Iceland, a land of fire and ice, is a dream destination for many. Its stunning landscapes and unique attractions make it a must-visit place. But how do you explore this Nordic island?

Renting a car in Iceland is a popular choice. It offers the freedom to discover the country at your own pace. But here’s the catch. Choosing a rental car in Iceland can be tricky. Especially when you’re faced with the choice between American and European cars.

In this guide, we’ll delve into the differences between these vehicles. We’ll also provide tips to help you make the best choice for your Icelandic adventure.

Why Rent a Car in Iceland?

Iceland is known for its vast landscapes. From geysers and waterfalls to glaciers and black sand beaches, there’s so much to see.

Public transportation can be limited, especially outside Reykjavik. This makes car rental a practical choice for many travelers.

Renting a car gives you the freedom to explore at your own pace. You can stop whenever you want to take photos or simply enjoy the view.

Moreover, some of the best sights in Iceland are off the beaten path. Having your own vehicle allows you to reach these hidden gems.

Rent a car in Iceland to maximum flexibility of your travel
you have to join a guided tour for going onto the glacier

American cars vs European Cars: Understanding the Basics

When it comes to car rental in Iceland, you’ll find both American vehicle models and European car models. But what’s the difference?

American cars are generally larger. They often have more spacious interiors and larger trunks, which can be a plus for families or groups.

On the other hand, European cars are typically smaller and more compact, more suitable for old European cities. This can be an advantage when navigating narrow roads or finding parking in busy areas.

Here are some key differences to consider:

  • Size: American cars are usually larger, while European cars are typically more compact.
  • Fuel efficiency: European cars often have better fuel efficiency, which can save you money on fuel costs.
  • Transmission: American cars usually have automatic transmissions, while manual transmissions are more common in European cars.

Understanding these differences can help you choose the right car for your trip.

Choosing the Right Car for Iceland’s Terrain

Iceland’s terrain is diverse and can be challenging. It’s important to choose a car that can handle it.For city driving and main roads, a small car will do. European models are often a good fit for this.

If you plan to explore off the beaten path, consider a 4×4. American SUVs are popular choices for their robustness and comfort.

Manual vs Automatic: What to Expect in Iceland

In Iceland, you’ll find both manual and automatic cars. However, there’s a slight difference in prevalence.

European cars often come with manual transmissions. If you’re comfortable with a stick shift, you’ll have more options.On the other hand, American cars are typically automatic. They offer ease of driving, especially for those unfamiliar with manual transmissions.

In the end, your comfort and driving experience should guide your choice. Both types have their advantages, so choose what suits you best.

Size Matters: Navigating Iceland’s Roads

When it comes to car rental in Iceland, size does matter. The country’s roads can be narrow and winding, especially in rural areas.

American cars are generally larger, which can be a challenge on these roads. However, they offer more space for luggage and passengers. European cars, on the other hand, are typically smaller. They’re easier to handle on Iceland’s roads, but may offer less space.

Consider your comfort, the size of your travel group, and your luggage when choosing a car. The right size can make your Icelandic journey much smoother.

Automatic 4WD and automatic 2WD small cars rental in Iceland
Hire new 4WD rental cars in Iceland for Icelandic road trips

Fuel Efficiency and Types in Iceland

Fuel efficiency is another key factor when renting a car in Iceland. European cars are often more fuel-efficient than their American counterparts.

This is due to their smaller size and engine capacity. It’s a crucial point to consider, given the high cost of fuel in Iceland. Iceland offers petrol, diesel, and increasingly, electric options. Diesel is often cheaper and provides better mileage, but not all cars use it.

Remember to check the fuel type of your rental car. It’s a small detail that can make a big difference in your travel budget.

Essential Tips for Driving in Iceland

Driving in Iceland can be a unique experience. The country’s diverse landscapes and weather conditions require some preparation.

Firstly, familiarize yourself with local traffic laws and road signs. They may differ from what you’re used to.

Secondly, always stay updated on current road conditions and weather forecasts. Iceland’s weather can change rapidly, affecting driving conditions.

Here are some additional tips for a safe driving experience in Iceland:

  • Always adhere to speed limits.
  • Plan your route and rest stops in advance.
  • Be prepared for gravel roads and single-lane bridges.
  • Never off-road – it’s illegal and harmful to the environment.
  • Keep an eye out for wildlife, especially sheep.
  • In winter, consider renting a 4×4 vehicle for better traction.
self-driving around Iceland is one of the most travel experiences you could ever had
a common view of road in winter iceland

Seasonal Considerations for Car Rentals

When planning your trip to Iceland, consider the season. It can greatly influence your car rental decision.

