Renting the right car in Iceland is key to enjoying the country’s magnificent landscapes safely and comfortably. Whether you’re planning a short city break or a rugged highland adventure, understanding which type of car fits your needs will ensure a smooth journey. Here’s a detailed breakdown of car sizes, helping you decide which vehicle is perfect based on how long you’re traveling, your destination, and the season, as well as road conditions.

1. Mini and Economy Cars: Best for Short City Stays

  • Seats: 2-4 passengers
  • Ideal for: Reykjavik or short drives around urban areas
  • Seasons: Best for summer or late spring (June-Sep) (not recommended for winter due to poor handling on icy roads)

Mini and economy cars like the Hyundai i10 or Toyota Yaris are perfect if you’re planning to spend most of your time in Reykjavik or nearby attractions. These cars are easy to park and offer good fuel efficiency, making them ideal for travelers looking for an affordable option when driving in Iceland on a budget.

  • Pros: Highly fuel-efficient, easy to park, great for short day trips around the capital.
  • Cons: Limited luggage space and not recommended for long-distance trips or gravel roads.

When to Rent: If you’re staying in Reykjavik for 2-3 days or planning to explore close-by destinations, renting a car like a Toyota Yaris or Hyundai i10 is a cost-effective and efficient choice. Avoid these if you plan to travel outside the city, especially in winter or on gravel roads, as they lack the durability needed for rougher terrains.

happy travellers with Hertz iceland

2. Compact Cars: Versatile for Shorter Excursions

  • Seats: 4-5 passengers
  • Ideal for: Travelers exploring Reykjavik and nearby natural sites like the Golden Circle
  • Seasons: Great for spring, summer, and early fall (late May – early October). In winter, ensure it’s equipped with winter tires.

Compact cars strike a balance between affordability and comfort, making them ideal for travelers looking to explore Iceland’s iconic tourist routes, like the Golden Circle or South Coast. These cars offer slightly more space than mini or economy cars, allowing for a bit more luggage and comfort during a short road trip.

  • Pros: Great fuel efficiency and comfort; enough space for 4-5 passengers on a short trip to Iceland.
  • Cons: Not suited for gravel roads or the highlands, and limited in size compared to larger vehicles.

When to Rent: Planning a 3-5 day road trip around Reykjavik and major tourist spots? A compact car like the VW Golf will serve you well. It’s efficient for paved roads in good weather, but remember that it’s not ideal for winter driving or venturing onto rougher terrain. For gravel roads, consider something more rugged.

Iceland golden circle self drive guide

3. Standard Cars: The All-Rounder for Iceland’s Ring Road

  • Seats: 5 passengers
  • Ideal for: Week-long trips around the Ring Road
  • Seasons: Suitable for all seasons, but ensure it has winter tires or 4WD for winter journeys.

A standard car is perfect for longer trips around Iceland’s Ring Road. These cars, often classified as mid-size car rentals, provide ample space for both passengers and luggage. A Dacia Duster, for example, offers better clearance and comfort for longer journeys while still being economical.

  • Pros: More luggage space than compact cars and reliable on paved and gravel roads.
  • Cons: Some models Struggles on highland F-roads, which require an 4WD SUV.

When to Rent: If you’re planning a 7-10 day trip around Iceland, a mid-size car such as a Dacia Duster is a great choice. It’s fuel-efficient enough for long-distance travel while offering the comfort and size needed for family trips. For gravel roads, the Dacia Duster handles them well, but if you’re heading into the highlands, consider an SUV instead.

Rent a new Dacia duster with Hertz Iceland

4.Intermediate or Mid-Size Cars: The Perfect Balance for Comfort and Budget

  • Seats: 5 passengers
  • Ideal for: Road trips with small families or groups of friends
  • Seasons: Suitable year-round, especially in spring, summer, and early fall. Ensure winter tires are equipped during winter months.

Mid-size car in Iceland, also known as intermediate cars, offer the perfect balance between compact cars and full-size vehicles, making them ideal for travelers who want a little more comfort and space without breaking the budget. These cars, like the Toyota Corolla or Kia Sportage, provide ample room for passengers and luggage while still maintaining good fuel efficiency. They are well-suited for longer drives around the Ring Road or exploring Iceland’s popular tourist routes like the Golden Circle and South Coast.

  • Pros: Good balance of size, comfort, and cost, with better fuel efficiency compared to larger vehicles.
  • Cons: Some models Not suitable for highland F-roads or particularly rough terrains.

When to Rent: If you’re planning to explore Iceland on a 5-7 day trip with a small group or family, a mid-size car rental offers the perfect mix of space and economy. It’s a great option for travelers who want more room than a compact car but don’t need the size or price tag of a full-size car. This type of car is also ideal for driving Iceland’s paved roads and occasional gravel roads.

see the aurora in Iceland at Jokulsarlon glacier lagoon is a good option

5. Full-Size Cars: Ideal for Long Road Trips

  • Seats: 5 passengers
  • Ideal for: Longer trips (10+ days) around the Ring Road, including detours to remote areas
  • Seasons: Good for all seasons, but especially beneficial in colder months due to more space and comfort.

If you’re staying in Iceland for over 10 days, a full-size car is a fantastic choice for a long road trip. These cars, like the Toyota Land Cruiser, are perfect for those who need extra space for both passengers and luggage. They offer more comfort for longer drives and added stability on uneven roads.

  • Pros: Spacious and comfortable for long trips. Ideal for families or groups traveling with lots of luggage.
  • Cons: Less fuel efficiency than smaller models, making it slightly more expensive to run.

