Renting an Electric Vehicle in Iceland: What You Need to Know

Iceland's commitment to renewable energy and environmental sustainability has transformed its rental car landscape, with electric vehicles becoming increasingly viable for exploring the island's dramatic terrain. The country generates nearly 100% of its electricity from renewable sources—primarily geothermal and hydroelectric power—making EVs an environmentally sound choice that aligns with Iceland's green energy ethos.

Why Choose Electric in Iceland

Iceland's unique geography and infrastructure make it surprisingly well-suited for electric vehicle travel. The Ring Road (Route 1) spans approximately 1,332 km around the island's perimeter, whilst most popular tourist destinations lie within manageable distances of Reykjavík. The Golden Circle, for instance, covers roughly 300 km, well within the range of modern EVs.

The financial incentives prove compelling. Petrol prices in Iceland consistently rank among Europe's highest, often exceeding 250 ISK per litre (roughly €1.70/£1.50). By contrast, charging an EV costs significantly less, particularly when using Iceland's extensive network of renewable-powered charging stations.

Available Electric Vehicle Models

Tesla Model 3 and Model Y

Tesla vehicles dominate Iceland's EV rental market, offered by major companies including Hertz, Blue Car Rental, and SADcars. The Model 3 provides approximately 448 km of range under optimal conditions, whilst the Model Y extends this to around 507 km. Daily rental rates typically range from 25,000-35,000 ISK (€170-240/$185-260) during summer months.

Volkswagen ID.4

Several rental agencies now stock the ID.4, offering roughly 520 km of range and superior ground clearance for Iceland's varied road surfaces. Expect to pay 22,000-30,000 ISK (€150-205/$165-225) daily.

Hyundai IONIQ 5

This newer addition to Iceland's rental fleets provides excellent fast-charging capabilities and approximately 481 km range. Premium rental agencies charge 28,000-38,000 ISK (€190-260/$210-285) per day.

Charging Infrastructure Across Iceland

Reykjavík and Capital Region

The greater Reykjavík area boasts the country's densest charging network. ON Power operates numerous DC fast-charging stations throughout the capital, including locations at Kringlan Shopping Centre, Laugardalshöll sports complex, and Perlan museum. Charging typically costs 49-69 ISK per kWh, depending on charging speed and time of day.

Ring Road Charging Network

Strategic charging stations positioned around Route 1 enable complete circumnavigation by EV. Key charging hubs include:

- **Selfoss**: Multiple fast-chargers serving Golden Circle traffic

- **Vík í Mýrdal**: Essential stop for South Coast exploration, 186 km from Reykjavík

- **Höfn**: Critical charging point for Vatnajökull region access, 458 km from Reykjavík

- **Egilsstaðir**: Eastern Iceland's primary charging hub, 647 km from Reykjavík via Ring Road

- **Akureyri**: North Iceland's largest city with comprehensive charging facilities, 384 km from Reykjavík

Westfjords Considerations

The Westfjords present Iceland's most challenging region for EV travel. Limited charging infrastructure exists in Ísafjörður and Patreksfjörður, with significant distances between stations. Plan routes carefully and maintain higher battery reserves when exploring this remote peninsula.

Range Considerations and Weather Impact

Iceland's weather conditions significantly affect EV performance. Winter temperatures can reduce battery efficiency by 20-40%, whilst constant headwinds—common along exposed coastal sections—further decrease range. Summer conditions prove more favourable, though highland routes like Kjölur (Route 35) and Sprengisandur (Route 26) remain challenging due to distance and elevation.

The 206 km stretch between Reykjavík and Vík represents a typical range test. Under ideal summer conditions, most modern EVs complete this journey using approximately 40-50% battery capacity. However, winter driving with heating, lights, and adverse conditions can consume 60-70% of available range.

Booking and Rental Requirements

Documentation and Licences

Standard rental requirements apply: valid driving licence (held for minimum one year), credit card in primary driver's name, and passport. International Driving Permits are required for non-EU/EEA licence holders. Minimum age varies by vehicle class, typically 23-25 for premium EVs.

Insurance Considerations

Iceland's harsh driving conditions make comprehensive insurance coverage essential. Standard Collision Damage Waiver (CDW) costs approximately 3,500-5,500 ISK daily, whilst Super CDW reduces excess to zero for an additional 2,500-4,000 ISK per day. Gravel Protection Insurance proves particularly valuable, covering windscreen and paint damage from flying stones—a common occurrence on Iceland's roads.

Advanced Booking Requirements

EV rental demand peaks during summer months (June-August), with limited fleet availability. Book minimum 2-3 months ahead for July-August travel. Winter availability improves, though vehicle selection becomes more limited.

Practical Charging Tips

Payment Methods

Most charging stations accept major credit cards, though mobile apps like ON Power's official application often provide better rates and enhanced functionality. Download relevant apps before arrival, as rural mobile coverage can complicate registration processes.

Charging Etiquette

Iceland's small EV community observes informal charging protocols. Don't occupy charging bays longer than necessary—move vehicles once charging completes. During peak tourist season, 30-45 minute fast-charging sessions suffice for most journey requirements.

Emergency Preparations

Carry backup power banks for mobile devices, as navigation systems consume significant battery during extended journeys. Pack warm clothing and emergency supplies, particularly for winter travel when charging stops may extend journey times.

Cost Analysis

A week-long Iceland EV rental typically costs 175,000-245,000 ISK (€1,200-1,680/$1,300-1,835) including comprehensive insurance. Charging expenses add approximately 15,000-25,000 ISK (€100-170/$110-190) for 1,500 km of driving. Comparable petrol vehicle costs would include 35,000-45,000 ISK (€240-310/$260-340) in fuel expenses alone.

Routes Best Suited for EVs

The South Coast circuit from Reykjavík to Jökulsárlón glacier lagoon (379 km) works exceptionally well for EVs, with charging stations at Selfoss, Vík, and Höfn. The Snæfellsnes Peninsula loop (approximately 200 km from Borgarnes) provides another excellent EV-friendly route with reliable charging infrastructure.

Electric vehicle rental in Iceland offers an environmentally conscious way to explore this Nordic island nation, provided you plan routes carefully and understand the charging infrastructure limitations. The combination of renewable energy, growing charging networks, and significant fuel cost savings makes EVs an increasingly attractive option for discerning travellers seeking sustainable Iceland adventures.

Getting around Iceland is easiest by car. Compare rental options and find the best deals on Discover Cars — free cancellation available.

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