Best Car Rental Options for a Winter Road Trip in Iceland
11 min read

Best Car Rental Options for a Winter Road Trip in Iceland

11 min read
Magnús Jóhann Björnsson
27 Aug. 2025
Blog / Driving in Iceland / Best Car Rental Options for a Winter Road Trip in Iceland
Magnús Jóhann Björnsson
27 Aug. 2025
Blog / Driving in Iceland / Best Car Rental Options for a Winter Road Trip in Iceland

Iceland in winter feels like another world. Snow blankets the lava fields, waterfalls freeze into crystal shapes, and the northern lights dance in the sky. It’s quieter than the busy summer months, making it a unique time to visit.

But winter also brings challenges. Roads can be icy, storms can roll in quickly, and daylight hours are short. That’s why choosing the right rental car is so important. The car you drive can make the difference between a smooth, safe trip and a stressful one.

In this guide, we’ll walk you through everything you need to know about car rental in Iceland during winter. From which vehicles are best, to how to prepare for the roads, to why Blue Car Rental is trusted by thousands of travelers each year, you’ll find practical advice for planning your trip.

White car crossing a bridge in Iceland during winter.

Why Renting a Car in Winter is Different

Driving in Iceland is never boring, but in winter, it requires extra care. Roads can shift from clear to icy within a few kilometers, and the weather has a reputation for changing without warning. In addition, daylight is limited to just a few hours, which puts more pressure on travelers to plan carefully. Renting a car in the colder months isn’t the same as in summer because you need to think about safety features, route planning, and backup options in case of storms. Understanding these differences will help you prepare for a smoother and safer trip:

  1. Unpredictable weather: Sunshine can turn to snowstorms in minutes.

  2. Icy and snowy roads: Even main roads can be slippery.

  3. Short daylight hours: In December, you’ll only get 4–5 hours of daylight.

  4. Remote locations: Bus and tour schedules don’t always match your plans.

For flexibility and freedom, a rental car is the best choice. You can adjust your route, stop when the sky clears, and explore without worrying about missing a bus. Just make sure you have the right vehicle for the conditions. For more background on safety, see Blue Car Rental’s guide on Driving in Iceland in Winter.

Best Car Types for Winter in Iceland

The type of car you choose will shape your entire trip, from the routes you can safely attempt to how comfortable you feel when the weather turns rough. In winter, not all vehicles are equal, and selecting the right one can make the difference between a smooth, stress‑free holiday and a journey filled with delays or risks. Consider how much luggage you will carry, how often you plan to drive outside of Reykjavík, and whether you are prepared to face icy mountain passes or rural gravel roads. Thinking ahead now helps guarantee a safer, more enjoyable adventure.

1. 4x4 / SUV Rentals

If you’re planning a proper road trip, a 4x4 rental is the safest and most practical choice.

  • Better traction: Four-wheel drive helps on icy roads.

  • Higher clearance: Important if snow piles up or roads are uneven.

  • More space: Great for luggage, winter clothing, and camera gear.

Popular models in Iceland include the Dacia Duster, Toyota RAV4, and larger SUVs like the Toyota Land Cruiser. Learn more in Blue Car Rental’s post on Car Rental Iceland 4x4 – Cruising in Winter Wonderland.

2. Compact Cars (2WD)

Small cars can still work if:

  • You’re only staying around Reykjavík. For local highlights and ideas, see Discover Reykjavík with Rental Cars.

  • You plan to drive short distances on paved roads.

  • The weather is mild during your trip.

But for most winter visitors, a compact car is too limiting. If you want freedom to explore the South Coast, Snæfellsnes, or beyond, you’ll be happier in a 4x4.

3. Campervans

Campervans are popular in summer but not ideal for winter. Nights are too cold, many campsites are closed, and icy roads make large vehicles harder to handle.

Verdict: The best car rental in Iceland in winter is almost always a 4x4 SUV.

Pros and Cons of Different Car Types in Winter

Car Type Pros Cons
4x4 / SUV Excellent traction and clearance on snow, safer on icy roads, more luggage space, suitable for longer trips Higher rental price, uses more fuel than smaller cars
Compact Car (2WD) More affordable, good for city driving and short trips, easier to park Limited clearance, less safe in snow/ice, not ideal for rural or long winter routes
Campervan Combines travel and accommodation, flexible in summer, good space for gear Very cold at night in winter, many campsites closed, harder to handle on icy roads

Toyota Land Cruiser large 4x4 in snow during winter in Iceland.

What to Look for in a Winter Car Rental in Iceland

Not all rental companies include the same features, and the differences can be very important in Iceland’s winter conditions. While in summer you might get by with basic coverage and minimal extras, in colder months it’s essential to pay closer attention to what is included in your rental package. Some companies may appear cheaper at first glance, but once you add on insurance, tires, and roadside assistance, the cost quickly rises. Choosing wisely from the start will save both money and stress. When booking for winter, check that your car comes with:

  • Studded winter tires – Required by law in winter and included with all Blue Car Rental cars.

  • Unlimited mileage – Important if you’re covering long distances.

  • Full insurance options – Gravel, sand and ash, and zero-excess packages reduce stress.

  • GPS and Wi-Fi options – Mobile signal can be patchy in remote areas.

  • 24/7 roadside assistance – Essential for peace of mind.

  • Easy airport pickup/drop-off – Saves time when arriving in Keflavík.

For a detailed breakdown, see Blue Car Rental’s guide: Car Rental Insurance in Iceland – What to Know.

Long and icy winter road in Iceland.

Winter Driving in Iceland: Essential Tips

Even with the best car, winter driving requires preparation. Conditions change fast and unfamiliar landscapes can surprise even experienced drivers. Below are several key things to know, along with some added context to help you understand why each one matters in Iceland.

  1. Check conditions daily: Weather and road closures should be checked every morning, and ideally again during the day if you plan a long drive. Websites and apps update frequently, and knowing about a storm in advance lets you change your route before it’s too late.

  2. Drive slower: The speed limit may be 90 km/h, but on icy roads, slower is safer. Take into account wind gusts, blowing snow, and limited daylight. Many locals will also reduce their speed dramatically in bad weather, so follow their lead rather than the posted sign.

  3. Respect warnings: If the road is closed, don’t drive it. Fines are high, and it’s dangerous. Signs and barriers are there for safety, and ignoring them could leave you stranded with no easy rescue. It’s also important to understand that Icelandic emergency services can take time to reach remote locations.

  4. Fuel up often: Gas stations can be far apart, especially outside the south and west. Always fill up when you can, even if your tank is half full. In winter, a full tank is not only about reaching your destination – it’s about having enough fuel to stay warm if you get delayed.

  5. Be mindful of single-lane bridges and blind hills: Slow down and take turns. These features are common across Iceland, and in snowy conditions it’s harder to see oncoming traffic. Giving way and proceeding cautiously prevents accidents on narrow or slippery stretches.

  6. Use your lights and keep distance: Low visibility is common, so keeping headlights on and leaving a larger gap between you and the car ahead reduces the risk of sudden stops.

  7. Plan for darkness: In midwinter, you may only have four or five hours of daylight. Try to schedule longer drives in daylight and reserve evenings for local stops.

Iceland winter travel conditions

Winter Overview (Iceland): Conditions, Auroras & Budget
Month Driving Conditions Weather Northern Lights Chances Travel Budget
November Medium Medium High Medium
December Bad Bad High High
January Bad Bad High High
February Medium Medium High Medium
March Medium Medium Medium Medium

See Blue Car Rental’s article on Tips for Driving in Iceland in November for more seasonal insights and practical preparation advice.

Skógafoss waterfall frozen in winter.

Best Winter Routes for a Road Trip in Iceland

Winter doesn’t close the door on exploring. Some routes are stunning and safe with the right car:

Golden Circle

A short loop from Reykjavík with geysers, waterfalls, and Þingvellir National Park. Roads are usually kept clear, making it a great winter drive. See extra stops in Extra Stops Along the Golden Circle Route.

