Car Rental in Iceland for Travelers from Chile

Embarking on an adventure to Iceland's stunning landscapes is an exciting experience for travelers from Chile. However, there are key details you should be aware of when it comes to renting a car in Iceland.

Can I use my Chilean driver's license in Iceland?
What insurance options are available for car rentals?
What are the average rental costs in Iceland?
Are one-way rentals allowed?
How do Icelandic driving regulations differ from Chilean rules?

This guide breaks down all the essential information, equipping you with the knowledge needed to navigate Iceland's roads with ease and confidence. Additionally, a summarized checklist is provided for quick reference at the end.

Can Japanese Citizens Drive in Iceland?

Yes, Japanese 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. Accepted credit cards include Visa, Master, DinersClub, and AMEX.
Age requirements:
Drivers must be between 18 and 99 years old. Young drivers aged 18-20 will incur a fee of US$ 8.39 per day.

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

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Car Rental Options in Iceland

Explore a variety of car rental services available in Iceland, offering global and local options to suit your travel requirements.

Global Chain Companies

Local Brands

Europcar
global
8.5
Locations:
95
Prices:
$$
Key Advantages
- Wide range of vehicles
- Flexible pick-up and drop-off locations
- Loyalty program for frequent renters
- Excellent customer service
Best for
Leisure travelers and eco-conscious renters
Hertz
global
8.5
Locations:
72
Prices:
$$$
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:
51
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:
20
Prices:
$$
Key Advantages
- Wide selection of premium and luxury cars
- Flexible rental terms
- Easy online booking
- Excellent customer service
Best for
Travelers seeking premium vehicles and flexible rental options
Alamo
global
8.5
Locations:
16
Prices:
$$
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:
7
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

Tips for Chilean Travelers Renting Cars in Iceland

Opt for Global Chains When

You prefer international standards and service consistency
You require extensive customer service networks
You plan on traveling across multiple regions
You value loyalty programs and rewards

Opt for Local Brands When

You are focused on exploring local spots
You prefer cost-effective solutions
You are looking for personalized service
You support local businesses

How to Choose the Right Car?

Choosing the right rental car can make your travel more comfortable, safe, and enjoyable. Think about your travel group, the destinations on your route, and the type of driving you'll be doing. With QEEQ, you can compare multiple car types and policies to find the one that best suits your journey.

Seating and Luggage
Consider your travel group size and luggage needs
- Economy cars (2-4 people, 1-2 suitcases)
  Perfect for city driving and short trips
- Compact cars (4-5 people, 2-3 suitcases)
  Good balance of space and fuel efficiency
- Mid-size cars (5 people, 3-4 suitcases)
  Comfortable for longer distances
- Full-size/SUV (5-7 people, 4+ suitcases)
  Ideal for families and group travel
Transmission Type
Choose between automatic and manual transmission
- Automatic transmission
  Easier for city driving and traffic, more common in USA
- Manual transmission
  Often cheaper, better fuel economy, more control
- Most Polish drivers prefer automatic for USA road trips
- Consider your comfort level with left-hand driving and automatic cars
Insurance Included
Check what insurance coverage comes with your rental
- Basic liability
  Covers damage to other vehicles and property, usually included
- Collision Damage Waiver (CDW)
  Covers damage to your rental car, often optional
- Theft protection
  Protects against car theft, may be included or additional
- Personal insurance
  Check if your Polish insurance or travel insurance covers rentals
Cancellation Policy
Understand booking flexibility and fees
- Free cancellation
  Usually available up to 24-48 hours before pickup
- Prepaid vs. Pay-at-counter
  Prepaid often cheaper but less flexible
- Change fees
  Cost to modify dates, locations, or car type
- Travel insurance
  Consider coverage for trip cancellations or delays
Mileage Policy
Check distance restrictions and additional charges
- Unlimited mileage
  Best for long road trips and cross-country travel
- Limited mileage
  Cheaper daily rate but extra charges for excess miles
- Consider your planned route distance and potential detours
- Factor in mileage costs when comparing total rental prices
Fuel Policy
Understand fuel requirements and costs
- Full-to-Full
  Return with same fuel level, most economical option
- Full-to-Empty
  Pay upfront for full tank, convenient but often more expensive
- Same-to-Same
  Return with same level as pickup, fair pricing
- Pre-purchase fuel options
  Compare costs with local gas station prices

Quick Decision Guide

City Travel
Compact/Economy car with automatic transmission, full-to-full fuel policy
Reykjavik, Akureyri
Road Trip
Mid-size/Full-size car with unlimited mileage, flexible cancellation
cross-country in Iceland
Vacation
SUV with comprehensive insurance, prepaid fuel option
Golden Circle, South Coast

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.

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No hidden fees
Real customer reviews

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What Are the Popular Destinations in Iceland?

Iceland boasts breathtaking natural landscapes and unique attractions, perfect for various travel styles. Explore the Golden Circle, South Coast, or venture into the highlands for an unforgettable experience.

What Insurance Do I Need?

You'll need at least basic insurance to legally drive in Iceland. While some insurance types may be included in your rental agreement, additional coverage can provide peace of mind and protect against high costs in case of an accident or unforeseen situations.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental vehicle in case of collision or accident.
CLP 12,000-20,000/day
Essential
Theft Protection (TP)
Protects against theft of the rental vehicle.
CLP 5,000-8,000/day
Essential
Third-Party Liability (TPL)
Covers damages or injuries to third parties and their property.
Often included in rental price
Included
Personal Accident Insurance (PAI)
Provides coverage for medical expenses for the driver and passengers in case of an accident.
CLP 4,000-7,000/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.

Insurance Coverage Comparison

Coverage Feature

QEEQ Full Coverage

Basic Rental Company

Collision Damage Waiver

Fully Covered

$0.00 - $4,961.53

Theft Protection

Fully Covered

$0.00 - $4,362.09

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

How to Book a Rental Car and Save Money?

Booking smart can save significant costs for travelers from CL visiting IS. Prices for rental cars can vary based on season, location, and demand, so planning and comparing options is key.

Booking Tips for lower Prices

Book Early
Reserve your car at least 4-6 weeks in advance to secure better rates and vehicle availability.
Save up to 35%
Compare Rental Companies
Use comparison platforms like QEEQ or Kayak to evaluate prices across various providers.
Save up to 20%
Choose Full-to-Full Fuel Policy
Opt for a rental company that offers a full-to-full fuel policy and refill the tank yourself before returning.
Save $30-50 by avoiding overcharged refueling rates.
Avoid Airport Pick-Up Fees
Consider picking up your rental car from a location outside the airport to avoid additional fees.
Save up to $50 per rental or more.

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?

Key considerations for Chilean travelers renting a car in Iceland.

Understand Costs
Rental costs in Iceland can vary significantly based on the season and vehicle type.
- Summer rates are higher due to demand
- Consider inclusive packages to avoid unexpected fees
- Check fuel costs, as they can be higher than average
Insurance Coverage
Ensure you have adequate insurance for Iceland’s unique driving conditions.
- Opt for gravel protection if driving outside urban areas
- Check for windscreen damage coverage
- Confirm if your travel insurance or credit card includes car rental coverage
Fuel Policies
Different rental companies have varying fuel policies.
- Full-to-full is the most common policy
- Ensure you refuel at a station near the return point
- Keep receipts as proof of refueling
Vehicle Inspection
Thoroughly inspect the car before driving off.
- Take photos of any existing damage
- Check tires for wear, especially for winter conditions
- Ensure all lights and safety features are functional
Contract Details
Understanding the rental agreement is crucial.
- Check mileage restrictions, especially for long drives
- Look for clauses about driving on F-roads
- Confirm return conditions and penalties for late returns
Plan Timing
Coordinate pickup and drop-off times carefully.
- Allow extra time for airport pickups
- Ensure you return the car during open hours to avoid fees
- Plan to avoid peak times for smoother transitions

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.

