Car Rental Navigation for GB Travelers in IS

Embarking on an Icelandic adventure comes with the joys of exploring unique landscapes. If you're traveling to Iceland from Great Britain, ensuring a proper car rental is one of the essential parts for a hassle-free journey.

Can I drive in Iceland with my UK driver's license?
What insurance coverage is advisable?
What are the typical rental costs?
Are one-way rentals feasible in Iceland?
What distinct traffic rules should I be aware of?

This guide is tailored to address these queries, providing you with practical solutions, tips, and a compact summary table for all necessary details to navigate Iceland's roads confidently.

Can British Citizens Drive in Iceland?

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

Form of ID:
A valid passport is required for foreign renters.
Driving licence:
Accepted driving licence include:
• EU/EEA Driving License
• Original driving licence + International Driving Permit (IDP)
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 are required. Accepted credit cards include Visa, Master, DinersClub, and AMEX.
Age requirements:
Drivers must be between 19-99 years old. Young drivers aged 19-20 may incur an additional fee of US$ 38.67 per day.

Ready to Rent?

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

Check Rates

Car Rental Options in Iceland

Discover a range of car rental companies in Iceland, from global chains to local providers, offering services tailored to different travel needs.

Global Chain Companies

Local Brands

Europcar
global
8.5
Locations:
83
Prices:
$$
Key Advantages
- Wide range of vehicles
- Flexible pick-up and drop-off locations
- Loyalty program for frequent renters
- Excellent customer service
Best for
Leisure travelers and eco-conscious renters
Hertz
global
8.5
Locations:
54
Prices:
$$$
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:
18
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

Choosing the Right Rental Service

Why Choose Global Chains?

Wide vehicle availability
Consistent service standards
24/7 customer support
Suitable for long-distance travel

Why Choose Local Brands?

Competitive pricing
Specialized vehicle options
Flexibility in smaller regions
Ideal for exploring unique landscapes

How to Choose the Right Car?

Choosing the right rental car can make your trip in Iceland more comfortable, safe, and enjoyable. Consider 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
- Manual transmission
  Often cheaper, better fuel economy, more control
- Consider your comfort level with left-hand driving and manual 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 UK 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 remote areas
- 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
South Coast, Westfjords

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 features a unique blend of natural wonders and cultural experiences, making it a fantastic destination for travelers. Popular routes include the Golden Circle, the Ring Road, and scenic drives to iconic landmarks like the Blue Lagoon or the Jökulsárlón Glacier Lagoon. Whether you're exploring Reykjavik or venturing into the countryside, renting a car allows you to discover the country's beauty at your own pace.

What Insurance Do I Need?

You'll need at least basic insurance to legally drive in Iceland, but for peace of mind, especially in unpredictable weather conditions or on gravel roads, additional coverage is highly recommended. Insurance coverage can vary by provider, so it's important to understand what's included and what isn't.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car in case of accidents.
£12-20/day
Essential
Theft Protection (TP)
Provides cover in case the rental car is stolen.
£3-6/day
Essential
Super Collision Damage Waiver (SCDW)
Reduces your excess liability amount in case of damage to the car.
£15-25/day
Recommended
Gravel Protection (GP)
Covers damage to the windshield, headlights, and body from gravel.
£8-12/day
Highly Recommended
Sand and Ash Protection (SAP)
Protects against damage from sandstorms or volcanic ash.
£10-15/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

$0.00 - $19,326.63

Theft Protection

Fully Covered

$0.00 - $4,362.27

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

Save Money on Car Rentals in Iceland

Discover smart strategies to reduce costs on car rentals in Iceland for travelers from Great Britain.

Booking Tips for lower Prices

Book in Advance
Secure your rental car weeks ahead to lock in lower rates and ensure availability, especially during tourist seasons.
Save up to 20%
Compare Rental Agencies
Utilize comparison tools and websites like Kayak or Rentalcars.com to find the best deals across different companies.
Save up to £50 per booking
Opt for Full-to-Full Fuel Policy
Choose rental agreements with a full-to-full fuel policy to avoid extra refueling charges.
Save £10-£20 per rental
Select Compact Models
Smaller vehicles often come with a lower rental price and reduced fuel consumption, ideal for Iceland's highways.
Save up to £30/day
Verify Weather Equipment
Ensure your rental includes necessary winter equipment like snow tires to avoid additional costs later.
Avoid unexpected fees

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.

