Car Rental in Iceland for Singapore Travelers

Discover picturesque Iceland, known for its waterfalls, glaciers, and volcanic terrains. For travelers from Singapore, renting a car ensures flexibility and access to the country's most stunning remote locations.

Is my Singapore driving license valid in Iceland?
What insurance coverage is essential for driving in Iceland?
What are the typical costs for vehicle rentals in Iceland?
Are there restrictions on driving during Icelandic winters?
How do driving rules in Iceland differ from Singapore's?

This guide provides all the details you need to plan a safe and memorable journey through Iceland. By the end, you'll be ready to hit the road with confidence, armed with knowledge about driving and renting cars in this unique destination.

Can Singapore Citizens Drive in Iceland?

Yes, Singaporean travelers can legally drive in Iceland with the proper documentation. Age restrictions and additional document requirements may apply.

Form of ID:
A valid passport.
Driving licence:
Accepted driving licence include:
• Original driving licence + International Driving Permit (IDP)
• EU/EEA Driving License
Notes: Please note that an International Driving Permit (IDP) is only a translation. You must present your original driving licence with the original IDP at the counter. EU/EEA driving licenses are valid for car rental across the EU/EEA, as well as in Switzerland and the United Kingdom.
Accepted cards:
Physical credit cards in the full name of the main driver. Supported cards include Visa, Master, DinersClub, and AMEX.
Age requirements:
Drivers must be between 18 and 99 years old. Young drivers aged 18-20 may incur a fee of US$ 8.40 per day.

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Requirements may vary between rental companies. Always confirm details when booking.

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Which Car Rental Companies Are Best?

Choose from trusted global chains or innovative local alternatives. Each offers different advantages for Singaporean travelers in Iceland.

Global Chain Companies

Local Brands

Europcar
global
8.5
Locations:
83
Prices:
$$
Key Advantages
- Wide range of vehicles
- Flexible pick-up and drop-off locations
- Loyalty program for frequent renters
- Excellent customer service
Best for
Leisure travelers and eco-conscious renters
Hertz
global
8.5
Locations:
54
Prices:
$$$
Key Advantages
- Largest fleet in USA
- Premium vehicle selection
- Gold Plus Rewards loyalty program
- Express rental counters
Best for
Business travelers and premium vehicle needs
Budget
global
8.5
Locations:
36
Prices:
$
Key Advantages
- Competitive pricing
- Convenient locations
- Excellent customer service
- Loyalty rewards program
Best for
Cost-conscious travelers and families
SIXT
global
8.5
Locations:
18
Prices:
$$
Key Advantages
- Wide selection of premium and luxury cars
- Flexible rental terms
- Easy online booking
- Excellent customer service
Best for
Travelers seeking premium vehicles and flexible rental options
Alamo
global
8.5
Locations:
13
Prices:
$$
Key Advantages
- Great value for money
- Quick and easy booking process
- Excellent customer service
- Wide range of vehicle options
Best for
Leisure travelers and families

Icerental 4x4
local
8.5
Locations:
2
Prices:
$$
Key Advantages
- Specialized in 4x4 and SUV rentals
- Knowledgeable staff on winter conditions
- Competitive pricing for long-term rentals
- Flexible pick-up and drop-off options
Best for
Adventure seekers and winter travel
FAIRCAR
local
8.5
Locations:
6
Prices:
$$
Key Advantages
- Competitive pricing
- Personalized customer service
- Convenient pickup and drop-off locations
- Wide range of vehicle options
Best for
Budget-conscious travelers and local rentals
ACE Rent A Car
local
8.5
Locations:
4
Prices:
$$
Key Advantages
- Competitive pricing
- Customer-friendly service
- Flexible rental options
- Special deals for long-term rentals
Best for
Budget-conscious travelers and families
SAGA Car Rental
local
8.5
Locations:
1
Prices:
$
Key Advantages
- Personalized customer service
- Convenient local locations
- Competitive pricing
- No hidden fees
Best for
Budget-conscious travelers and local rentals
Lava
local
8.5
Locations:
1
Prices:
$-$$
Key Advantages
- Personalized customer service
- Convenient pickup and drop-off locations
- Competitive pricing
- Local knowledge and recommendations
Best for
Budget-conscious travelers and local excursions

Recommendations for Singaporean Travelers

Choose Global Chains If:

First time renting in Iceland
Need reliable nationwide coverage
Want 24/7 customer support
Business or important travel

Choose Local Brands If:

Want to save money
Staying in Reykjavik or major towns
Interested in unique vehicle options
Comfortable with localized services

How to Choose the Right Car?

Selecting the appropriate rental car ensures your journey is comfortable, safe, and tailored to your needs. Consider your travel group size, destination specifics, and driving preferences. With QEEQ, you can compare various car types and rental policies to find the best fit for your trip from Singapore to Iceland.

Seating and Luggage
Match vehicle capacity to your travel group and luggage requirements
- Economy cars (2-4 people, 1-2 suitcases)
  Suitable for solo travelers or couples
- Compact cars (4-5 people, 2-3 suitcases)
  Ideal for small families or groups
- Mid-size cars (5 people, 3-4 suitcases)
  Perfect for longer drives and more luggage
- SUVs (5-7 people, 4+ suitcases)
  Great for group travel and challenging terrains
Transmission Type
Decide between automatic and manual transmission based on your comfort level
- Automatic transmission
  Popular choice for Iceland, especially for international travelers
- Manual transmission
  Commonly available, offers better control in mountainous areas
- Consider your experience driving on icy roads
- Check availability of preferred transmission type during booking
Insurance Included
Understand the coverage offered by the rental company
- Basic liability
  Typically included, covers third-party damages
- Collision Damage Waiver (CDW)
  Recommended for protection against accidental damages
- Theft protection
  Check if this is included or available as an add-on
- Additional coverage
  Consider insurance for gravel damage, popular in Iceland
Cancellation Policy
Review flexibility and fees associated with booking changes
- Free cancellation
  Available within specified timeframes
- Prepaid vs. Pay-at-counter
  Prepaid bookings often have stricter cancellation terms
- Modification fees
  Consider costs for adjusting booking details
- Travel insurance
  Provides coverage for unforeseen trip delays or cancellations
Mileage Policy
Verify distance limits and additional fees
- Unlimited mileage
  Ideal for exploring Iceland’s vast and scenic routes
- Limited mileage
  May result in extra charges for exceeding limits
- Ensure planned route aligns with mileage policies
- Consider total trip distance when comparing rental options
Fuel Policy
Be aware of fuel requirements and associated costs
- Full-to-Full
  Most economical and preferred option for Iceland
- Full-to-Empty
  Convenient but potentially more expensive
- Same-to-Same
  Matches fuel level at pickup and return
- Evaluate pre-purchase fuel options for convenience

Quick Decision Guide

City Travel
Compact/Economy car with automatic transmission, full-to-full fuel policy
Reykjavík and neighboring towns
Road Trip
Mid-size/SUV with unlimited mileage, gravel damage insurance
Golden Circle, Ring Road
Adventure
SUV/4x4 with comprehensive insurance, flexible cancellation
Highland roads, glacier tours

Compare with Confidence on QEEQ

Don't settle for the first option you find. QEEQ makes it easy to compare car types, policies, and total costs from multiple providers. See all fees upfront, read real customer reviews, and choose the perfect car for your adventure.

Compare all car rental deals
No hidden fees
Real customer reviews

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What Are the Popular Destinations in Iceland?

Iceland is renowned for its stunning natural landscapes and unique attractions. Popular destinations include Reykjavik, the Golden Circle, and the South Coast, offering adventure-filled routes and breathtaking scenery.

What Insurance Do I Need?

