Car Rental in Iceland for Korean Travelers

Embark on your Icelandic adventure with the right knowledge about renting a car. Whether it’s driving through volcanic landscapes or experiencing the northern lights, this guide prepares you for a secure and enjoyable journey.

Can I use my South Korean driving license in Iceland?
What type of rental insurance do I need?
Are winter tires necessary in Iceland?
What’s the approximate rental cost?
How are Iceland's driving laws different from South Korea?

This guide provides clear answers to these common queries, ensuring you have all the essential details for a smooth car rental experience. A final summary will assist you with key highlights and practical tips.

Can South Korean Citizens Drive in Iceland?

Yes, South Korean 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
or
• South Korea Driving License
Accepted cards:
Physical credit cards in the full name of the main driver. Accepted credit cards include Visa, Master, AMEX, DinersClub, JCB, and Discover. Some options also support debit cards like Visa and Master.
Age requirements:
Drivers must be between 20 and 99 years old. Young drivers aged 20-24 may incur an additional fee of EUR 10 per day (approx. US$ 11.77).

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

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Which Car Rental Companies Are Best?

Discover a variety of car rental options in Iceland, ranging from reputable international companies to specialized local providers, catering to diverse travel needs and preferences.

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 Korean Travelers

Choose Global Chains If:

You value familiar and standardized service.
You require widespread availability across Iceland.
You prefer extensive customer support options.
You prioritize international brand recognition.

Choose Local Brands If:

You want to explore unique vehicle options.
You seek competitive pricing tailored to Iceland.
You prefer support from local experts.
You are focusing on specific regions or areas.

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
- Most Korean drivers prefer automatic for Icelandic road trips
- Consider your comfort level with left-hand driving and automatic cars
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 Korean 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
Reykjavík, 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, Vatnajökull National Park

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

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What Are the Popular Destinations in Iceland?

Iceland offers breathtaking landscapes and unique experiences perfect for travelers. Popular destinations include Reykjavik, the capital city, the Golden Circle route, and spectacular natural sites like the Blue Lagoon and Vatnajökull National Park. Exploring these areas with a rental car ensures a flexible and immersive journey to discover Iceland’s stunning beauty and culture.

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, extra coverage is strongly recommended. Insurance options can vary by provider, and understanding your coverage is crucial to avoid unexpected costs.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car from collision or theft.
₩20,000-₩35,000/day
Essential
Theft Waiver (TP)
Protects against theft of the rental vehicle.
₩7,000-₩12,000/day
Essential
Third-Party Liability Insurance (TPL)
Covers injury or damage to others and their property.
Often included
Included
Personal Accident Insurance (PAI)
Covers medical expenses for you and your passengers.
₩7,000-₩14,000/day
Optional
Super Collision Damage Waiver (SCDW)
Reduces the excess (deductible) amount in case of collision damage.
₩15,000-₩25,000/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$4,943.81

Theft Protection

Fully Covered

US$0.00 - US$4,357.91

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 Tips for Saving Money on Car Rentals in Iceland

Planning ahead can help Korean travelers save significantly when renting vehicles in Iceland. Prices fluctuate based on seasons and demand, so timing and strategies are key.

Booking Tips for lower Prices

Book Early
Secure your rental car at least 2-4 weeks ahead to ensure lower prices and availability during peak travel seasons.
Save up to 35%
Use Comparison Tools
Check platforms like QEEQ to compare rental prices across multiple providers and find the best deal.
Save up to 25%
Choose Smaller Cars
Opt for economy or compact cars, which are often significantly cheaper and more fuel-efficient.
Save $50-100 per trip
Select a Full-to-Full Fuel Policy
Choose rentals with policies that require you to return the car with a full tank, avoiding additional refueling fees.
Save $20-40

