DrivingRental CarsWhat Are the Requirements to Rent a Car in Iceland?
Go Car Rental Iceland travel writer Aron Freyr
By Aron FreyrSep 15, 2024 • 5 min read

What Are the Requirements to Rent a Car in Iceland?

Renting a car in Iceland is an exciting and practical way to explore this beautiful country. Whether you're driving through Reykjavík or exploring remote locations like the Highlands or glacier-laden landscapes, having your own wheels makes the trip far more flexible.

But before you jump behind the wheel, it's essential to know the specific requirements and rules for renting a car in Iceland. Below is a comprehensive guide on what you need to rent a car with Go Car Rental, covering essential topics like age restrictions, payment options, and driving permits.

How Old Do You Have to Be to Rent a Car in Iceland?

To rent a car in Iceland, the minimum age depends on the type of vehicle you're interested in. For standard cars and smaller vehicles, drivers need to be at least 20 years old. However, if you're planning to rent a larger vehicle or a luxury model, you'll need to be at least 23 years of age.

While many rental companies require drivers to have held a valid driver’s license for at least one year, Go Car Rental offers a unique option for younger drivers. If you are under the age limit or haven't had your license for a full year, you can still rent a car by paying the "Young Driver's Fee." This fee is €25 ($28) per day and allows younger or less experienced drivers to get behind the wheel.

This option is great for younger travelers who may not meet the typical experience requirements but still want to explore Iceland on their own terms.

Girl sitting in the front of her car with mountains in the background

Do I Need a Credit Card to Rent a Car in Iceland?

Yes, in most cases, you will need a credit card in the driver's name to rent a car in Iceland. The credit card serves as a guarantee for the rental company and is used to hold a deposit that covers potential damages or additional charges. If you don’t have a credit card, some companies, including Go Car Rental, offer an alternative. You can use a debit card, but this option is only available if you purchase Gold insurance, which costs around €25 ($28) per day.

The advantage of this insurance is that it provides more coverage, which can give you peace of mind when driving Iceland's often unpredictable terrain.

Go cars booking process

Can I Rent a Car with My Driver's License, or Do I Need an International Permit?

If you’re from the US, UK, or any other country that uses a Latin script, you won’t need an International Driving Permit (IDP) to rent a car in Iceland. Your regular driver’s license will be accepted by most rental companies, including Go Car Rental, as long as it’s valid and you’ve held it for at least one year.

However, if your driver's license is in a non-Latin alphabet, such as Russian, Chinese, or Arabic, you'll need to either get an IDP or a certified translation of your license. An IDP is a relatively easy document to obtain and can save you a lot of hassle when traveling internationally.

Regardless of where you're from, make sure you bring your original driver’s license with you, as copies are not accepted.

Suzuki Jimny in Iceland

Is It Mandatory to Hire Insurance?

No, it's not mandatory to hire additional insurance beyond what's already included, but it's highly recommended. All Go Car Rental vehicles come with standard protections, including Super Collision Damage Waiver (SCDW), Gravel Protection (GP), and Theft Protection (TP). These cover the basics but keep in mind that Iceland's rugged landscapes present unique challenges.

If you're planning to drive on gravel roads, around glaciers, or venture into remote areas, upgrading your insurance can be a smart move. Additional insurance packages cover things like damage to the undercarriage, windscreen and even weather-related issues like ash or sand damage. While not obligatory, having the extra coverage can save you from hefty repair fees later on.

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Conclusion

Renting a car in Iceland is a fantastic way to make the most of your trip. Understanding the specific requirements, such as age limits, payment options, and insurance details, will help you avoid any surprises at the rental desk. With Go Car Rental, we aim to make the process as smooth as possible, offering flexible payment options and comprehensive insurance packages that cover the essentials for your journey.

Now that you’re prepared, you can hit the road and explore Iceland’s stunning landscapes, from volcanic craters to cascading waterfalls, with complete peace of mind. Safe travels!

Frequently Asked Questions About Renting a Car in Iceland

Can I drive anywhere in Iceland with a rental car?

Most rental cars can take you almost anywhere, but some roads, especially those in the Highlands (F-roads), require a 4x4 vehicle. If you plan to drive on these rough roads, it's essential to check with your rental provider and review your insurance coverage.

Is it possible to rent a car in winter?

Yes, renting a car in winter is very common, but you should ensure that your rental car is equipped with studded tires and other winter driving essentials. Icelandic roads can get icy and treacherous during the colder months, so drive carefully.

Are there any restrictions on where I can take my rental car?

Yes, many rental companies prohibit taking standard vehicles on F-roads, which are often unpaved and require 4x4 vehicles. Always check with your rental provider about any restrictions based on the vehicle you choose.