Renting a Car in Iceland in Winter: My Experience and Tips
My boyfriend and I spent a week in Iceland in February, and hiring a car was the best decision we made. It gave us total flexibility to go wherever we wanted, stop at amazing viewpoints, and it was so helpful for chasing the northern lights.
We spent the first four nights of our trip with Reykjavík as our base, and on two days we did day trips, where a coach picked us up from the city, took us around the landmarks, and then dropped us back.
But for the rest of our time in Iceland, we drove ourselves. So I have a direct comparison of hiring a car vs taking day trips, and having a car wins hands down.
But I totally get that driving in harsh weather conditions in an unfamiliar country feels daunting. So I’ll answer all the questions you probably have in this article, and let you know why I think it’s best to have a car.
Do you need to hire a car in Iceland in winter?
No, you don’t have to hire a car. You can base yourself in Reykjavík and take day trips to the sights.
There’s day trips to just about everywhere on the south coast: the Golden Circle, Reynisfjara Beach, the waterfalls along the South Coast, to ice caves, to see the northern lights, and even to Jökulsárlón, which is a five hour drive away.
On my visit to Iceland I had Reykjavík as my base for four nights. For two of the days, we took day trips. On the other two, we drove ourself, but came back to Reykjavík in the evening. For the rest of our trip to Iceland, we drove, and stayed at different places along the south coast.
➡️ Explore the many incredible day trips from Reykjavík
With a direct comparison of taking day trips vs a hire car, I would recommend hiring a car if you’re able to, because:
- Coaches all arrive at the same time, meaning you’ll never beat the crowds
- No flexibility on where and when you stop. No pulling over to take in the view
- You come back to Reykjavík each night, so you don’t get to stay anywhere else
- Better chance of seeing the northern lights away from Reykjavík
- Day trips can be expensive, so the costs add up quickly
The main advantage to taking day trips is that you don’t need to drive. The weather conditions can change quickly during the winter months, and it was reassuring to have someone else in charge.
We were very lucky with the weather during our trip, in fact the only day there was a snow storm was when we were on a day trip, and we were grateful not to be driving. But I’d still choose a hire car every time.
Is it safe to hire a car in Iceland in winter?
One of the biggest things I was worried about when we decided to hire a car in Iceland is whether it would be dangerous. The weather in the UK isn’t very extreme so I’m not used to driving in heavy snow.
But it was much easier than I expected. If your itinerary is focused on the south coast, you’ll mostly be on the Ring Road (route 1). It’s a main road that’s well maintained, and pretty easy to navigate.
Winter tyres
During the winter months (usually from November to April), all hire cars will have winter tyres on. This is required by law.
Winter tyres will give you better grip on the road, so it’s much safer for you to drive.
Road conditions
Try to stick to the main roads wherever possible as these are well maintained, with regular snowploughs and salting.
Roads will be closed if they’re too dangerous to drive down.
These photos were taken ten minutes apart, which is a really good demonstration of how quickly the visibility can change.
There’s a maximum speed limit
The maximum speed limit anywhere in Iceland is 90km/h (about 55mph). This helps a lot if you’re feeling nervous as you know no one can (legally) go any faster.
We didn’t experience any tailgaters which made the drives much calmer.
Check before you drive
Check this website every morning for road closures, or download the SafeTravel app.
Watch out for the wind
One of the biggest problems with driving in winter is the extreme wind. You’ll notice signs in your car telling you to be careful of opening the doors.
If you open the door and it gets caught in the wind, it can rip straight off.
Who to book your hire car with in Iceland
I booked my hire car in Iceland through Discover Cars. They compare the cost across loads of different providers to find the best price for your trip, have flexible cancellation policies, and they’ve won awards for their customer service.
I use Discover Cars whenever I book a car abroad and I’ve always had a great experience.
The rental company I chose was Ice Rental 4×4. They’re located a short drive away from the airport and you they’ll send a free shuttle to pick you up once your flight arrives.
Their customer service was brilliant, the person serving us was so lovely and the whole process took about fifteen minutes from arriving to having the car and being ready to go.
They gave us some information about driving on the roads during winter which really reassured us, and then we were on our way.
Which car should I choose?
For this trip we weren’t only looking at price, we also wanted a sturdy car that could handle the winter weather.
I’d recommend getting a 4×4 for better traction on the roads. We chose a Dacia Duster because I didn’t want a huge car that was tricky to navigate, so this was a good middle ground.
It was a really great size with plenty of room for our luggage and it was really easy to drive.
A Suzuki Jimny is another popular choice, but they tend to be more expensive than a Dacia.
What do you need to rent a car in Iceland
When you pick up your car you’ll need:
- Your passport
- Your physical driving license
- A credit card in the main drivers name for the deposit
Do you have to pay a security deposit to hire a car in Iceland?
Most car rental companies in Iceland will require a security deposit when you collect the car, unless you take out insurance with them, in which case it’s either heavily reduced or waived.
You’ll most likely need a credit card in the main drivers name for the deposit, it’s very rare they accept debit cards.
The deposit is just a hold on the card, the money isn’t actually taken out of your account. If there’s any damage to the car, they’ll take the cost from your deposit, and if it’s more, you’ll need to pay the difference.
Car insurance
The worst thing you can do is not take out insurance when you’re renting a car, especially during the winter months in Iceland when driving is more dangerous.
But the second worst thing you can do is take it out with the car rental company, because you’ll be massively overcharged. If there’s one thing you take from this guide, let it be this.
I never purchase the insurance from car rental companies. Instead, I have a yearly policy with insurance4carhire. It’s only about £40 for the year, and means I’m insured up to £6,500 on car rentals around the world.
If you’re in an accident or the car is damaged, you’ll need to pay the excess to the car hire company, but you can then claim it back through insurance4carhire.
Just make sure you take photos of the damage, and keep a copy of the invoice.
I’ve had to make two claims and the process is so straightforward. It takes two minutes to submit the claim, they’re really quick to get back to you, and the money is then transferred to your bank account.
Double check that your insurance policy covers you for driving in winter. Look for things like windshield cover and punctures..
How much is a hire car in Iceland?
The cost of hiring a car in Iceland depends on the length of your trip, which provider you choose, and what type of car you choose.
To give you an idea of cost, we paid £135.00 for four days rental.
Getting fuel in Iceland
You can be driving for long periods of time in Iceland without seeing a petrol station, so always make sure you’ve got enough fuel to get to your destination.
