Best Car Rental in Iceland

Planning to visit Iceland? Your choice of transportation could make or break your trip. With the freedom to explore at your own pace, rental cars are your best bet for an Icelandic adventure. They are a popular option that provides convenience and flexibility.

Iceland, though a small nation, offers a variety of rental car options, from domestic to international car rental companies that cater to every traveler’s need. Let’s navigate the rental landscape together.

Renting a car in Iceland opens the door to an Icelandic adventure filled with natural wonders and mesmerizing landscapes. From the capital city, Reykjavik, to the rugged Icelandic Highlands, a rental car offers flexibility and freedom to explore this beautiful country. Below, we’ll guide you through the process and tips for selecting the right vehicle for your trip.

When renting a car in the Land of Fire and Ice, the process comes down to a few easy steps. This is how you can ensure a smooth road trip:

1. Search your options. Start your quest for the perfect rental car using a rental
search engine. Look into international car rental companies and local rental
agencies such as ‘Cars Iceland’ and ‘Reykjavik Cars’’

2. Choose pick-up and drop-off locations. There are many convenient rental locations,
with popular options being Keflavik International Airport, Reykjavik city center, and
domestic airport centers.

3. Select the type of vehicle. Rental companies provide a wide variety of vehicles to suit
different needs. From economy cars for a cheap car rental option to four-wheel drive
vehicles for mountain roads, choose what best fits your itinerary and expected road
conditions.

4. Check Mileage. Some companies offer unlimited mileage, a boon for those planning
extensive explorations.

5. Complete the booking. This will require a valid credit or debit card at the rental desk.

Selecting the right vehicle for your trip depends on various factors, like weather conditions, the type of roads you plan to drive on, and your common type of activity.

• Vehicle for the itinerary. Economy cars should be sufficient if your day trip mostly includes paved roads around Reykjavik or the Iceland Ring Road. However, you’ll need a four-wheel drive to the Icelandic Highlands.
• Consider the weather. Iceland’s weather is notoriously unpredictable. Rapid changes can bring unforeseen icy roads, particularly during winter months. Thus, selecting vehicles fitted with winter tires over studded winter tires is safer.
• Emergency services. For added peace of mind during your exciting destinations, check if your rental company offers 24-hour emergency customer service or resources on travel and weather forecasts.

Renting a car is perhaps the best way to explore Iceland’s natural wonders, providing the freedom that itinerary-driven tours can’t. Each company has its own strengths and perks; therefore, knowing the top providers and their offerings can significantly enhance your road trip experience.

Blue Car Rental is one of the few companies offering full insurance including gravel and sand damage. They have a wide range of vehicles for you to choose from, including SUVs perfect for F-road driving.

• Complete insurance included in the rental price
• All cars are equipped with studded winter tires in the winter season
• Free shuttle service from Keflavík International Airport to the rental office
• Prices might be slightly higher due to comprehensive insurance coverage

A globally recognized brand with a strong presence in Iceland, Sixt offers a fleet of high-quality vehicles, from economy to luxury cars.

• Wide array of vehicle options
• Offers promotional discounts frequently
• Convenient locations including at the Keflavík International Airport and Reykjavík
• Extra insurances come at an additional cost
• Known to have upselling at the counter

Lagoon Car Rental is a family-owned company known for its personalized service. They have newer models of vehicles and offer free pickup from Keflavík International Airport.

• Newer model cars
• Great customer service
• Free pickup from Keflavík International Airport
• Fewer types of vehicles to choose from
• Additional fee for Gravel Protection Insurance

One of the oldest car rental services in Iceland, Geysir Car Rental offers a good selection of cars at competitive prices.

• Economical rental prices
• Offers both older (cheaper) and newer model cars
• Good reputation with local customers
• Limited office locations
• Additional charges for extras

Part of the global Budget group, Budget Car Rental in Iceland offers a variety of cars at affordable prices.

• Affordable rates
• Good variety of vehicles
• Locations across the country, including at airports
• Extra insurance coverage is sold separately
• Infrequent shuttle service to/from airport locations

Remember to compare the prices, insurance, and customer reviews before choosing a car rental company in Iceland. The right car rental company for you will depend on your preferences, itinerary, and budget.

The charm of renting a car in Iceland lies in the freedom to explore its scenic marvels at your own pace. However, with this freedom, it is equally important to secure the best car insurance in Iceland. This ensures a worry-free exploration of the country’s landscapes.

Most rental agreements include basic car insurance generally covering Collision Damage Waiver (CDW) and Theft Protection. However, given the unique road conditions in Iceland, it’s advisable to understand and consider additional coverages. Here’s a quick overview:

• Collision Damage Waiver (CDW). Typically included in your rental, this basic insurance covers damage to the rental vehicle but not always to other cars or property. There may be an excess that you’ll have to pay if the car is damaged.
• Theft Protection (TP). Also usually included in the rental price; this covers you if the vehicle is stolen. Be aware that personal belongings in the car aren’t generally covered.
• Gravel Protection (GP). As its name suggests, this extra insurance protects your vehicle against damages from gravel, a common occurrence on Iceland’s highland roads. It typically covers damage to the windshield, lights, and the car body.
• Sand and Ash Protection (SAAP). This protection is not typically included but can be added for an extra fee. It’s designed to shield car renters from damage due to volcanic sand and ash, which can be common in certain seasons.

Be sure to understand the insurance terms and conditions before starting your journey. Check if they hold an amount on your credit card for the insurance deductible and what steps are needed if damage occurs.

Choosing the cheapest car insurance might be tempting, but inadequate coverage can turn a fantastic road trip into a financial disaster. Skipping optional protections like Gravel Protection may result in higher costs than if included in the rental agreement.

The thought of paying a high price per litre for spilt fuel due to insufficient insurance coverage is unsettling. Similarly, covering repair costs for winter damages because of not using winter tires can be worrisome. Comprehensive coverage relieves these concerns, enabling you to relish the joy of driving in Iceland and create lasting memories on its incredible roads.

Iceland offers a stunning backdrop for a road trip, with magnificent landscapes, breathtaking vistas, and awe-inspiring natural wonders. However, to ensure a safe and smooth journey, it is important to secure a driving guide for Iceland to familiarize yourself with local laws and etiquette.

Driving in Iceland can offer exhilarating views but also challenges, particularly arising from the weather conditions and speed enforcement measures:

1. Speed Limits. Iceland strictly enforces its speed limits, with numerous speed cameras stationed nationwide. The limits are broad: 90 km/hour on multi-lane highways, 80 km/hour on single-lane highways, and 50 km/hour within urban areas. It’s best to heed these limitations, as dealing with speeding fines is not ideal for spending your vacation time or budget.

2. Road and Weather Conditions. Keep alert to changes in weather and road conditions, especially in winter. Regularly check formal channels for road condition updates as weather-induced road closures, particularly on mountain roads, are relatively common. Roads marked as ‘Impassable’ should be always avoided.

Awareness of key traffic laws and local driving etiquette is critical for a safe and enjoyable road trip in Iceland:

• Off-road Driving. Off-road driving is illegal in Iceland to protect its delicate environment and can attract hefty fines. It is essential to always stay on marked roads.
• Road Conditions and Speed Traps. Always adhere to the road conditions and speed limits. Use official resources to stay updated and be prepared for frequent speed traps.
• Yellow Blinking Lights. In Iceland, yellow blinking lights at an intersection mean all directions have equal right of way, so proceed cautiously.
• Overtaking. Overtaking should always be done on the left and it’s important to use overtaking lanes for this when available on single-carriageway roads.

Adhering to these guidelines and respecting local road rules can ensure a safe, trouble-free trip on your Icelandic adventure.

Iceland strictly enforces specific driving regulations, especially for foreign drivers. Complying with these requirements is essential to ensure a smooth and enjoyable road trip without any legal complications. One important requirement is obtaining an International Driving Permit for Iceland.

To legally drive in Iceland, foreign drivers need to meet certain criteria:

• Age Restrictions. Individuals must be at least 20 years old to drive in Iceland, and the minimum age requirement for renting a four-wheel drive vehicle (considered necessary for certain areas) is 25 years.
• License Requirements. They must possess a valid driver’s license. If the license is not in English or a Scandinavian language, the driver will need an International Driving Permit (IDP).
• Credit Card. Additionally, a credit card in the driver’s name is also required during the vehicle rental process.

Foreign drivers in Iceland must understand and abide by a few legal requirements:

• International Driving Permit (IDP). A valid IDP is mandatory for drivers whose licenses are not in English, Latin or any of the Scandinavian languages (Danish, Norwegian or Swedish). This permit must accompany your current driving license.
• License Duration. Drivers must have held their license for at least a year before their travel to Iceland.

Meeting these requirements ensures you’re abiding by Icelandic law and contributes to a smooth and safe driving experience in this extraordinary travel destination.

Renting a car in Iceland is a practical choice for exploring the beautiful landscapes independently. Numerous options and factors must be considered to ensure that the car rental process is smooth, cost-effective, and tailored to your specific needs.

Not all travel itineraries include returning to your original destination, and for such cases, one-way car rentals can be an optimal solution:

• Freedom of Movement. One-way rentals provide incredible freedom to venture across the island without being concerned about returning to the pickup location. This allows you to plan your journey according to your interests and the attractions you want to visit.
• Cost Consideration. While one-way rentals may include an extra fee for dropping off the car at a different location, this charge might be worth your travel itinerary’s enhanced convenience and flexibility.

If you have more than one driver in your group, sharing the driving responsibilities can make your trip more enjoyable:

• Shared Driving Experience. Incorporating an extra driver allows traveling companions to share their driving responsibilities, making for a more relaxed and enjoyable trip.
• Extra Cost for Additional Driver. Note that an extra charge, payable at the rental desk, is involved in including an additional driver in your rental agreement. However, the benefits of sharing the driver duties, reducing fatigue, and enhancing the overall road trip experience might outweigh the additional cost.

These tips can help ensure that your car rental experience in Iceland is enjoyable and hassle-free, letting you focus on the breathtaking landscapes and unforgettable sightseeing ahead.

Iceland boasts an array of exciting destinations that cater to many interests, from witnessing magnificent natural phenomena to exploring unique geologic formations. Depending on your time, you can organize your trip to include various day trips from Reykjavik or elaborate journeys throughout the country.

For a short visit or those preferring day trips, there are several must-visit destinations accessible from Reykjavik:

1. The Golden Circle. One of the most popular routes, it includes three primary
attractions: The Gullfoss waterfall, the Geysir geothermal area, and Þingvellir National
Park.

2. Blue Lagoon. A short drive from the city center, this geothermal spa is one of
Iceland’s most famous attractions.

3. Reykjanes Peninsula. Home to diverse landscapes, including black sand beaches,
geothermal areas, and the famous Bridge Between Continents.

For longer stays or those craving an adventure, multiple scenic routes stretch across the country:

• Iceland Ring Road. Circling the island’s perimeter, this route allows you to explore volcanoes, waterfalls, glaciers, and small villages, covering some of Iceland’s most iconic sights.
• Icelandic Highlands. Known for its outstanding beauty, this region requires a 4×4 vehicle to access its rugged terrain, wondrous landscapes and scenic trails.

Before setting off, take note of the type of activity and required driving conditions:

• Four-Wheel Drive Access. Some destinations, such as the Icelandic Highlands, require four-wheel drive due to the challenging terrain and road conditions.
• Winter Tires. Depending on the time of the year and the specific destination, winter tires may be required. Staying in tune with local weather forecasts and road conditions is crucial.

Regardless of your preferred driving route, be mindful of the local traffic regulations and weather conditions to ensure a safe and memorable driving experience in Iceland.

Don’t just dream about Iceland’s magnificent landscapes and unique gastronomic delights; experience them firsthand.

Prioritize safety while traveling and unravel this vibrant location’s treasures, making it the ultimate travel destination on your bucket list. From arriving at Keflavik Airport to cruising around the countryside in your ideal rental car tailored to your needs and comfort, make each moment in Iceland a memory to cherish. With these preparations, witness the transformation of Iceland from a distant dreamland into a lived, exhilarating adventure.