Weather Conditions
Iceland's weather can change rapidly and impact driving safety.
- Prepare for icy roads and strong winds.
- Always check weather forecasts before driving.
- Equip your car with proper tires, especially in winter.
- Be cautious of sand and ash storms in certain areas.
- Drive carefully in rain or snow conditions.
Restricted Roads
Certain roads in Iceland are only accessible by 4x4 vehicles.
- F-roads require high-clearance vehicles.
- Ensure your rental agreement permits F-road driving.
- Check road conditions on the Icelandic Road Administration website.
- Driving on restricted roads without permission can void insurance.
- Avoid off-road driving as it is illegal and heavily fined.
Rental Car Types
Choosing the right type of car is crucial for your trip.
- Compact cars are suitable for city driving.
- SUVs are recommended for exploring rural or highland areas.
- Consider fuel efficiency as distances between gas stations can be large.
- Check if the car includes GPS or maps for navigation.
- Ensure adequate space for luggage and passengers.
Insurance Policies
Understanding the insurance options can save you from unexpected costs.
- Consider gravel protection as many roads are unpaved.
- Check for coverage against windscreen and tire damages.
- Sand and ash damage insurance is advised for certain regions.
- Understand the deductible amounts and what they cover.
- Confirm coverage for theft and natural disasters.
Pickup and Drop-off Locations
Plan your car rental logistics to avoid unexpected charges.
- Airport pickups may include additional fees.
- Ensure the rental office is open during your pickup/drop-off times.
- Check if one-way rentals are allowed and their cost.
- Inspect the vehicle carefully during pick-up.
- Return the car clean to avoid extra charges.
Toll Roads and Parking
Be aware of local policies for tolls and parking.
- Few toll roads exist; familiarize yourself with their payment methods.
- Parking in Reykjavik often requires payment via apps or machines.
- Avoid parking in restricted zones to prevent fines.
- Some attractions have designated parking fees.
- Keep coins or cards handy for rural parking spots.

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 Between GB and IS

Traffic regulations vary between GB and IS, including differences in speed limits, road signs, and driving behaviors. Familiarize yourself with these distinctions to ensure a safe and compliant driving experience.

Drive Side
IS
Drive on the right side of the road
GB
Drive on the left side of the road
Speed Limits
IS
Expressed in kilometers per hour (km/h)
GB
Expressed in miles per hour (mph)
Roundabouts
IS
Priority to vehicles already in the roundabout
GB
Similar rules but often more frequent roundabouts
Seatbelt Use
IS
Mandatory for all vehicle occupants
GB
Mandatory for all vehicle occupants
Mobile Phone Use
IS
Hands-free use only
GB
Hands-free use only
Parking Rules
IS
Follow street signs and park in designated areas
GB
Similar rules apply, with parking in designated bays
Remember
- • Always carry your driver's license and rental agreement.
- • Familiarize yourself with local road signs and symbols.
- • Check your vehicle's condition before starting your journey.
- • Adhere to speed limits and traffic regulations strictly.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from United Kingdom renting a car in Iceland

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

It's highly recommended to book as early as possible, especially for summer (June–August) and holidays. Booking 3–6 months ahead ensures better prices and car selection, particularly for automatics and 4x4s.

Where is the best place to book a rental car in Iceland?

It's advisable to book through a price comparison platform like QEEQ, which aggregates offers from multiple suppliers and usually includes basic insurance in the package price, allowing you to compare and choose the best deal.

Do I need an International Driving Permit (IDP) as a UK license holder in Iceland?

No, you do not need an IDP. As long as you hold a valid UK photocard driving licence (with details in English), it is fully legal to drive and rent a car in Iceland.

Do I have to use a credit card to rent a car? Can I use a debit card?

You must use a credit card in the main driver's name. Almost all Icelandic rental companies require this for the security deposit. Debit cards, prepaid cards, or e-wallets are usually not accepted.

Why must the credit card be in the main driver's name?

Rental contracts are signed with the main driver, so the credit card used for the security deposit must match to ensure legal and financial accountability.

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

Generally, the minimum age is 20 for small cars, but 23 or 25 for 4x4s and larger vehicles. Drivers must usually have held a licence for at least one year. Always check specific terms when booking.

What should I know about adding additional drivers?

All drivers must be registered at pick-up and show a valid licence. There is usually a daily fee for each extra driver. If an unlisted driver has an accident, all insurance is void.

Should I pay for my rental in GBP or Icelandic Krona (ISK)?

Pay in local currency (ISK) to avoid dynamic currency conversion fees, which often use poor exchange rates compared to your card provider.

What is typically included in the basic rental fee in Iceland?

Basic rental usually covers the car, third-party liability insurance, basic CDW (collision damage waiver), and unlimited mileage. Other insurances and extras like GPS or child seats are charged separately.

What is the 'security deposit' for, and how much is it?

The deposit, held on your credit card, guarantees payment for potential fines, tolls, or damages not covered by insurance. Amounts range from ISK 20,000 to 350,000 (£120–£2,000), depending on car and insurance.

Should I rent a 2WD or a 4x4 vehicle?

It depends on your route. For summer travel on the Ring Road and paved routes, a 2WD is fine. For winter or highland (F-road) travel, a 4x4 is essential for safety and legality.

What are F-roads, and can I use a regular car on them?

F-roads are Icelandic highland mountain roads, unpaved and often requiring river crossings. Only 4x4 vehicles are legally allowed, and driving a 2WD on F-roads is illegal and extremely risky. Insurance will be void.

Are manual or automatic cars more common?

Manual cars are more common and cheaper in Iceland. If you prefer an automatic, book early as they are limited, especially during peak season.

Do I need to rent a car with GPS navigation?

Not necessarily. Google Maps or Waze on your phone works well with mobile data. Local SIM cards or UK roaming plans are options. Renting a GPS device costs extra.

Does car size matter for two people?

Consider your luggage. The smallest cars have limited boot space, often not enough for two large suitcases. A compact car is recommended for comfort.

What is CDW (Collision Damage Waiver) and is it enough?

CDW reduces your liability in a collision to a set excess, but the excess is usually very high (up to ISK 350,000). CDW alone is not enough for peace of mind.

What is SCDW (Super Collision Damage Waiver)?

SCDW is an upgraded insurance that lowers your excess significantly (e.g., from ISK 350,000 to ISK 80,000). It is strongly recommended for better financial protection.

Do I need Gravel Protection (GP)?

Absolutely. Even paved roads have stretches where gravel can chip your windscreen or paintwork. GP covers these damages, which are not included in CDW/SCDW.

What is Sand and Ash Protection (SAAP) and do I need it?

SAAP covers damage from volcanic ash and sandstorms, which can severely damage the car's exterior. It's especially advisable if travelling on the south coast or in spring/autumn.

Is Theft Protection (TP) important?

TP is usually bundled with CDW. Car theft is rare in Iceland, but it's included for peace of mind.

Are there all-inclusive 'zero excess' insurance packages?

Yes. Many companies offer premium packages bundling SCDW, GP, SAAP, and TP with zero excess. These are pricier but provide maximum protection. You can compare such packages on QEEQ.

Can I use the car hire insurance provided by my UK credit card?

Rarely. Most UK credit cards do not offer primary car hire insurance, and Icelandic rental companies usually do not accept third-party cover for deposit or insurance requirements.

Does insurance cover tyres, the undercarriage, or water damage?

Usually not. Damage to tyres, the car's underside, or caused by river crossings is typically excluded and must be paid in full by the renter.

Does insurance cover damage if the wind rips the car door?

Generally not. Strong Icelandic winds can cause doors to overextend and break. This is often considered negligence and is excluded from standard policies. Always hold the door firmly when opening.

Should I buy extra insurance at the rental desk or in advance?

Buying insurance online in advance is usually cheaper than at the counter, where upselling is common. It's best to select your insurance package when booking through QEEQ.

What documents do I need to bring when collecting the car?

Bring the main driver's credit card, all drivers' UK photocard licences, your passport, and your rental confirmation voucher (electronic or printed).

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

Some rental desks are inside the terminal; others are off-site and provide free shuttle buses. Check your confirmation for exact details.

What should I check when picking up the car?

Thoroughly inspect and record all existing damage with photos and video, covering all angles. Ensure these are noted on the rental agreement.