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 aware of unexpected charges that may not be included in the advertised price.
- Airport surcharges applicable at Keflavik Airport
- Fees for young drivers under 25 years old
- Charges for additional drivers
- Cost for optional equipment like GPS or child seats
- Insurance excess fees for specific coverage
Insurance Options
Understanding insurance terms can prevent costly misunderstandings.
- Verify if your travel insurance covers car rental incidents
- Check credit card benefits for collision damage waiver
- Consider sand and ash protection, especially for volcanic areas
- Review terms for gravel road coverage
- Ask for clarity on rental insurance exclusions
Fuel Policies
Fuel policies affect the total rental cost.
- Full-to-full fuel policy is often the most economical
- Prepaid fuel may cost more than refueling yourself
- Locate fuel stations near the return location
- Ensure accurate fuel level documentation at pickup
- Return the car with the agreed fuel level
Vehicle Condition Check
Inspecting the car thoroughly can avoid disputes.
- Document all visible damage with photos or videos
- Inspect tires and windshield for wear or crack
- Test all vehicle electronics and lights
- Check for any interior damage or stains
- Record mileage and fuel level at pickup
Understanding Contract Terms
Review the rental agreement carefully.
- Confirm mileage limits and additional charges for exceeding
- Check geographical restrictions for certain areas
- Understand cancellation and modification policies
- Clarify procedures for reporting accidents or damage
- Verify conditions for early or late return penalties
Timing Considerations
Plan your pickup and return to avoid extra costs and inconvenience.
- Ensure pickup during the rental office's operating hours
- Account for time delays at airport facilities
- Avoid late returns to prevent extra day charges
- Understand policies regarding early returns
- Factor in rush hour timings for smooth vehicle 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.

Traffic Rules Comparison between South Korea and Iceland

South Korean and Icelandic traffic rules differ in road signage, priority rules, and parking regulations, while sharing common safety standards.

Road Signage
IS
Uses international road signs with emphasis on minimalism.
KR
Uses road signs with Korean characters and symbols.
Right of Way
IS
Priority given to vehicles on main roads unless otherwise indicated.
KR
Priority often given to vehicles entering from the right in urban areas.
Parking Regulations
IS
Parking zones are clearly marked and regulated by time limits.
KR
Parking regulations are less standardized, often dependent on local rules.
Mobile Phone Use
IS
Hands-free devices are mandatory for drivers.
KR
Hands-free devices are also required for drivers.
Seatbelt Laws
IS
Mandatory for all passengers in the vehicle.
KR
Mandatory for all passengers in the vehicle.
Remember
- • Check local traffic rules and regulations for specific regions in Iceland.
- • Ensure proper documentation and insurance for car rental.
- • Adhere to speed limits and safety standards at all times.
- • Carry your international driver's license if required.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from South Korea renting a car in Iceland

Can I rent a car in Iceland with only a Korean driver's license?

No, you must also carry an International Driving Permit (IDP). Car rental companies in Iceland do not accept a Korean driver's license alone, so be sure to obtain an international driving permit from a Korean police station or driving test center before departure.

When is the best time to book a rental car in Iceland for the lowest price?

During the peak season (June to August), book at least 3-6 months in advance. Even during the off-season, it’s best to book as early as possible. The later you book, the higher the prices and the fewer vehicle choices available.

Is renting a car essential for traveling in Iceland?

In most cases, yes. Public transportation is very limited, so renting a car is essential if you want to freely visit tourist spots.

Which platform is the most convenient and affordable for booking?

QEEQ car rental comparison platform is recommended. It allows you to compare prices from various companies at once, offers Chinese/Korean customer service for Koreans, and includes comprehensive insurance options.

What documents are required for booking and picking up a rental car?

1. A credit card in the main driver's name (debit cards are not accepted) 2. Original Korean driver's license 3. Valid International Driving Permit 4. Passports of all drivers are required.

What is the minimum age to rent a car?

Generally, the minimum age is 20 for passenger cars and 23–25 for SUVs or 4x4 vehicles. A Young Driver Fee may apply for drivers under 25.

Can I pay with a friend’s credit card?

No, you must use a credit card in the name of the primary driver.

What is the process for booking on QEEQ?

Enter the pickup and return locations and dates on the QEEQ website/app, select your preferred vehicle and insurance, and pay with a credit card. You will receive a confirmation email.

Can I pick up the car at Keflavik Airport and return it in another city?

