Summarise (click here)
Car Specs
- Seats up to 5 passengers.
- Automatic transmission.
- 4×4 (all-wheel drive) capability.
- Space for about 4 large suitcases (front and rear storage included).
- Modern electric vehicle (EV) with zero emissions and long driving range.
- Driver must be 23+ years old.
Who It’s Suitable For
- Travellers wanting a comfortable, quiet, and eco-friendly SUV.
- Small families or groups up to five.
- Drivers who prefer automatic electric driving with advanced tech features.
- Great choice for long paved journeys and scenic road trips.
Where It Can Go in Iceland
- Excellent on the Ring Road (Route 1) and main paved highways.
- Ideal for popular routes like the Golden Circle, South Coast, and West Iceland.
- Works well on gravel roads and snowy winter routes when driven with care.
- Not allowed on highland F-roads or rugged mountain tracks.
Good to Know
- Electric range and charging network make it practical for many Iceland trips.
- Best suited for paved touring rather than remote off-road exploration.
A brand new all-electric crossover in our fleet, Tesla Model Y has become one of the most eye-catching rising stars among all our electric vehicles (EVs). If you are looking for a car that could provide you with a whisper-quiet journey in Iceland, 0 emissions and a 4WD capability, renting the Tesla Y would undoubtedly be your best choice.
The Tesla Model Y consists of 5 seats and can supply up to 854 litres of storage capacity when added to the front and rear storage areas. With the car boot itself, you can fit about 4 large pieces of luggage and some pieces of carry-on luggage.
Why You Should Rent A Tesla In Iceland
The Tesla Model Y rental in Iceland is a modern, eco-friendly EV that delivers a smooth driving experience with a range of 350–450 km (75 kW Long Range, 533 WLTP). It’s ideal for exploring Iceland’s most popular destinations, including the Blue Lagoon, Reykjavík, the Golden Circle, Ring Road, South Coast, Snæfellsnes Peninsula, and Akureyri. With automatic transmission, advanced technology, and quiet performance, the Model Y is a top choice for travelers who want comfort, innovation, and sustainability.
Built for Iceland’s diverse conditions, the Tesla Model Y performs well on paved highways, city streets, gravel roads, and snowy winter routes when driven with care. While it offers excellent traction and reliability year-round, it is not allowed on F-roads or highland tracks, making it best for main tourist routes and coastal drives. For drivers aged 23 and older with a valid license for one year, this EV is a safe and efficient choice for road trips in Iceland.
When renting with Thrifty Iceland, you get flexibility and convenience with 6 rental stations across the country, including Keflavík Airport, Reykjavík, and Akureyri. Rental prices include unlimited mileage, VAT, and CDW insurance, and our partnership with local repair shops ensures support wherever you travel. Pick up your Tesla Model Y directly at the airport arrivals hall and start your Iceland adventure with a reliable, high-quality electric vehicle.
Driving in Iceland
Familiarise yourself with how to drive in Iceland. Get trusted tips from locals with a lot of experience.
4×4 Iceland Car Rental Guide
What Makes 4×4 the Most Recommended Car Type for Driving in Iceland
FAQ
- Where can I charge a Tesla in Iceland?
There are regular charging stations and Tesla Superchargers across Iceland. A Tesla supercharger takes approximately an hour to charge the Tesla to full, providing you with the best condition range of 350-450 km. You can find the Tesla charging station locations here.
- Can I drive a Tesla on F-roads in Iceland?
Unfortunately not. The Tesla is not allowed on F-roads due to the battery position and low ground clearance. If you’re looking for a Luxury 4×4 Hybrid car that is allowed on F-roads then consider the New Hybrid Land Rover Defender.
- What months do I need a 4×4 in Iceland?
You need a 4×4 in Iceland mainly from October to April during the winter months. You also need a 4×4 during the summer if you plan on exploring the highland F-roads.
- 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.
- 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:
- Government Road Tax: The mandatory fee set by the Icelandic Parliament.
- Thrifty Service Fee: Covers the administrative cost of processing, reporting, and remitting these taxes to the government.
Rate (Per KM) Government Road Tax 6.95 ISK (Approx . 0.056 USD / 0.047 EUR) Thrifty Service Fee 1.40 ISK (+ VAT) (Approx . 0.011 USD / 0.0095 EUR) - Where do I pickup my rental car?
Our desk is located directly inside Keflavik International airport.
Just head to the Hertz rental desk in the arrivals hall, and you will be hitting the Icelandic roads in no time. Thrifty is serviced by Hertz Iceland, so everything is in one easy spot and to the highest standard.
We also have pickups available at Reykjavik Domestic Airport, Akureyri, Egilsstaðir, and Ísafjörður.
- What is your cancellation policy?
In case of a cancellation, the rental needs to be cancelled more than 3 days prior to rental pick up for a full refund.
If a rental is cancelled with less than 3 days notice or in case of no show the full rental price will be charged.
- 3 days or earlier – Full refund
- Less than 3 days – Non refundable
If you need to cancel your prepaid reservation please do so by sending an email to thrifty@thrifty.is stating your name and reservation number.
