How to Choose Your Ideal Rental Car in Iceland

During the summer of 2023, my partner and I travelled travelled to Iceland and road tripped the ring road in 14 days. Among all of our preparation, choosing the right rental car was an important step. Unless you are going with tours, I highly recommend renting a car. In fact, you won’t be able to see much other than the city of Reykjavik if you do not rent a car. It also gives you the freedom to go at your own pace and visit attractions that you like.

There are many things to consider when choosing your vehicle for your trip to Iceland. I have therefore narrowed the important things to consider to choosing the ideal rental car for you when travelling to Iceland.

If you are looking to rent a car in Iceland, I highly recommend booking with Northbound.is, which is with who we booked with. They are a platform that groups together the different rental companies in Iceland, giving you the best price there is out there. They also have all the ranges of vehicles possible, from SUVs to camper vans.

They also provide amazing customer service. After we had booked our car, we contacted them a few times for questions, and they also answered very quickly with accurate answers.

This is a picture of our rental car in Iceland. We rented the 4×4 Grand Vitara with a rooftop tent with Northbound.is.

1. The cost

The cost will vary depending on the type of car you get. Generally, economy cars are cheaper than 4×4 jeeps, which are cheaper than camper vans or motorhomes. Depending on your budget, you might have to adapt to certain vehicles. All these options are well classified on the Northbound.is website.

Our choice for our 4×4 Grand Vitara was based a lot on costs because we were looking for something that we could camp in, but we were also trying our best to be budget friendly.

2. Manual or automatic

The vehicles in Iceland can be in manual or automatic transmission. Generally, manual cars are a lot less expensive. However, if you have never driven with manual cars, automatic cars would be your options. For us, we only knew how to drive automatic cars, so we were restricted to that option.

Also, keep in mind the type of roads you are planning on driving on. If you are planning on hitting the main attractions across the ring road, you can definitely drive manual during the summer time because the ring road is super well maintained. However, in more steep or complex roads, I would recommend taking an automatic car.

3. 4×4 or not (for F-roads)

The F-roads are only open approximately from the end of June until end of August, but the time varies every year so make sure to check beforehand. They are unpaved roads that can be very difficult to drive on. By law, you need to have a 4×4 vehicle to drive on F-roads. Therefore, if you want to spend some time in the Highlands during the summer, make sure to rent a 4×4.

In addition, some people recommend renting a 4×4 even if you are not driving on F-roads, especially during the winter because the road can be slippery and unpredictable. Although it is not required by law, it is up to your level of driving skills and comfort.

Of course, 4×4 vehicles are more expensive than non 4×4 vehicles. When we travelled to Iceland, we rented a 4×4 because we really want to explore the Highlands.

4. Camping car or regular car

Whether you would like your accommodations to be camping sites or rental homes will dictate the type of vehicle you rent. If you are more into staying at airbnbs or homes, you won’t need to spend the extra money on a bigger car. If you are looking to camp, you will have a few choices to choose from depending on your budget.

For example, my partner and I wanted to camp throughout Iceland. This left us with 4 choices:

  1. Renting an economy car and setting up our tent on the ground
  2. Renting a car with a rooftop tent
  3. Renting a campervan
  4. Renting a motorhome

We wanted something more comfortable than camping with a ground tent because it can take some time setting up the tent and in case of rain, we did not want to be in a stressful situation. Therefore, we opted for a car with a rooftop tent.

We wanted something more comfortable than camping with a ground tent because it can take some time setting up the tent and in case of rain, we did not want to be in a stressful situation. Therefore, we opted for a car with a rooftop tent.

5. Fuel type

The fuel types in Iceland can be petrol, diesel, hybrid or electric. Generally diesel gas is more expensive than petrol, so if you see a car with diesel that is less expensive than the petrol, think of in the end, will it be much cheaper than the vehicle with petrol?

If you decide to use an electric car, it would also be great for the environment and for your bank account. However, this will also have many impacts like the type of roads you can drive on, if you plan on driving to more remote locations, etc.

We chose the petrol fuel type when looking for our rental car.

6. Summer or winter

If you are travelling to Iceland during the summer, you can rent almost any type of available car because the roads are less unpredictable (unless you want to drive on F-roads, etc.).

However, during the winter, you might want to have a different plan. Maybe you might need a 4×4 for more support. Maybe you won’t want to go camping because it is a lot colder. The season will therefore impact the type of vehicle you rent.

We travelled during the summer, so our car was adapted towards the summer activities we wanted to do in Iceland.

7. Car insurance

Most rental cars have a basic insurance, but it could depend on the type of car you rent. Make sure to check that! It is important to get the appropriate car insurance in Iceland because the weather can be very unpredictable, leaving it easy to damage your car. For example, the wind can damage your winds or your doors if you don’t hold onto them (make sure to never open your door too hardly and to hold onto it). The rocks on the roads can damage your windshield or even cause a flat tire.

Usually, if the basic package of the car doesn’t cover the insurance you want, you can always add it as an extra. Just make sure to compare and contrast with the other available options!

These are all the tips I can think of now! If you have any other tips, let me know down in the comments! And if you have any questions or comments, feel free to let me know below!

Discover more from Jessie Across the World

Subscribe now to keep reading and get notified for new blog posts.

Continue reading