Everything You Need to Know Before Renting

Renting a car in Iceland should be simple and stress-free. At Auto Car Rental, we provide clear, transparent policies so you know exactly what to expect before you hit the road. From age requirements and payment details to fuel policies and insurance options.

Driver’s Age & License
  • Minimum age: 20 for regular vehicles, 23+ for luxury models.
  • Must have a valid driver’s license for at least one year.
  • International drivers: If your license is not in Latin script, an international driving permit (IDP) is required.
  • A valid credit card for next 6 month is required

General Rental Requirements

Payment & Deposit
  • A valid credit card is required.
  • Full rental payment is required at pickup.
  • Debit cards may not be accepted for security deposits.
Pickup Locations & Hours
  • Vehicles can be picked up at Keflavík Airport, Reykjavík, or other designated locations.
  • After-hours pickup may be available upon request.
  • Vehicle should be returned to Framnesvegur 19c, Keflavík

Pickup & Return Policy

Returning the Vehicle
  • Must be returned with the same fuel level as at pickup.
  • Late returns may incur additional charges.
  • Drop-off location must match the agreed return point unless a one-way rental has been arranged.
Fuel Policy
  • Vehicles are provided with a full tank and must be returned with a full tank.
  • If the tank is not full, a refueling fee will be charged.
  • Diesel and petrol vehicles are available—double-check the correct fuel type before refueling.
  • Fuel options in Iceland are limited to petrol and diesel, so it’s important to double-check before refueling. Using the wrong type can lead to serious damage and unexpected repair costs. As a general guide, petrol nozzles are usually green, while diesel ones are black.
Unlimited mileage is included in most.
  • 4x4s required for F-Roads (highland routes).
  • Driving off-road is strictly prohibited and subject to heavy fines.
  • Always check road conditions before traveling, especially in winter.

Mileage & Road Restrictions

Standard Insurance Coverage
  • Third-party liability insurance included in all rentals.

Insurance & Damage Policies

Optional Insurance Upgrades

GOLD

  • Third-Party Liability Insurance (TPL)
  • Collision Damage Waiver (CDW)
  • SUPER Collision Damage Waiver (SCDW)
  • Gravel Protection ( GP)
  • Theft Protection (TP)


PLATINUM

  • Third-Party Liability Insurance (TPL)
  • Collision Damage Waiver (CDW)
  • SUPER Collision Damage Waiver (SCDW)
  • Gravel Protection ( GP)
  • Theft Protection (TP)
  • Sand and Ash Protection (SAAP)
  • Tire Protection (TIP)
Free cancellation up to 48 hours
  • Bookings canceled more than 48 hours prior to the pick-up time are fully refundable (100%).
  • Bookings canceled less than 48 hours prior to pick-up time are not refundable and the full rental price will be charged.
  •  In case of a no-show, the full rental price will be charged.

Cancellation & Refund Policy

New title
  • Please be advised that, in compliance with law no. 101 dated December 27th, the Icelandic government has implemented a Road Tax Fee effective January 1st, 2024. This fee applies to electric cars, hydrogen vehicles, and plug-in hybrids, with rates set at 6 ISK (approx. €0.04/$0.04) per kilometer for electric cars and 2 ISK (approx. €0.01/$0.01) per kilometer for plug-in hybrids.



  • To ensure a smooth experience and full transparency, Auto Car will collect the Road Tax Fee at the start of the rental period. The fee will be estimated based on the average driving distance of our customers in 2022 and 2023. This approach is intended to prevent unexpected charges after your rental ends.

Road & Parking Fees