You'll need at least basic insurance to legally drive in Iceland, but for peace of mind, especially in challenging weather conditions, extra coverage is strongly recommended. Insurance rules may vary, and what's included in your rental price might be minimal. Choosing the right protection can save you from high out-of-pocket costs in case of an accident, theft, or damage.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car in case of a collision or accident. It typically includes a deductible amount that you may still be responsible for.
SGD 20-35/day
Essential
Theft Protection (TP)
Provides coverage in the event of theft of the rental vehicle. Often includes a deductible.
SGD 10-15/day
Essential
Third-Party Liability Insurance
Covers injury or damage to other people and their property caused by your use of the rental car.
Usually included in rental price
Included
Sand and Ash Protection (SCP)
Covers damages caused by wind-blown sand and volcanic ash, which are common in Iceland.
SGD 25-40/day
Recommended
Personal Accident Insurance (PAI)
Provides coverage for medical expenses and accidents affecting you or your passengers.
SGD 8-12/day
Optional

QEEQ's Complete Protection Solutions

Perfect for travelers who want comprehensive protection without the complexity. One price covers everything, and AXA's trusted network ensures reliable claims processing throughout Iceland. Get comprehensive coverage online for about 50% less than counter rates.

Coverage Feature

QEEQ Full Coverage

Basic Rental Company

Collision Damage Waiver

Fully Covered

$0.00 - $4,952.09

Theft Protection

Fully Covered

$0.00 - $4,380.56

Personal Accident Insurance

Fully Covered

Not Covered

Tire, Window, Mirror Damage

Fully Covered

Not Covered

Roadside Assistance

Fully Covered

Not Covered

Know more About QEEQ Full Coverage

Maximize Savings on Your Iceland Car Rental

Discover essential tips to save money while renting a car in Iceland as a traveler from Singapore. Learn how timing, comparison tools, and simple strategies can help you stay within budget.

Booking Tips for lower Prices

Plan and Book Early
Car rentals in Iceland are in high demand during peak seasons. Booking 4-6 weeks in advance ensures you secure availability and better rates.
Save up to 35%
Use Price Comparison Tools
Platforms like QEEQ and Rentalcars.com allow you to compare prices across multiple providers, ensuring you pick the most affordable option.
Save up to 20%
Opt for Full-to-Full Policy
Choose rental companies offering full-to-full fuel policies to avoid additional refueling charges. Locate cheaper fuel stations using apps like Google Maps.
Save SGD 30-50 per trip
Check for Unlimited Mileage
Many car rental companies in Iceland offer unlimited mileage options. This can be cost-effective for longer routes around the island.
Save on potential mileage overcharges

QEEQ's Money-Saving Features

Diamond Membership
Save up to 20% on every booking - free trial available below.
View Details
Price Drop Protector
If your booked car price drops, QEEQ automatically rebooks it at the lower rate and refunds the difference to you.
View Details
One-Dollar Freeze
Lock in today's price with just $1 upfront and pay the rest later.
View Details
Flexible Payments
Pay with credit/debit cards or even cryptocurrency via BitPay.
View Details

What Should You Pay Attention To?

Important considerations and potential issues to watch for when renting a car in Iceland.

Hidden Fees
Review all charges beforehand to avoid unexpected costs.
- Airport location fees
- Young driver and additional driver fees
- Optional equipment rentals
- Insurance upgrades
- Roadside assistance fees
Insurance Coverage
Understand the insurance requirements and options available.
- Check if your credit card covers rental insurance
- Consider gravel protection insurance due to Iceland's road conditions
- Evaluate theft and collision damage waiver options
- Ensure coverage for natural events, such as sand and ash storms
Fuel Policies
Be aware of fuel policy to avoid extra charges.
- Full-to-full fuel policy is standard
- Prepaid fuel options might be more expensive
- Locate nearby gas stations for convenience
- Document fuel levels upon pickup and return
Vehicle Condition
Inspect the vehicle thoroughly before leaving.
- Photograph existing scratches and damages
- Check tire condition, especially for rugged terrains
- Verify functionality of headlights and wipers
- Review vehicle's cleanliness and interior condition
Pickup and Return Timing
Plan your rental timing to align with your itinerary.
- Ensure timely pickup and return to avoid penalties
- Confirm business hours of the rental office
- Allocate extra time for vehicle inspection and paperwork

Remember

Being prepared and knowing what to expect can save you hundreds of dollars and prevent stressful situations. Take time to understand all terms and inspect your rental thoroughly.

