Should I Rent a Car in Iceland? Take This 3-Minute Quiz to Decide

People often ask: what’s the best way to travel around Iceland? Should you rent a car in Iceland or rely on guided tours? There’s no doubt that Iceland is bursting with natural beauty: from ice caves and volcanoes to waterfalls, hot springs, and black sand beaches. But how you choose to explore this magical country can completely shape your experience.

To help you decide, we’ve created a fun, interactive quiz that will guide you to the best option based on your travel style, preferences, and budget. Let’s get started!

Related resources:

• Planning Your Iceland Trip
• Driving in Iceland: Tips & Laws

Question 1: Are you at least 20 years old? 

• Yes → Go to Question 2
• No → Unfortunately, you can’t rent a car in Iceland. The legal minimum age for renting a car is 20 for economy to intermediate classes. For 4x4s, vans, and luxury vehicles, the minimum age can be up to 25.

Question 2: Do you prefer flexibility or less hassle? 

Flexibility

Do you love being able to change your plans on the go? Then a rental car is your best friend in Iceland.

With your own car, you can:

• Modify your Iceland itinerary as you go
• Leave early or late
• Visit remote locations, such as the Iceland Highlands
• Make unplanned stops to enjoy unexpected sights (and trust us, there will be many!)

Public transportation is limited in Iceland. There are no trains and very limited bus schedules, which aren’t designed for tourists. Guided tours follow fixed schedules, so you will need to adapt your plans accordingly. If you value freedom and adaptability, a rental will give you full control.

Less Hassle

If you’d rather avoid the logistics and responsibility of driving, then a guided tour might be better.

• Just show up, as everything is planned for you
• No worries about road conditions or navigation
• Experienced local guides provide context and safety
• Great for solo travelers looking to meet others

You can find some interesting local tours to sign up for here with our tour operator partners. 

Still undecided? → go to Question 3. 

Question 3: Do you enjoy driving for a long stretches?

Yes – I LOVE driving

Then you’ll probably enjoy a self-drive tour. Iceland’s roads are scenic, uncrowded, and incredibly rewarding for road trip lovers. Long drives take you through vast, otherworldly landscapes. You can stop at local diners, explore small towns, and take in the slower pace of travel.

No – I HATE driving

If you don’t enjoy driving, then you should consider taking a tour instead. Even Iceland’s most popular self-drive routes, like the Golden Circle or Ring Road, involve hours of driving. If being behind the wheel drains your energy, a guided tour will be a more relaxing option.

I don’t mind either way → Go to Question 4. 

Question 4: Are you planning a budget trip? 

Yes

→ Go to Question 5.

No

If you can afford it, renting a car can actually be more economical, especially for couples or groups. Guided tours charge per person, and taking multiple tours to see different parts of Iceland adds up quickly. A rental car, shared among travelers, can lower your cost per day while giving you more freedom.
Flexible budgets give you access to more vehicle options (like a 4×4 or hybrid), and the ability to stay in guesthouses or cabins off the main tourist routes.

I am flexible with my Iceland travel budget, BUT I’m still not sure → Go to Question 6. 

Question 5: When are you visiting Iceland?

Summer (June–August)

Summer is Iceland’s peak season. Everything is more expensive, but the roads are clear, the weather is stable, and daylight lasts nearly 24 hours.

If you want to save money:

• Travel with a group and split the cost of a small car
• Book your rental far in advance
• Consider skipping some tours and driving yourself to popular stops

Guided tours in summer are convenient but can be crowded. A rental lets you avoid peak tourist times and visit hidden gems.

Winter/Fall (September–May)

The winter season in Iceland has fewer tourists than any other time of the year, and the low demand drives down the prices of just about everything. It is a great time to visit Iceland on a budget, and the winter months have a charm of their own. However, you’ll need to be a confident driver to handle Iceland in the winter, as the road conditions in Iceland can be challenging. Iceland has wet terrain, snow-covered roads, perpetual darkness, and strong winds during that period the winter season, so you need to be prepared for that. 

If you’re a confident winter driver, renting a 4WD vehicle gives you freedom and flexibility. But if you’re nervous, a tour is safer. Professional drivers know how to handle Iceland’s winter terrain.

Tip: If you drive in winter, stick to the South Coast, Snaefellsnes Peninsula and Golden Circle, as they’re more accessible and relatively easier to drive during winter months. 

Question 6: Is trip comfort important to you?

Yes, travel with comfort is my top priority

Renting a car is the most obvious choice for you if you want to be comfortable on your trip. Tours can get packed, especially during the summer months, and this means having to share limited space with people you are unfamiliar with. You also won’t be in control of things like the internal temperature of the vehicles, and will be unable to stop for snacks or rest stops whenever you want. 

No, I don’t care about traveling in comfort

→ Go to Q7

Question 7: Are you a confident and responsible driver?

Yes, I am very confident with my driving skills

Then there’s no better way to experience Iceland than behind the wheel. Self-driving lets you:

• Explore at your own pace
• Visit lesser-known spots
• Stay longer at places you love
• Attend festivals and cultural events that don’t align with tour schedules

Just be sure to brush up on Iceland’s road rules and drive carefully.

