Thrifty Iceland > Iceland Car Rental FAQs – Made for Smart Travelers Like You

Iceland Car Rental FAQs – Made for Smart Travelers Like You

Planning your Iceland adventure? We’ve got your back.

At Thrifty Car Rental Iceland, we’ve rounded up the most frequently asked questions from our savvy renters over the years and answered them right here – to make your trip prep smoother, quicker, and a whole lot easier.

Start here, smart saver:

BEFORE MAKING A BOOKING

  • How old do I need to be to hire a rental car in Iceland with Thrifty?

    No Max Age Limit – Just Smart Driving with Thrifty Iceland
    Here’s the deal: at Thrifty Iceland, we don’t put a cap on how old you can be to rent a car – if you’re road-ready, we’re ready for you!

    But we do keep things safe and smart with minimum age requirements:

    20 years old – That’s the magic number if you’re renting from these groups:
    Economy, Compact, Compact Wagon, Intermediate (2 or 4-door), and Intermediate Wagon.

    23 years old – For all other vehicle types.

    25 years old – Needed for some prestige or luxury rides. If you’re eyeing something fancy, double-check the age info on the car’s description page.

    Got questions? Our Reservation Center is just a click away. We’re here to help you drive smart and save big.

  • What is the minimum/maximum rental period?

    We like to keep things flexible (and friendly to your wallet)!

    Minimum rental period: 24 hours – just enough for a quick adventure or a one-day detour.
    Maximum rental period: 100 days for short-term rentals – that’s over three months of exploring!

    Need a car for longer? No problem. Just reach out – we’ll hook you up with a smart long-term deal that suits your plans.

  • Do you take a deposit on my credit card upon pick up?

    Nope! Zero deposit, zero stress.
    At Thrifty Iceland, we don’t hold a deposit on your credit card when you pick up your rental. Just book, show up, and hit the road. It’s that simple.

  • Can I avoid a deposit on my credit card upon pick up?

    You sure can – because with Thrifty Iceland, there’s no deposit to avoid!
    We don’t take any deposit when you pick up your car. Just grab the keys and go. Easy, breezy, and totally Thrifty.

  • What documents are required at pick-up?

    Just the essentials:

    A valid credit card in the renter’s name (make sure it’s good for at least 6 months after your return date)

    A valid driver’s license

    That’s it! For all the fine print, check out our Terms & Conditions page. We keep it simple, so you can keep it moving.

  • What is the minimum age for driver?

    Easy:

    • 20+ for most standard cars
    • 23+ for larger vehicles
    • 25+ for some luxury models

    Want the exact age for your ride? Click here to check the details.

  • Can I rent a car with brand new driver’s license?

    Not just yet!
    You’ll need to have held your driver’s license for at least 1 year before renting with Thrifty Iceland.

  • Do I need an international driver’s license to rent a car or is a national driver’s license enough?

    Not always!

    • If your license has Latin letters, it’s good to go.
    • If it doesn’t, you’ll need an International Driving Permit (IDP) plus your original license.

    ⚠️ Heads up:
    If your license isn’t covered by the IDP system (like ones from Hong Kong SAR), we recommend getting an IDP before hitting the road in Iceland. Read more about driver license policy.

  • What is included in the rental price?

    No hidden fees here—just good value!

    • Unlimited mileage
    • TPL (Third-Party Liability)
    • Taxes
    • CDW (Collision Damage Waiver) – included for free!

    Want extra peace of mind? You can upgrade to our MAX protection coverage during your booking process. Find out more about our protection packages here.

KILOMETER TAX / WHAT IS THE KM ROAD TAX FEE?

  • What is the new kilometer tax / road tax fee in Iceland?

    As of January 1st 2026 the Icelandic government is replacing part of the traditional fuel-based road tax with a usage-based system (“kílómetragjald”), calculated per kilometer driven and adjusted by vehicle weight. All vehicles using Icelandic roads, including rental cars, are required to contribute through this kilometer-based charge to support road maintenance and future infrastructure.

  • Why is Thrifty Car Rental Iceland charging it?

    The tax applies to all standard passenger cars and SUVs under 3.5 tonnes, as well as heavier vehicles in higher weight categories, with rates defined by law for each class. It applies to both Icelandic residents and visitors, including tourists renting a vehicle from Thrifty Iceland for a short stay or a longer road trip such as the Ring Road.

  • Is it included in the daily rate?

    The Road Tax appears as its own line item at these points:

    • On your rental agreement at the check-in desk
    • On your final invoice after drop-off

    This clear separation helps show exactly what portion of your total cost is the government-mandated tax versus your actual rental service.

    The charge applied to your rental agreement consists of two clear parts:

    1. Government Road Tax: The mandatory fee set by the Icelandic Parliament.
    2. Thrifty Service Fee: Covers the administrative cost of processing, reporting, and remitting these taxes to the government.
    Rate (Per KM)
    Government Road Tax6.95 ISK (Approx . 0.056 USD / 0.047 EUR)
    Thrifty Service Fee1.40 ISK (+ VAT) (Approx . 0.011 USD / 0.0095 EUR)
  • Is the new kilometer charge a toll?

