Wondering how old you need to be to rent a car for your dream Iceland trip? You’re not alone; many travelers find the rules confusing, especially the difference between the legal driving age and the minimum rental age. This confusion can lead to booking problems or unexpected fees.
Most car rental companies in Iceland require drivers to be at least 20 years old to rent a standard economy or compact car. For larger vehicles, such as 4×4 SUVs, passenger vans, or campervans, the minimum age requirement typically increases to 23 years old. Drivers under the age of 25 should also expect to pay a daily “young driver fee.”
This guide, based on an analysis of 2026 verified rental agency policies, clarifies every rule. You’ll discover the specific age requirements for different vehicle types, how much you can expect to pay in extra fees, and how major rental companies compare. This will ensure you can book your car with confidence.
Key Facts
- Standard Minimum Age is 20: The vast majority of rental agencies require drivers to be at least 20 years old for a basic car, with some exceptions for drivers aged 18-19 at select local companies.
- 4×4 & SUV Age is 23: To rent a 4×4 or larger SUV, which is often necessary for Iceland’s F-roads, the driver must be at least 23 years old.
- Young Driver Fee is Standard: Drivers under the age of 25 are almost always subject to a daily “Young Driver Surcharge,” typically ranging from €7 to €14 per day.
- License Must Be Held for 1 Year: All companies require you to have held your full driver’s license for a minimum of 12 months before the rental date.
- Credit Card is Mandatory: A valid credit card in the main driver’s name is required for the security deposit; debit cards are generally not accepted for this purpose.
How Old To Rent A Car In Iceland? 2026 Age & Fee Rules Explained
The minimum age to rent a standard car in Iceland is typically 20 years old, while for larger vehicles like 4x4s and campervans, it’s usually 23. This is a commercial rule set by rental companies based on insurance risk, not a national driving law. Nearly all drivers under the age of 25 will also face a mandatory daily young driver surcharge.
Understanding these age tiers is the first step to a successful Iceland road trip. The age of the driver directly impacts not only the cost but also the type of vehicle you can hire, which can affect your travel itinerary, especially if you plan on visiting the highlands.
- Age 20-22: You can rent standard 2WD vehicles (economy, compact). You will pay a young driver fee.
- Age 23-24: You gain access to 4×4 SUVs and larger passenger vans. You will still pay a young driver fee.
- Age 25 and Over: You can rent most vehicles (excluding some specialty luxury cars) and are no longer required to pay the young driver fee.
What Is the Official Driving Age in Iceland vs. the Rental Age?
The legal age to hold a driver’s license and drive a car in Iceland is 17; however, this is not the age you can rent a car. Car rental companies are private businesses that set their own rules based on risk assessments from their insurance providers. Because younger, less experienced drivers are statistically more likely to be in an accident, the minimum rental age is set higher, at 20 for most companies.
Think of it as a “Myth vs. Fact” scenario:
* Myth: You can rent a car in Iceland at 17 because you have a valid license.
* Fact: You must be at least 20 years old to sign a rental agreement with most agencies, due to insurance policy terms.
What Are the Age Requirements for Different Vehicle Types in Iceland?
The age limit isn’t one-size-fits-all; it changes based on the vehicle’s size, power, and replacement value. Planning to explore the highlands or travel with a large group? You’ll need to meet a higher age requirement.
Standard 2WD Cars (Economy/Compact)
For a standard 2WD vehicle, like a Toyota Yaris or Kia Ceed, the minimum age is 20 years old. These cars are perfect for driving the Ring Road and other paved roads. They are the most accessible and affordable option for young drivers.
4×4 SUVs & Larger Vans
To rent a 4×4 SUV (like a Dacia Duster or Toyota RAV4) or a larger passenger van, you must be at least 23 years old. This rule is strictly enforced. The higher age limit is due to the increased risk associated with these vehicles, which are required for Iceland’s mountainous interior F-roads (Fjallabak). If your itinerary includes destinations like Landmannalaugar or Þórsmörk, the driver must be 23 or older.
Campervans & Motorhomes
The minimum age for renting most campervans and larger motorhomes is typically between 23 and 25 years old. Companies often set the age at 25 for their larger, more equipped models due to their high value and the skills required to maneuver them safely. Always verify the specific age for the campervan model you want to book.
