By
Have you finally decided to take that long-awaited trip to Iceland? If you have, congratulations. You have just made the right travel decision that will definitely change your life forever.
And, likewise, you have decided to rent a car in Iceland? Great choice! But with so many options, how do you know if you need a rugged 4x4 or if a simple 2WD will do the trick? Let’s break it all down so you can choose the perfect rental car for your Iceland adventure.
Understanding Iceland’s Roads
When planning your adventure around Iceland, it's essential to familiarize yourself with the types of roads you'll encounter. The island's roads range from smooth paved highways, ideal for leisurely drives, to gravel roads that require more careful handling.
The famous Ring Road (Route 1) encircles the entire country, offering mostly paved and easily accessible driving. On the other hand, rural gravel roads can be bumpy and narrow, requiring a bit more caution.
If you're craving a more thrilling adventure, you'll encounter Iceland’s famous F-roads. These mountain roads traverse the wild and spectacular Icelandic Highlands and can only be accessed with a sturdy 4x4 vehicle. Expect river crossings, rough terrain, and unforgettable landscapes along the way. Just keep in mind that F-roads are seasonal, usually open only during the summer months, and may pose challenging conditions even for experienced drivers.
Whichever road you decide to take, always plan ahead, choose a suitable vehicle, and check current road conditions before setting off. Here’s what you need to know:
| Road Type | Description | Car Type Needed |
|---|---|---|
| Paved Roads | Main highways and city roads | 2WD or 4x4 |
| Gravel Roads | Common in rural areas and national parks | 4x4 recommended |
| F-Roads (Mountain Roads) | Steep, rocky, and often river crossings | 4x4 required |
| Winter Roads | Snow, ice, and strong winds | 4x4 strongly recommended |
Quick Tip: If you’re sticking to Reykjavík and the Golden Circle, a 2WD is fine. But if you’re heading into the Highlands or during winter, a 4x4 is a must!
How Weather in Iceland Affects Your Car Choice
Iceland’s weather is famously unpredictable, and it can significantly impact your driving experience. In winter in Iceland, with frequent snow, ice, and strong winds, you'll need a car that’s built to handle harsh conditions—typically a 4WD with winter tires. These vehicles ensure you stay safe and in control, even when the roads are slippery or visibility is low.
In contrast, during the summer months in Iceland, conditions are generally milder. While a standard 2WD might be sufficient for the paved main roads, if you plan on exploring off the beaten path or tackling those notorious F-roads, a 4WD remains the best choice.
Ultimately, your car selection should reflect your itinerary, the season, and your comfort with various road conditions. Safety is key, and the right vehicle will help you enjoy every twist and turn of your Icelandic adventure. Iceland’s weather changes constantly, and that means your car choice matters. Here’s how different conditions impact your decision:
| Season | Weather Conditions | Best Car Type |
| Summer (June - Aug) | Mild temperatures, mostly dry roads | 2WD for cities/highways, 4x4 for remote areas |
| Autumn (Sept - Nov) | Increasing rain and wind | 4x4 recommended |
| Winter (Dec - March) | Snow, ice, and storms | 4x4 required |
| Spring (April - May) | Unpredictable mix of snow, rain, and sun | 4x4 recommended |
Pro Tip: If you’re visiting in winter, rent a car with winter tires for better traction! At Reykjavík Cars, winter tires are included with your rental by default during the cold season!
2WD vs. 4x4: Which Car Should I Choose in Iceland?
Choosing between a 2WD and a 4x4 when you rent a car in Iceland is all about matching your vehicle to your adventure.
If you plan to stick to paved roads and explore popular routes like the Ring Road or the Golden Circle, a 2WD economy city car like a Toyota Aygo or Kia Ceed might be all you need—it's economical and efficient for urban and well-maintained roads. However, if you’re looking to venture off the beaten path, tackle F-roads, or explore Iceland's rugged highlands, a 4x4 is essential.
With a 4x4 SUV such a Dacia Duster or a Suzuki Vitara, you’ll enjoy greater stability, safety, and the freedom to explore Iceland’s more remote and challenging terrains without compromise. Ultimately, your choice should reflect your itinerary, comfort with off-road driving, and desire to experience Iceland's full, wild beauty.