No, I am not entirely confident

If you’re not confident driving in unfamiliar conditions — especially Iceland’s narrow roads and unpredictable winter weather — a guided tour may be the safer choice. You won’t have to worry about local rules, icy roads, or navigation.

That said, you can still enjoy a self-drive trip if you’re willing to do a bit of prep. Read our 15 essential driving tips for Iceland to get up to speed on road signs, parking rules, and Iceland road conditions. Choose a vehicle that suits the season and your route: a 4×4 for winter, or a compact car for summer sightseeing.

Should You Rent a Car in Iceland? Quiz Summary

If you answered “yes” more often than “no,” then renting a car might be the ideal way for you to experience Iceland. But if you still feel unsure, that’s okay! You can always mix and match and drive for part of your trip and book day tours for tougher areas like glaciers or the Highlands.

If you don’t want to border and read through all the text above, we made this short quiz a graph for you. Feel free to share it with your friends and family (it might also be a good time to figure out who will be responsible for driving for your Iceland trip):

Pros and Cons of Renting a Car in Iceland

Pros:

• Flexibility: Make your own schedule, skip the crowds, and stop where you want
• Access to remote areas: Reach places that tours don’t go
• Cost-effective for groups: Split fuel, insurance, and car costs
• Comfort and privacy: Control your environment, pace, and snacks

Cons:

• Weather conditions: Especially in winter, driving can be difficult or dangerous
• More responsibility: Navigation, insurance, fuel, damage liability
• Fatigue: Long drives can be tiring — especially if you’re the only driver
• More planning: You’ll need to plan routes, lodging, and driving rules

Essential Car Rental Tips in Iceland 

If you’re wondering ‘should I rent a car in Iceland’ be sure to keep the following tips in mind to make your trip safe, smooth, and stress-free:

1. Know your insurance coverage. Basic Collision Damage Waiver (CDW) does not cover all types of damage. Ash and sand storms, gravel damage, and wind damage are common in Iceland. Comprehensive insurance is highly recommended.
   
2. Don’t rely solely on credit card coverage. Many credit card policies don’t cover unique Icelandic conditions like volcanic ash and gravel. And even when they do, the process for reimbursement can be lengthy and complicated.
   
3. Always top off your fuel. Gas stations can be few and far between, especially in remote areas. Always fill up before heading into the countryside.
    
4. Don’t stop in the middle of the road for photos. While the scenery is stunning, pulling over on narrow or winding roads is dangerous and a common cause of accidents.
   
5. Drive cautiously and follow local rules. Iceland has many single-lane bridges, gravel roads, and Iceland F-roads (mountain tracks) that require a 4WD. Understand the signage and respect speed limits.
   
6. Rent in advance, especially if you’re visiting Iceland in summer. Prices spike and inventory sells out. Booking early ensures better rates and your choice of vehicle.
   
7. Choose the right vehicle for your route and season. Visiting in winter? A 4×4 is essential. Only planning city driving in summer? A compact car may suffice.
   
8. Plan your route carefully. Weather, road closures, and seasonal access can all impact your itinerary. Use official sources like road.is to monitor conditions in real time.

You can find even more helpful tips about driving in Iceland here. 

Should I Rent a Car in Iceland FAQs

• • Is Iceland doable without a car?
    Yes, you can explore Iceland without a car using guided tours, especially from Reykjavik, which offers day trips to popular sites like the Golden Circle and South Coast. However, without a car, your itinerary will be more limited, and you won’t be able to visit remote or less-touristy places.

 

• • Is it a good idea to drive in Iceland?
    Driving in Iceland is a great idea if you’re confident behind the wheel and want flexibility. Roads are generally in good condition and well-marked, especially in summer. However, winter weather can be unpredictable, so less experienced drivers may prefer tours during that season.

 

• • Why is it so expensive to rent a car in Iceland?
    Rental costs are higher due to Iceland’s small market size, high vehicle import taxes, and increased demand during the tourist season. Insurance is also more comprehensive due to the unique environmental conditions like gravel roads, ash, and sand damage risks.

 

• • Where should I rent a car in Iceland?
    Most travelers rent from Keflavík International Airport (KEF) upon arrival. This is the most convenient and often the most affordable option, especially if you’re planning a self-drive trip immediately. You can also rent in Reykjavik, but airport pickup offers greater vehicle selection.

 

• • What kind of car should I rent in Iceland?
    In summer, a compact or economy car works well for paved routes. In winter, or if you’re visiting remote areas or F-roads, a 4×4 or SUV is strongly recommended for safety and accessibility.

 

• • Is it worth driving all the way around Iceland?
    Yes, it’s definitely worth it if you have 7–10 days or more, driving the Ring Road lets you experience Iceland’s full range of landscapes. From glaciers to fjords to volcanic beaches, the route is unforgettable. But for shorter trips, consider focusing on the South Coast or West Iceland instead.

 

Should I Rent a Car in Iceland?

If you’ve decided that a self-drive adventure is right for you, Hertz Iceland is here to help. We offer a wide range of reliable rental cars, from compact to rugged 4x4s, at competitive prices. Book your rental car today to ensure you get the perfect option for your Iceland adventure.

Have questions? Email us at hertz@hertz.is and we’re happy to help you hit the road.

Choose Your Best Iceland Rental Car