How old do you need to be to rent a car in Iceland? Will your driving license be accepted? And what documents do you need when you pick up your rental car?

If you’re planning an Iceland road trip, these are important questions to answer before you book. Car rental requirements in Iceland can vary depending on the rental company and vehicle category, especially when it comes to minimum age.

In this guide, we’ll cover the minimum age to rent a car in Iceland, driving license requirements, documents you’ll need, insurance basics, choosing the right vehicle, and some useful tips for keeping your rental costs down.

Driving in Iceland

How Old Do You Need to Be to Rent a Car in Iceland?

Although the legal driving age in Iceland is 17, you need to be older to rent a car.

At Firefly Iceland, the minimum rental age is either 20 or 23 years old, depending on the vehicle group.

You must be at least 20 years old to rent vehicles in the following groups:

  • Economy
  • Compact
  • Compact Wagon
  • Intermediate 2-door
  • Intermediate 4-door
  • Intermediate Wagon

For all other vehicle groups, the minimum age is 23 years old.

You must also have held a valid driving license for at least one year before renting a vehicle.

When choosing your rental car, always check the minimum age requirement for that particular vehicle group before booking

Can You Rent a Car in Iceland Under 25?

Yes! You don’t have to wait until your 25th birthday to start your Iceland road trip.

At Firefly Iceland, drivers aged 20 and over can rent vehicles in the Economy, Compact, Compact Wagon, Intermediate 2-door, Intermediate 4-door and Intermediate Wagon groups.

For all other vehicle groups, you must be at least 23 years old.

So, if you’re traveling to Iceland in your early twenties, you’ll still have several rental car options available.

where to stay in the icelandic highland

What Driving License Do You Need to Rent a Car in Iceland?

To rent a car in Iceland, you need a valid driving license that meets the rental company’s requirements.

At Firefly Iceland, you must have held your license for at least one year before the start of your rental.

Your driving license should also be valid for the duration of your rental and clearly show the necessary information about the license holder.

Many travelers can use the same driving license they use at home when renting a car in Iceland.

Can I Use a US Driving License in Iceland?

Yes. A valid US driving license is generally accepted for renting a car in Iceland, provided you’ve held it for at least one year and meet the age requirements for your chosen vehicle.

Can I Use a UK Driving License in Iceland?

Yes. Travelers with a valid UK driving license can generally use it to rent a car in Iceland as long as they meet the rental company’s age and license requirements.

Can I Use an EU or EEA Driving License in Iceland?

Yes. Valid driving licenses issued in EU and EEA countries are generally accepted for car rental in Iceland.

You will still need to meet Firefly’s minimum age requirements and must have held your license for at least one year.

What About Driving Licenses From Other Countries?

Driving licenses from many other countries can also be accepted in Iceland.

The important thing is that your license meets the rental requirements and the information on it can be clearly understood.

If your license is not written using Roman alphabet characters, additional documentation may be required.

Do You Need an International Driving Permit in Iceland?

Not every visitor needs an International Driving Permit (IDP) in Iceland.

If your regular driving license meets the rental requirements and its information is clearly readable using Roman alphabet characters, you generally won’t need an IDP just because your license was issued outside Iceland.

If your driving license uses another alphabet, you may need an International Driving Permit or an appropriate translation.

Remember that an IDP does not replace your original driving license. If you need an IDP, bring both documents with you when collecting your rental car.

What Document Do You Need to Rent a Car in Iceland?

Getting your documents ready before arriving at the rental desk can make collecting your car much easier.

When renting a car in Iceland, you should have:

  • A valid driving license
  • An International Driving Permit or translation, if required
  • A valid credit card in the renter’s name
  • Your rental booking confirmation
  • Your passport or another accepted form of identification, where required

It’s a good idea to check your booking confirmation and rental requirements before traveling so you know exactly what to bring.

Weather in Iceland in January

Is Insurance Included With a Rental Car in Iceland?

Third-party liability insurance is mandatory for vehicles in Iceland and is included with your Firefly rental.

This is the legally required liability protection, but it is different from protection covering damage to the rental vehicle itself.

Firefly rentals also include Collision Damage Waiver (CDW). Additional protection options are available depending on the type of coverage you want for your Iceland road trip.

Driving in Iceland can involve risks that visitors may not regularly encounter at home, including gravel, strong winds, sand and ash.

Before booking additional protection, it’s worth understanding what is and isn’t covered.

You can learn more in our guide to rental car insurance in Iceland.

there are plenty of free attractions located inside Reykjavik

Choosing the Right Rental Car for Iceland

There isn’t one vehicle that’s right for every Iceland road trip.

