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Benefits of renting a car in Iceland

  • No other mode of transportation allows the convenience and freedom that your rental car provides. In a rental car, you get the freedom to travel wherever you want in Iceland. You get more control of your own vacation without being tied down to some strict public transportation schedules.
  • Public transport is the cheapest way to get around most places in Iceland, but in terms of price/convenience ratio and sense of freedom, hiring a car is an incredible bargain.  Plus, if you plan on using a lot of taxis while moving around on vacation, renting a car in Iceland may be cheaper.

  • Your rent-to-own vehicle offers a level of convenience that most public transportation alternatives don't provide. You can stretch out as much as you want, adjust the air conditioning and radio to your needs, and have easy access to your belongings.

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Why rent a car in Iceland?

While bus tours in Iceland are pretty good, the experience is definitely not as good as renting a car and exploring the country on your own.
You don't have to wait for other passengers on the tour, and you can decide how much time you want to spend at each place without rushing back to the bus.

What do I need to rent a car from a car rental company?

To rent a car, you must meet the basic requirements - you must be the required age and have a driving licence.
In addition, the only thing needed is a credit or debit card. When you pick up your car at the car rental company, you will need:

  • Your voucher generated after ordering online - it serves as a confirmation of booking or payment for the rental car.
  • A credit or debit card with sufficient funds to pay the deposit - the deposit for the vehicle.
  • A driving licence valid for at least 12 months (in some cases it can be 24 months).
  • Your proof of identity - within the EU, an ID card or passport.

This is general information, different car hire companies may have specific conditions, so always check the terms and conditions of the specific car hire company before you travel.

What age is required to rent a car from a car rental company?

How old do you need to be to rent a car? In most cases, car rental companies require the driver to be between 21 and 70 years of age. However, it is often the case that if you are under 25 or over 70, you will have to pay an additional surcharge.

Can I rent a car for someone else?

You can rent a car from the car rental company for anyone who meets the rental conditions (age, driving licence, etc.). Simply fill in their personal details during the online booking process.

Are all charges included in the price of renting a car from a car rental company?

The bulk of our car rentals include theft protection, collision damage insurance (CDW), local taxes, airport surcharges and road taxes. You will pay for any extra services when you collect the car, such as young driver fees, additional driver fees or one-way hire. You'll find out about any additional charges directly when you book (and if you take your own child car seat or GPS, you can easily reduce your costs). For more information on what's included in the price, see the Terms and Conditions when you choose your car.

What rental car insurance do I need in Iceland?

Most car rental companies include theft and collision damage insurance (CDW) as standard. While on holiday in Iceland, the terrain can be dangerous for vehicles. In mountainous areas there are gravel roads and loose stones that can damage your rental car. There is also the danger of sand and ash, which can damage the paintwork. That's why at Pelikan we recommend that in addition to the basic insurance, you should also take out sand and ash protection when travelling in Iceland. For more information on what's included in the insurance, see the Terms and Conditions when you choose your car.

What type of car rent in Iceland?

If you plan to just drive around Iceland’s ring road, you don´t need a 4WD. However, if you plan to drive on mountain roads (F-roads), we definitely recommend 4x4 cars.

What are the speed limits in Iceland?

The maximum speed limit is 30-50 km/h in populated areas, 80 km/h on gravel roads in rural areas and 90 km/h on paved roads.

How much does fuel cost in Iceland?

The average price of natural 95 petrol in Iceland is 2.3 EUR per litre.

Places you should visit in Iceland by rental car

 

If you're planning to travel around the Iceland in a rental car, you probably won't miss the Golden Circle, or the three main attractions that 90% of tourists visit in this magical island.

The first stop should definitely be Pingvellir National Park. This is the place where the oldest parliament in Europe was once established and also a unique place where the tectonic plates of North America and Europe rub against each other.

Iceland is best known for its thermal springs, waterfalls and geysers. The first known European geyser is the Geysir (or Great Geyser), which gave its name to the other geysers of the world. It is situated at the foot of Mount Laugarfjall in the southwestern part of Iceland. Not far from it is probably the most famous of all geysers in Iceland - Strokkur Geyser.  The geyser, whose name means "watering can" in Icelandic, is located in the geothermal area of southwest Iceland.  Strokkur is one of Iceland's most popular geysers for tourists, as it erupts regularly almost every 10 minutes and gushes up to a height of around 20 meters, so you should definitely not miss it when visiting Iceland. The good news is that you can easily get here by rental car.

strokkur geyser

 

Gulfoss Falls is just a short walk from Strokkur and is the final piece of the puzzle known as the Golden Circle. Free parking and priceless views. Gulfoss is one of the most famous waterfalls in Iceland. Located on the Hvítá River, it flows through a 2 km long canyon and the waterfall itself is a double cascade where the flow of the river gradually drops from heights of 10 and 20 metres. If you're lucky with the weather and the sun comes out, you'll see an incredible rainbow.