What if I find damage not listed on the contract?

Return to the desk and have staff mark and sign off the new damage on the contract. Verbal confirmation is not sufficient.

Should I check the tyres?

Yes. Check tyre pressure and tread depth, especially in winter. Ensure there is a spare tyre, jack, and tools.

Is driving in Iceland on the same side as the UK?

No. Iceland drives on the right, with left-hand drive vehicles. This is a major adjustment for UK drivers—be extra careful at roundabouts and junctions.

What are the main speed limits in Iceland?

Speed limits are strictly enforced: 50 km/h in towns, 80 km/h on gravel roads, 90 km/h on paved rural roads. Always follow posted signs.

How expensive are speeding fines in Iceland?

Very expensive—ranging from hundreds to thousands of pounds. Cameras are widespread. Fines are charged to your credit card with an extra admin fee by the rental company.

Do I have to drive with headlights on at all times?

Yes, you must legally use dipped headlights at all times, day and night, regardless of weather or light conditions.

How do I refuel in Iceland?

Most petrol stations are unmanned and require a chip-and-PIN card. Select 'Fill Up,' fuel, and the system pre-authorizes a high amount, refunding the unused portion after a few days.

How do I pay for parking?

In cities like Reykjavik, parking is zoned. Use pay-and-display machines or apps like EasyPark. Many attractions also charge parking fees. Skipping payment results in hefty fines.

Are there toll roads or tunnels in Iceland?

Yes. The main one is Vaðlaheiðargöng tunnel in the north, with online payment required within 3 hours of passing. If not paid, the rental company will add extra admin fees.

What should I do if I encounter animals on the road?

Sheep are common and often cross roads unexpectedly. Slow down and be alert, especially where warning signs are posted. Hitting livestock can incur compensation costs.

What are single-lane bridges and how do I cross them?

They are common on the Ring Road. The rule is: whoever reaches the bridge first has priority. If another vehicle is closer, wait in the parking bay before the bridge.

What should I do if my car breaks down or I have an accident?

Ensure everyone's safety and move the car to a safe spot. Call Iceland's emergency number 112, then contact your rental company for instructions.

Are winter tyres required for winter driving?

Yes. From November 1 to April 14, winter tyres (usually studded) are mandatory. Reputable rental companies supply them at no extra cost during this period.

Is it safe to drive in Iceland during winter?

If you have winter driving experience, a suitable 4x4, and a flexible itinerary, it can be safe. Weather conditions are variable and can be extreme. Always check road and weather websites before setting out.

Can I drive through rivers on F-roads?

Only with a 4x4, and all insurance excludes water damage from river crossings. If inexperienced, avoid it. If necessary, check depth and follow experienced drivers.

When do F-roads open?

Their opening depends on weather and snow melt, usually between mid-June and early September. Check road.is for current status before your trip.

What should I do when approaching a 'Blind Rise' (blind hill)?

Slow down and keep right, as you can't see oncoming traffic. These are common, especially on rural roads.

What must I do before returning the car?

Refill the tank to the agreed level (usually full) or face high refuelling fees. Clean out any obvious rubbish from the car.

Should I photograph the car at drop-off?

Yes, always. Take comprehensive photos and videos showing the car's final condition and the return location, ideally with time and date.

What if I return the car after the office has closed?

Many companies offer a key drop box. The car will be inspected after you leave, so your photographic evidence is crucial in case of later damage claims.

How long after drop-off might I be charged for fines or damages?

Traffic fines or tolls can be processed weeks or even months later. Damage claims are usually communicated within a few days of return.

What should I do if I dispute a damage charge after returning the car?

Provide your pre- and post-rental photos/videos as evidence. If not resolved, contact your credit card company or a European car hire dispute resolution body.

Still have questions？

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

Car Rental Navigation for GB Travelers in IS

Embarking on an Icelandic adventure comes with the joys of exploring unique landscapes. If you're traveling to Iceland from Great Britain, ensuring a proper car rental is one of the essential parts for a hassle-free journey.

Can British Citizens Drive in Iceland?

Ready to Rent?

Car Rental Options in Iceland

Choosing the Right Rental Service

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

Save Money on Car Rentals in Iceland

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Comparison of Traffic Rules Between GB and IS

Remember

Frequently Asked Questions

Other Popular Destinations