Good to know
Everything you need to know before you pick up the keys — from the rules of the road to how we handle insurance, pricing, and damage. Iceland has a few quirks that catch first-time visitors off guard. We have written it all down so you are not finding out on the roadside.
Where to collect your car, opening hours, and how to find us at Keflavík.
The 360° video rule, capped excess tiers, card pre-authorisation (a temporary hold, not a charge), named exclusions, and how to dispute a charge.
What CDW, SCDW, Gravel & Glass, and Sand & Ash cover — and what they do not. Theft and attempted theft are covered in the base cover, up to your excess.
Child seats, WiFi, GPS, snow chains, and anything else you can add to your booking.
Speed limits, F-roads, single-lane bridges, animals, winter conditions, road tax, tolls, parking, and emergency contacts.
Ring Road and Golden Circle: a 2WD or AWD is fine in summer. F-roads and winter driving need a 4×4. River crossings are not covered by Ring Road Cars.
Only an approved 4×4 may drive open F-roads under Ring Road Cars terms. Non-approved F-road driving can void cover, and river crossings are excluded.
Our fleet runs suitable winter tyres in season; studded tyres are permitted ~Nov 1–Apr 15. AWD or 4×4 strongly recommended. Short days, fast-changing weather — check road.is daily.
Main possible charges — fines, tolls, cleaning, fuel shortfall, late return — published up front with the evidence needed before payment.
Where Iceland charges tolls, parking and entrance fees — the Vaðlaheiði tunnel, Keflavík Airport, Reykjavík zones, national parks and Landmannalaugar — and how to pay on time.
If something goes wrong: call 112 for emergencies, document the scene, don't admit fault, and reach our emergency line any time. Step-by-step guidance for accidents and breakdowns.
Who can rent, booking and cancellation rules, damage policy, fuel, and governing law — in plain English.
Day-by-day itineraries, which car to pick, and what to know about the 2026 total solar eclipse — practical guides written for drivers.
Do you take a deposit?
We expect to place a card pre-authorisation (a temporary hold, not a payment) equal to the excess of the cover you choose. Accepted card types and exact rules are confirmed before booking.
- Debit-card acceptance confirmed before booking
- Hold released on a clean return; your bank clears it in a few working days
- Zero Excess = ISK 0 covered-damage excess
- Conditional charges need evidence before payment is taken
Cancellation policy
- Refundable rates: free cancellation up to 48 hours before pickup — full refund
- Within 48 hours — first rental day charged, rest refunded
- Discounted non-refundable rates, where chosen, are not refundable
- No-show — first day charged
- Date or vehicle changes — free, subject to availability
Frequently asked questions
Straight answers to the questions we hear most — no small print, with the important limits named clearly.
What is the 2026 road fee?
Since 1 January 2026 Iceland charges a statutory road fee (kílómetragjald) on rentals. We show it as a fixed ISK 1,550 per started rental day — the official daily fee set by the State plus a small processing amount — as a separate, transparent line in your quote.
Do you have electric or hybrid cars?
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.
What documents do I need to pick up the car?
The main driver's valid driving licence (held at least one year), a passport or national ID, 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.
Is my foreign driving licence accepted? Do I need an International Driving Permit (IDP)?
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 the original plus a certified translation or, where issued, an IDP.
Does my credit card's rental insurance cover me in Iceland?
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.
I'm visiting from the UK or Ireland — what's different about driving here?
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.
Can I rent an automatic car?
Yes. Most of our guests from the US, UK and Canada prefer automatic, and automatics book out fastest in summer — so reserve early. Tell us your route and we'll show the suitable automatic options.
Am I covered for gravel, sand and ash damage?
Standard CDW does not cover gravel, sand or ash — all common on Icelandic roads. We offer clear Gravel & Glass Protection (windscreen/windshield and gravel) and Sand & Ash Protection add-ons and tell you exactly what each one covers.
Will I be charged for pre-existing damage?
No. We record a timestamped walkaround video at pickup and again at return, and share it with you. We only bill for damage that appears between those two videos.
Can I add an extra driver?
Yes. Every person who drives the car must be named on the rental agreement — it's quick to add them at pickup. Extra drivers are a paid add-on, and only registered drivers are covered by the insurance.
What time can I pick up and drop off, and what about after hours?
You choose your pickup and drop-off times when you book. Free pickup and drop-off are at Keflavík Airport; after-hours collection and return are arranged through our key-box — just give us your flight number so we're ready.
Can I drop the car off somewhere other than Keflavík?
Yes — alongside free Keflavík drop-off we can arrange other locations such as Reykjavík, the domestic airport (RKV) or Akureyri. Choose it in the booking and we confirm the one-way fee by email before you pay.
What is the fuel policy?
Full-to-full: you collect the car full and return it full. No prepaid-fuel upsell. If you return with less than a full tank, we charge the actual fuel cost plus an ISK 5,000 refuelling service fee.
Can I rent with a debit card?
We aim to welcome debit cards on fair terms and not force maximum insurance on debit-card customers. The accepted card types are confirmed when you book.
Are winter tyres included?
Yes — winter tyres are included in season on the relevant categories, as Icelandic conditions and rules require.