EV rentals in Iceland have gone from "novelty" to "mainstream" in about three years. Most major rental companies now offer Tesla Model Y, Hyundai Ioniq 5/6, Kia EV6, Polestar 2, and a handful of others. Whether it's the right call depends on your route.
What's an EV rental cost?
In summer, expect 15,000–25,000 ISK/day (≈ €100–170) for a Model Y or similar. Off-peak (October–April), prices drop 30–50%. Add ~3,000 ISK/day for charging, less if your hotel has free AC charging.
Compared to a petrol rental of similar size: EVs are typically 10–20% more expensive per day but 40–60% cheaper to fuel. Break-even depends on how much you drive — for a Ring Road trip (1,300+ km), the EV usually wins on total cost.
Where EV rentals shine
- Golden Circle — short loop, dense charging, no range anxiety.
- South Coast (Reykjavík to Vík) — well-charged corridor, plenty of stops to top up.
- Reykjanes peninsula — small loop, charger at every other corner.
- Ring Road in summer — daylight hours are long enough that charging stops don't eat your itinerary.
Where EV rentals struggle
- Westfjords — sparse charging, long distances, mountain passes that drain range fast. Doable with planning, frustrating without. See the Westfjords charging map before committing.
- Highland F-roads — almost no EVs are insured for F-roads anyway, but battery drain on rough ground is brutal.
- Winter Ring Road — possible, but plan 30–40% more buffer for cold-weather range loss.
What rental companies don't tell you
- Charging cards / apps: the rental usually doesn't include them. You'll need to register your own. See the EV guide.
- Free Tesla Supercharging: Tesla rentals from Hertz Iceland sometimes include credit. Ask explicitly.
- Damage policies: wind doors, gravel chip on the windshield, and battery damage are often not covered or have huge deductibles. Read the contract.
Practical pickup tips
- Pick up the car with at least 80% charge. If it's lower, ask them to top it up.
- Test the charge port flap and cable lock before you leave the lot.
- Confirm whether AC charging at hotels is included via a card you have, or if you'll need to register fresh.
The verdict
For a 4–7 day trip in the South / Golden Circle / Reykjanes area, an EV rental is great. For the full Ring Road in summer, it's still great. For the Westfjords or any winter highland adventure, take a petrol or diesel rental and don't fight it. Browse the full station directory to plan around your route.