South Coast

Seljalandsfoss, Skógafoss, Reynisfjara black sand beach, and Vatnajökull Glacier. It’s one of the most beautiful drives in Iceland, especially in winter. Plan your journey with Exploring Jökulsárlón – Top Stops on Iceland’s South Coast.

Snæfellsnes Peninsula

Nicknamed “Iceland in Miniature,” this region has mountains, beaches, and lava fields. Winter adds a dramatic twist. For tips, see Vehicle Rental Iceland – Discover Snæfellsnes Peninsula.

Avoid: Highlands and Westfjords in winter. Roads are closed or unsafe until late spring.

Why Blue Car Rental is the Best Choice for Winter Travel

Thousands of travelers pick Blue Car Rental each year, especially in winter. The company has built its reputation on more than just affordable prices – it’s about providing a full winter-ready service that removes stress from your trip and lets you focus on the adventure ahead. Here’s why so many visitors continue to trust Blue Car Rental when the Icelandic winter sets in:

  • Winter-ready fleet: SUVs, 4x4s, and compact cars fitted with studded tires. Each vehicle is prepared for snow and ice conditions, ensuring you have the best grip and handling possible.

  • No hidden fees: All rentals come with unlimited mileage and included insurance options. You won’t face surprise charges at pickup or return, which gives peace of mind when planning a budget.

  • Zero-excess insurance available: No surprises if something happens. This coverage means you don’t have to worry about paying a deductible, even if the unexpected occurs on the road.

  • 24/7 roadside assistance: Always on call. Whether it’s a flat tire, dead battery, or weather-related problem, help is only a phone call away, day or night.

  • Fast and easy pickup: With online check-in and key box service, you avoid long lines at the airport and can get on the road faster. Many travelers value the time saved after a long flight.

  • Local expertise: Icelandic-owned and run, with a team who knows the roads. Staff are available to give advice on routes, weather conditions, and safety tips, offering insider knowledge that makes your trip smoother.

  • Flexible options for different travelers: From couples looking for compact cars to families who need larger SUVs, Blue Car Rental provides choices that adapt to the season and your travel group.

  • Proven trust: The company is consistently recommended by past customers in winter reviews, highlighting not only the vehicles but also the support and reliability of the service.

By combining practical services with local knowledge, Blue Car Rental delivers a rental experience designed specifically for Iceland’s winter challenges. Read more in Best Car Rental in Iceland – Why Blue Car Rental Tops the List.

Snow covered winter tires in Iceland.

Common Mistakes to Avoid When Renting in Winter

  • Going for the cheapest option: Safety matters more than saving a few euros. A budget car might look attractive on paper, but without four-wheel drive or proper tires it can make your journey much more stressful and even unsafe. To understand why 4x4s are often worth the investment, see Car Rental Iceland 4x4 – Cruising in Winter Wonderland.

  • Skipping insurance: Winter roads increase the chance of scratches, gravel damage, or ash storms. Paying a little extra up front gives peace of mind, and many travelers find the investment pays for itself if even a small incident occurs. For more guidance, read Car Rental Insurance in Iceland – What to Know.

  • Underestimating space: Winter gear takes up room – don’t rent too small a car. Consider your luggage, coats, and any winter sports equipment before deciding.

  • Ignoring fuel stops: Remote areas may not have gas stations. Running low on fuel in a snowstorm is more than inconvenient; it can be dangerous. See tips in Refuel With Confidence – Tips for Icelandic Rental Cars.

  • Driving on closed roads: Dangerous and illegal. Fines are high and rescue operations are costly. Always respect closure signs.

  • Not checking the weather daily: Iceland’s winter weather can change within hours. Forgetting to check official sites can put you at risk. For seasonal weather advice, you can read How Cold Is It in Iceland During Winter?.

  • Overestimating your driving skills: Even if you are confident on snowy roads at home, Icelandic conditions can be harsher and more unpredictable.

By avoiding these mistakes and preparing with caution, you set yourself up for a smoother trip. For further travel tips, check out this video:

Cost of Winter Car Rental in Iceland

Prices vary depending on the car type, insurance, and season. Here’s what to expect, along with some context to help you decide which option best fits your budget and travel style.

