The Toyota Yaris is a compact and economical car, perfect for travellers who want an affordable way to get around Iceland. Its small size makes it easy to park in Reykjavík and convenient for short trips to nearby attractions like the Golden Circle or the Blue Lagoon. With excellent fuel efficiency and comfortable seating for up to five passengers, it’s a smart choice for budget-conscious travellers. However, because of its size and 2WD system, the Yaris has limited luggage space and is not suitable for highland F-roads or rough gravel tracks. It’s best for couples or small groups planning to stay on main paved routes and looking for a reliable, low-cost option.
Heads-up: Reservations are made by car category. Specific models are not guaranteed.
Where can you drive with the Automatic Toyota Yaris in Iceland?
This vehicle is NOT allowed on F-roads.
The Toyota Yaris is best suited for driving in Reykjavík city and on Iceland’s main paved roads, making it a great option for sightseeing in the capital, short day trips to the Golden Circle, or a visit to the Blue Lagoon. Its compact size makes city driving and parking easy, while its fuel efficiency keeps costs low. However, travellers should be cautious when renting a small 2WD car like the Yaris in winter, as strong winds, icy roads, and heavy snow can make driving more challenging. In colder months, a larger 4×4 vehicle is often a safer choice, but for summer and city-based trips, the Yaris offers excellent value and convenience.
Important Reminder: Off-road driving is illegal in Iceland. Driving off-road on lava fields, moss, beaches, or unmarked land will result in heavy fines.

FAQ
- Is a Deposit Required for My Car Rental?
No, a deposit is not necessary when you book with us. You can secure your rental without any upfront costs, providing you with peace of mind.
- What Documents Do I Need to Rent a Car in Iceland?
Please bring a credit card in your name, valid for six months beyond the return date, and a valid driver’s license at pickup. The drivers license must contain Latin letters, if not, you will need an International Drivers License. For more details, please refer to our terms and conditions page.
- What Is Your Cancellation Policy?
In case of a cancellation, the rental needs to be cancelled more than 3 days prior to rental pick up for a full refund.
If a rental is cancelled with less than 3 days notice or in case of no show the full rental price will be charged.
- 3 days or earlier – Full refund
- Less than 3 days – Non refundable
If you need to cancel your prepaid reservation please do so by sending an email to dollar@dollar.is stating your name and reservation number.
- How Do I Pick Up My Rental Car at Keflavik Airport?
Picking up your rental car with Dollar Car Rental Iceland is simple. After arriving at Keflavík International Airport, just take the free shuttle from outside the terminal to our nearby location – it takes under 10-minutes. Our team will have your car ready so you can quickly complete the pick-up process and start your Iceland road trip.
- Can I Rent a Car in Akureyri with Dollar Car Rental?
Yes, we are also based at Akureyri Airport. When booking your vehicle simply select ‘Akureyri (AEY)’ from the pick up list, and same for the return location. You can also return at a different Dollar Car Rental location for an additional fee.


