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Faroe Islands Car Rental Guide: Companies, Prices, Top Tips



By Poul / 12 Mar, 2024 / Share This Post

Explore the essentials of Faroe Island car rentals: insurance options, tunnel tolls, rental tips, and top companies for a stress-free trip.

Imagine winding roads hugging dramatic cliffs, sheep dotting emerald hillsides, and waterfalls cascading into the sea. 

That's the Faroe Islands – and the best way to experience their magic is with your own set of wheels.

However, this comes with many questions. 

What's the process for renting a car? Is it safe or tricky to drive around? What are the driving laws? What paperwork do you need? Are gas stations readily available?

All your answers are here in today's guide.

Ready to take the wheel? This guide is your roadmap. 

We'll cover the best companies, pricing, those all-important driving tips, and everything else you need to make your Faroe Islands road trip everything you want it to be and more.

Do I REALLY Need a Car in the Faroe Islands?

Okay, let's get real - you could hop on buses or ferries and see some of the Faroes. 

But here's the thing: these islands are built for road trips. Think twisting coastal highways, hidden waterfalls, and mountain passes that demand to be explored on your schedule. 

Just check out the "Buttercup Routes", and you'll see exactly what we mean.

It'll make you feel as though you're in your own car ad, sweeping around bends that weave through the best scenery. However, and more importantly, it allows you to explore at your own pace.

  • Own Your Adventure: Ditch those bus timetables and have to worry about being at a specific place at a particular time. Taking a rental car option means pulling over for photos whenever you want, taking that detour down a dirt track, and finding your own perfect slice of Faroese paradise in a way that works for you.
  • Cosy Comfort: Picture it – you, your travel buddies, your family, maybe some playlist you've made just for the occasion, and the incredible Faroese scenery rolling by. That's the magic of having your own space.
  • It's About the Journey: The Faroe Islands aren't just about ticking off a list of sights; it's the feeling you get driving those roads. A rental car is your key to unlocking the true spirit of this place.

Bottom Line: If you want to see the Faroes on your terms, a car rental isn't just an excellent idea... it's the only way to go.

How Much Does Faroe Islands Car Rental Cost? What You'll Actually Pay

Let's cover the most important question right away - the cost of renting a car.

Of course, this can vary depending on factors like:

  • The car you're choosing to drive
  • The dates and availability (and peak travel seasons)
  • Any plans, coverage, or insurance you take out
  • Your pick-up and drop-off spots

On average, you're looking anywhere between 200DKK (€26) for something like a budget economy car and 1000DKK (€136) a day (a full eight-person minivan). So around 600DKK a day, or €80 a day, which is pretty affordable and cheaper than renting in most countries.

That said, you don't want to get caught out by any potential hidden fees, so let's break down what you can expect to pay beyond the advertised daily rate so there are no surprises on your Faroese road trip:

  • Damage Waivers Your Safety Net: Most rentals come with basic insurance (it's called a Collision Damage Waiver or CDW). Want extra peace of mind? Upgrade to a Super Collision Damage Waiver (SCDW) for an extra daily fee. This will cover you when driving!
  • The Deposit Question: This is where things get tricky. Some companies charge a big deposit, others don't. Do your research – picking a company with a smaller (or no) deposit could save you a chunk of cash upfront.
  • Mileage – Unlimited or Not? Good news! Most Faroese rentals come with unlimited mileage. But hey, double-check that policy – you don't want to get caught out.

Again, while most rental companies are legitimate and operate to a pretty standard level, always check the policy details to see what you're getting yourself into. Always ask for any fees beforehand, so you have it in writing, which means zero stress at the rental desk. 

Read that fine print, compare companies, and you'll be cruising with cash to spare for those tasty Faroese pastries!

Faroe Islands Rental Companies: Finding Your Perfect Ride

With the boring stuff out of the way, let's take a look at some of the top car rental companies on the islands, showcasing what's available. Here are the top contenders you need to know about:

  • PHD Car Rent: We're all about making your Faroe Islands experience as easy as possible. Expect quick service, a range of cars (budget-friendly to fancy), and perks like no deposit and no-fuss cancellations. We include all tunnel fees so you can drive wherever you want without worry, we have a great selection of cars available right now, and we have full five-star reviews on TripAdvisor for a reason!
  • Unicar Rental: Looking for extra peace of mind? They specialize in comprehensive coverage options, including gravel road protection (handy in the Faroes).
  • 62°N Car Rental: Another solid choice offering a variety of vehicles and good coverage options to keep you worry-free.
  • Avis/Budget: The big names are great if you're on a budget. Their basic insurance is often included in the base rental price.
  • Hertz: Another well-known option, Hertz often has inclusive rates and the option to upgrade your coverage as needed.
  • RentYourCar.fo: Known for competitive prices and flexible options – they even offer coverage for things like windshield damage.

Remember: It's not JUST about the cheapest price! Consider these factors when choosing:

  • Car Type: Do you need a rugged SUV or a zippy hatchback?
  • Pick-up/Drop-off: Is it convenient for your trip?
  • The Extras: Look at cancellation policies, mileage, and if things like child seats are included.

The bottom line is that a little research now saves a lot of hassle later. Choose a company that gives you the car you need AND the confidence to hit those Faroese roads with a smile!

Watch Out for Those Tunnels! (They Come With a Cost)

Tunnels are a bit of a big deal in the Faroe Islands because they connect everything together, some of which are even underwater and lit up in such a beautiful way, making them an experience to explore in itself.

But these tunnels do come at a cost. Here's the deal:

The Faroe Islands has 21 tunnels (4 underwater/undersea tunnels and 17 mountain tunnels). The four that connect the main islands together are:

Now, these main tunnels are pay-to-play, with some tunnels charging both ways (like the Vágatunnilin and Norðoyatunnilin). 

At the time of writing, the fees are:

  • Eysturoyartunnilin – 240 DKK (one-way)
  • Sandoyartunnilin – 240 DKK (one-way)
  • Norðoyatunnilin – 100 DKK (two-way)
  • Vágatunnilin – 100 DKK (two-way)

Keep this in mind when budgeting!

The mountain tunnels don't charge and are open all hours of the day.

Bear in mind when you book with PHD Car Rentals, we include the tunnel fees in our rental charge. Every time you pass through a tunnel, we get the bill instantly and pay it off there and then, so you don't even need to think about it.

Just drive around to your heart's content, wherever you want to go, whenever you want to go, and we've got you back. 

Just another way to ensure your trip is plain sailing.

Faroese Driving 101: Stay Safe, Stay Legal

And finally, the legal stuff, which means driving safe and sound, knowing what to look out for, and ensuring you don't get into any trouble. 

A little knowledge goes a long way, so here's your need-to-know list:

  • Right Side, Happy Ride: Unlike the UK, driving is on the right side in the Faroe Islands.
  • Don't Drink & Drive: The limit is super low (being illegal, over just 0.05%), so play it safe and skip the drinks if you'll be behind the wheel.
  • Buckle Up, Everyone: Seatbelts are mandatory for ALL passengers.
  • Kids Need Car Seats: Got little ones? Kids under 4 need a car seat, and kids under 12 ride in the back.
  • Lights On, Day & Night: This is a safety thing. Make sure you have your headlights on all the time. Day and night. Never turn them off. Faroese weather changes can come thick and fast.
  • The Tunnel Two-Step: Modern tunnels have two lanes, but those old ones are a different story...
    • Only one lane, so watch for those widened passing areas
    • The car closest to the wider spot gets to stay
    • Uphill cars have the right of way
  • Sheep: They're adorable but unpredictable and tend to walk all over the roads without a care in the world. Slow down, be patient, and let them pass.

Pro Tips:

  • Speed limits are posted; obey the signs!
  • Winter tyres are allowed in the colder months.
  • Tolls are a thing in some tunnels. Your rental company might include this in the price, so be sure to ask.
  • Parking discs are needed in some towns.

Your Faroese Adventure Starts Here

Okay, you've got the insider knowledge on Faroese car rentals – the fees, the tunnels, the best companies. Now it's time to make this dream trip a reality!

Think about those winding coastal roads and the hidden waterfalls...a rental car isn't just transport; it's your ticket to exploring this place on YOUR terms.

Ready to Hit the Road?

Hit us up here at PHD Car Rental, where we're more than just car providers; we're your local partners, making the whole process smooth so you can focus on the good stuff.

The Faroe Islands are calling.

Are you ready to answer?


Related Blogs


What to know about car rentals in the Faroe Islands

1: Book Early

The first big thing to know about renting a car here is that there is a relative scarcity of rental cars (around 1,400 rental cars only across all the islands!), which means that prices will get steep, especially during the peak of summer holidays. If you’re planning your visit to the Faroe Islands sometime within the year, do your best to always book in advance. Winter is a good time to snatch up deals—and if you’re smart about which car rental company you choose, you can do so without any worry about cancellation fees.

2: Not just from big companies

Google “car rentals in Faroe Islands” and you'll likely find listings for the big car rental companies (Sixt, Kayak, etc). But that’s not all there is. With some locals being too aware of how high car rental prices put off some travelers from visiting their homeland, they’ve set up shop to offer more affordable prices (i.e. our mission in a nutshell!). But it’s not just a matter of pricing. With a local, small team you can expect much more personal support and all the attention that small businesses are known for: ensuring you’re satisfied and sharing with you recommendations.

3: Find out *all* fees

If you haven’t been lucky enough to nab a car rental winter deal, this is a must-do. Because for many car rental companies (especially the big ones), apart from the rental price of your vehicle, other costs can include cancellation fees and security deposits. The latter can be especially annoying when they charge your credit card immediately for a high deposit, before releasing it with the cost of your bank’s currency exchange fee. Our favorite alternative? Go with a car rental company that doesn’t charge you for cancellations & security deposits.

4: Confirm *all* logistics

Thought the rocky Faroe Islands would require 4-wheel drives? Not all. Off-road driving is actually banned from the islands, and thanks to a fantastic road network, just a standard car type would do you well for your adventures (even in winter!)

5: No need for a special car type

If you haven’t been lucky enough to nab a car rental winter deal, this is a must-do. Because for many car rental companies (especially the big ones), apart from the rental price of your vehicle, other costs can include cancellation fees and security deposits. The latter can be especially annoying when they charge your credit card immediately for a high deposit, before releasing it with the cost of your bank’s currency exchange fee. Our favorite alternative? Go with a car rental company that doesn’t charge you for cancellations & security deposits.

What to know about car rentals in the Faroe Islands

1. Sea Tunnels

One of the unique things you’ll quickly find out about the Faroe Islands is its many tunnels connecting you all across the archipelago. There are around 20 of them—and they can go either under the seabed itself (sub-sea tunnels) or right through a mighty mountain.

2. Parking fees

Whether it’s because of the sparsity of the population or the immensity of space around, the Faroe Islands have no parking fees whatsoever…with one exception. If you’re planning to park at the airport, you can expect to pay a fee there—otherwise, park as long as you want, free of charge.

3. No off-road driving

Perhaps a little disappointing to the 4-wheeler adventurers: the Faroe Islands doesn’t permit any off-road driving (officially: it’s prohibited by law). This is to protect the pristine nature all around, much of which is actually private property. So do enjoy your road trips—but on the ample roads, bridges, and tunnels.

5. Sheep on the road

Quintessentially Faroese, when you’re driving around here you’ll very soon be greeted with our most common habitant: wooly sheep. You’ll see them across fields and by roadsides, but just be mindful that some can galavant across the roads (often when in a panic). So when sheep are around, do slow down.

Speed limits (and other rules)

For a quick runthrough of local driving rules: if you’re in town areas, the speed limit is 50 km/h (31 mph)—otherwise, it’s 80 km/h (50 mph). You drive on the right-hand side. It’s illegal to hold a mobile device (or drink alcohol) while driving. And while the legal driving age in the Faroe Islands is 18, most car rental companies will require you to be at least 20-21 years of age.

What Car Rental options do you have?

We’re keeping this part short—only because we’ll be breaking things down for you fully in a separate blog. But the quick sum of it is: if you’re looking to rent a car for your adventures in the Faroe Islands, you can either rent from the regular big companies or opt for a local car rental company.

Why we’re biased for the latter? Because, well, that’s what we do—but in our PHD Car Rent way. We make reservations a breeze, never tie up your money in security deposits, don’t charge cancellation fees (unless you cancel 24 hours before your pick-up time), and make sure your money goes the furthest for you.

Our mission has always been to provide the best value car rentals that you can rely on for quality and friendly, local service. But don’t take our word for it—check out our 134, 5-star Google reviews!