Electric vs Gasoline Car Rental in Iceland: Which is Best?

Iceland’s landscapes are vast, varied and often remote, which makes choosing the right rental car an important decision. As electric vehicles become a natural part of everyday driving in Iceland, many travellers wonder whether an electric car or a petrol-powered vehicle is the better choice.

This guide focuses on the key differences between electric and gasoline car rentals in Iceland, with practical considerations based on real travel conditions.

At first glance, rental prices for electric and petrol vehicles can appear similar. The real difference often lies in running costs during your trip.

A detailed breakdown of potential savings is available in our comparison guide: Renting an Electric SUV Can Save You Hundreds.

This makes electric vehicles particularly attractive for longer road trips and full Ring Road itineraries.

Iceland is powered almost entirely by renewable energy from geothermal and hydropower. Driving an electric vehicle therefore aligns closely with the country’s sustainability goals.

• Zero tailpipe emissions: Electric vehicles produce no direct emissions while driving.
• Cleaner energy source: Charging an EV in Iceland relies on renewable electricity rather than fossil fuels.
• Sustainable tourism: Choosing electric supports responsible travel and helps preserve Iceland’s natural environment.

Electric and petrol vehicles offer different driving experiences, each with practical advantages.

• Electric vehicles: Quiet cabins, instant torque and smooth acceleration make long driving days less tiring.
• Petrol vehicles: Familiar refuelling habits and fast stops can feel convenient, especially for drivers new to EVs.
• Charging infrastructure: Iceland’s charging network is well developed along main routes, making EV travel straightforward with proper planning.

Icelandic weather plays an important role in vehicle choice, particularly outside the summer season.

• Cold temperatures: Electric vehicle range can decrease in winter due to heating and wind resistance.
• Route planning: Charging stops should be planned in advance, especially in rural areas.
• All-wheel drive: Available on many electric and petrol SUVs and recommended for winter driving or gravel roads.

When deciding between electric and petrol, consider the following:

• Electric cars are ideal for travellers following the Ring Road or major routes and looking to reduce running costs.
• Petrol vehicles may suit itineraries that include very remote areas or highland routes with limited charging access.
• Season matters: electric vehicles perform exceptionally well in summer, while winter travel benefits from careful planning regardless of drivetrain.

Both electric and petrol car rentals can be excellent choices in Iceland, depending on your travel plans. Electric vehicles offer lower running costs, a quieter driving experience and strong environmental benefits, while petrol vehicles provide flexibility in the most remote areas.

By planning ahead and choosing the vehicle that best fits your itinerary, you can enjoy a smooth and memorable Iceland road trip with Saga Car Rental.