In summer, a standard car will usually suffice. The roads are generally clear, and most tourist sites are easily accessible.However, winter in Iceland is a different story. Snow and ice can make driving challenging, especially in the highlands.

For winter travel, a 4×4 vehicle is highly recommended. It provides better traction and safety on icy roads. Always check the weather forecast and road conditions before setting off on your journey.

Top Car Rental Companies in Iceland: A Comparison

When planning a car rental in Iceland, it’s important to choose a provider that stands out in terms of reliability, vehicle selection, and customer service. Hertz Iceland is a premier choice, distinguished by its comprehensive range of services and exceptional fleet options.

Hertz Iceland offers an extensive array of vehicles, from economical compact cars perfect for city driving to robust 4x4s designed for Iceland’s rugged landscapes. This flexibility ensures that whether you’re navigating the scenic Ring Road or exploring off-the-beaten-path destinations, there’s a vehicle suited to your needs.

What sets Hertz Iceland apart is not just our fleet. We are renowned for our excellent customer service, providing personalized care that begins the moment you book your rental. With competitive pricing and transparent policies, Hertz Iceland ensures a hassle-free rental experience that stands above the rest.

Always consider reading through customer feedback and ratings to get a real sense of what makes Hertz Iceland the top choice for car rentals in Iceland. With Hertz, you’re not just renting a car; you’re ensuring a seamless part of your Icelandic adventure.

happy travellers with Hertz iceland
Hire the 4WD new Land rover defender for Icelandic highland road trip is one of the best decision

Getting the Best Deal: Discounts and Insurance

Securing the best deal on car rental in Iceland requires a bit of research. Look for discounts and promotional offers online. Some companies offer lower rates for longer rental periods.

Insurance is another crucial factor to consider. Most rental companies offer basic insurance, but it’s wise to opt for comprehensive coverage. This can protect you from unexpected costs due to accidents or damage.

Remember, the cheapest option isn’t always the best. Consider the overall value, including the type of car, insurance coverage, and customer service.

Lastly, always read the fine print to avoid hidden fees. Understanding the rental agreement can save you from unpleasant surprises.

see the puffin in Iceland in Summer

Conclusion: Enhancing Your Icelandic Adventure

Renting a car in Iceland can truly enhance your travel experience. It offers the freedom to explore at your own pace, reaching places that public transport can’t.

Whether you choose an American or European car, the key is to select a vehicle that suits your needs. Consider the terrain, weather, and your comfort with manual or automatic transmission. Remember, safety should always be your top priority. Familiarize yourself with local driving laws and always respect the environment.

With careful planning and the right car, your Icelandic adventure can be an unforgettable journey. Enjoy the ride!

Best rental car options in Iceland for all seasons

Rent a Kia Sorento PHEV in Iceland

Kia Sorento Plug-in Hybrid or similar | Automatic | 4×4

SFDI | Group: O6 (SFDI)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 4 Large Luggage
  • Hybrid

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on-road no.35 and 550. You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 38 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
4wd land rover defender hire in iceland

Land Rover Defender or similar | Automatic | 4×4

PFAN | Group: G6 (PFAN)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 3 Large Luggage
  • Petrol or Diesel

Suitable for highlands, Please read the Terms & Conditions. You must be 25 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 234 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
rent a tesla model Y in Iceland

Tesla Model Y or similar | Automatic | 4×4

UGDC | Group: V1 (UGDC)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 4 Large Luggage
  • Electric

This vehicle is NOT allowed in the highlands F-roads. You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Traction Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
Discovery land rover rental car in Iceland

Land Rover Discovery or similar | Automatic | 4×4

LFAV | Group: R6 LFAV

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 5 Large Luggage
  • Petrol or Diesel

This vehicle is NOT allowed in the highlands F-roads You must be 23 years of age to drive this vehicle

Additional Features
  • 4 Wheel Drive
  • 223 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
rent a hyundai Tucson in Iceland

Hyundai Tucson Plug-in Hybrid or similar | Automatic | 4×4

IFAI | Group: N3 (IFAI)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 3 Large Luggage
  • Hybrid

This vehicle is NOT allowed in the highlands F-roads. NOTE: Allowed on roads no.35 and 550. You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 46 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
KIA Sportage or similar| automatic | 4x4

KIA Sportage or similar | Automatic | 4×4

IFAR | Group: O (IFAR)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 3 Large Luggage
  • Petrol or Diesel

Suitable for the highlands. Please read Terms & Conditions. You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 156 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags