Your Guide to Car Sizes in Iceland and Choosing the Right Fit

By Johanna Sigurðardóttir Verified Expert

There’s a lot of excitement whenever going on a trip to a different country. However, one can also have all sorts of worries when traveling to the “unknown.” Many of these concerns are often around a rental car. Visitors ask us about the car sizes in Iceland, which we think they need, whether they need a 4x4, and whether the rental they’ve been eyeing will suit their proposed road trip route.

This article endeavors to answer all these questions and more and remove some of the rental car anxieties you may have for your upcoming trip. So, read on to learn more about car rentals in Iceland and finding the right fit for you and your family.

What are the Different Car Sizes?

Below, you will find an easy-to-understand breakdown of car sizes in Iceland:

City or Economy Cars

Capacity: 2 to 4 passengers

A Few Examples: Toyota Yaris or Hyundai i10

Best For: Short stays where driving will mostly be in residential or urban areas.

Seasonal Restrictions/Limitations: These cars are not ideal when one has to take on some of our extreme weather conditions, so we’d recommend this rental if you’re planning a late spring (May) or summer (June to September) trip.

Pros

• Incredibly fuel-efficient, making it a budget-friendly option.
• Easy to navigate and park due to their size.

Cons

• Not a recommended vehicle for unpaved roads or driving long distances (they simply weren’t built with this type of durability in mind).
• Space is limited, especially packing space, due to their size.

Within this category, you can also find the “mini” subgroup:

Mini & Subcompact

Capacity: 2 to 4 passengers

A Few Examples: Fiat 500, Toyota Aygo, or similar models

Best For: Ideal for short stays in urban settings or densely populated residential areas. These cars are perfect for navigating narrow streets, tight parking spots, and busy city centers. They're best suited for short road trips on paved, well-maintained routes.

Seasonal Restrictions/Limitations: While mini and subcompact cars perform well in city environments, they are not recommended for Iceland’s tougher roads. Their smaller size and lighter build make them less suitable for unpaved roads and challenging winter conditions. 

Pros:

• Excellent fuel efficiency
• Easy to maneuver and park in congested areas
• Perfect for short, urban trips

Cons:

• Limited passenger and luggage space
• Not designed for rough, unpaved roads

Compact

Capacity: 4 to 5 passengers

A Few Examples: Kia Ceed or VW Golf

Best For: Shorter stays in and around urban or residential areas or those planning shorter road trips on our paved and well-maintained main road routes, such as the Golden Circle.

Seasonal Restrictions/Limitations: Similar to the City and Economy vehicles, these guys are not the ideal option when it comes to Iceland’s harsher road conditions. You’ll still be able to navigate the urban and residential areas with winter tires during the winter. But we recommend that you stick to these rentals during the summer season (June to September) or its shoulder months (May or early to mid-October) here in Iceland.

Pros

• Although slightly less than a City or Economy vehicle, it’s still a pretty fuel-efficient vehicle.
• It offers slightly more space than a City or Economy vehicle.

Cons

• Not a recommended vehicle for unpaved roads (they simply weren’t built with this type of durability in mind).

Standard

Capacity: 5 passengers

A Few Examples: Skoda Octavia

Best For: This is known as a bit of an all-rounder vehicle, although still not suitable for the more hard-core adventurer. Pretty easy to explore the island with one of these vehicles for a week or two on another of our popular road trip routes, the Ring Road.

Seasonal Restrictions/Limitations: As an all-rounder, you’ll be able to manage with one of these vehicles all year round, as long as you have all the necessary winter gear and accessories, such as winter tires, and stick to the well-maintained main roads.

Pros

• Once again, this vehicle offers more space due to its size.
• Can navigate both paved and unpaved roads, as long as they are well-maintained. This is mostly because of its clearance.
• Even though not quite as fuel-efficient as the above-mentioned vehicles, they are still considered economical.

Cons

• Although a bit tougher than the vehicles previously mentioned, these are still not suitable for those who wish to take the “roads less traveled.” or mountain roads.

Mid-Size or Intermediate

Capacity: 5 passengers

A Few Examples: Toyota Corolla or similar

Best For: Longer road trips with friends or family (as long as the terrain doesn’t get too rough). If you’re thinking of road-tripping the Ring Road, Golden Circle, or South Coast Way, then these are the vehicles you need to inquire about from your rental agency. They make a great choice when looking for the ultimate comfort while on a budget.

Seasonal Restrictions/Limitations: Very similar to the standard vehicles. You’ll be able to manage with one of these vehicles all year round, as long as you have all the necessary winter gear and accessories, such as winter tires on during the colder months, and you don’t try to turn your trip into an off-roading adventure.

Pros

• It’s the perfect size for a small family or a group of friends traveling together.
• Although bigger and more spacious, it’s still pretty fuel-efficient, and if you’re traveling in a group where everyone is chipping in to help pay, it becomes one of the most cost-effective vehicles to rent and road trip with.
• Can be driven fairly comfortably all year around with the right gear and accessories and without taking on too rough roads.

Cons

• This vehicle will still not allow you to explore some of our most remote regions in Iceland unless you can find a 4x4 option.

Full-Size

Capacity: 5 passengers

A Few Examples: Mercedes C Class

Best For: Longer trips exploring the island and taking those unpaved road detours. Although we won’t recommend traversing extremely rough landscapes, these cars were built with a bit of adventure in mind.

Seasonal Restrictions/Limitations: These vehicles can be driven all year round and are actually recommended as a go-to for winter trips.

Pros

• These cars offer plenty of space to ensure a comfortable ride.
• These cars are built to take on longer trips and to comfortably navigate uneven roads with added stability. If you opt for a 4x4 version, you might even be able to take on our more remote and harsher terrain.
• As long as you don’t take any unnecessary risks, these cars can be driven all year round here in Iceland.

Cons

• There is a price that’s paid for the additional space and durability, and it comes at the cost of fuel efficiency.

4x4 SUVs 

Capacity: 5 to 7 passengers

A Few Examples: Land Rover Defender

Best For: Those wanting to go on a road trip of the road less traveled. These vehicles can drive long distances on tough terrain. They are usually the go-to rentals for those wishing to explore the more remote regions of the island and the F-roads in the Westfjords or the Highlands.

Seasonal Restrictions/Limitations: These vehicles can be driven all year round but are especially recommended if you’re planning on a winter visit.

Pros

• Plenty of space for a family road trip or breakaway with friends.
• High ground clearance and additional traction, stability, and durability make these the perfect vehicles for those extreme adventures in rough terrain and to take on our harsh winter weather conditions. A 4x4 version, along with the right gear and accessories, will simply increase your opportunity for adventure.

Cons

• The bigger size and durability make these vehicles a bit more expensive than the rest (in rental costs as well as fuel consumption).

Minivans & Passenger vans

Capacity: 7 to 9 passengers

A Few Examples: Toyota Proace or Renault Trafic

Best For: Large families or groups traveling around the island for longer periods of time.

Seasonal Restrictions/Limitations: These vehicles can be driven all year round as long as you’ve got all the gear and accessories required for the colder months.

Pros

• Large and spacious enough to make spending a long time on the road super comfortable.
• As long as you don’t take any unnecessary risks and have all the required gear and accessories for the colder months, these cars can be driven all year round here in Iceland.

Cons

• While these cars can be driven all year round with the right gear and equipment, they’re not recommended when tackling really rough roads, such as the F-roads in Iceland.
• Due to these cars’ sizes, they can also be tricky to navigate on narrow roads, parking spots, and other small spaces.

Luxury

Capacity: 5 passengers

A Few Examples: BMW X1 4x4 or Jeep Wrangler Rubicon 4x4

Best For: Those looking for the ultimate comfort and the ultimate peace of mind when it comes to traveling long distances that can include some rough and adventurous roads.

Seasonal Restrictions/Limitations: These vehicles can be driven all year round and are built to handle whatever road or weather conditions throw their way – just in style.

Pros

• Even though the focus is on luxury and comfort, the vehicle is still pretty spacious, making spending a long time on the road super comfortable.
• Built to tackle rougher roads, including our infamous F-roads in Iceland.
• Luxury finishes for the ultimate comfort and convenience.

Cons

• These are not cars you get with affordability in mind.

Electric cars

Capacity: 5 passengers

A Few Examples: Tesla Model Y

Best For: Those who’d like to explore the island with the peace of mind that they are doing so in an eco-friendly way and they’ll be able to handle our “off the beaten track” roads. This vehicle can drive on the F-roads, but without taking on our more extreme ones.

Seasonal Restrictions/Limitations: These vehicles can be driven all year round as long as they have all the necessary gear and accessories for the colder months.

Pros

• It’s an eco-conscious way to travel.
• The vehicle has plenty of storage space for comfortable longer trips.
• These cars are extremely silent if motor engine noise is a thing for you.
• They can handle most weather and road conditions as long as they’re not too extreme.

Cons

• You’ll need to plan out your refuels more carefully to ensure there’s an EV charging station.
• You’ll still not be able to 4x4 your way over rocky mountain ridges and through rushing rivers. For that type of adventure, you’ll need another rental.

Summary Table of Rental Car Sizes in Iceland

Below is a cheat sheet to use for quick referencing:

Rental Car Sizes Comparison

Below, you will find quick comparisons between the various car sizes in Iceland:

Standard Car vs. Mid-size or Intermediate Car Size

The difference between a mid-size and a standard car is:

Compact vs. City or Economy Car Size

The difference between a compact and a city or economy car is:

City or Economy vs. Mid-Size or Intermediate Car Size

The difference between a city or economy and a mid-size or intermediate car is:

Compact vs. Mid-Size or Intermediate Car Rental Size

The difference between a compact and a mid-size or intermediate car is:

Standard vs. Mid-Size or Intermediate Car Rental Size

The difference between a standard and a mid-size or intermediate car is:

Compact vs. Full-Size Car

The difference between a compact and a full-size car is:

Full-Size Car vs. Standard Car

The difference between a full-size and a standard car is:

City or Economy vs. Standard Car Size

The difference between a city or economy and a standard car is:

Full-Size Car vs. Standard Car Size

The difference between a full-size and a standard car is:

SUV Car vs. Full-Size Car Size

The difference between an SUV and a full-size car is:

Luxury Car vs. Full-Size Car Size

The difference between a luxury and a full-size car is:

Full-Size Car vs. Electric Car Size

The difference between a full-size and an electric car is:

Luxury Car vs. Electric Car Size

The difference between a luxury and an electric car is:

How to Choose the Perfect Rental Car for Your Trip to Iceland

When you decide on a rental vehicle, you need to consider the following:

Your Trip Itinerary

Where you’ll be going during your trip to Iceland will play a big part in picking the perfect vehicle. If you’re planning on exploring our more remote regions where you’ll be driving on more rough and unpaved roads, you’ll need a vehicle that can accommodate that. But, if you’ll just be traveling in and around a city, it would be silly to rent a large 4x4 vehicle.

If your adventure involves exploring Iceland’s highlands, you’ll encounter F-Roads—mountain roads that are unpaved, rugged, and challenging. A 4x4 vehicle is mandatory when driving these roads, as smaller cars are neither allowed nor capable of handling the rough terrain. 

Even with a 4x4, caution is essential. F-Roads are only open in summer (typically from June to September, depending on conditions), and the weather can change rapidly. Always check road conditions before setting out, and never attempt to cross deep rivers unless you’re experienced. If your itinerary includes F-Roads, selecting a capable off-road vehicle is just as important as considering car size.

The Size of Your Party

Try as you might, you won’t be able to squeeze 5 friends and all their luggage into a mini and drive around the island for 3 weeks. Similarly, it doesn’t make sense to rent a minivan if you’re just going to be one couple. So, the size of your party will also dictate what type of vehicle you rent.

The Season

Needless to say, you must rent a vehicle that can take on the weather conditions you’ll experience throughout your trip. When driving in winter in Iceland, you’ll be met with howling winds, thick blankets of snow, blizzards, ice, you name it.

So, you’ll need the right car to navigate these circumstances. Also, ensure you have all the appropriate gear and accessories, such as winter tires, to get safely from point A to B. This becomes especially important the higher north you go, where weather conditions tend to be much harsher.

Personal Preferences

Of course, there is an element of personal preference. While heated seats might not be a necessity, it might be a comfort you require. Or perhaps you like zipping around in the most economical and no-fuss way, which will definitely exclude our bigger and more spacious vehicles. Whatever your preference, it will also play a part in your decision.

Your Budget

If you’ll be exploring the island on a tight budget, your go-to won’t be the most luxurious vehicle the rental agency has to offer. Likewise, if you’ve had some luck in the financial department and don’t need to look at a price tag anymore, you’ll have some leeway for spoiling yourself. Whatever your situation, your budget will be a deciding factor when it comes to your rental.

Fuel Types and Availability in Iceland

When choosing a rental car in Iceland, it’s also essential to consider the type of fuel it uses as it will impact your wallet. The most common options are petrol (gasoline), diesel, and electric. Petrol and diesel are widely available across the country, but if you’re heading to more remote areas, it’s a good idea to refuel whenever you can, as gas stations can be sparse in certain regions and prices can vary greatly. Diesel tends to be a cheaper option when it comes to long road trips. For updated gas prices, please visit this website.

Electric vehicles (EVs) are becoming more popular in Iceland, especially in Reykjavik and along major routes. These are definitely a much cheaper and Eco-friendly, option. However, charging stations are still limited in rural and highland areas. If you're planning a long road trip, make sure to check for charging locations in advance and plan your route accordingly. For those venturing beyond urban areas, a petrol or diesel vehicle remains the more practical choice.

The Most Recommended Car Rentals in Iceland

The most recommended car rentals in Iceland tend to be those that can be driven all year round and traverse all sorts of terrain. This is simply because it makes life much easier, and you’ll have the peace of mind that you’ll be able to handle whatever comes your way.

Of course, all the factors we mentioned previously will still ultimately play a role in your decision. That being said, here’s a list of the most recommended car rentals in Iceland you can feel comfortable considering:

Kia Sorento 4x4

Manual/Automatic: Automatic

Seats: 7

Doors:  5

Storage Space: 5 carry-on

Suitable for Rougher Roads/F-roads: Yes

Land Rover Defender 4x4

Manual/Automatic: Automatic

Seats: 5

Doors: 5

Storage Space: 5 carry-on

Suitable for Rougher Roads/F-roads: Yes

Toyota Land Cruiser 4x4

Manual/Automatic: Automatic

Seats: 7

Doors: 5

Storage Space: 4 carry-on

Suitable for Rougher Roads/F-roads: Yes

Tesla Model Y

Manual/Automatic: Automatic

Seats: 5

Doors: 5

Storage Space: 4 carry-on

Suitable for Rougher Roads/F-roads:  No

Choosing the Perfect Car Sizes in Iceland: The Right Size Matters!

As you can see, car sizes in Iceland vary greatly, and every rental agency will have a catalog that can often feel overwhelming. By using this guide and our quick-referencing cheat sheets, you’ll be able to spot the vehicle and car size most suitable for your trip. Just remember to always have a chat with your rental agent as well since they might have an insider scoop or a good special on the books you can take advantage of.

With a little help from this guide and your rental agent, you’ll be able to plan your trip, rent a car in Iceland, and have the adventure of a lifetime without having to worry about breakdowns along the way or trying to squeeze your family and friends into what feels like a clown car act. May your travels in Iceland be memorable for all the right reasons!