Luxury Vehicles
For high-end luxury vehicles or sports cars, rental companies may require drivers to be 25 or even 30 years old. These rentals also often require a larger security deposit. These vehicles are rare in the Icelandic rental market and subject to the strictest policies.
Can You Rent a Car in Iceland at 18 or 19?
Yes, it is possible to rent a car in Iceland at 18 or 19, but your options are very limited and it comes with significant downsides. Most major rental agencies will turn you away. A few local companies, most notably Sadcars, specialize in renting to this age group.
However, here’s the reality check:
* ✅ Pros: You gain the freedom of having your own car.
* ❌ Cons:
* You will pay a very high young driver fee.
* Your choice of vehicle will be limited to older, basic, high-mileage models.
* The included insurance may be minimal, requiring you to purchase expensive add-ons.
How Much Is the Young Driver Fee in Iceland?
The young driver fee in Iceland is a daily surcharge that typically ranges from 1,000 to 2,000 ISK (approximately €7-€14 or $8-$16 USD) per day. This non-negotiable fee is applied to all drivers under a certain age—usually 25—to cover the higher perceived insurance risk.
This fee is added on top of your standard rental rate and any insurance you purchase. It’s crucial to factor this into your budget. For a 7-day trip, a 1,500 ISK daily fee adds an extra 10,500 ISK (about €70) to your total cost. Some companies may cap the total fee for a single rental, but you should always confirm this when booking.
Who pays the Young Driver Fee?
* Drivers aged 20-24 at most companies.
* Drivers aged 18-19 at the few companies that will rent to them.
* Any additional drivers on the contract who are under the age of 25.
How Do Age Policies Compare Across Major Icelandic Rental Companies?
Policies can vary slightly between rental providers, especially concerning the exact age for the young driver fee. While the 20/23 rule is a strong standard, seeing the specific policies of popular local and international companies helps in making an informed choice. The data below is for 2026 and is subject to change.
| Rental Company | Minimum Age (Standard Car) | Minimum Age (4×4/SUV) | Young Driver Fee Notes |
|---|---|---|---|
| Blue Car Rental | 20 | 23 | Applies to drivers aged 20-23. |
| Lava Car Rental | 20 | 23 | Applies to drivers under 25. |
| Sadcars | 18 | 20 | A higher fee applies to drivers aged 18-19. Best for 18-19 year olds. |
| Hertz Iceland | 20 | 23 | Applies to drivers under 25. |
| Go Car Rental | 20 | 23 | Applies to drivers aged 20-24. |
Pro Tip: Always double-check the terms and conditions directly on the rental company’s website before booking. Policies can and do change, and having the most current information is key to avoiding surprises.
What Documents Do You Need to Rent a Car in Iceland?
Arriving prepared with the correct documentation is essential for a smooth pickup process. Being denied your car because of a missing document is a frustrating and avoidable start to your trip. Here is the checklist of what every driver will need.
- Valid Driver’s License
Your license must have been held for a minimum of 12 full months. It also must use the Latin alphabet (e.g., English, German, Spanish). If your license is in a different script (such as Cyrillic, Arabic, or Chinese), you must obtain an International Driving Permit (IDP) to accompany it. A US, UK, Canadian, or EU license is perfectly fine on its own. -
Credit Card in the Main Driver’s Name
You must present a physical credit card to cover the security deposit. Debit cards, prepaid cards, and cash are not accepted for the deposit. The card must be in the name of the person who is listed as the primary driver on the rental agreement. The rental agency will place a temporary hold (not a charge) on the card for the amount of your insurance excess. -
Passport/ID
A valid passport or national ID card (for EU/Schengen citizens) is required to verify your identity and cross-reference with your driver’s license. -
Booking Voucher
If you pre-paid for your rental online, have a printed or digital copy of your confirmation voucher ready.
FAQs About how old to rent a car iceland
Is there a maximum age to rent a car in Iceland?
Generally, there is no maximum age limit to rent a car in Iceland, provided you hold a valid driver’s license and meet all other requirements. Some companies may require drivers over the age of 75 to provide a recent doctor’s note confirming their fitness to drive, but this is not a universal rule. Always check with the specific rental agency if you have concerns.
Does the young driver fee apply to additional drivers?
Yes, if an additional driver is under the age of 25, the young driver surcharge will typically apply to them. You will also have to pay a separate, smaller daily fee for adding an additional driver to the rental contract, regardless of their age. This ensures that any person who might drive the car is covered by the insurance policy.
