Renting a car in Iceland as a Canadian: licence, insurance and roads

Your licence

You can drive in Iceland with your Canadian licence for up to 6 months, and the Government of Canada recommends an International Driving Permit. Hertz Iceland accepts licences in English or Roman script, requires an original physical licence held for at least one year, and does not accept digital licences.

Hertz Iceland sets the minimum age by car type: 20 for economy, compact and intermediate cars, 23 for 4x4 SUVs and minivans, and 25 for prestige and luxury cars. It has no maximum age. It requires a physical card in the main driver's name (no Apple Pay, Google Pay or virtual cards), and luxury rentals need two credit cards. Hertz Iceland's page does not list a separate young-driver fee.

Only CAA issues International Driving Permits in Canada. It costs $32 including tax, lasts one year, and is only valid with your Canadian licence.

Insurance: what to check

• Hertz Iceland includes Collision Damage Waiver (CDW) in the rental price. Super CDW, theft protection, gravel protection and sand and ash protection are optional extras.
• Standard CDW typically excludes windscreen and glass damage, tyres and wheels, and underbody damage. Gravel protection covers stone chips and cracks to glass, paint and underbody. Sand and ash protection is a separate add-on for wind-blown sand and ash damage to paintwork, mainly on the south coast and around Mývatn.
• Some damage voids all cover: water damage from river crossings, off-road driving, driving a non-approved vehicle on F-roads, and driving on officially closed roads (Go Car Rental's policy terms).
• Canadian credit-card rental cover does not apply to off-road driving on roads that are not publicly maintained, and it does not cover third-party liability.

Roads, tolls and parking

• Most urban roads and the Ring Road (Route 1) are paved. Many inland routes are unpaved and narrow, and most bridges outside Reykjavík are one lane wide.
• F-roads are mountain roads and only 4x4 vehicles are allowed on them by law. Driving a non-4x4 on an F-road voids your rental insurance. Some plug-in hybrids and luxury SUVs are not allowed on F-roads even though they are 4x4.
• Mountain roads usually open between late May and mid-July depending on snow, so many F-roads are open only in summer. Check road.is (umferdin.is) or call 1777 for current status. Do not drive around snowdrifts, because roads and plants are fragile in spring.
• Speed limits are 30 to 50 km/h in towns, 80 km/h on gravel roads and 90 km/h on paved roads outside towns. Road conditions: call 1777 or check road.is. Emergencies: 112.

Staying safe on the road

• Safetravel.is is run by ICE-SAR, Iceland's volunteer search and rescue association. It gives current weather and road conditions, and you can leave a travel plan with a trusted person.
• Driving off marked roads and tracks is illegal everywhere in Iceland. One guide reports fines of up to 500,000 ISK, and more in protected areas.
• Headlights must be on at all times and winter tyres are mandatory from November to April (dates can shift with the weather). Seat belts are required for everyone.
• For remote travel, use a four-wheel-drive vehicle, share your itinerary, and carry a phone and emergency fuel, water and food. The legal drink-drive limit is very low (0.02% blood alcohol), so do not drive after any alcohol.