06-06-2025
Have you decided to rent a car for your trip to Iceland? While the type of vehicle you rent doesn’t matter a lot in many destinations, Iceland is different. Choosing the best car to rent in Iceland requires knowing what to expect from the drive and determining what you need to stay safe and get where you want to go.
Choosing the best car to rent in Iceland matters because of the unique driving conditions in the country. Icelandic weather can change rapidly, and you must be prepared for just about anything. If you don’t select an appropriate vehicle for your trip, you may experience problems that can be costly in the long run.
There are several key factors you should consider when choosing which vehicle will best meet the needs of your Iceland itinerary. Before you rent a vehicle, you must be familiar with Icelandic roads and other conditions that can impact your drive. The following are some things you need to think about to ensure you choose the best car to rent in Iceland.
The Icelandic road system is made up of three main types of roads. Which roads you want to drive will impact which vehicle is best to ensure you can safely reach your preferred destinations. The Icelandic Road Administration has a website that indicates which roads are paved and which are not.
Most of the main roads you will encounter will be paved roads like you would find at home and in many other countries. These roads can easily be driven with any type of vehicle. If you will be sticking to paved roads, the type of car you rent matters less unless you are traveling in the winter.
The second type of road you may encounter in Iceland is a gravel road. These roads may consist of packed or loose gravel and are generally secondary roads out in the countryside. Most rental cars will be allowed on these roads, but you must use your best judgment if the road is too rough for a vehicle with low clearance. In these cases, renting a higher clearance vehicle is preferred.
Finally, some gravel roads in Iceland are classified as F-roads. These roads go through the highlands in the center of the country and require a high-clearance 4x4 vehicle to drive. Many of these roads are rough and have unbridged river crossings. Not all rental cars, even some 4x4 vehicles, are allowed on these roads.
In addition to the type of roads you intend to drive, the time of year and weather conditions when you travel can affect which is the best car to rent in Iceland. Driving in winter may benefit from driving a larger vehicle with 4x4 capabilities to improve your safety on the road. However, it is important to note that most rental cars in the winter will have studded tires, making them safer.
If you will be visiting in the summer, you can often drive a smaller 2WD vehicle, but it will depend on where you intend to go and which type of roads are on your itinerary. For many visitors, renting a 4x4 vehicle can be a great option all year round, but you will need to think about the weather conditions you can expect and where you want to visit.
The final consideration when selecting a rental car is your budget and comfort requirements. Most visitors have a budget in mind when searching for rental agencies to get the right vehicle. However, this shouldn’t necessarily be your primary consideration. You must also make sure you choose a vehicle that will give you the space and comfort you and your traveling party want.
Once you have your itinerary planned, you can start looking at the different vehicles available and find the one that will best support your plans. The following will help you start your search based on which areas of Iceland you wish to visit during your trip so you don’t encounter any surprises along the journey.
If you will be driving the entire Ring Road, you may wonder whether you need a 4WD vehicle. The answer to this question depends heavily on whether you are sticking to the Ring Road or want to venture onto the F-roads. In general, you will not need a 4WD unless you intend to go into the highlands.
However, if you are visiting in the winter or aren’t sure where your journey will take you, it is often a safer bet to choose a 4WD to maintain your flexibility and safety. With a 4x4, you can venture off onto gravel roads that can take you to fantastic sights that may not be accessible with the average 2WD vehicle.
Driving the Golden Circle is entirely on paved roads, making it one of the simplest routes for visitors. If the Golden Circle is on your self-drive itinerary, a small car is all that is needed to make the journey. All of the primary sights along the route are easily accessible without requiring more than a smaller car.
If you have destinations in the highlands on your itinerary, renting a 4x4 vehicle is an absolute must. These roads require a 4x4 because they often have obstacles, including rocks, potholes, rough terrain, and unbridged river crossings. To drive these routes, you will need more clearance and a vehicle equipped to handle the challenges you may face.