Think about when you’re traveling, where you’re going, how many people you’re traveling with and how much luggage you’re bringing.

Small Cars

A small rental car can be a great budget-friendly option if you’re staying around Reykjavík or exploring popular routes on main roads.

If you’re visiting in the warmer months and your itinerary includes places such as the Golden Circle, Reykjavík and the South Coast, you may not need a 4×4.

Smaller cars can also help keep your rental and fuel costs down.

4×4 Rental Cars

A 4×4 gives you more options when planning certain Iceland itineraries. Most importantly, if you’re planning to explore Iceland’s Highlands on F-roads, you need a suitable 4×4 vehicle.

Not every 4×4 rental is permitted on every road, so always check that your specific vehicle is approved for your planned route.

F-roads are generally only accessible during the summer, with opening and closing dates depending on conditions.

Larger Cars

Traveling with more people, several suitcases or lots of outdoor gear?

A larger rental car can give you the extra passenger and luggage space you need. Check the listed passenger and luggage capacity before booking, especially if you’re planning a longer Iceland road trip.

Do You Need a 4×4 in Iceland?

No, you don’t automatically need a 4×4 to rent a car and explore Iceland.

A regular 2WD rental car can be suitable for many popular routes, particularly if you’re traveling on paved main roads.

Whether a 4×4 is right for you depends on your route, the season and the roads you plan to drive.

There is one particularly important rule to remember: if you plan to drive on Iceland’s F-roads, you need a suitable 4×4 vehicle.

Always check whether your rental vehicle is permitted on the roads included in your itinerary.

Renting a Car in Iceland in Winter

Winter is a completely different driving experience from summer in Iceland.

There are fewer daylight hours, and you may encounter snow, ice, strong winds and difficult weather during your trip.

That doesn’t mean everyone visiting Iceland in winter automatically needs a 4×4. Your vehicle choice should depend on your itinerary and where you plan to drive.

Before heading out each day, check the latest weather forecast and road information and be prepared to change your plans if necessary.

You can find more advice in our essential winter driving tips for Iceland.

How to Find a Cheap Car Rental in Iceland

Your rental car will probably be one of the bigger expenses of your Iceland trip, but there are a few ways to keep costs down.

Book Your Rental Car Early

Booking early can give you a wider choice of vehicles and better availability, particularly during Iceland’s busy summer season.

Waiting until the last minute may mean the cheapest vehicle groups are already fully booked.

If you know your travel dates, it’s worth comparing your options and booking your rental car ahead of time.

Don’t Rent for More Than You Need

A bigger car isn’t always a better car.

If you’re traveling as a couple, packing light and sticking to main roads, you may be able to save money with a smaller rental car.

On the other hand, if you’re traveling with several people, carrying lots of luggage or planning routes that require a 4×4, choosing the right vehicle from the beginning can save you hassle later.

Consider Traveling Outside Peak Summer

Car rental prices can vary throughout the year depending on demand and availability.

Traveling outside the busiest summer months can sometimes help you find a cheaper rental, while also giving you a very different Iceland experience.

rent a small car to save cost in Iceland

FAQs About Renting a Car in Iceland

Conclusion: Get Ready for Your Iceland Road Trip

Renting a car is one of the easiest ways to explore Iceland at your own pace, whether you’re planning a few days around Reykjavík and the Golden Circle or a longer self-drive adventure around the country.

Before you book, make sure you meet the Iceland car rental age and driving license requirements. At Firefly Iceland, the minimum rental age is 20 for selected vehicle groups and 23 for all other groups, and you’ll need to have held your driving license for at least one year.

Once you’ve checked the requirements, think about your route, travel season, passenger numbers and luggage to find a vehicle that suits your trip without paying for more car than you need.

Ready to hit the road? Explore Firefly Iceland’s cheap rental cars and find the right car for your Iceland adventure.

Cheapest rental car options at Firefly Car rental Iceland

VW-GOLF

VW Golf or similar | Manual (CDMN) – 2022-2024

Group: B Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 2 Large Bags
  • 5 Doors
  • Manual
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • 1 Small Bag
  • 2 Large, 1 Small
  • Front Wheel Drive
  • 125 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
VW-GOLF-WAGON

VW Golf Wagon or similar | Automatic (CWAN) | 2022-2024

Group: T2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • Front Wheel Drive
  • 130 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN)

Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 116 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
VITARA

Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

Group F Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
SORENTO

Kia Sorento or similar | Automatic | 4×4 (SFAN) | 2022-2024

Group: O2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 164 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
PAJERO

Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

Group: I Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 5 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 213 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking