1. Valid Driving License

To rent a car in Iceland, you must present a valid driver’s license held for at least one year. International visitors using licenses not in English may need an International Driving Permit (IDP) for verification.

2. Age Requirement

Most car rental companies in Iceland require drivers to be at least 20 years old, but certain vehicle categories—like large SUVs and vans—may require drivers to be 23–25 years old. Young driver fees may apply.

3. Credit Card for Deposit

Car rental agencies typically require a credit card under the main driver’s name with a sufficient limit for the security deposit. Debit cards are often not accepted for deposits.

4. Insurance Requirements

Basic insurance such as CDW (Collision Damage Waiver) is usually included, but Iceland’s unpredictable weather makes it smart to add gravel protection, sand & ash protection, and theft insurance for extra peace of mind.

5. Traffic Rules & Road Safety

Understanding Icelandic driving rules—like headlights on at all times, strict speed limits, and no off-road driving—is essential for legal and safe travel.

By meeting these car rental requirements in Iceland, travelers can enjoy a seamless experience exploring waterfalls, glaciers, and remote highland routes with confidence.