Differences and Similarities in Traffic Rules Between Singapore and Iceland

Understand the critical differences and similarities in traffic regulations between Singapore and Iceland for a safe and enjoyable driving experience.

Daytime Running Lights
IS
Mandatory at all times, even during daylight.
SG
Not required during daytime.
Driving Side
IS
Drive on the right-hand side of the road.
SG
Drive on the left-hand side of the road.
Winter Tires
IS
Compulsory during winter months.
SG
No specific winter tire requirement.
Mobile Phone Use
IS
Allowed only with hands-free devices.
SG
Allowed only with hands-free devices.
Seatbelt Laws
IS
Mandatory for all passengers.
SG
Mandatory for all passengers.
Parking Rules
IS
Observe parking signs and restrictions strictly.
SG
Parking rules must be followed strictly.
Remember
- • Always carry an international driving permit along with your Singaporean driving license.
- • Be cautious of weather conditions, especially during winter in Iceland.
- • Familiarize yourself with local traffic signs and rules of the road.
- • Ensure your vehicle is equipped with necessary safety gear such as a first aid kit and warning triangle.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from Singapore renting a car in Iceland

What is CDW (Collision Damage Waiver) insurance, and do I need it for car rental in Iceland?

CDW is the most basic insurance that covers damage to the rental car's body in case of a collision. It is mandatory and included in almost all car rental packages in Iceland. However, it usually comes with a high deductible (often 2000–3500 SGD), meaning you must pay up to that amount if the car is damaged.

What is SCDW (Super Collision Damage Waiver), and how does it differ from CDW?

SCDW is an upgraded version of CDW. It significantly reduces your deductible, sometimes even to zero, depending on the provider. Given the high cost of car repairs in Iceland, SCDW is strongly recommended for peace of mind.

What is GP (Gravel Protection) insurance and is it necessary in Iceland?

GP covers damage from gravel hitting the windshield, headlights, and paintwork. It's highly recommended in Iceland, even if you only drive on the Ring Road, due to frequent unpaved stretches and flying gravel from passing cars. Windshield replacement can be costly.

What is SAAP (Sand and Ash Protection), and when do I need it?

SAAP covers severe abrasion damage from sand and volcanic ash, especially during strong winds. This damage is very expensive to repair and is not covered by CDW/SCDW. SAAP is strongly advised if you plan to drive in South Iceland during spring or autumn, or if strong winds are forecasted.

Is TP (Theft Protection) necessary in Iceland?

TP covers theft of the rental car itself, not personal belongings inside. Car theft is extremely rare in Iceland and TP is usually bundled with CDW. Still, never leave valuables in the car.

Can Singapore travel insurance or credit card rental insurance cover Iceland car rentals?

In theory, it may cover some aspects, but it’s not recommended. Many Singaporean credit cards and travel insurances do not cover Iceland-specific risks like gravel, sand, ash, or river crossing damage. Claiming is complex and requires upfront payment and documentation. Local insurance is far more convenient and reliable.

What is 'Zero Excess' insurance?

'Zero Excess' insurance is a package combining SCDW, GP, SAAP, etc., reducing your liability for most common damages to zero. It’s the most comprehensive but also the most expensive, providing maximum peace of mind.

Are there types of damage not covered by any insurance?

Yes. Common exclusions include tire damage, undercarriage damage, water damage from river crossings, doors damaged by wind, misfuelling, and any damage from drunk or reckless driving.

How do I pick up a rental car at Keflavik International Airport (KEF)?

There are two main ways: major companies have desks inside the terminal, while most local companies use shuttle buses to offices nearby. Follow the 'Car Rental Shuttle Bus' signs after arrival.

What documents do I need to present at pick-up?

You need the original passports and valid Singapore driving licenses of all drivers, an international credit card (name must match the main driver), and the car rental voucher.

How important is the vehicle inspection at pick-up?

Extremely important. Carefully inspect and photograph the car for any existing damage. Ensure all scratches, dents, and windshield chips are documented with the rental company to avoid disputes at return.

What should I check during the vehicle inspection?

