How to Rent A Car In Iceland

How to Rent A Car In Iceland

Mastering How to Rent A Car In Iceland: Essential Tips and Advice

Dramatic_Road_Splitting_Mountain_and_Lake_Landscape
WRITTEN BY
Darlene Aberin
PUBLISHED ONJanuary 18, 2024

Iceland, renowned for its breathtaking landscapes and captivating beauty, attracts countless tourists each year. With its distinct terrain and diverse weather conditions, exploring Iceland has become an extraordinary adventure.

To truly experience its remarkable splendor, renting a car is often the ideal choice. This guide simplifies the process, from selecting the perfect rental company and understanding rental agreements to navigate through Iceland's unique roads.

Steps on How to Rent A Car In Iceland

Renting a car in Iceland is a straightforward and manageable process, although it does involve making some vital decisions that can have a significant impact on your trip. It can be the gateway to exploring the mesmerizing country without restrictions or constraints.

Choosing the Right Rental Company

The first decision on your road trip journey involves selecting the right rental company. The rental companies operating in Iceland are plentiful, each offering a wide range of services and a selection of vehicles.

Significant Factors Consider When Picking a Car Rental Company

To select an ideal rental car company, you need to factor in several considerations:

1. Inventory of Vehicles: The specific make and model of a rental vehicle can make a
significant difference to your itinerary. If your destination in mind includes areas with
unpredictable road conditions, such as icy roads or unpaved roads, you might want to
go for a four-wheel drive vehicle equipped with winter tires for guaranteed safety.

2. Type of Transmission: Most companies offer a choice between manual transmission
and automatic transmission vehicles. Choose based on your preferred driving method.

3. Price: Cheap car rental offers feel good to the pocket, but ensure that it does not
compromise on essential elements like peace of mind through proper rental insurance,
and essential vehicle features needed for a memorable road trip in this beautiful
country.

4. Location: Consider a rental company with a rental office situated near major airports
such as the Keflavik International Airport or Reykjavik Airport to ensure a seamless
airport transfer.

5. Season: Shoulder season sees a dip in rental rates, hence enabling you to cut down
costs.

To make an informed decision, use a rental search engine to compare the rental prices and services various companies offer.

Understanding Rental Agreements

Renting a car involves agreeing with the rental agency. The following are the essentials to focus on while understanding rental agreements:

1. Driver's Age: Rental agreements invariably stipulate the minimum age permissible to
rent a vehicle. This policy varies from one rental provider to another.

2. Payment Policies: Most agencies demand a credit card for the security deposit over a
debit card. Be sure to understand their payment policies to avoid any surprise bills.

3. Extra Services: Rental agreements spell out surcharges or extra charges for additional
services like an extra driver or excess mileage beyond the unlimited mileage included
in the base charge.

4. Insurance: Ensure you understand the terms of rental insurance. It may include Theft
Protection, Gravel Protection, Additional insurance, or even unique options like Ash
Insurance for comprehensive coverage.

Always remember that it's essential to scrutinize the rental agreement thoroughly before committing. It ensures an exciting day trip and prevents any disputes or misunderstandings.

Top Rated Rentals in Iceland

Iceland is renowned for its breathtaking natural beauty, leaving visitors in awe. Renting a car and exploring this exquisite land at your own pace offers an unparalleled sense of freedom. In this section, we will highlight the best car rental options in Iceland and provide insights on how to compare prices and vehicle choices.

Top-Rated Rental Agencies

The first step in your Icelandic adventure journey consists of selecting the right rental company. Some of the top contenders in Iceland include:

1. Blue Car Rental: Known for its exceptional customer service, Blue Car Rental offers a
wide range of vehicles for different needs and budgets.

2. Lagoon Car Rental: This locally owned agency promises competitive prices and a
diverse selection of vehicles, including 4x4s and campers.

3. Happy Campers: Specializing in campervans, Happy Campers is perfect for travelers
seeking the profound freedom of camping.

4. Geysir Car Rental: With a strong reputation in the market, Geysir Car Rental provides
various vehicles and great customer service.

5. Sixt Rent A Car: As an international brand, Sixt Rent A Car offers a vast fleet of
vehicles and ensures a seamless rental experience.

6. Reykjavik Cars: This local agency focuses on providing affordable car rentals without
sacrificing quality service.

Factors to Consider When Selecting an Agency

When it comes to selecting the right rental car company, the following aspects should be your guiding metric:

1. Inventory of Vehicles: Companies like Happy Campers offer a niche selection of
camper vans. Other agencies provide a wide selection of vehicles to cater to different
itinerary demands and personal preferences.

2. Price: Some companies pride themselves on offering cheap car rentals complemented
with quality service, while others may provide a luxury experience with pricier options.
Always look for the best deals that align with your budget considerations and service
expectations.

3. Credibility: The credibility and reputation of a car rental company play a crucial role.
Always check customer reviews on online platforms to gauge the quality of service
provided by the company.

Comparing Prices and Vehicle Options

With a plethora of options available, finding the ideal rental car can feel overwhelming. Simplify the process by employing the following strategies:

1. Rental Search Engine: Using a rental search engine can be instrumental in providing
a side-by-side comparison of the rental prices, services, and vehicle options from
different companies. It's an efficient way of identifying the best options tailored to
your specific needs.

2. Vehicle Type and Luxury Elements: Some amenities like electric vehicles or vehicles
equipped with four-wheel drive may cost more. It's essential to weigh these additional
costs against the value they bring to your unique travel requirements.

3. Price Inclusions: Some rental companies may have extra charges for services you
assume are standard. Be sure to clarify what's included in the advertised rental rate to
avoid unexpected additions to your budget.

Comparing prices and vehicle options ensures you have the right car that suits your purpose, at a price point that you're comfortable with. By selecting the right rental company and making informed decisions, you'll have more time to focus on fully immersing yourself in the favorite country of many - Iceland.

Best Car Insurance Options

Selecting the optimal car insurance in Iceland for your rental vehicle is a vital aspect of guaranteeing a stress-free journey through this captivating Nordic country. A comprehensive insurance policy can provide you with security and peace of mind, serving as a safeguard against unforeseen weather fluctuations or challenging road conditions that may potentially disrupt your exploration.

Types of Insurance Available

Numerous rental companies in the country offer a wide range of insurance that cater to different needs. The four common types typically provided by the rental agency include:

1. Collision Damage Waiver (CDW): Covers damages to the rental vehicle in a
collision. However, it generally does not offer protection against bodily injury or
damages caused due to negligence, driving under the influence, or violation of traffic
rules.

2. Super CDW: Acts as additional coverage to reduce or even remove the excess amount
in standard CDW. However, terms vary by rental car company.

3. Theft Protection: Covers potential theft of the rental vehicle.

4. Gravel Protection: Protects against damages from gravel roads, often unique to
Icelandic roads.

Some rental companies extend their coverage to offer specialty safeguards such as Ash Insurance, granting an extra layer of protection, especially relevant when you're exploring areas near active volcanoes.

Importance of Comprehensive Coverage

Insurance policies provide a safety net against potential accidents and subsequent repair costs. Given Iceland's unique weather conditions and its mix of paved roads, unkept gravel roads, and icy roads during the winter months, securing a comprehensive rental car insurance policy could save you from unwelcome expenses.

Considerations for Foreign Drivers

For North American dwellers or international drivers used to driving on the right-hand side, Iceland's driving dynamics may not differ significantly. But, it's always wise to take into account the unfamiliar terrain and speed limit, which is usually 90 km per hour on highways.

Surveillance, including speed cameras, helps enforce speed limits, and getting caught violating them could invite hefty fines. This purpose is where Theft Protection and Super CDW come into play, reducing the depth of your pocket pinch.

Credit Card and Travel Insurance

Before finalizing your policy with the rental car company, check with your credit card company. You might already have comprehensive rental car insurance coverage as one of your credit card benefits. Paying with such credit cards could enable you to decline the car rental company's collision damage waiver.

Choosing the best insurance according to your needs and preferences ensures a worry-free trip, allowing you to focus on enjoying the natural beauty of this favorite country of many.

Guide Rules and Regulations in Iceland

A road trip through Iceland's breathtaking landscapes is an unforgettable experience. To fully enjoy this adventure, it is crucial to familiarize yourself with the country's distinct driving conditions, rules, and regulations. This driving guide in Iceland provides essential tips designed to help you navigate and truly appreciate your exploration of this stunning nation by vehicle.

Driving conditions in Iceland can rapidly change, making it an exciting but challenging landscape for drivers. Adapting to these conditions is essential for a safe, fulfilling road trip.

  • Road Types and Conditions: Road conditions can range from paved highways in the city center and capital city to gravel roads or even unpaved roads as you venture into rural and mountain roads. During the winter months, icy roads can add another layer of complexity. It’s common to experience road closures due to bad weather, especially during winter.
  • Weather Influences: Weather conditions in this North Atlantic island can be unpredictable, switching from clear daylight hours to sudden winter conditions or fog in a short time span. These can especially impact visibility on gravel and mountain roads.
  • Daylight Hours: Daylight hours fluctuate vastly by season in Iceland. During peak season in the summer, you may experience almost 24 hours of daylight, allowing more travel time. However, the winter months bring long nights and fewer daylight hours, restricting daily travel time.

Must-Know Traffic Rules and Regulations

Acknowledging and adhering to the local traffic rules and regulations in Iceland can ensure a safe location for visitors looking to self-drive.

  • Driving Side: Like most of Europe, Icelandic roads follow a right-hand-side driving system. It’s common for drivers from countries where left-hand-side driving is the norm, such as the UK and Australia, to need a period of adjustment.
  • Speed Limits: The maximum speed limit in Iceland is usually 50 km/h in urban areas, 80 km/h on gravel country roads, and 90 km/h on paved roads and highways. Be conscious of speed traps and speed cameras on the route. Google Maps and GPS can be helpful tools to monitor the speed limit of the route you are driving.

Prepare for your day trip, select your favorite type of coverage, pack your camera, and get ready to explore Iceland's natural wonders.

International Driving Permit in Iceland

North American drivers may need to obtain an International Driving Permit (IDP) in addition to their valid domestic license. Typically, an international driving permit for Iceland can be obtained from your local motoring organization before your trip.

Legalities for International Drivers

Remember to carry necessary documents including your driver's license, IDP (if required), passport, and rental agreement while driving in Iceland. If stopped by police, you would need to present these.

  • Rental Car Agencies: When it comes to finding the best car rentals in Iceland with a diverse array of options, multiple factors should guide your decision. It's essential to consider the agency's mileage limits offer, the different insurance provisions such as theft protection, the variety of vehicle types available, and, of course, the rental rates.
  • Driving in Iceland's Landscape: Educate yourself on Iceland's evolving road and weather conditions, especially if you plan on driving on gravel, asphalt, or icy roads. Stay updated about road closures and weather for a comfortable travel experience.

While the freedom of camping and day trips are fun, they also come with responsibilities. Be mindful of the country's natural beauty, adhere to the speed limit, and ensure your rental car insurance is adequate.

Tips for Driving in Iceland's Unique Terrain

Maneuvering through Iceland's scenic and diverse roads can be both exciting and challenging. Whether you're cruising through the capital city or exploring remote mountain roads, these tips will help ensure your Icelandic road trip is an unforgettable experience.

Handling Different Road Types

In Iceland, roads range from paved, and asphalt, to different types of unpaved roads such as gravel and icy roads. Each presents unique features:

  • Paved and Asphalt Roads: Most roads in the city center and around major airports like Reykjavik Airport or Keflavik International Airport are typically paved or asphalt and are the most common type of roads. These roads are well-maintained and easier to handle, irrespective of the transmission type of your rental vehicle.
  • Gravel Roads: Many rural and highland areas across the country feature gravel roads. These can be tricky for drivers not used to such conditions. Opting for a vehicle rental from a reliable rental company equipped with sturdy tires can be a smart move for tackling such conditions.
  • Icy Roads: During winter months, Iceland's roads, especially mountain roads, could turn icy, demanding extra caution and attention to safety. Many rental companies offer four-wheel-drive vehicles fitted with winter tires, making it easier for drivers to navigate through these tough conditions.

Safety Tips for Rural and Highland Areas

While the natural beauty of Iceland's rural and highland areas can be mesmerizing, ensuring safety is of utmost importance.

  • Daylight hours: Daylight hours in Iceland reduce significantly during winter months. Ensure any day trip you plan to remote natural attractions is within daylight hours. Packing a reliable map along with Google Maps as a backup can provide extra peace of mind.
  • Road Conditions: Before setting off, it's advisable to check up-to-date road conditions and look out for any road closures. Be conscious of the weather conditions as bad weather can rapidly change driving conditions.
  • Insurance: Ensure your rental agreement includes necessary rental car insurance. Additional insurance may be considered for extra coverage against gravel protection or theft, depending on the areas you plan to visit.

Scenic Routes and Road Trips in Iceland

Embarking on a road trip across Iceland's breathtaking terrain will introduce you to the country's unique blend of serene natural beauty and ancient landmarks. Whether you're considering a day trip or planning a longer journey, these tips should help you navigate Iceland's distinctive landscapes.

Planning Your Itinerary

Iceland experiences ever-changing weather conditions, particularly during the winter months, which can lead to unexpected road closures. Therefore, it is crucial to stay updated on the current weather conditions to ensure peace of mind during your journey.

  • Keflavik Airport Area: Your Icelandic adventure often begins at Keflavik International Airport. The area around the airport presents a stunning canvas of Iceland's natural beauty and is an excellent location for visitors looking to kick-start their trip.
  • Capital City - Reykjavik: Reykjavik, the capital city located at around an hour from Keflavik Airport, is a must-visit. It is also home to many rental companies, so it could be a feasible option to pick up your rental vehicle from the city center.
  • Mountain Roads and Beyond: Venture away from the city, and you'll come across unpaved gravel and icy mountain roads that lead you into the heart of Iceland's mesmerizing landscapes. Ensure your rental car insurance covers your trip on these roads for safety reasons.

Conclusion

In conclusion, understanding essential aspects such as rental insurance, domestic airport transfers, theft insurance, and other crucial car rental factors can make your Icelandic exploration smoother and more enjoyable. Armed with these insights, you're ready to discover Iceland's mesmerizing landscapes and unforgettable experiences. So, go ahead and create memories that will last a lifetime in this beautiful country. Safe travels and happy adventures!

Get your International Driving Permit in 8 minutes

Instant approval

Valid for 1-3 years

Worldwide express shipping

Back to Top