It is one of the first questions people ask when planning an Iceland road trip. And the honest answer is: it depends on where you are going, and when.

Iceland has two very different road networks. The paved Ring Road and main tourist routes are perfectly manageable in a small 2WD car. The highland interior — where the famous F-roads are — is a different story entirely. Here is how to think about it.

The Paved Road Network — No 4×4 Needed

If your plan includes the Golden Circle, the South Coast, the Snæfellsnes Peninsula, or driving the Ring Road — a regular 2WD car is completely fine. These routes are paved, well-maintained, and driven by millions of visitors every year in standard cars.

A small car like a KIA Picanto or Toyota Aygo will handle these routes without any issue in summer. In winter the roads are treated and cleared, though driving conditions require more care — we cover winter driving in detail in our winter guide.

F-Roads and the Highlands — 4×4 Required

F-roads are Iceland’s highland mountain tracks. They are rough, unpaved, and often involve river crossings. They are only open in summer — typically late June through September — and they are strictly off-limits to 2WD vehicles.

This is not just a recommendation. Driving a 2WD on an F-road voids your rental agreement and your insurance. If your car gets stuck or damaged on an F-road without authorisation, the cost falls entirely on you.

Popular F-road destinations include Landmannalaugar (F225), Thorsmork (F249), and Askja (F88). If any of these are on your itinerary, you need a proper 4×4.

What Counts as a Proper 4×4 in Iceland?

Not all 4x4s are equal on Icelandic highland roads. A crossover SUV with all-wheel drive is not the same as a genuine 4×4 with high ground clearance.

At Esja Car Rental, vehicles we authorise for F-roads include the Dacia Duster, Suzuki Vitara, Nissan Qashqai, and Dacia Bigster — all of which have genuine 4WD systems and adequate ground clearance for highland conditions. Always confirm with us which roads a specific vehicle is approved for before heading into the highlands.

What If I Am Not Sure?

If your itinerary is not fully planned yet, here is a simple rule of thumb:

Staying on paved roads only: A small or compact 2WD car is perfectly fine and will save you money.

Mixing paved roads with some unpaved gravel roads: A small 4×4 gives you more confidence and flexibility without spending more than you need to.

Planning F-road or highland routes: A proper 4×4 is non-negotiable. Book early in summer as these vehicles are in high demand.

A Note on Gravel Roads

Even outside the highlands, Iceland has many rural gravel roads — particularly in the East Fjords and the Westfjords. A 2WD handles these fine, but reduce your speed and take care. Gravel Protection insurance (included in all Esja rentals) covers stone chip damage, which is common on these surfaces.

The Bottom Line

For the majority of Iceland’s tourist routes, you do not need a 4×4. But if the highlands or F-roads are on your list, a genuine 4×4 is both legally and practically required. When in doubt, give us a call — we know these roads well and are happy to recommend the right vehicle for your specific itinerary.

Not sure which car is right for your Iceland trip? Browse our full fleet at esjacarrental.is or contact us directly — we are a local company and we know these roads.