Check all body panels, bumpers, wheels, mirrors, windows, lights, and tires. Start the car, check for dashboard warning lights, test all controls, and confirm fuel level. Document everything with photos and video.

What should I do when returning the rental car?

Allow at least 3–4 hours before your flight. Refuel to full, clean the car if necessary, photograph the car again, and request a final return confirmation document from the rental company.

What if I have to return the car after hours?

Most companies offer key drop-off services. You leave the keys in a designated box. In this case, thorough photo and video documentation before drop-off is crucial in case of later disputes.

How long does it take to receive the final bill and unfreeze the deposit after returning the car?

The final bill usually arrives within several days to a week by email. The deposit is unfrozen within 7–30 working days, depending on your bank. Contact the rental company and your bank if it takes longer.

What are the most important driving rules to know in Iceland?

You must always use headlights, never park on the roadside, off-road driving is strictly illegal, all passengers must wear seatbelts, children require appropriate seats, drink-driving is strictly prohibited, and it’s illegal to use a handheld phone while driving.

What are the speed limits in Iceland and are fines high?

Speed limits are strictly enforced: 30–50 km/h in towns, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Fines are substantial and speed cameras are common. Rental companies may also charge an admin fee for processing fines.

What are F-roads and what should I know about them?

F-roads are highland mountain tracks, unpaved and often requiring river crossings. Only 4WD vehicles are legally allowed; insurance is void for 2WD cars on F-roads. Driving a 2WD car there risks fines and full liability for damages.

What is the procedure for crossing single-lane bridges in Iceland?

Single-lane bridges are common. The first car to reach the bridge has the right of way. Slow down, check for oncoming vehicles, and yield if another vehicle arrives first.

What are the best practices for driving on gravel roads?

Reduce speed below 80 km/h, keep a safe distance from other vehicles, and avoid sudden braking or sharp turns to prevent skidding or windshield damage.

How should I handle strong winds while driving in Iceland?

Hold the steering wheel firmly, especially in open areas. Be extremely careful when opening car doors—hold them tightly to prevent wind damage, which is a common and costly issue.

What should I do when driving on icy or snowy roads in winter?

Rent a 4WD with winter tires, drive gently, maintain extra distance, watch out for black ice, and always check weather and road conditions before departure.

Are sheep or wildlife a concern when driving in Iceland?

Yes, especially in summer. Sheep often cross roads unexpectedly. Slow down and be prepared to stop. Hitting livestock requires compensation and is not usually covered by insurance.

Is fuel expensive in Iceland, and how do I avoid misfuelling?

Fuel is very expensive in Iceland. Always check whether your rental uses petrol (green nozzle, ‘Bensin 95’) or diesel (black nozzle). Misfuelling can cause severe engine damage not covered by insurance.

How do I refuel in Iceland?

Most stations are self-service and require a credit card with a PIN. Insert your card, enter your PIN, select the amount or 'fill up', and then refuel. If your card doesn’t work, you can buy prepaid fuel cards inside the store.

Are there toll roads or tunnels in Iceland?

Most roads are free, but the Vaðlaheiðargöng tunnel near Akureyri requires online payment within three hours of use at www.tunnel.is. Late payments incur extra fees.

What’s the parking situation in Iceland’s towns and cities?

Parking is free in most rural areas, but Reykjavik and Akureyri have paid zones (P1–P4). Pay at meters or via EasyPark/Parka apps, and always display your ticket on the dashboard.

What should I do if my rental car breaks down?

Pull over safely, turn on hazard lights, and call the 24-hour emergency number provided by your rental company for roadside assistance.

What steps should I take in case of a traffic accident?

Ensure everyone’s safety, call 112 if there are injuries, contact the rental company, fill in the European Accident Report Form, exchange information with other parties, take photos, and notify police if needed.

Can I be fined for returning a very dirty rental car?

Yes. While some dirt is acceptable, excessive dirt, mud, or trash may result in a cleaning fee. Consider using self-service car washes at gas stations if necessary before return.

Do I need to rent snow chains for winter driving in Iceland?

No. Rental cars come equipped with winter or studded tires in winter. Snow chains are rare and sometimes prohibited to prevent road damage.

