Does Budget require an IDP in Iceland?

Budget's published minimum rental age is 21 in most US states (18 in New York and Michigan), with renters under 25 paying a daily young-driver surcharge; typically around $27/day in most markets, but materially higher at corporate locations such as New York ($35/day for ages 21-24 and $84/day for 18-20) and Michigan ($28/day for 21-24 and $41/day for 18-20). No surcharge applies to drivers 25 and older.

Budget requires a valid credit or debit card; renters under 25 must use a credit card and cannot use a debit card. Deposit type and amount vary by location, with a typical credit-card hold of roughly $80 plus estimated charges plus one extra day's charges, or a minimum near $300, whichever is greater.

Budget allows up to two additional drivers per rental and a per-day additional-driver fee typically applies (varies by location), though it is commonly waived for a spouse or domestic partner; pre-authorized additional drivers must be a spouse/domestic partner, a fellow employee/employer, or a companion driver to a renter with a disability. Budget does not publish a fixed US-wide tenure requirement, but the driver must hold a valid, current full driver's licence, and many corporate-operated locations verify the renter's and additional drivers' records with the DMV before completing the rental.

Driving a Budget rental into Mexico is restricted to authorized corporate-account holders (no one-way rentals into Mexico), and Mexican auto liability insurance is required. Travel into Canada is permitted from many US locations with advance arrangement and Budget's consent, and a Canadian non-resident insurance card may be required; one-way cross-border drop-offs are availability-dependent and carry extra fees that must be authorized in the rental agreement.

Budget generally requires a valid driver's licence, passport, and an International Driving Permit issued in the driver's name from their home country; EU residents renting within the EU may present either their EU licence alone or with an IDP. If the home-country licence is not written in the Roman alphabet, an IDP is mandatory to rent.

The only toll is the Vadlaheidi tunnel near Akureyri (the older Hvalfjordur tunnel is now free); pay online within hours of passing via tunnel.is or the app. A nationwide distance-based road usage charge began phasing in from 2026.

Reykjavik uses paid zones P1 to P4 (P1 the central, priciest zone), payable by meter or the Parka/EasyPark app; the compact centre relies on strictly enforced paid street parking rather than congestion charging, and overstays are ticketed promptly.

Speeding cameras are widespread and fines are steep, starting around ISK 15,000 and rising fast; handheld phone use, no seatbelt and any off-road/off-track driving carry large fines. Police can fine on the spot and rental firms pass on camera and damage charges automatically from the card on file.

Call the single emergency number 112 for police, ambulance and fire; report injuries or significant damage. Do not move vehicles if anyone is hurt, photograph the scene, and complete the accident form provided with the rental, as the rental contract dictates damage reporting (gravel, sand and door-wind damage are common Icelandic claims).