Not sure whether to go with a 2WD or 4x4 in Iceland? Here’s a handy comparison:
| Factor | 2WD (Small Car) | 4x4 (SUV/Jeep) |
| Best for | City driving, Golden Circle, Ring Road in summer | Highlands, F-Roads, winter travel |
| Fuel Efficiency | More fuel-efficient | Uses more fuel |
| Rental Cost | Cheaper | More expensive |
| Safety in Winter | Risky on icy roads | Safer, better grip |
| F-Road Access | Not allowed | Allowed |
DO NOT drive a 2WD on F-Roads! It’s illegal, and your insurance won’t cover it.
Car Rental Tips to Save Money & Stay Safe
With a little planning and these smart tips, you’ll enjoy an unforgettable Icelandic adventure without breaking the bank! Renting a car in Iceland isn’t just about picking the right vehicle. These tips will help you avoid costly mistakes and drive safely:
Tip #1 - Book Early
When planning to rent a car in Iceland, know that with the island’s unpredictable weather and diverse road conditions, choosing the appropriate vehicle is key to both saving money and staying safe. Start by booking early to secure the best car rental deals and check that your vehicle is equipped for Icelandic conditions—whether it’s a 2WD for city trips or a 4x4 for off-road adventures on F-roads.
Rental cars in Iceland sell out fast, especially in summer. Booking 3-6 months in advance can save you money.
Tip #2 - Get the Right Insurance
Because of the many gravel roads in Iceland, it is important to have gravel protection insurance included in your rental car agreement. You wouldn’t want some little rocky stones smashing through your windshield or damaging your car.
Also, if you encounter a windy condition, your car could get damaged by the volcanic sand and ash coming from the nearby volcano. - These types of accidents are very common and car repair is very expensive in Iceland. This is why signing for gravel Protection insurance is advisable when you pick up your car. In fact; most rental agencies have this plan attached as additional add-ons when buying your car insurance.
Here’s what you might need:
| Insurance Type | What It Covers | Do You Need It? |
| CDW (Collision Damage Waiver) | Basic protection against damage | Yes, usually included |
| Gravel Protection | Covers damage from loose stones | Highly recommended |
| Sand & Ash Protection | Covers damage from sandstorms | Optional, but useful in windy months |
| Theft Protection | Covers theft of the car | Not needed (Iceland is very safe) |
Tip #3 - Fuel Up Smartly
Here is one important rental tip you shouldn’t skip - don’t wait till the last minute before you fill up your fuel tank. Planning ahead with your car fuel consumption can surely save you a lot of embarrassment on the road. As you go deeper into the ring roads away from Reykjavik, the fuel stations becomes far apart from each other so it is advisable to fuel your car even when it is a half tank full.
Tip #4 - Beware of Hidden Costs
Always review your rental agreement for additional extras like winter tires or extra insurance options, and be sure to monitor local road and weather updates before you hit the road. Some rental companies charge extra for crossing rivers, additional drivers, or young driver fees. Read the fine print before booking!
FAQs: Your Iceland Car Rental Questions Answered
Do I really need a 4x4 in Iceland?
If you’re visiting in winter or driving on F-Roads, yes! For Reykjavík, Golden Circle, or Ring Road in summer, a 2WD is fine.
What is the minimum age to rent a car in Iceland?
You’ll need to be at least 20 years old to be able to rent a car in Iceland. However, for large SUVs & 4x4s, you’ll need to be 23 years old.
How much does it cost to hire a car in Iceland for 7 days?
Renting a city car, like the Toyota Aygo, in Iceland for 1 week will cost you around $350 ($50 per day), depending on the time of year you intend to travel. If you opt for a 4x4, one week behind the wheel of the Dacia Duster will cost you around $294 ($42 per day), depending on the season you choose.
Can I drive off-road in Iceland?
No, off-roading is illegal and can lead to heavy fines.
What’s the speed limit in Iceland?
90 km/h (56 mph) on paved roads, 80 km/h (50 mph) on gravel, and 50 km/h (31 mph) in cities.
Do I need an international driver’s license?
If your license is in English, you’re fine. Otherwise, bring an international permit.
The Perfect Car for Your Iceland Adventure
Choosing the right rental car in Iceland depends on where you’re going, when you’re traveling, and what kind of adventure you want. Here’s a quick recap:
-
2WD is great for city driving & summer road trips.
-
4x4 is essential for winter, Highlands, and F-Roads.
-
Get the right insurance to avoid unexpected costs.
-
Plan fuel stops if you’re heading to remote areas.
Now you’re all set to hit the road in Iceland! Have more questions? Drop us an email, we're here to help!
