Toyota Corolla Sedan or similar | Automatic | 2WD

Hire a mid-sized affordable 2WD automatic Toyota Corolla Sedan for your family trip in Iceland, enjoy all the fun with your loved ones and little ones. If you plan to bring your family and kids to Iceland in the summer(between June and August), renting a 2WD Toyota Corolla Sedan would be one of your cost-effective options.

Toyota Corolla Sedan is an intermediate family car best for a family of four or less. It offers a roomy cabin for both kids and adults, and a car boot could fit up to three large luggage. If you come to Iceland as a family of three to four, the Toyota Corolla Sedan would be a good choice.

A Smart Choice for Small Families Visiting Main Tourist Attractions

The Toyota Corolla Sedan rental in Iceland is a modern, fuel-efficient 2WD car equipped with the latest safety and driving systems. Ideal for paved roads, it’s a reliable choice for trips between Keflavík Airport, Reykjavík, and other cities. Whether you’re planning a short stopover or a 7–10 day Ring Road adventure in summer, the Corolla delivers a smooth and stress-free drive while keeping fuel costs low.

Please note that the Toyota Corolla is not allowed on F-roads or in the Icelandic Highlands, making it best suited for paved routes such as the Golden Circle, South Coast, and Ring Road. To rent this vehicle, drivers must be at least 20 years old, hold a valid license for one year, and present a credit card in the renter’s name. An International Driving Permit (IDP) is required if the license is not in Roman script. Affordable, safe, and efficient, the Toyota Corolla Sedan is one of the top options for budget-conscious travelers exploring Iceland’s main attractions.

Driving in Iceland

Local and trusted tips

Familiarise yourself with how to drive in Iceland. Get trusted tips from locals with a lot of experience.

4×4 Iceland Car Rental Guide

Do I need a 4×4 in Iceland?

What Makes 4×4 the Most Recommended Car Type for Driving in Iceland

FAQ

• Can I drive the Toyota Corolla on the Ring Road in Iceland?

  Yes, you can drive the Toyota Corolla on the Ring Road in Iceland, as it’s fully paved and well-maintained year-round. The Corolla is a fuel-efficient 2WD that’s perfect for exploring main tourist attractions along this route.

• Is the Toyota Corolla safe to drive in winter in Iceland?

  The Toyota Corolla is safe to drive in winter on Iceland’s main paved roads, as long as it’s equipped with proper winter tires. However, for heavy snow, icy conditions, or travel beyond the Ring Road, a 4×4 is the safer choice.

• 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:

  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 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.