Yes, most major rental companies allow one-way rentals. However, additional fees may apply.

Should I pre-book add-ons like GPS or child seats?

Yes, GPS and child seats are limited in quantity, so it’s best to pre-book them.

Should I choose a 2WD or 4WD vehicle?

In summer, 2WD is sufficient if you’re only driving on the Ring Road (Route 1). However, for winter or driving on F-roads (mountain roads) or to the Westfjords, a 4WD is necessary.

What are F-roads, and what type of vehicle is required?

F-roads are unpaved mountain roads that require a 4WD/AWD vehicle. Entering F-roads with a 2WD vehicle can lead to legal issues and void insurance coverage.

What type of car is recommended for winter trips to see the Northern Lights?

It’s recommended to use a 4WD SUV with snow tires, such as the Dacia Duster, Suzuki Vitara, or Toyota RAV4.

If I only plan to drive on Route 1 during summer, is a 2WD sufficient?

In most cases, yes. However, be cautious as some access roads to tourist attractions may be unpaved.

Is it true that automatic transmission cars are rare in Iceland?

Yes, like most of Europe, manual transmission cars are more common. Automatics are in high demand and more expensive. If you prefer automatic, make sure to filter for it when booking in advance.

Will a Dacia Duster be enough for 3 people with 3 large suitcases?

It can accommodate 3 people, but space may be tight for 3 large suitcases. Consider a mid-size SUV like a Hyundai Tucson or Kia Sportage.

Is renting a campervan a good idea?

It’s a great option in summer as it reduces accommodation costs and offers flexibility. However, it can be very cold in winter, and you must stay in designated camping areas.

Which is better, a diesel or petrol car?

Diesel cars generally have better fuel efficiency and lower fuel costs, making them suitable for long-distance travel. Check the fuel type before renting.

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

Charging station infrastructure is expanding, but you need to plan your itinerary and charging stops carefully. It’s suitable for urban and short-distance travel.

What’s the difference between 4x4 and AWD?

For most travelers, there’s not much difference. Both provide power to all four wheels and are suitable for F-road driving.

What is CDW insurance?

Collision Damage Waiver (CDW) is usually included in the rental. It covers damages above a certain amount (typically €2,000–€3,500), while the rest is the driver’s responsibility.

What is Super CDW (SCDW), and should I add it?

SCDW significantly reduces the CDW deductible (e.g., €3,000 to €500). If your budget allows, it’s a safer option to add.

Why is Gravel Protection (GP) insurance highly recommended?

Iceland has many gravel roads, and flying rocks from other vehicles can easily damage your windshield or car body. Repairs are expensive, so adding GP insurance is essential.

When is Sand and Ash Protection (SAAP) necessary?

If you plan to visit the South Coast (especially between Vík and Höfn) or highland areas, strong winds can cause sand and ash damage to your car. It’s crucial to add this insurance for such trips.

Is tire and undercarriage insurance necessary?

Unpaved roads and poor conditions can frequently cause tire or undercarriage damage, so consider adding this insurance.

Does car rental insurance cover personal injuries or theft?

Rental car insurance mainly covers vehicle damages. Personal injuries and theft of belongings are covered under separate travel insurance.

Does car rental insurance cover damages caused by natural disasters or volcanic activity?

Damages caused by natural disasters like earthquakes, floods, or volcanic activity are typically not covered by insurance, so be cautious.

What’s the easiest way to get rental car insurance?

When booking through QEEQ, selecting the “Full Protection” option covers most risks without needing to purchase multiple separate insurances.

How can multiple people drive the rental car?

Additional drivers must be registered in advance, and extra fees may apply. If an unregistered driver gets into an accident, insurance will not cover it.

What’s the average cost of car rental insurance in Iceland?

It varies by car type and coverage but can add €20–€50 per day. QEEQ’s “Full Protection” option is relatively economical.

How should I check the car’s condition when picking it up?

Inspect and document the car’s exterior, windshield, tires, and interior with photos and videos. Report any existing damages to the staff immediately.

Is anything besides an International Driving Permit required?

