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Resources > Rental Car Guides > Rental Car in Iceland > Iceland Driving Information

Car Rental Iceland: Driving Information

Driving Overview | Insurance Information | Rental Restrictions

Driving Overview

General Information
The magnificent country of Iceland is home to some of the world’s most breathtaking sights. A cheap car rental from Kemwel in Iceland will provide you with the perfect opportunity to explore everything it has to offer from the bustling city streets in Reykjavik to the crashing waters of the Golden falls. Before driving in Iceland there are a few important things that you might want to be aware of. Below you will find a detailed list of things that we here at Kemwel are good to keep in mind while renting and driving a car in Iceland.

In Iceland you must be at least 20 years old in order to rent a vehicle; drivers who are between the ages of 20-25 may be subject to a young driver surcharge of approximately $40 USD per rental. Depending on the vehicle category the age minimum may vary. You must have had your driving license for at least six months before renting a vehicle in Iceland. All vehicle occupants must wear at seatbelts all time and headlights must be turned on during the day. Drinking and driving is strictly prohibited in Iceland, those who fail to oblige are subject to high fines and loss of their license.

Child Seats
Children under the age of 6 must be in a child seat that is appropriate for their age and weight. Children who weigh less then 40 kilos, under the age of 12 or shorter then 140 cm are prohibited from traveling the front seat of a vehicle if it is equipped with an air bag.

Speed Limits
The following are the standard speed limits in Iceland: City 50 km/h (31mph) dirt roads 80 km/h (49mph) on all other paved roads 90 km/h (55mph).

Rules of the Road
Vehicles travel on the right side of the road in Iceland. Caution should be used when traveling through the countryside in Iceland, watch for animals, loose gravel and slippery road conditions.

Gas and Diesel
In Iceland’s largest cities most gas stations are open from 7:30am to about 10pm however throughout the countryside station hours may vary.

At this time the only toll you will find in Iceland is the 1,000 ISK (approx $15 USD) toll to use the Hvalfjudor Tunnel.

2 hour metered parking is popular in the largest cities in Iceland. You must park in the direction that traffic flows and park at least 5 meters away from any intersections or crosswalks.

Insurance Information

General Information
When traveling and renting a vehicle in an unfamiliar place it is always a good idea to find out what the insurance requirements are for vehicle rentals in that specific country. When renting a car with Kemwel in Iceland your rate will include any mandatory insurance necessary.

All of our rental rates in Iceland will include third party liability and fire insurance. In Iceland CDW and theft protection are optional and can be added to your rental at anytime prior to the pick up of your rental vehicle. In the event CDW and Theft are declined in order to take advantage of coverage offered by your credit card Kemwel asks for you to contact your credit card company to learn the specifics of your insurance coverage. Insurance details specific to your rental will print in the terms and conditions area of your rental voucher.

At this time we at Kemwel would like for you to take a moment to read about the following insurance guidelines that may apply to car rentals in Iceland.

Required Coverage
Third party liability and fire insurance are required on all rentals commencing in Iceland. For your benefit Kemwel includes both forms of insurance in all on its basic rental rates. Fire insurance provides you with and unlimited amount of coverage in the event of a fire. Third party liability provides approx $11,200,000 USD worth of coverage for bodily injury and approx $1,940,000 USD worth of property damage.

Optional Coverage
Collision damage waiver (CDW) and theft protection are optional for rentals commencing in Iceland. Kemwel includes both forms on insurance on all inclusive rental rates in Iceland at an advance purchase discount. If purchased locally at the rental counter CDW costs between $17-$23 USD per day and theft costs approximately $2.50 USD per day. Many of the suppliers in Iceland will have a CDW and theft deductible that you are responsible for, which can range from $1,200 USD up to $2,300 USD depending on vehicle category. If you are really worried about having to pay the deductible in the event something happens, you can purchase Super CDW at the rental counter for approx $9-$12 USD per day which will reduce the amount of the deductible to $310 USD up to $620 USD.

Rental Restrictions

General Information
Due to Iceland’s island location all vehicles rented are prohibtted from leaving the country at any time.

Restricted Countries
Vehicles are not permitted to travel outside of Iceland.

One-Way Rentals
Domestic one-way rentals are available an additional one-way fee may apply ranging from $0 up to $246 USD. International one-way rentals are not available at this time. Not all vehicles are permitted on one-ways.

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Useful Terms

Unleaded gasoline
blylaust bensin
Motor oil
motor olia
Gas station
Car rental agency
bilaeigu umbod
Toll road
toll vegur
Police Station
embaetti or sendirad
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