureyri
  • Road Trip

    Mid-size/Full-size car with unlimited mileage, comprehensive insurance

    Golden Circle, Ring Road
  • Vacation

    SUV with full coverage insurance, flexible booking options

    Blue Lagoon, Southern Coast

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 renowned for its stunning landscapes and unique natural wonders. Popular destinations include Reykjavik, the Golden Circle, Blue Lagoon, and South Coast. Travelers often opt for car rentals to experience the freedom of exploring at their own pace, especially for scenic routes like the Ring Road.

What Insurance Do I Need?

Driving in Iceland requires specific insurance coverage to ensure both legal compliance and peace of mind during your travels. While basic insurance is often included in rental agreements, additional coverage can protect you from unexpected costs.

Types of Insurance Coverage
  • Collision Damage Waiver (CDW)

    Provides coverage for damage to the rental vehicle in case of a collision or accidental damage.

    150-250 NOK/day
    Essential
  • Theft Waiver (TP)

    Covers the financial loss if the rental car is stolen.

    50-80 NOK/day
    Essential
  • Third-Party Liability Insurance (TPL)

    Covers damages or injuries caused to other parties, including their property.

    Usually included
    Included
  • Personal Accident Insurance (PAI)

    Provides medical coverage for injuries sustained by you or your passengers during the rental period.

    50-100 NOK/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$1,599.25 - US$4,174.50
Theft Protection

Fully Covered

US$0.00 - US$4,174.50
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 Money-Saving Tips for Car Rentals in Iceland

Travelers from Norway can benefit from these practical tips to save on car rentals when exploring Iceland, ensuring an economical and seamless journey.

Booking Tips for lower Prices
  • Book Your Car Early
    Booking your rental car 6-8 weeks in advance can help you secure lower rates and better availability.
    Save up to 25%
  • Compare Rental Providers
    Utilize comparison websites like DiscoverCars to evaluate the best deals and rental conditions.
    Save up to 20%
  • Select Full-to-Full Fuel Policy
    Opt for a full-to-full fuel policy, allowing you to refill the tank at cheaper stations before returning the car.
    Save NOK 200-400
  • Choose Local Rental Services
    Consider renting from Icelandic-based companies as they often provide competitive rates and tailored services.
    Save NOK 150-300
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.

  • Rental Costs
    Be mindful of the overall costs associated with renting a vehicle in Iceland.
    • High daily rates during peak tourist seasons
    • Extra charges for insurance packages
    • Additional fees for GPS or Wi-Fi devices
    • Charges for crossing tolls, such as the Hvalfjörður Tunnel
    • Consider fuel prices, which are generally high
  • Driving in Icelandic Weather
    Weather conditions can vary greatly and impact driving safety.
    • Strong winds can make driving challenging
    • Roads may be icy during winter months
    • Fog and reduced visibility are common
    • Ensure your rental includes winter tires if traveling during colder seasons
    • Be prepared for sudden weather changes
  • Road Conditions
    Understand the unique driving environment in Iceland.
    • Many roads are unpaved, especially in rural areas
    • F-roads require a 4x4 vehicle to navigate
    • Speed limits are strictly enforced
    • Be cautious of single-lane bridges
    • Check road conditions via local websites before traveling
  • Navigation and Planning
    Proper planning ensures a smoother travel experience.
    • GPS systems are highly recommended
    • Mobile signal can be weak in remote areas
    • Plan routes in advance, especially for longer trips
    • Familiarize yourself with Iceland's road signs
    • Consider downloading offline maps
  • Vehicle Selection
    Choosing the right car for your trip is crucial.
    • Compact cars work well for city driving
    • SUVs or 4x4s are ideal for exploring the countryside
    • Ensure adequate space for luggage
    • Verify the vehicle's condition before departure
    • Opt for automatic transmission if unfamiliar with manual
  • Fuel Policies
    Fueling your rental correctly can save money.
    • Full-to-full policies are common
    • Locate fueling stations near your return location
    • Keep receipts as proof of refueling
    • Avoid returning with less fuel to dodge penalties
    • Check fuel type needed (diesel or gasoline)
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.