In addition to an IDP, you need the original Korean driver's license, a credit card in your name, and a passport.

Where do I pick up the rental car?

Most commonly at Keflavik International Airport (KEF) rental car center. Some companies may require a shuttle bus to their location.

What should I check when picking up the car?

Check the car’s exterior, tires, windshield, fuel level, options (GPS, child seats), and insurance coverage. Report any issues to the staff immediately.

Are Iceland's road signs and traffic laws very different from Korea's?

Some signs, speed limits, and right-hand driving are similar to Korea, but features like roundabouts may be unfamiliar. Study Icelandic road signs beforehand.

What are road conditions like in winter?

Winter roads can be closed unexpectedly due to snow, ice, or strong winds. Always check real-time road conditions on road.is.

Does Iceland have highway tolls?

No tolls on highways, but some tunnels (e.g., Vaðlaheiðargöng tunnel) require separate online payment.

How do I refuel?

Self-service is standard, and payment is made with a credit card (PIN required). Learn how to use the pump in advance.

Are gas stations scarce?

Outside the capital, gas stations can be far apart. Always refuel when your tank drops below half.

Do I need a GPS for navigation?

Smartphone apps like Google Maps or Naver Maps work well, but some areas lack signal. Download offline maps in advance.

What are tips for driving on unpaved roads?

Drive slowly, avoid sudden braking/acceleration, and watch for tire damage. Check if your insurance covers unpaved road accidents.

Is it true that animal-related accidents occur frequently?

Yes, sheep often cross roads, so drive cautiously. Check insurance coverage for animal-related accidents.

What should I do if there’s an issue with the car?

Call the rental company’s 24-hour emergency contact immediately. QEEQ bookings include reliable support services.

What’s the procedure for returning the car?

Refuel as per your agreement, inspect the car with the staff, and ensure all is in order. Avoid leaving the car unattended.

Must I return the car on time?

Yes, late returns may incur additional fees. Notify the rental company in advance if you’re delayed.

Do I need to wash the car before returning it?

Normal dirt is fine, but excessive dirt may result in cleaning fees.

What should I do if there’s a traffic accident?

Report it to the police immediately and notify the rental company. Document the scene with photos and written details.

What happens if I get a speeding ticket or other traffic violation?

Fines will be sent to the rental company or police, and the amount may be charged to your credit card.

What are parking fees and rules like?

Parking fees may apply in cities and tourist spots. Always check signs and use mobile apps (e.g., Parka) for payment.

What if I run out of fuel?

Contact the rental company for assistance, but note that refueling services are costly. Always monitor your fuel levels.

What should I do if I lose the car keys?

Immediately contact the rental company. Replacement keys and towing costs may apply.

What should I do if I encounter road closures?

Check real-time updates on road.is and follow detour instructions. Do not attempt to bypass closed roads.

Can additional charges be applied after returning the car?

Yes, for reasons such as vehicle damage, low fuel, cleaning fees, or traffic violations.

What’s the overall rental car budget for Iceland?

Depending on vehicle type, insurance, fuel, add-ons, and parking, expect to budget between $75–$225 per day for a group of four.

What if I face language barriers with rental company staff?

QEEQ offers Korean/Chinese customer support. Most staff also speak English.

What are the most common additional expenses?

Common expenses include windshield damage, tire issues, fuel shortages, cleaning fees, and traffic fines.

What’s the single best tip for renting a car in Iceland?

Prepare all documents, including your International Driving Permit, in advance. Document the car’s condition with pictures/videos during pickup to avoid disputes.

Still have questions？

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

Car Rental in Iceland for Korean Travelers

Embark on your Icelandic adventure with the right knowledge about renting a car. Whether it’s driving through volcanic landscapes or experiencing the northern lights, this guide prepares you for a secure and enjoyable journey.

Can South Korean Citizens Drive in Iceland?

Ready to Rent?

Which Car Rental Companies Are Best?

Recommendations for Korean 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

Smart Tips for Saving Money on Car Rentals in Iceland

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Traffic Rules Comparison between South Korea and Iceland

Remember

Frequently Asked Questions

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