When to Rent: Planning to see all of Iceland’s magnificent landscapes on a longer journey? Opt for a full-size car like the Toyota Land Cruiser. It offers the space and stability you need for traveling in all seasons. However, if you plan to tackle highland or gravel roads, consider an SUV with 4WD instead.

Land Cruiser 5 or 7 seaters are perfect for Icelandic highlands

6. SUVs: For Adventurous Trips and Rough Terrain

  • Seats: 5-7 passengers
  • Ideal for: Exploring Iceland’s rugged interior and highland F-roads
  • Seasons: Best for autumn and winter travel, as well as summer trips to remote locations.

An SUV like the Toyota Land Cruiser or Land Rover Defender is the go-to vehicle for those who want to venture into Iceland’s highlands or drive F-roads. These vehicles come equipped with the high ground clearance and stability needed for rough terrain, making them the best option for F-road adventures in summer. Whether in winter or summer, an SUV ensures you can safely explore even the most challenging roads.

  • Pros: High ground clearance and traction, perfect for difficult road conditions such as snow, ice, or gravel roads.
  • Cons: Higher rental and fuel costs compared to smaller cars, but essential for rugged terrain.

When to Rent: Planning a trip to Iceland’s highlands or exploring off-the-beaten-path locations like Landmannalaugar? A 4WD SUV like the Toyota Land Cruiser is essential for navigating F-roads and rough terrain. It’s also a smart choice for winter travel when road conditions can become hazardous.

summer is the only time that you can visit Iceland highland area

7. Minivans: Perfect for Group Travel

  • Seats: 7-9 passengers
  • Ideal for: Large families or groups traveling together for a week or more
  • Seasons: Suitable year-round, especially for summer trips with large groups.

A minivan is ideal for larger groups or families planning to spend an extended time on the road. These vehicles offer ample seating and luggage space, ensuring everyone can travel comfortably. While not suited for rough roads, they’re perfect for group road trips around Iceland’s main tourist routes.

Pros: Plenty of room for passengers and luggage, great for large groups. Cons: Harder to park in small spaces, not ideal for rugged roads or remote areas.

When to Rent: If you’re traveling with a larger group of friends or family, a minivan provides the space you need. It’s great for week-long road trips and offers the comfort of a luxury car without the premium price tag.

travel in a bigger group and rent minivans

Iceland rental car sizes in a table

Car TypeSeats Suitable Seasons Ideal forLuggage Space
Mini & Economy2-4 Spring, Summer (not for winter)Short city drives, Reykjavik areaLimited space
Compact4-5Spring, Summer, Early Fall (Winter with tires)Reykjavik, Golden Circle, Short tripsSlightly more than mini cars
Standard5All seasons (Winter with 4WD or tires)Ring Road, Week-long tripsMore luggage room, comfortable
Intermediate/mid-size5 Spring, summer,
Early Fall (winter with tires)
Longer trips with small families or friendsDecent luggage space, good for longer trips
Full-size5All seasons (Ideal for winter)Long road trips, Ring Road, Remote areasLots of space, good for long trips
SUVs5-7All seasons (Especially Autumn/Winter)4×4 SUVs: Highlands, F-roads, Rugged terrainGood luggage capacity
Minivans7-9All seasons (Ideal for summer groups)Large families, Group road tripsAmple luggage space
having fun in Iceland road trip with friend

How to Choose the Right Rental Car in Iceland: Weather, Road Conditions, and More

When renting a car in Iceland, it’s crucial to consider the Icelandic weather, road conditions, and the size of the car based on your travel plans. Iceland’s weather can be unpredictable, especially in winter, where icy and snowy roads make driving in Iceland more challenging. In summer, roads are generally clear, but certain areas, like the highlands, is require vehicles equipped for rough terrain like 4×4 SUVs by law.

  • Weather: Winter driving (October to April) requires winter tires and often a 4WD vehicle. In summer, compact and mid-size vehicles are typically sufficient for paved routes.
  • Road Conditions: Iceland’s gravel roads can be tricky to navigate in smaller cars, particularly in rural areas. For more rugged adventures or trips into the highlands, you need to rent an 4×4 SUV or 4×4 full-size car for better control and stability.
  • Travel Length and Destinations: Short city-based trips are ideal for compact cars or economy models, while longer journeys, especially those exploring the Ring Road or highlands, call for a more spacious and durable vehicle.

At Hertz Iceland, we provide a wide range of rental cars in Iceland, from the fuel-efficient Kia Sportage to the sturdy Dacia Duster and Toyota Land Cruiser. Whether you’re looking for a mid-size car rental for a short city break or a powerful SUV for tackling Iceland’s F-roads, Hertz has the perfect vehicle for your adventure.

Rental cars we recommend all-year in Iceland

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 Kia Sorento PHEV in Iceland

KIA Sorento or similar | Automatic | 4×4

SFAN | Group: O2 (SFAN)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 4 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
  • 164 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
Land cruiser 5 seater rental in Iceland

5 seats Toyota Land Cruiser or similar| Automatic | 4×4

FFAR | Group: I (FFAR)

  • 5 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 5 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
  • 251 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
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
Toyota-Land-Cruiser-7-seater rental in Iceland

Toyota Land Cruiser 7 seater or similar | Automatic | 4×4

FVAN | Group: H (FVAN)

  • 7 Seats
  • Automatic
  • Airconditioning
  • 5 Doors
  • 2 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
  • 252 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags