VW ID.3 Electric or similar | Automatic | 2WD | Long Range

The Volkswagen ID.3 is a modern electric hatchback built for smooth, efficient driving on Iceland’s main roads. Quiet, easy to handle, and designed with everyday comfort in mind, it’s a great option for travellers who want a simple and relaxed driving experience while exploring the country.

Fully electric and easy to charge around Iceland, the ID.3 is ideal for driving the Ring Road, Golden Circle, and other paved routes year-round. With smart driver assistance features and a comfortable interior, it offers a reliable and enjoyable way to travel while keeping your journey more eco-friendly.

Why Rent an Electric Car in Iceland?

Renting an electric car in Iceland in 2026 is a practical and cost-effective choice for many travellers, especially for routes like the Golden Circle, South Coast, and Ring Road. With a growing charging network and electricity sourced from renewable energy, EV rentals offer lower running costs compared to petrol or diesel, making them ideal for budget-conscious road trips. At the same time, they provide a smooth and quiet driving experience, combining modern comfort with a more environmentally friendly way to explore Iceland’s landscapes.

Why Book with Thrifty Car Rental Iceland?

Thrifty Car Rental Iceland offers reliable vehicles at competitive pricing, making it one of the cheapest car rental options in Iceland without compromising on quality. With practical SUVs and 4×4 rentals suited for Iceland’s changing road conditions, you can explore the country comfortably whether you are driving the Ring Road or heading toward more remote landscapes. Combined with trusted local service and simple booking, Thrifty helps you experience Iceland by car while keeping your travel budget under control.

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

• Is it worth renting an electric car in Iceland?

  Yes, for most travellers it is. Electric cars are ideal for driving the Ring Road, Golden Circle, and South Coast. With lower running costs and a growing charging network, they offer great value for self-drive trips.

• Are there enough electric car charging stations in Iceland?

  Yes, Iceland has a well-developed charging network along main routes and in most towns. Fast chargers are widely available on popular travel routes, making it easy to plan longer drives.

• 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?

  Just head to the Car Rental Shuttle Bus directly outside the terminal. This shuttle takes you to the car rental area just outside of Keflavik Airport. Here you will find Thrifty Car Rental, which is located in the same building as Hertz Car Rental, Dollar Car Rental, and Firefly Car Rental. Thrifty is backed by Hertz Car Rental, which has over 55 years of local experience in Iceland having first opened here in 1971. Bringing decades of experience.

  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.