Planning to rent a car in Iceland in 2025?
This guide explores common mistakes travelers make when renting a car in Iceland and provides practical solutions to avoid them.
From choosing the right vehicle to navigating Iceland's unique driving laws and unpredictable weather, we've got you covered for a seamless and safe road trip.
Mistake 1: Choosing the Wrong Vehicle for Your Itinerary
Why it's a Problem:
Iceland's diverse terrains range from smooth paved roads to rough gravel tracks. Opting for the wrong vehicle could limit your ability to reach key destinations or make your trip unnecessarily uncomfortable.
How to Avoid It:
- If you're sticking to the Ring Road, a compact car will suffice.
- Planning to explore F-roads in the Highlands? You'll need a 4x4 SUV to handle those rugged paths.
- For a unique experience, consider a campervan, which combines transport and accommodation for flexibility.
Pro Tip: Double-check road accessibility in winter months. Some areas might require special tires or additional equipment.
Did you know that you can rent all vehicle types at Northbound?
Mistake 2: Not Understanding Iceland's Unique Driving Laws
Why it's a Problem:
Iceland has strict driving regulations to protect its fragile environment and ensure safety. Violating these laws can result in hefty fines or even damage to the vehicle.
How to Avoid It:
- No Off-Road Driving: It's illegal to drive off marked roads as it damages Iceland's delicate ecosystem.
- Yield on Single-Lane Bridges: These are common on the Ring Road; yield to oncoming traffic as a courtesy and safety rule.
- Know Speed Limits: Typically 90 km/h on highways, 80 km/h on gravel roads, and lower in urban areas.
To know the different between F-Road and Off-Road driving click here
Mistake 3: Overlooking Insurance Options
Why it's a Problem:
Iceland's unpredictable weather and gravel roads can lead to unforeseen incidents, from windshield cracks to damage from volcanic ash.
How to Avoid It:
- Gravel Protection: A must-have if you plan to drive on unpaved roads.
- Sand and Ash Coverage: Essential if you're visiting southern regions prone to sandstorms.
- Zero Deductible Insurance: Gives you peace of mind, particularly if you're unfamiliar with Icelandic road conditions.
Pro Tip: Always confirm what your insurance includes and excludes before signing the contract.
Mistake 4: Ignoring Fuel Station Locations
Why it's a Problem:
Fuel stations can be sparse in rural Iceland, especially in the Highlands and Westfjords. Running out of fuel could leave you stranded in remote areas.
How to Avoid It:
- Always fill up when you see a station, even if your tank is half full.
- Use apps like 112 Iceland or Vegagerdin to locate nearby fuel stations.
Pro Tip: Diesel vehicles are common in Iceland and often more fuel-efficient for long distances.
Mistake 5: Not Preparing for Weather Variability
Why it's a Problem:
Iceland's weather is famously unpredictable, with sudden rain, snow, or high winds potentially making driving hazardous.
How to Avoid It:
- Check weather forecasts daily on websites like Vedur.
- Always carry emergency supplies such as blankets, a flashlight, and a fully charged phone.
- Rent a car equipped with winter tires during colder months (October to April).
Pro Tip: Be cautious of icy conditions near waterfalls and lookout points.
Mistake 6: Failing to Plan for Toll Roads and Parking
Why it's a Problem:
While Iceland doesn't have many toll roads, forgetting to pay for tunnels like the Vaðlaheiðargöng Tunnel can lead to fines. Parking fees in cities like Reykjavik are also easy to overlook.
How to Avoid It:
- Prepay for tolls online where available, such as at Toll.is.
- Use parking apps like Parka in Reykjavik for easy payment and to avoid fines.
Pro Tip: Get the Parka App before you arrive.
Mistake 7: Waiting Until the Last Minute to Book
Why it's a Problem:
Car rentals are in high demand, particularly during peak seasons (June to August). Waiting too long to book could result in higher prices or limited vehicle options.
How to Avoid It:
- Reserve your car months in advance, especially if you plan to rent during the summer or Christmas holidays.
- Use trusted platforms like Northbound.is, which offer transparent pricing and no hidden fees.
Pro Tip: Look for deals that include free cancellation for flexibility.
Mistake 8: Not Familiarizing Yourself with Icelandic Road Signs
Why it's a Problem:
Missing key road signs can lead to detours, fines, or safety issues, especially in remote areas.
How to Avoid It:
- Study common Icelandic road signs before your trip. Signs often indicate hazards like sharp curves, steep grades, or animal crossings.
- Pay attention to weather-related warnings, particularly those signaling road closures.
Mistake 9: Stopping on the Road for Photos
Why it's a Problem:
Iceland's scenic beauty tempts drivers to stop on roads for photos. This is dangerous and can lead to accidents or block traffic.
How to Avoid It:
- Use designated pull-off areas for photography.
- Plan photo stops in advance at popular viewpoints to avoid impulsive stops.
Mistake 10: Misjudging Travel Times
Why it's a Problem:
Iceland's terrain and weather can make travel times longer than expected. Underestimating the time needed to reach destinations could lead to rushed schedules or unsafe driving.
How to Avoid It:
- Plan extra time for road conditions and weather delays.
- Use maps and GPS to accurately estimate travel times.
Final Thoughts
Renting a car in Iceland in 2025 is your ticket to unforgettable adventures across this stunning island.
By avoiding these common mistakes?choosing the wrong vehicle, overlooking insurance, or failing to plan for fuel and weather?you'll be well-prepared for a smooth and safe journey.
With the right preparation, your Icelandic road trip will be as magical as the landscapes you're about to explore.
Happy driving and safe travels!
