Planning a family road trip around Iceland? Choosing the right rental car can make a big difference, especially when you’re travelling with children, suitcases, car seats and everything else that comes with a family holiday.
The best rental car for a family trip to Iceland depends on how many people are travelling, how much luggage you have, the time of year and where you plan to drive. A small family staying around Reykjavík and the Golden Circle will have very different needs from a family spending two weeks driving the Ring Road.
In this guide, we’ll help you choose the best rental car for a family in Iceland, from practical station wagons to spacious SUVs and 7-seater vehicles.
What Is the Best Rental Car for a Family in Iceland?
For most families, a medium-sized SUV or spacious station wagon offers a good combination of passenger space, luggage capacity and comfort for longer drives.
However, there isn’t one car that works best for every family.
A family of three visiting Iceland in summer may be perfectly comfortable in a smaller vehicle, while a family of five travelling with several large suitcases may need an SUV or larger vehicle.
Before booking your family car rental in Iceland, consider:
- Number of adults and children
- Number and size of suitcases
- Whether you need child or booster seats
- Length of your Iceland road trip
- Summer or winter travel
- Roads and regions you plan to visit
- Whether you need a 4×4
- How much time you’ll spend driving each day
One of the most common mistakes is choosing a rental car based only on the number of seats. A five-seat vehicle might technically fit five people, but once you add luggage and child seats, space can become limited.
Best Rental Car for a Family of 3 in Iceland
For two adults and one child, you have plenty of options.
A compact or medium-sized car can work well if you’re travelling relatively light and sticking to popular routes such as Reykjavík, the Golden Circle and South Coast.
For longer trips, however, choosing something slightly larger can be worthwhile. A station wagon or compact SUV provides additional luggage space and gives everyone more room during longer drives.
This can be particularly useful if you’re planning a 7-day or 10-day Iceland road trip with kids, when you’ll probably be carrying more clothing, outdoor equipment and other essentials.
Good choices for a family of 3:
- Compact car for shorter summer trips
- Station wagon for extra luggage
- Compact or medium SUV for longer road trips
- 4×4 if your itinerary requires one
Recommended Vehicles:
Best Rental Car for a Family of 4 in Iceland
A family of four will usually be most comfortable in a station wagon or SUV.
Although many smaller cars have five seats, luggage is often the deciding factor. Four people travelling internationally can easily arrive with three or four suitcases, backpacks and additional bags.
If you’re bringing a stroller, the amount of available boot space becomes even more important.
For a longer family road trip around Iceland, an SUV can provide a useful balance between passenger space and luggage capacity.
Before booking, check the stated luggage capacity rather than assuming everything will fit because the vehicle has enough seats.
Good choices for a family of 3:
- Station wagon for extra luggage
- Compact or medium SUV for longer road trips
- 4×4 if your itinerary requires one
Recommended Vehicles:
Best Rental Car for a Family of 5 in Iceland
For five people, we recommend looking carefully at the interior and luggage capacity of your rental car.
A five-seat SUV may work for a family of five, particularly if some of the passengers are younger children. However, three passengers across the rear seats can become tight, especially when child seats are required.
For longer journeys, a larger SUV or vehicle with additional seating may be more comfortable.
This is particularly worth considering if you’re planning to drive the Iceland Ring Road with kids, where you may spend several hours in the car on some days.
Good choices for a family of 5:
- Station wagon for extra luggage
- Larger 4×4
Recommended Vehicles:
Should a Family Rent a 7-Seater in Iceland?
A 7-seater car rental in Iceland isn’t only useful for families of six or seven.
Larger families of four or five may also prefer a 7-seater because of the additional flexibility it provides.
Depending on the vehicle, you may be able to fold unused rear seats down to create more luggage space. This can be useful when travelling with:
- Large suitcases
- Strollers
- Outdoor equipment
- Multiple child seats
- Food and supplies for longer road trips
However, remember that luggage capacity can actually become smaller when every seat in a 7-seater is being used.
If seven people are travelling together, always check how many suitcases the vehicle can accommodate with all seven seats upright.
SUV vs Station Wagon for an Iceland Family Road Trip
Both SUVs and station wagons can be excellent choices for a family car rental in Iceland.
Station Wagon
A station wagon can be a practical option for families travelling on Iceland’s main paved roads.
They typically offer generous boot space without requiring a particularly large vehicle, making them suitable for routes such as:
- Reykjavík
- Golden Circle
- South Coast
- Snæfellsnes Peninsula
- Ring Road
For a summer family holiday where you don’t plan to drive on F-roads, a station wagon may provide everything you need.
SUV
An SUV may be preferable if you want additional space, are visiting during winter or have an itinerary that includes more varied roads.
There are both 2WD and 4×4 SUVs available in Iceland, so don’t assume that every SUV is automatically four-wheel drive.
If your itinerary includes an F-road, you must rent a suitable 4×4 vehicle.
Do Families Need a 4×4 in Iceland?
Not necessarily.
You do not need a 4×4 simply because you’re visiting Iceland.
During summer, a regular 2WD rental car is suitable for many popular family destinations, including the Golden Circle, Reykjavík, much of the South Coast and the Ring Road.
A 4×4 becomes more relevant when your itinerary or the season calls for one.
You should consider renting a 4×4 if:
- Your itinerary includes F-roads
- You’re planning to visit the Highlands
- You’re travelling during winter
- You want a vehicle better suited to more challenging seasonal conditions
Remember that 4×4 vehicles are legally required on Iceland’s F-roads.
F-roads generally open during the summer months, with opening dates depending on weather and road conditions. They close again as conditions deteriorate later in the year.
If you’re travelling with young children, it’s also worth considering whether a Highland route makes sense for your particular family itinerary. Driving distances can be long and facilities are considerably more limited than on Iceland’s main tourist routes.
Best Family Rental Car for Iceland in Summer
Summer gives families the widest choice of rental vehicles.
Most major routes are accessible, daylight hours are long and you generally won’t need a 4×4 unless your itinerary specifically includes roads that require one.
For a typical summer family road trip, consider:
Short Reykjavík + Golden Circle trip:
Compact or medium car.
South Coast family road trip:
Medium car, station wagon or SUV.
Ring Road family trip:
Station wagon or SUV for additional luggage space and comfort.
Highlands trip:
Suitable 4×4.
Summer is also a popular time for family travel in Iceland, so larger rental vehicles and 7-seaters can have limited availability. Booking early gives you a better chance of finding the vehicle category that works for your family.
Best Family Rental Car for Iceland in Winter
Choosing a rental car for a family winter trip to Iceland requires a little more thought.
Winter can bring snow, ice, strong winds and rapidly changing driving conditions. Daylight hours are also much shorter than during summer.
A 4×4 can be a sensible choice for a winter family road trip, particularly if you plan to travel outside Reykjavík.
However, renting a 4×4 doesn’t make winter conditions automatically safe. You should still adjust your plans according to the weather and road conditions.
Before driving each day, check the latest information from the Icelandic Road and Coastal Administration and the Icelandic Met Office.
If conditions are poor, changing your itinerary is often the best option.
Child Seats and Booster Seats in Iceland
If you’re planning an Iceland road trip with kids, make sure you arrange the correct child seat before arriving.
Iceland has rules governing the use of child restraint systems, and the appropriate seat depends on the child’s size and age.
Rental companies generally offer different child seat and booster seat options that can be added to a booking.
It’s a good idea to reserve these in advance, particularly during busy family travel periods.
When comparing rental cars, remember that multiple child seats can take up significant space across the back row. If you need two or three child seats, choosing a larger vehicle can make the journey considerably more comfortable.
Don’t Forget About Luggage Space
Luggage capacity is one of the most important things to consider when choosing the best car for an Iceland family road trip.
Think about what you’ll actually be bringing rather than simply counting suitcases.
Your luggage might include:
- Large checked suitcases
- Carry-on bags
- Children’s backpacks
- Stroller
- Hiking boots
- Waterproof clothing
- Winter clothing
- Food and snacks
- Camera equipment
A car that looks large enough when empty can quickly become crowded.
If you’re deciding between two vehicle categories, choosing the larger option can be worthwhile for a longer road trip.
How Long Will You Be Driving?
Iceland can look relatively small on a map, but distances between destinations can be significant.
A Golden Circle day trip involves several hours of driving. A South Coast trip can involve even more, while completing the Ring Road typically means spending time in the car almost every day.
For longer journeys, consider passenger comfort as well as price.
Extra legroom, sufficient luggage space and enough room between child seats can make a noticeable difference after several days on the road.
Tips for Renting a Car in Iceland With Kids
A little planning before your trip can make your family road trip much simpler.
Book your vehicle early. Larger family vehicles and 7-seaters can be in high demand, particularly during summer and other busy travel periods.
Reserve child seats in advance. Don’t wait until you arrive to find out whether the seat you need is available.
Check luggage capacity. Look beyond passenger numbers and consider suitcases, strollers and other equipment.
Don’t choose a 4×4 unless you need one. For many summer itineraries, a 2WD vehicle is perfectly suitable.
Plan realistic driving days. Leave time for breaks, meals and unexpected stops rather than trying to cover huge distances every day.
Check conditions before setting off. Icelandic weather can change quickly, so review the latest road and weather information each morning.
Why Explore Iceland by Rental Car as a Family?
Having your own rental car gives families the flexibility to build an Iceland itinerary around their own schedule.
You can stop when the kids need a break, spend longer somewhere you enjoy and adjust your plans as you travel.
It’s particularly useful when visiting destinations outside Reykjavík, where many of Iceland’s best-known waterfalls, beaches, geothermal areas and natural attractions are spread across large distances.
For families planning to visit several parts of the country, a rental car can therefore be one of the most practical ways to explore Iceland.
FAQ: Family Car Rental in Iceland
- What is the best rental car for a family in Iceland?
For most families, a station wagon or medium-sized SUV provides a useful combination of passenger room and luggage space. The best choice depends on your family size, luggage, season and itinerary.
- Do I need a 4×4 for a family trip to Iceland?
Not for most summer trips. Many popular destinations can be reached in a regular 2WD car. A suitable 4×4 is required for F-roads and can also be worth considering for winter travel.
- What size car should a family of four rent in Iceland?
A station wagon or SUV is often a good choice for a family of four, particularly if you’re travelling with several suitcases or a stroller.
- Should a family of five rent a 7-seater in Iceland?
It can be worthwhile. Although many SUVs seat five people, three passengers plus child seats across the rear can become crowded. A larger vehicle may provide more space for a longer road trip.
- Can I rent child seats with my Iceland rental car?
Yes. Child seats and booster seats are available from many Icelandic rental companies. It’s best to reserve the appropriate seat when booking your vehicle.
- Is a small car suitable for a family trip around Iceland?
A small car can work for a family of two adults and one child travelling light, particularly during summer. For longer road trips or families carrying more luggage, a larger car may be more comfortable.
- Is it better to rent an SUV in Iceland with kids?
An SUV isn’t essential simply because you’re travelling with children. However, the additional passenger and luggage space can make an SUV a practical option for longer family road trips.
- Can you drive the Ring Road in Iceland with children?
Yes. The Ring Road is a popular option for family road trips, but you should allow enough time rather than trying to cover the route too quickly. Regular breaks and shorter driving days can make the journey more enjoyable for children.
Find the Right Family Car Rental in Iceland
There is no single best rental car for every family visiting Iceland. The right choice comes down to having enough room for everyone, enough space for your luggage and a vehicle suitable for the roads you plan to drive.
For a shorter summer trip, a compact or medium car may be all you need. For a longer Iceland family road trip, a station wagon or SUV can provide additional space. And if you’re heading onto F-roads, you’ll need to choose an approved 4×4.
Plan your route first, think realistically about how much luggage you’re bringing, and then choose your rental car.
That way, you’ll have the space and flexibility you need to enjoy your family road trip around Iceland.