Without a 4x4, you will not be able to drive the F-roads with a rental vehicle. However, it’s important to note that not all 4x4s are approved to drive on these roads. Some F-roads may be forbidden by your rental company due to their difficulty as well. Make sure you are aware of which roads you can drive on and which ones you can’t.
As you browse through the rental options, you will find a selection of 2WD and 4WD vehicles. Many people become overwhelmed by the choices. Once you know where you are going, when you plan to visit, and how much space you need, you can narrow down your choices and find the best car to rent in Iceland.
There are certain situations where renting a 2WD vehicle is enough for your Iceland trip. For instance, if you are visiting in the summer and only plan to drive the Ring Road and other primary paved roads, you can save significant money by choosing a 2WD car. This type of car may also work in the shoulder season and for driving on some gravel roads.
Other situations warrant spending the extra money on a 4WD vehicle. For instance, if you are planning to drive F-roads and see the sights in the highlands or other more remote areas of Iceland, a 4WD vehicle is a necessity. The rough gravel roads you will encounter require more clearance and the capabilities of a 4x4 vehicle.
In addition to choosing a 4WD vehicle for the highlands, you may also want to consider this type of vehicle for a winter trip. Winter in Iceland means icy roads, blowing snow, and high winds, which require a capable vehicle and winter driving experience.
The debate between 2WD and 4WD isn’t the only consideration you have to make for your road trip. Even if you want to rent a 4WD car, you can still choose between a campervan and an SUV based on what type of trip you would prefer to take. So, which one is the best option for you?
A campervan is a good solution if you are traveling in the summer and want to save some money on accommodations. Winter camping is also an option, but fewer campgrounds are open. Campervans give you more flexibility in your trip because you can stay in campgrounds without making reservations. You can also prepare your meals and enjoy the convenience of having everything you need with you at all times.
On the other hand, an SUV offers greater 4x4 capabilities in most cases and plenty of space for passengers and luggage. You will still have plenty of flexibility in where you go each day, but you should make reservations for your accommodations ahead of time, especially if you are traveling during the summer months.
Finding the best car to rent in Iceland is only the first step in planning your road trip. Rental insurance is an essential consideration to minimize your costs at the end of your trip. Many vehicles come with Collision Damage Waiver (CDW) insurance, but in Iceland, extra insurance is necessary to give you optimal coverage.
Super Collision Damage Waiver (SCDW) insurance is a potential upgrade that can help reduce your deductible for body damage to your vehicle. In addition, you may want to add options like Sand and Ash Protection, Gravel Protection, and Tire Protection. These additional coverages can pay for damages due to driving on gravel roads or in areas where sand storms are common.
Finding the best car to rent in Iceland requires choosing the best rental agency to meet your needs and give you peace of mind. The following will help you choose a reliable company that will give you the best experience. As you search for rental companies, look for the following:
Following these steps will give you confidence in the company you choose. You should feel like the rental company is giving you a reliable vehicle to reduce your stress and ensure you can get everywhere you want to go.
Renting a car so you can self-drive in Iceland is one of the best ways to ensure you can see everything you want at your own pace. However, one of the most important elements of deciding to drive yourself is your experience level, particularly if you visit in winter. Without proper winter driving experience, it may be best to take tours instead.
If you will be visiting in the summer or have good winter driving experience, renting a car in Iceland can be one of the best options for a truly custom itinerary that lets you enjoy the country as you wish. As long as you familiarize yourself with the rules of the road and follow the speed limits, you can enjoy a stress-free trip at your pace.
Are you ready to book the best car to rent in Iceland? Whether you choose a 2WD to save money on visiting the main sights or traveling the Ring Road, or you opt for a 4WD vehicle to take you on the adventure of a lifetime in the highlands, you will find a self-drive itinerary one of the best ways to see the country. Rent a car in Iceland and prepare to take in all the beauty Iceland has to offer.