How long does it take to drive the full Ring Road?

The Ring Road is about 1,332 km. Nonstop driving takes 16–17 hours, but at least 8–10 days is recommended for sightseeing. In winter, plan for 12–14 days due to weather and daylight limitations.

Is it possible to pick up a rental car in one city and return it in another?

Yes, but there is usually a significant one-way fee. The most common route is between Keflavik Airport and Reykjavik. Longer distances incur higher costs.

Are there any hidden clauses in Icelandic rental contracts?

Check for mileage limits (most offer unlimited mileage, but some budget options may not). Review exclusions for damage (tires, undercarriage, water damage, etc.). Read the contract thoroughly.

What is Iceland’s emergency number?

The emergency number is 112 for police, ambulance, or fire. Download the '112 Iceland' app for GPS-based emergency location reporting.

What should I do if I receive a traffic fine?

If stopped by police, pay at a bank or post office. For camera tickets, the fine is sent to the rental company, who will deduct the amount plus an administrative fee from your card.

Should I choose a petrol or a diesel car?

Diesel is generally cheaper and more fuel-efficient, making it ideal for long trips. However, you usually select fuel type, not specific models, during booking.

Is an International Driving Permit required for Singaporean drivers in Iceland?

No. Singaporean drivers with a valid English-language license do not need an International Driving Permit to drive in Iceland.

Why is it important to use QEEQ for booking?

QEEQ offers price comparisons, bundled insurance options, and often more flexible cancellation policies. It’s a reputable platform for securing the best deals and comprehensive coverage in Iceland.

Is it safe to drive in Iceland as a first-timer?

Yes, as long as you respect the weather and road conditions, drive cautiously, and don’t overestimate your abilities. Always check weather (en.vedur.is) and road status (road.is) before departure.

What’s the best car type for summer versus winter in Iceland?

In summer (June–September), a 2WD may suffice for paved roads. In winter (October–May), a 4WD with winter tires is essential due to snow, ice, and challenging conditions.

What happens if I drive a 2WD car on an F-road?

It’s illegal, voids all insurance, and you’ll be liable for heavy fines and full repair costs. Only 4WDs are allowed on F-roads.

How can I avoid disputes with the rental company about car condition?

Document the car thoroughly with photos and videos at pick-up and return, particularly if using after-hours drop-off. Keep all paperwork and fuel receipts.

Are child car seats mandatory in Iceland?

Yes. Children under a certain height or age must be in appropriate car seats. Reserve seats in advance with your rental provider.

Is off-road driving allowed in Iceland?

Absolutely not. Off-road driving is illegal and causes irreversible environmental damage. Violators face heavy fines and possible prosecution.

Are there any apps recommended for driving and parking in Iceland?

Yes. Use 'EasyPark' or 'Parka' for parking in cities, and '112 Iceland' for emergencies.

What are the most important safety tips for driving in Iceland?

Respect weather warnings, drive slowly on unfamiliar surfaces, never rush for photos, and always prioritize safety over schedule.

What’s the single most important advice for Singaporeans driving in Iceland for the first time?

Respect Iceland’s nature and weather. Don’t overestimate your skills. Take it slow, check conditions daily, buy full insurance, and focus on enjoying the journey safely.

Still have questions？

Contact QEEQ via online chat or hotline for specific advice. Contact Support

Car Rental in Iceland for Singapore Travelers

Discover picturesque Iceland, known for its waterfalls, glaciers, and volcanic terrains. For travelers from Singapore, renting a car ensures flexibility and access to the country's most stunning remote locations.

Can Singapore Citizens Drive in Iceland?

Ready to Rent?

Which Car Rental Companies Are Best?

Recommendations for Singaporean Travelers

How to Choose the Right Car?

Quick Decision Guide

Compare with Confidence on QEEQ

What Are the Popular Destinations in Iceland?

What Insurance Do I Need?

Types of Insurance Coverage

QEEQ's Complete Protection Solutions

Maximize Savings on Your Iceland Car Rental

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Differences and Similarities in Traffic Rules Between Singapore and Iceland

Remember

Frequently Asked Questions

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