What Type of Vehicle Should You Rent in Iceland?

Planning a road trip in Iceland? Choosing the right type of rental vehicle can make or break your experience. The country's road conditions, weather, and terrain vary drastically depending on the season and your route.

This guide will walk you through everything you need to know about renting the right vehicle for your Iceland adventure, including tips you won't find on most travel blogs.

Standard 2WD (Economy & Compact Cars)

Best for:

• Reykjavík city breaks
• The Golden Circle
• South Coast (in summer)
• Budget travelers

Vehicle Examples:

• Toyota Aygo
• Hyundai i10
• Kia Picanto
• Kia Ceed

Pros:

• Cheapest daily rates
• Best fuel efficiency (around 4?6L/100km)
• Easy to park in cities

Limitations:

• Not allowed on F-roads (mountain tracks)
• Low ground clearance (bad for gravel)
• Struggles in wind or snow

Local Tip: A 2WD is perfectly fine between May and mid-September, if you're not leaving paved roads. Just be wary of sudden gravel transitions on parts of the Ring Road. Attractions like Skógafoss, Seljalandsfoss, and the Blue Lagoon are all accessible with a 2WD in summer.

Read our Iceland Car Rental Guide

4x4 Vehicles (SUVs & Crossovers)

Best for:

• Visiting Iceland in winter (October to April)
• Exploring the Westfjords, North, and Eastfjords
• Accessing gravel roads and remote towns

Popular Models:

• Dacia Duster (affordable and reliable)
• Toyota RAV4 (comfortable with AWD)
• Mitsubishi Pajero or Toyota Land Cruiser (for tougher routes)

Why Choose a 4x4?

• Allows access to F-roads (when open in summer)
• Handles snow, ice, wind, and loose terrain
• More stable in gusts. Iceland's wind regularly exceeds 30 m/s

Note: Many visitors assume any SUV can handle all roads, but not all 4x4s are equal. Vehicles like Dacia Duster work fine for basic F-roads but not for deep river crossings or steep mountain routes. Always confirm your route's requirements with your rental provider.

Compare 4x4 rentals in Iceland

Vehicles for F-Roads & Highlands

What Are F-Roads?

F-roads are unpaved mountain routes, often with large potholes, steep gradients, loose gravel, and river crossings. Driving here requires experience and the right vehicle.

You'll Need:

• 4WD with high ground clearance
• Raised suspension
• Strong tires and underbody protection

Ideal Models:

• Toyota Land Cruiser
• Mitsubishi Pajero
• Jeep Wrangler

F-Road Tips:

• Never attempt F-roads in a 2WD. It's illegal and dangerous
• F249 to Þórsmörk is notorious for deep rivers. Regular SUVs won't make it
• Always check daily road status on Road.is
• Some roads open only for a few weeks during summer. Plan accordingly

Guide to Driving Iceland's F-Roads

Campervans & Motorhomes

Best for:

• Road trippers who want to sleep in their vehicle
• Travelers looking to save on hotel costs

Campervans (2 to 3 people):

• Compact, fits most campsites
• May come with cooking gear, bedding, and fridge

Motorhomes (families, 4 to 6 people):

• Larger, with built-in kitchen, toilet, and sometimes shower
• More comfort, but limited maneuverability

What to Know:

• Campsites are required for overnight stays. Wild camping is no longer legal in most areas
• Motorhomes are not allowed on F-roads
• Many campsites offer power hookups, kitchens, showers, and Wi-Fi
• In winter, some campsites close. Plan your route around open ones

Explore camper rental options
Read: Camping Rules in Iceland Also check out a week on the road in a campervan

Minivans & People Carriers

Best for:

• Families or groups of 5 to 9
• Summer Ring Road trips
• Travelers with lots of luggage or gear

Pros:

• Saves money over booking multiple rentals
• Spacious and more social for long drives

Limitations:

• Usually front-wheel drive only
• Not suitable for rough terrain or icy roads
• Better for paved routes in spring, summer, and early fall

View Minivan Rentals

Hidden Considerations Most Travelers Miss

1. Icelandic Wind is No Joke

SUVs and taller campers are more stable in crosswinds than compact cars. Wind speeds over 25 m/s (90 km/h) can flip vehicles. This is especially dangerous when roads are icy or gravel-covered.

Always check safetravel.is for wind and road alerts before heading out each morning.

2. Gravel Damage is Common

Even on the Ring Road, some sections switch to gravel with no warning signs. These loose sections can chip your windshield or undercarriage.

Ask your rental company about gravel protection insurance. It's often inexpensive and highly recommended.

Do I Need Gravel Protection?

3. Studded Tires in Winter

From November to April, studded winter tires are a must outside the city. They provide far better grip on icy side roads and mountain passes.

Ask your rental company whether the vehicle comes with studded or regular winter tires, especially if you're visiting during shoulder months like October or April.

4. Fuel Type Matters

Fuel is one of your biggest trip costs. Diesel is generally cheaper per kilometer, and many SUVs run on it. Gasoline is more common in small cars.

As of 2025, average prices are:

• Petrol: Around 320 ISK per liter
• Diesel: Around 310 ISK per liter

Remote fuel stations can be far apart. Always fill up before driving into the highlands or fjords.

You can estimate your trip's total fuel cost with our Iceland fuel cost calculator

5. Roof Boxes and Luggage Space

Most Icelandic cars are European models with smaller trunks. If you're carrying winter clothing, photography gear, or camping equipment, consider renting a roof box or a larger vehicle.

Some agencies offer roof boxes for an extra fee. It's often cheaper to reserve it in advance.

Summary: What Should You Rent?

FAQs

Do I need a 4x4 year-round?
Not in summer for major routes, but highly recommended in winter or for rural areas. It depends on your route and weather conditions.

Can I sleep anywhere in a campervan?
No. Iceland's camping laws prohibit wild camping in most places. You must use designated campsites.

Do all 4x4s allow F-road access?
No. Some F-roads require high-clearance or raised vehicles. Always check with your rental provider and consult Road.is.

Are winter tires standard in winter?
Yes. From October through April, all rentals include winter tires. Ask if they're studded if you're going outside main routes.

Is GPS necessary?
Not essential, but useful. Google Maps offline and apps like Maps.me work well. Most areas, even remote, have decent mobile coverage.

Should I rent a manual or automatic?
Automatics are easier, especially in bad weather. But manuals are more common in Iceland. If you prefer automatic, reserve early.

What insurance should I get?
At minimum, add gravel and sand/ash protection. Iceland's landscape is rougher than it looks, and weather can change fast.

Final Thought

Choose your rental like you'd choose your boots in Iceland: based on the conditions. Budget matters, but safety and comfort matter more when you're three hours from the nearest town and a storm is rolling in.

Compare Car Rental Deals on Northbound.is