Question 1

How much does it cost to rent a car in Iceland?

Accepted Answer

Renting a car in Iceland typically costs between €58 and €150+ per day, depending on vehicle class and season. Small economy cars start around €58/day in shoulder season; mid-size 4x4s average €90–€130/day; campervans and premium 4x4s reach €150+/day in peak summer (June–August). Booking 3–6 months ahead delivers the lowest rates, and prices on GoHopping include all mandatory fees, taxes, and basic insurance.

Question 2

What kind of rental car should I get in Iceland?

Accepted Answer

The right rental vehicle depends on your travel plans and the time of year. For most travelers driving the Ring Road in summer, a compact or economy car is enough. If you're visiting in winter or plan to drive on F-roads (mountain roads), a 4x4 vehicle is highly recommended. For added comfort or longer trips, many travelers choose a campervan or motorhome to combine transport and accommodation.

Question 3

Can I drive on F-roads in a regular car?

Accepted Answer

No. Under Icelandic law, F-roads (mountain roads marked with the prefix F) require a 4x4 vehicle. F-roads feature rough gravel, steep grades, and unbridged river crossings. Driving a 2WD car on F-roads voids your insurance, exposes you to fines, and risks damage your coverage will not pay for. F-roads are typically open only from late June to early September, depending on weather.

Question 4

What insurance is included?

Accepted Answer

Every rental booked through GoHopping includes mandatory Collision Damage Waiver (CDW) and Third Party Liability (TPL) insurance by Icelandic law. Basic CDW carries a deductible of €1,500–€2,500. Optional upgrades — gravel protection, sand & ash coverage, and zero-excess insurance — are offered at booking. For most Iceland trips, gravel protection is strongly recommended due to the prevalence of unpaved roads.

Question 5

How old do I have to be to rent a car?

Accepted Answer

The minimum age to rent a car in Iceland is 20 years old at most suppliers. A small number of suppliers rent to drivers aged 18–19 with a young-driver surcharge. For 4x4 vehicles, campervans, and motorhomes, the minimum age is typically 23. Drivers must hold a valid license — for many suppliers, held for at least 12 months.

Question 6

Are all fees included in the rental price?

Accepted Answer

Yes. Every price displayed on GoHopping includes mandatory fees: basic CDW and TPL insurance, VAT, and airport surcharges where applicable. The total at checkout is the total you pay — no hidden booking fees, no currency conversion markups. Optional extras like additional drivers, child seats, GPS, and upgraded insurance are clearly itemized during booking.

Question 7

What is Iceland's new kilometer fee?

Accepted Answer

Effective January 1, 2026, the Icelandic government replaced fuel-based road tax with a per-kilometer fee on all vehicles, including rentals. The fee funds road maintenance and is calculated based on actual distance driven. Rental suppliers either pre-bundle this fee into the daily rate or pass it through at vehicle return based on odometer reading. GoHopping displays each supplier's fee handling at checkout.

Question 8

Where can I pick up and return my rental car in Iceland?

Accepted Answer

GoHopping offers pickup at Keflavík International Airport (KEF — Iceland's main international gateway, 50 km southwest of Reykjavík), Reykjavík Domestic Airport, downtown Reykjavík, Keflavík/Reykjanesbær, and select hotels and guesthouses. Most suppliers run a free shuttle from KEF terminal to their lot. One-way rentals between locations may carry an additional fee.

Question 9

Do I need a credit card to rent a car in Iceland?

Accepted Answer

You can book on GoHopping with a credit card or most 16-digit debit cards, and the cardholder doesn't need to be the same person as the driver. At pickup, most suppliers require a credit card in the main driver's name for the security deposit imprint — even if you paid by debit card online.

Question 10

How do I get the best deal on a rental car in Iceland?

Accepted Answer

Book early — especially for summer, when popular vehicles sell out fast. Rates are typically lowest 3–6 months before your trip. Choose the right insurance for your route (gravel protection is worth it on most Iceland roads), drive responsibly, and return the car on time with a full tank to avoid extra charges.

Question 11

Should I rent a car in Iceland?

Accepted Answer

Yes, renting a car in Iceland is highly recommended. It gives you the freedom to travel at your own pace and explore places hard to reach by public transport. Keflavík International Airport is about 40 km from Reykjavík; bus transit is expensive for families or groups. Iceland's unpredictable weather — strong winds, rain, or snow even in summer — makes a car the most reliable transport. Locals say a car is the "Icelander's coat."

Question 12

What do I need to rent a car in Iceland?

Accepted Answer

You'll need a valid driver's license, a passport or national ID, and a credit card (or eligible debit card) in the main driver's name. Some suppliers may require you to have held your license for at least 12 months.

Question 13

Does GoHopping offer unlimited mileage?

Accepted Answer

Yes. All cars booked through GoHopping include unlimited mileage as standard, with no per-kilometer charges from the supplier. Iceland's Ring Road is approximately 1,332 km, and a typical 7–10 day Ring Road trip covers 1,500–2,000 km, all included in your booking.

Question 14

Can I pick up my rental car outside opening hours?

Accepted Answer

It depends on the supplier. Some offer after-hours pickup via a key box or shuttle service, while others require pickup during opening hours. In some cases there may be an extra fee. When booking through GoHopping, you'll see each supplier's pickup options clearly listed.

Question 15

How do I rent a car at Keflavik Airport (KEF)?

Accepted Answer

You can rent a car at KEF Airport by booking online through GoHopping. We let you compare prices from both local and major suppliers with pickup options directly at the airport or via shuttle. Choose 'Keflavik Airport' as your pickup location during booking. All rentals include free cancellation, full pricing transparency, and a price match guarantee.

Iceland Car Rental Questions, Answered