Honest car rentalfor Iceland.

Since 1 January 2026 Iceland charges a statutory road fee (kílómetragjald) on rentals. We show it as a fixed ISK 1,575 per started rental day — the official ISK 1,390 daily fee set by the State plus ISK 185 administration — as a separate, transparent line in your quote.

We don't run fully electric cars — so there's no charging-cable hassle or range planning around Iceland. Some models are hybrids, which you simply refuel like any petrol car. Every quote tells you the class; you get that model or a similar one, confirmed at pickup.

The main driver's valid driving licence (held at least one year), a passport or a national identity card (Schengen, EU, EEA, UK, USA or Canada), and the payment card used for the booking. If your licence isn't in the Latin alphabet, bring an International Driving Permit (IDP) alongside the original.

Full licences from the EEA, UK, US, Canada and most other countries are accepted if held for at least a year, valid for the whole rental, and showing your photo. You do NOT need an IDP for a US, Canadian, UK or EEA licence — those are already in the Latin alphabet, so the IDP some resellers push isn't required. Only licences not in the Latin alphabet (for example China or Japan) need an International Driving Permit (IDP) together with the original licence — or, where the country does not issue IDPs (for example mainland China), a certified (notarised) translation together with the original.

Often not the way you'd expect. Travel-card CDW usually works by reimbursement — you pay the Icelandic repair bill in full first, then claim it back at home — and the Iceland-specific risks (gravel, sand and ash, and F-road / off-road / river damage) are exactly what most cards exclude, along with many 4x4s. Check your card's terms for Iceland; our Gravel & Glass and Sand & Ash cover are built for these local risks.

Iceland drives on the RIGHT. The first hour is where most mistakes happen, so take junctions and roundabouts slowly (give way to the inner lane), and remember headlights must be on at all times, day and night. Otherwise the rules are familiar — just go slower than you'd expect on gravel and in strong wind.