Traffic Rules: CL to IS Travel Differences and Similarities

Driving in IS from CL features differences in signage, speed units, and alcohol tolerance, among others, while some safety laws are universal.

Speed Limits
IS
Measured in kilometers per hour (kph)
CL
Measured in miles per hour (mph)
Road Signs
IS
Primarily use universal symbols with some language-based signs
CL
May include English text explicitly
Alcohol Limit
IS
Maximum BAC is 0.05%
CL
Maximum BAC is 0.08%
Mobile Phone Use
IS
Strictly hands-free only
CL
Hands-free only
Seatbelt Usage
IS
Mandatory for all passengers
CL
Mandatory for all passengers
Child Safety Seats
IS
Required for children under 12 or below certain height/weight
CL
Similar requirements
Remember
- • Understand road signs in IS, especially those in Icelandic.
- • Drive on the right side of the road.
- • Carry your international driving permit along with your CL license.
- • Be aware of wildlife crossings, especially in rural areas of IS.

Voices of our customers

Frequently Asked Questions

Common questions for travelers from Chile renting a car in Iceland

Is my Chilean driver's license valid for renting a car in Iceland?

Yes, your Chilean driver's license (Clase B) is valid, as it uses the Latin alphabet. Rental companies in Iceland accept it without issue. However, it's a good idea to also carry an International Driving Permit (IDP) as a standardized translation, which can help if you encounter language barriers or need to interact with the police.

Is it mandatory to obtain an International Driving Permit (IDP) before traveling from Chile to Iceland?

While not legally mandatory if your license is in the Latin alphabet, it is highly recommended. The IDP offers a standardized translation of your license, which can prevent misunderstandings and is helpful in case of accidents or police checks.

What is the minimum age to rent a car in Iceland?

The minimum age is generally 20 for standard vehicles (2WD). For 4x4s or larger vehicles, most companies require you to be 23 or even 25 years old.

Is there an extra fee for young drivers?

Yes, most companies charge a 'Young Driver Surcharge' if you are under 25. This fee is added to your daily rental price.

Is a credit card required to rent a car?

**Atención:** Yes, a credit card (not debit) in the main driver's name is absolutely essential. The rental company will block a deposit/guarantee on your card, released after you return the car in good condition.

Why don't rental companies accept debit cards for the deposit?

Rental agencies require the ability to charge for damages or fines. A credit card ensures access to those funds, whereas a debit card does not provide the same guarantee.

How much is the security deposit blocked on the credit card?

It varies by company and insurance level, ranging from €250 to over €2,500. Premium or zero-deductible insurance packages usually mean a much lower or even zero deposit.

Is there a minimum required driving experience for renting?

Yes, most companies require your license to be at least 12 months old.

Do I need a 4x4 or is a 2WD sufficient?

It depends on the season and your itinerary. In summer, for the Ring Road and paved routes, a 2WD is enough. For winter or the Highlands (F-roads), a 4x4 is essential and often legally required.

What are 'F-roads' in Iceland?

F-roads are unpaved mountain roads in the Highlands, open only in summer (late June–early September), with rough terrain and frequent river crossings. Driving them with a 2WD is prohibited and dangerous.

Should I choose manual or automatic transmission?

Both are available in Iceland. Automatics are more comfortable, especially for long drives, but are more expensive and sell out quickly. If you’re used to manual in Chile, you can save money, but book automatics early if you prefer them.

We are 4 adults with large suitcases. What car size is recommended?

Don’t underestimate luggage space. A compact like VW Polo is too small. Opt for at least a medium SUV (e.g., Dacia Duster, Kia Sportage) or a station wagon for comfort and luggage security.

Is renting a campervan or motorhome worth it?

It can be an amazing experience for flexibility. But since 2015, wild camping is forbidden—you must stay at designated campsites. Campervans are more expensive and consume more fuel.

Do rental cars come with winter tires in winter?

Yes. By law, between November 1 and April 14, rental cars must have winter tires (with or without studs). This is included in the rental price.

What type of 4x4 is needed for the toughest F-roads and river crossings?

For routes with major river crossings, small SUVs like Dacia Duster aren’t enough. You need a large, high-clearance 4x4 (e.g., Toyota Land Cruiser, Land Rover Defender).

Is it a good idea to rent an electric car in Iceland?

Increasingly viable, especially in summer and along the Ring Road. In winter, battery range drops due to cold, and charging points are scarce in remote areas. Careful planning is needed.

What does the base online rental price usually include?

It typically covers the vehicle, unlimited mileage, basic CDW insurance (with a high deductible), and local taxes (VAT).

What is CDW (Collision Damage Waiver) insurance?

CDW limits your financial responsibility in case of collision damage. The basic CDW has a high deductible (up to €3,000), which is the max you’d have to pay out of pocket.

What is SCDW (Super Collision Damage Waiver)?

SCDW is an upgrade that lowers your deductible, often to €500–800. It’s highly recommended for peace of mind.

Is Gravel Protection (GP) insurance necessary?

**Consejo Pro:** Absolutely! Many roads, even parts of the Ring Road, are unpaved. Stones can damage windshields, lights, or paint. GP covers these common damages.

Is Sand and Ash Protection (SAAP) necessary?

Highly recommended, especially on the south coast. Sand or ash storms can severely damage paint, glass, and lights. These are not covered by CDW/SCDW.

What is Theft Protection (TP) insurance?

It covers you if the car is stolen. Theft is extremely rare in Iceland, but this is often included in the basic package.

Is it worth buying the 'Premium' or 'Zero Deductible' insurance package?

For total peace of mind, yes. These packages include all insurances and reduce your deductible to zero, protecting you from large repair bills.

What damages are NOT covered by any insurance?

**Atención:** Common exclusions include undercarriage damage from rocks, river crossing damage, flat tires, and wind-damaged doors. Check your policy carefully.

Can I use my Chilean credit card’s insurance for the rental?

Be very cautious. Many cards exclude 4x4s, campervans, or Iceland-specific risks (gravel, ash). Ask your bank for written details. Often, it's safer to buy insurance directly from the rental company.

How far in advance should I book my rental car?

Book as early as possible. For high season (June–August), reserve 6–9 months in advance to get better prices and secure your preferred vehicle type.

Where do you recommend booking the rental car?

**Consejo Pro:** Use QEEQ. This platform lets you compare prices from dozens of Icelandic car rental companies (international and local), offers transparent insurance packages, and provides customer support in multiple languages—ideal for Chilean travelers.

Is it better to pick up the car at Keflavík Airport or in Reykjavik?

It depends on your plans. Pick up at KEF is most convenient if starting your trip right after arrival. If spending 1–2 days in Reykjavik first (where you don’t need a car), pick up in the city to save rental days.

What’s most important when picking up the car?

**Atención:** Inspect the car thoroughly! Take videos and photos of all scratches and dents, and ensure the rental agent notes them on the contract. This protects you from unfair charges later.

How does the fuel policy work?

The standard is 'Full to Full': you receive the car with a full tank and must return it full. If not, you’ll be charged for missing fuel at a premium rate plus a service fee.

What if my flight is delayed and I can’t pick up the car on time?

If you provided your flight number, most airport-based companies will wait. For city pickups, call to notify them of the delay. If you don’t inform them, your reservation may be cancelled.

What is the car return process like?

It’s quick. Arrive with enough time; an agent will inspect for new damages, check fuel, and close the contract. For after-hours returns, there’s usually a key drop box.

When will my credit card deposit be released?

The deposit is usually released a few days after return, but can take up to 10–15 business days to appear in your available balance, depending on your Chilean bank.

What are the three golden rules for driving in Iceland?

1. Always keep headlights on, day and night. 2. Obey speed limits (90 km/h paved, 80 km/h gravel, 50 km/h in towns); fines are very high. 3. **PROHIBITED:** Off-road driving—causes irreparable environmental damage and carries huge fines.

How do one-lane bridges work?

You’ll see many. The first to arrive has right of way. Slow down, check for oncoming traffic, and only cross when clear.

How do roundabouts work in Iceland?

**Atención:** Unlike Chile, in two-lane roundabouts, the car in the inner lane always has priority when exiting. If you’re in the outer lane, yield to the inner lane vehicle wanting to exit.

What if there are sheep on the road?

Sheep roam free in summer and have right of way. Slow down or stop and wait for them to cross—be cautious, as more may suddenly appear.

How do gas stations work?

Many are self-service and open 24/7. You’ll need a credit or debit card with a chip and a 4-digit PIN. Insert your card, enter the PIN, select the max amount, and pump. **Consejo Pro:** Select 'Fill Tank' for convenience.

How is parking paid in cities and tourist sites?

In Reykjavik and other cities, use parking meters or apps like Parka or EasyPark. Many tourist sites charge for parking—always pay to avoid fines.

Is driving in winter with snow and ice difficult?

It can be very challenging. Black ice is a major hazard. Drive slowly, avoid sudden braking or sharp turns, and increase following distance.

What websites should I check daily before driving?

Check these every morning: www.road.is (road conditions), www.vedur.is (weather forecast), and www.safetravel.is (general safety alerts).

Can I cross any river with a 4x4?

No! River crossings are dangerous. Never cross if you can’t see the bottom, if water is too fast, or deeper than half your wheel height. Water damage is not covered by any insurance.

What is Iceland’s emergency number?

Dial 112 for police, ambulance, or fire. **Consejo Pro:** Download the '112 Iceland' app to send your GPS location by SMS in emergencies, even with limited signal.

What should I do in case of a traffic accident?

Ensure everyone is safe and turn on hazard lights. Call 112 if anyone is injured. For minor accidents, take photos, exchange details, complete the European Accident Statement in the glovebox, and notify your rental company.

What if the car breaks down?

Don’t try to fix it yourself. Call the 24/7 roadside assistance number provided by your rental company for instructions.

What should I do if stuck in snow or mud?

Avoid spinning the wheels. If in a safe, busy area, wait for help. In isolated or dangerous spots, call 112 for assistance.

How should I react to a strong wind alert?

Take it seriously. Find a safe place to stop, preferably facing the wind. **Atención:** Hold car doors firmly when opening—wind can rip them off, and such damage is not insured.

What if I get a flat tire?

Tire damage is usually not insured. You’re expected to change to the spare provided. Afterward, get the tire repaired or replaced at the nearest garage.

How do I pay a speeding ticket?

Speeding tickets are automated. The police notify the rental company, which charges your credit card for the fine plus an administrative fee.

What happens if I return the car with a new scratch?

Without zero-deductible insurance, the company will assess repair costs and charge your deposit or credit card up to your deductible limit. That’s why good insurance and thorough pickup photos are vital.

Still have questions？

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

Car Rental in Iceland for Travelers from Chile

Embarking on an adventure to Iceland's stunning landscapes is an exciting experience for travelers from Chile. However, there are key details you should be aware of when it comes to renting a car in Iceland.

Can Japanese Citizens Drive in Iceland?

Ready to Rent?

Car Rental Options in Iceland

Tips for Chilean Travelers Renting Cars in Iceland

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

How to Book a Rental Car and Save Money?

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

Traffic Rules: CL to IS Travel Differences and Similarities

Remember

Frequently Asked Questions

Other Popular Destinations