What Are The Differences Between Norwegian and Icelandic Traffic Rules

Norwegian and Icelandic traffic rules differ mainly in signage conventions, road types suited for winter conditions, and tolerance for alcohol consumption while driving.

  • Winter Road Conditions

    IS

    Gravel roads are common; strong winter tires recommended

    NO

    High-quality paved roads; winter tires required seasonally

  • Traffic Signage

    IS

    Signs use Icelandic language and unique symbols

    NO

    Signs use Norwegian language and international symbols

  • Blood Alcohol Limit

    IS

    0.05% BAC limit for drivers

    NO

    0.02% BAC limit for drivers

  • Mobile Phone Use

    IS

    Hands-free only

    NO

    Hands-free only

  • Seatbelt Laws

    IS

    Mandatory for all vehicle occupants

    NO

    Mandatory for all vehicle occupants

  • Parking Rules

    IS

    Certain areas require specific permits; follow signage

    NO

    Parking regulations guided by local signage

  • Remember
    • • Always check for local variations in traffic laws.
    • • Ensure your rental car is equipped for Icelandic terrain and weather conditions.
    • • Carry your driver's license, rental agreement, and valid insurance documents.
    • • Be mindful of speed limits, which are strictly enforced in both countries.
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Frequently Asked Questions

Common questions for travelers from Norway renting a car in Iceland

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

It depends on when and where you plan to travel. In summer (June-August), a standard 2WD is sufficient for the Ring Road and most paved roads. In winter (October-April), a 4x4 is strongly recommended for better grip and stability on snow and ice, even on the Ring Road. Driving on F-roads (highland roads) requires a 4x4 by law at all times.

What exactly are Icelandic F-roads?

F-roads are mountain roads in the Icelandic highlands. They are gravel tracks of varying quality and often include rough terrain and unbridged river crossings. They are only open for a few summer months (typically late June/July to September). Driving a 2WD car on F-roads is illegal and will void your insurance.

Are winter tires mandatory in Iceland, similar to Norway?

Yes, winter tires are required by law from November 1st to April 14th in Iceland. Rental cars will be fitted with either studded or Nordic friction winter tires during this period. You don't need to arrange this yourself; the rental company will provide the correct tires.

What type of car is recommended for a full Ring Road trip?

In summer, a standard 2WD car is fine for the entire Ring Road. In spring, autumn, or winter, a 4x4 offers much greater safety due to unpredictable weather and potentially slippery roads, especially in the eastern and northern mountain passes.

I plan to visit the Westfjords. What kind of car should I rent?

Even in summer, a 4x4 is highly recommended for the Westfjords. Many roads are gravel, and some mountain passes are steep and narrow. A vehicle with higher ground clearance and four-wheel drive will provide a much safer and more comfortable journey.

Can I rent and drive a campervan in Iceland?

Yes, campervans are very popular in Iceland and offer great freedom. However, wild camping is strictly forbidden – you must stay at designated campsites. Be aware that tall campervans are very vulnerable to Iceland's strong winds.

Are river crossings on F-roads covered by insurance?

Absolutely NOT. No standard rental car insurance covers damage from river crossings (such as water damage to the engine or chassis). Crossing rivers is at your own risk and requires experience and a suitable large 4x4. If in doubt, do not attempt it.

Are there many gravel roads outside of F-roads?

Yes. While the Ring Road is paved, many detours to waterfalls, beaches, or smaller towns will quickly put you on gravel roads. These are usually manageable with a normal car, but you must slow down significantly to avoid stone chips and loss of control. Quality varies widely.

Is it practical to rent an electric vehicle (EV) in Iceland?

It's becoming more practical, especially around the Ring Road and in the southwest. The charging network is expanding, but remains limited in remote areas like the Westfjords or the highlands. Careful planning of charging stops is essential, and cold weather significantly reduces range.

What kind of vehicle is best for northern lights hunting in winter?

You often need to drive away from city lights onto dark rural roads. A 4x4 with good winter tires is the safest choice, giving you confidence to handle potentially icy and snowy side roads for the perfect viewing spot.

Still have questions?

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