    No, this is not a toll.

  • What if I don’t drive my rental car much?

    For rental vehicles, the Road Tax is charged based on how much you drive. Ensuring fair costs.

  • What if I wish to extend my car rental period?

    The fee is adjusted if additional rental days are added, and any extra amount is charged accordingly.

4×4/AWD DRIVING IN ICELAND

DELIVERIES/RETURNS

CAR RENTAL PAYMENT

CAR RENTAL DAMAGE PROTECTION PACKAGES

CAR RENTAL EXTRA SERVICES AND EQUIPMENT

  • How much luggage can I fit in my rental car?

    It depends on the car you choose.

    We offer a range of vehicles, and each one has different luggage space. Check the car details on our cars page to find the right fit for your trip.

  • Do you provide winter tyres during winter?

    Yes. All our rental cars come with winter tyres from November 1 to April 15, in line with Icelandic traffic laws.

    No need to request them—they’re automatically included to keep you safe on the road.

  • Do you provide snow chains?

    Nope, we don’t—and you won’t need them.

    Snow chains are for big vehicles on rough mountain roads, not for the main roads you’ll be driving. Instead, we’ve got you covered with quality studded winter tyres on all our cars from November 1 to April 15—so you’re ready for Iceland’s winter roads without the hassle.

RENTING A CAR IN ICELAND AIRPORT

TICKETS AND FEES

  • Are there road tolls in Iceland?

    Just one—and it’s an easy one.

    The only toll road in Iceland is the Vaðlaheiðargöng tunnel in the north. You’ll need to pay the fee online, either before your drive or within 3 hours after.

    If you don’t pay it yourself, Thrifty will charge the tunnel fee to your credit card, plus an administration fee. So it’s best (and cheaper) to take care of it directly.

    Need help? Here’s how to pay the tunnel fee.

  • Do I have to pay for parking in Iceland?

    In many places—yes.

    Paid parking is common in downtown Reykjavík and other popular areas. Just watch for signs when you pull into a parking lot or space—they’ll tell you how and where to pay, usually via parking meters or apps.

    In Akureyri, things work a little differently. There are no meters—just time-limited spaces. You can grab a parking clock from a local gas station, set it to your arrival time, and place it in your car window.

    Some popular spots now use online parking through myparking.is. That includes:

    • Skaftafell, in Vatnajökull National Park (South Iceland)
    • Þingvellir National Park, on the Golden Circle route

    Pro tip: Pay when you park—because missed payments can turn into fines (plus an admin fee if we have to handle it later).

  • What do I do if I get a parking ticket?

    If you get a parking ticket during your rental, Thrifty will take care of the payment—and then charge the fine to your credit card, along with a small administration fee for processing.

    Want to know more about those fees? You’ll find the details here.

  • What do I do if I get a speeding ticket?

    Speeding tickets are your responsibility to pay.

    By law, Thrifty must report who was driving the car at the time the ticket was issued. For handling this, we’ll charge an administration fee.

    After that, the Icelandic police will contact you directly to sort out the fine.

GENERAL QUESTIONS

  • I made a booking but I have not received a confirmation e-mail. What should I do?

    Booking wrapped up but still waiting on that confirmation email? No worries — it should land in your inbox within an hour of booking. If it’s ghosting you, here’s what to check:

    • Did the booking go through all the way? (Sometimes the last click gets skipped!)
    • Peek at your spam or junk folder — it might be hiding in there.

    Still no sign of it? We’ve got your back. Just shoot us a message at thrifty@thrifty.is with your name, pick-up and return dates, and the type of vehicle you booked. We’ll track it down faster than you can say “smart saver.”

  • Can I be sure that the booked vehicle is available?

    Booked it? You’ll get it — or better.

    We’ve got you covered. If the exact car you picked isn’t available when you arrive, no stress — we’ll hand you the keys to a similar ride. Even better? We always guarantee a vehicle in the same category or higher than what you booked.

    Just a heads-up: while we can’t promise the exact brand or model, we do promise you’ll hit the road in something just as awesome — or a sweet upgrade.

  • Can I make changes to my booking?

    Yes. We have a friendly modification policy. Extensions depend on availability.

  • Do you offer emergency breakdown assistance?

    Need help on the road? We’re here for you.

    If you’re in a jam, give our emergency line a ring at +354 858 0499. We’ll connect you with one of our trusted service partners anywhere in Iceland to get you back on track.

    Costs may vary depending on where you are, what’s gone wrong, and how tricky the fix is — but we’ll always do our best to help you out fast and fairly.

    ⚠️ If it’s a serious emergency or someone’s hurt, call 112 right away — that’s Iceland’s emergency service line.

FUEL POLICY