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Car Rental In Iceland

Rent a car in Iceland to help you get around this beautiful country easily and at your own convenience. By renting a car in Iceland, you get to plan your trip exactly how you want to and experience everything you want without having to rely or wait on other tourists. 

We have a wide range of small, medium, large and luxury cars. We also have the best Iceland car rental availability for 4x4s, minivans and camper rentals. We are now proud to offer electric car rental in Iceland to our customers with the latest Tesla Model Y and Model 3 - learn more about driving a Tesla in Iceland. Use our simple booking service to choose the type of car you want, for however long you want, to pick up and drop off at a location to suit you. 

Why rent a car in Iceland with us?

No deposit required. We don't require a deposit when booking with a credit card

Free in-vehicle WiFi with our Platinum package. Stay connected with a powerful 4G mobile connection

Free cancellation. Cancel for free up to 48 hours before pick-up for complete peace of mind

The best insurance on the market. Our Platinum package covers you for everything Iceland can throw at you

Five-star customer service. We get you on the road quickly, and safely, and offer support 24/7. Take a look at our reviews!


How old do you have to be to rent a car in Iceland?

To rent a car in Iceland you must be at least 20 years old to rent a car and have a valid driver's license in English or a language which uses characters from the Latin alphabet. If your license does not meet these requirements, you will need to bring an international driver's license.

Do I need a certain type of car to get around Iceland?

All of our rental cars are suitable for the vast majority of driving you will need to do in Iceland. 

The only exception would be if you plan to drive on F-roads. F-roads are roads in mountainous areas with unpaved gravel surfacing and they are not maintained. If you plan to use F-roads you will need to hire a 4x4 vehicle as these are the only vehicles permitted to travel on these roads. 

It is advised not to travel on F-roads alone in case of issues.

Where do I pick up a rental car from Lotus Car Rental?

We offer a few options so you can choose what suits you best. We have an office at Flugvellir 6 - 230 Keflavik which is often the most convenient option. There is a shuttle service from Keflavik airport every 15 minutes to take you to the rental car lots, and this service is free of charge for Lotus customers. However, if you are staying in Reykjavik and Keflavik city we are also able to deliver your rental car to your accommodation at a specified time. You can specify this during the booking process.

When can I pick up / drop off my hire car?

Our pick-up and drop-off service operates from 5 am - 22 pm every day of the week from Keflavik airport, so you can pick up or drop off your hire car at any time within your allocated hire period. If you are using our hotel pick up / drop off service, this is operational between the hours of 8 am and 6 pm. From 10 pm - 5 am we allow customers to pick up and drop off with our after-hours service. Read more about our After Hours Service.

Can I rent a car in Iceland without a credit card?

We do have options for drivers who wish to hire a car in Iceland using a debit card instead of a credit card. Discover more about our car rental with a debit card service.

What car insurance do I need to rent a car in Iceland?

By renting a car in Iceland with us, your price will also include Third Party Liability Insurance, Collision Damage Waiver, Super Collision Damage Waiver, Theft Protect and 150.000 ISK excess/driver liability (Silver Package). It is strongly recommended to add extended coverage to reduce your liability in the event of an accident, as Iceland’s driving surfaces can be quite different from what you are used to.

Are there any special driving laws in Iceland?

When renting a car in Iceland, drivers should drive on the right-hand side of the road, with overtaking happening to the left. With regard to speed limits, there are three main limits;

  • 50kph/31mph on city roads
  • 80kph/49mph on open roads
  • 90kph/55mph on the highways

Due to Iceland’s natural beauty and wildlife populations, it is illegal to drive off-road or on marked trails. You should also not drive on any roads which are cordoned off, as these areas are closed for your own safety. It goes without saying, but seatbelts are a requirement and it is forbidden to use a mobile phone while driving. You should also carry all your documentation with you in the car at all times while driving.

You should also carry all your documentation with you in the car at all times while driving.

How do the weather conditions affect driving in Iceland?

Some roads may be closed during periods of bad weather and it is very important to abide by these closures, as they are put in place for your own safety. When renting a car in Iceland, you should be aware of the transition from tarmac/asphalt roads to gravel surfaces, as this can be quite treacherous if the car is travelling at speed.

How long does it take to drive around the whole island?

The main road on the island is known as Route 1 or the Ring Road. Route 1 runs for 1,332km/828mi and connects the vast majority of inhabited regions. To drive the full length of the ring road at around 100kph it would take around 13 hours, but that is for a non-stop drive which is not recommended. If you are planning a road trip around the island, it is recommended to plan for at least a week as this will give you time to stop off at various attractions and really enjoy the island to its full potential. The road is usually kept open, even in winter months, but some areas may be closed during bad weather.