  • Compact cars (2WD): From around €40–€60 per day in winter. These are the most affordable option and work well for city driving or short day trips. However, keep in mind that they have less clearance and can struggle on snowy roads, so they are best suited for travelers who plan to stay near Reykjavík or drive only on main, well-maintained roads.

  • SUVs/4x4s: €70–€120 per day, depending on model. This is the most common choice for winter travel, striking a balance between safety and price. SUVs give you the confidence to handle icy or snow-covered roads while still keeping costs reasonable for groups or families. They also provide more luggage space for bulky winter clothing and gear.

  • Large SUVs (Land Cruiser, Land Rover): €120–€200 per day. These vehicles are the top tier of comfort and capability. They are ideal for longer trips, for travelers heading to more remote areas in winter, or for those who simply want extra space and stability. The higher cost reflects the power and durability of these models, which are well-suited to unpredictable Icelandic weather.

Insurance packages can add €10–€30 daily, but they’re worth it for peace of mind. For example, gravel protection and sand and ash insurance are particularly useful in Iceland’s unique environment, where winds and volcanic terrain can cause unexpected damage. While insurance may seem like an extra cost, many travelers find it saves money and stress in the long run. See more in Car Rental Iceland – How Much Does a Winter Trip Cost?.

SUV in winter under green northern lights in Iceland.

Final Travel Tips for Winter Road Trips in Iceland

Before you set off, it helps to keep a few practical reminders in mind. These small steps can make a big difference to your safety and comfort on the road. Think of them as simple habits that give you more peace of mind when the weather changes suddenly, or when you’re far from the nearest town and services.

  • Pack warm clothes, food, and water. In winter the weather can delay you, so carrying extra layers, snacks, and a thermos of something hot keeps you prepared for the unexpected. See more tips in How to Dress for Winter in Iceland

  • Download offline maps. Mobile data coverage isn’t perfect in remote valleys or along stretches of the South Coast, and having a backup ensures you won’t lose your way. Extra guidance is available in Driving in Iceland in Winter.

  • Always tell someone your planned route. Share your travel plans with a friend, your hotel, or even note it down before you go, so people know where you are if conditions change. Learn more in Blue’s Driver Guide – The Preventative Road Safety System.

  • Stay flexible – weather may change your plans. A closed road or storm doesn’t mean your trip is ruined; it often means discovering a different part of Iceland instead. Check the Short Overview of Icelandic Winter Weather for what to expect.

  • Bring a power bank for your phone and a flashlight. These small extras can be life savers if you’re delayed after dark.

  • Keep some Icelandic cash or card handy for rural gas stations that may not accept all international cards.

With the right car and preparation, a winter road trip in Iceland can be safe, comfortable, and unforgettable. By thinking ahead and giving yourself extra margin for safety, you’ll be able to relax and enjoy the dramatic landscapes around you. For more seasonal guidance, see Winter Road Trip in Iceland – Top Tips for an Early Start. And with Blue Car Rental, you’ll have a trusted partner by your side from the moment you land.

FAQ

What is the best car rental option for winter in Iceland?

The best option is a 4x4 SUV. It provides the traction, clearance, and space you need for safe and comfortable winter driving in Iceland.

Do I need a 4x4 car rental in Iceland during winter?

Yes, especially if you plan to travel outside Reykjavík. A 4x4 makes driving on icy roads much safer and allows you to reach popular routes like the South Coast and Snæfellsnes Peninsula.

How much does a winter car rental in Iceland cost?

Prices vary by vehicle type. Compact cars start around €40–€60 per day, while 4x4 SUVs range from €70–€120 per day. Large SUVs can cost €120–€200 daily. Insurance is extra but recommended.

Is it safe to drive in Iceland in winter?

Yes, if you prepare properly. Always check weather and road conditions, drive slower than the summer limits, and choose a winter-ready rental car with studded tires.

Why choose Blue Car Rental for winter driving in Iceland?

Blue Car Rental offers winter-ready 4x4 vehicles with studded tires, full insurance options, 24/7 roadside assistance, and fast pickup at Keflavík Airport. It’s a local company trusted by thousands of travelers each year.