Can I rent a car in Iceland with a provisional license or permit?
No, you cannot rent a car in Iceland with a provisional license or learner’s permit. All rental companies require that the main driver and any additional drivers hold a full, valid driver’s license that has been held for a minimum of 12 months. This requirement is strict and without exceptions.
What insurance is mandatory when renting a car in Iceland?
Collision Damage Waiver (CDW) is legally required and is always included in the rental price in Iceland. However, this basic insurance comes with a very high self-risk (deductible). It is highly recommended to purchase additional coverage like Super CDW (SCDW), Gravel Protection (GP), and Sand and Ash Protection (SAAP) to reduce your financial liability.
Is it cheaper to rent a car once you turn 25 in Iceland?
Yes, renting a car in Iceland becomes significantly cheaper once you turn 25. At this age, you are no longer subject to the mandatory daily young driver surcharge, which can save you a substantial amount of money, especially on longer rentals. You will also have access to a wider range of vehicle categories without restriction.
Can I rent a car at Keflavik Airport (KEF) if I’m under 25?
Yes, you can rent a car at Keflavik Airport if you are under 25, as long as you meet the minimum age requirement of your chosen rental company (typically 20). All major rental companies have desks at KEF airport, and their standard age policies and young driver fees apply there just as they do at city locations.
How can I avoid young driver fees in Iceland?
The only guaranteed way to avoid young driver fees is to be 25 years of age or older. There are no loopholes. Some have suggested having an older person rent the car, but if an unlisted driver is caught driving, the insurance is immediately voided, making you personally liable for all damages.
Do I need to have experience driving in snow to rent a car in winter?
While not a formal requirement by rental companies, having experience driving in winter conditions is highly recommended if you visit Iceland between October and April. Icelandic roads can be icy and subject to sudden weather changes. All rental cars will be equipped with winter tires as required by law during this period.
Can I use a debit card to rent a car in Iceland?
Almost all rental companies in Iceland require a physical credit card in the main driver’s name to hold a security deposit. Debit cards are generally not accepted for the deposit because they cannot be used to place a temporary hold on funds. You can often pay the final rental bill with a debit card, but the initial deposit must be secured with a credit card.
What happens if I violate the age policy and drive the car anyway?
If an unlisted, underage driver is caught driving a rental car, the insurance is immediately voided. In the event of any damage or an accident, you would be personally liable for the full cost of repairs to the rental car and any third-party damages, which could amount to tens of thousands of Euros. It is a severe financial risk that is not worth taking.
Key Takeaways: How Old To Rent A Car In Iceland Summary
- Standard Age Rule is 20, Not 17 – You must be at least 20 years old to rent a basic car from most companies, even though the legal driving age in Iceland is 17.
- Larger Vehicles Require Age 23+ – To rent a 4×4 SUV (necessary for F-roads) or a large passenger van, the minimum age requirement almost always increases to 23 years old. Campervans often require age 25.
- The “Young Driver Fee” is Unavoidable Under 25 – If you are under 25, expect to pay a daily surcharge of around 1,000-2,000 ISK (€7-€14). This fee is mandatory and covers the higher insurance risk.
- A Credit Card is Mandatory – You must have a physical credit card in the main driver’s name for the security deposit. Debit cards are not accepted for the hold.
- Your License Must Be Held For 12+ Months – A full driver’s license held for at least one year is required. An International Driving Permit (IDP) is only necessary if your license is not printed in the Latin alphabet (like English).
- Company Policies Vary – While most companies follow the 20/23 age rule, some local agencies like Sadcars may rent to drivers aged 18-19, but at a premium cost and for older vehicles. Always compare.
Final Thoughts on Renting A Car In Iceland
Navigating Iceland’s car rental age rules doesn’t have to be complicated. The key is understanding the three main pillars: the minimum age for your desired vehicle (20 for standard, 23 for 4×4), the mandatory young driver fee if you’re under 25, and the absolute need for a credit card in the driver’s name.
By planning ahead, budgeting for the surcharge, and choosing a company that aligns with your age, renting a car as a young driver is entirely achievable. With the right vehicle and the correct documents in hand, you are ready to confidently explore the incredible landscapes that make Iceland a world-class road trip destination. What has been your experience with these rental rules?
