Comparison of the 32 Best Value-for-Money Car Rentals in Iceland

Best Car Rental In Iceland

Embarking on a journey and need a reliable set of wheels? Choosing the right car rental service can certainly make all the difference. This comprehensive comparison aims to guide you through key factors to consider, ensuring you make an informed decision tailored to your travel needs.

If you want to save several minutes of reading and simply want to know which company came out on top, the answer is Cars Iceland ⭐.

Now, let’s go into detail and lay the foundations that have been used to rate each one of the car rental companies in Iceland. Ready? Well, off we go!

Most Popular Car Rental Companies in Iceland

Before diving into specifics, let’s get acquainted with the major players in the car rental industry. Including both global giants and local gems, understanding the providers sets the stage for a well-informed choice. Here are the most popular car rental companies in Iceland:

Companies🥇
CARS ICELAND
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REYKJAVIK CARS
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ICELAND CARS
AVIS ICELANDLAVA CAR RENTALLOTUS CAR RENTALBLUE CAR RENTALRÁS CAR RENTALGEYSIR CAR RENTALKEF CAR RENTALEUROPCAR ICELANDGO ICELANDORANGE CAR RENTALEASIRENTGO CAR RENTALLAGOON CAR RENTALSIXTACE RENT A CARFAIR CARENTERPRISEROUTES CAR RENTALICERENTAL 4X4ADD CAR RENTALCARWIZWHEEGODOLLARTHRIFTYFIREFLYBUDGETGREENMOTIONZEZGOHERTZ ICELAND
Customer service (reputation, reviews)4.94.84.63.34.64.84.54.54.14.73.84.44.82.64.84.43.23.1144.54.2sin ficha2.92.44.13.93.23.13.503.3
Insurance Add-on featuresLiability waiver (no deductible) 3700 ISK / day. Not all risk.Platinum Insurance (no deductible) 4390 ISK per day. Not All RiskPlatinum + Water damage insurance plan available for 5450 ISK per day.Zero Risk insurance NOT offered / available (only SCDW)Full protection package (includes tire protection too) No deductible 4650 ISK dayPlatinum (zero deductibe) tire, river crossing & towing (with deductible 35k) 5450 ISK dayLiability waiver (no deductible) 3700 ISK / day. Not all risk.Zero Risk insurance NOT offered / available (only SCDW)Zero Excess insurance (zero deductible) 4500 ISK per dayZero Risk insurance NOT offered / available (only full package with SCDW, GP, TP and SAAP)Premium protection package with Zero Excess 3900 ISK per dayPlatinum with zero deductible + extra driver 4900 ISK per day for 2WD and 5900 ISK for 4WDZero Excess insurance with no deductible 4500 ISK per dayZero Risk insurance NOT offered / available (only full package with SCDW, GP, TP and SAAP). This page directly refers you to a web aggregator (rentalcars)Premium Plus+ tire & towing included (with $53 deductible) 7524 ISK per dayZero Excess (no deductible, covers tires) 4390 ISK per dayMinimum Excess (0 deductible) 5912 ISK per dayZero Risk insurance NOT offered / availablePremium insurance package (0 deductible) 5250 ISK per dayZero Excess included tire protection 5500 ISK per dayThis website offers vehicles from different providers. Those supplied by Holdur do come with the option of adding Premium Protection (0 liability) and tire protection for 3900, Those supplied by Nordic do not come with any add-on option.Platinum insurance (zero deductible) 4500 ISK per dayFull protection (zero deductible) 6622 ISK per dayZero Risk insurance NOT offered / available (only full package with SCDW, GP, TP and SAAP)Zero Risk insurance NOT offered / available (only full package with SCDW, GP, TP and SAAP)Premium Insurance (zero deduct and tire&wheel coverage) 4550 ISK per dayPremium Insurance (zero deduct and tire&wheel coverage) 4550 ISK per dayZero Excess coverage (with tires and wheels) 3992 ISK per day without VATZero Risk insurance NOT offered / availablePremium plus+ (zero excess, tires coverage) 17.423 ISK per dayZero Risk insurance NOT offered / availableZero Excess coverage (it includes tires and wheels too) ZERO excess coverage package 4950 ISK per day passenger cars and 5950 ISK for 4×4.
Roadside assistanceOffered 24/7, borne by the customer.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer. Extra available: Road Assitance PlusOffered 24/7, with costs charged to the customer.Offered 24/7, costs borne by the customer. Users can add towing coverage by adding the PT insurance option.Offered 24/7, borne by the customer. Road assitance waiver, reduces the cost to zero. 900 ISK per day.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer. 350 + vat per km , minimum 100.000 ISKOffered 24/7, borne by the customer.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.Info not available, automatic redirection to a web aggregator.Offered 24/7, borne by the customer. 12.500 ISK minimum.Offered 24/7, borne by the customer. Road Assistance Waiver (RAW) is offered for 900 / day.Offered 24/7, borne by the customer. Road side protection is an add-on offered to cover towing costs, however, this option was not available at the time of booking the selected car.N/A Piece of information missing in the Terms.Offered 24/7, borne by the customer. 450 ISK per km minimum fee s 30.000 ISKBasic road assistance protection such as assistance with mechanical failure to the car is covered at no additional cost. Additional roadside assistance protection that covers tire change, empty tank, locked in keys etc is also available for a daily fee 1000 ISK per day.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.Not clearly outline in the Terms. Costs borne by the client.Offered 24/7, borne by the customer. T&C are rather difficult to find.Offered 24/7, borne by the customer. 450 ISK per km minimum 30.000 ISKOffered 24/7, borne by the customer. 400 ISK/km minimum 25.000 ISKIncluded only when adding the RAW (Road Assistance Waiver) add-on.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer. Extended roadside assistance insurance (RSN) offered but not available when booking.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.Offered 24/7, borne by the customer.
MileageUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedInfo not available, automatic redirection to a web aggregator.UnlimitedUnlimited1400 km included with the rental. 99 ISK per additional km or 9125 ISK for unlimited km.UnlimitedUnlimitedUnlimited200 km/dayUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedUnlimitedNot stated anywhereUnlimitedUnlimitedUnlimited
What’s included in the base price?SCDW, GP, and TP insurances included. Also road & Carbon taxes. Depending on the car model, it may include GPS. Cars with AC and heated seats. Winter tires from Nov 1 to Apr 15.Includes a gasoline discount card with the price. Cars with AC and heated seats. Winter tires from Nov 1 to Apr 15.CDW, GP, TP & fuel discount cardCDW & Theft cover included. No mention of winter tires.SCDW, GP, and TP included. Winter tires during season.GPS is included.CDW, SCDW, TP, GP Insurances, winter tires during season.CDW & TP insurance. No mention of winter tires, option not available on the website.CDW & TP insurance.CDW insuranceCDW insurance. Winter tires within season.CDW insurance.CDW insurance.Info not available, automatic redirection to a web aggregator.SCDW, GP, TP insuranceCDWOnly Third Party Liability and winter tired are included, nothing else (not even CDW)Info N/A on the websiteCDW & fuel discount card, winter tires within the season.CDW and TPCDW, taxes, enhanced cleaning.CDW and TP. Winter tiresCDW and TP. Winter tiresCDW; SCDW; GP and SAAP included. Does not mention winter tires and does not offer the option.CDW and TP. Does not mention winter tires nor offers them as an extra.CDW & TP. Does not mention winter tires nor offers them as an extra.CDW & TP. Does not mention winter tires nor offers them as an extra.CDW. Does not mention winter tires nor offers them as an extra.CDW. Doesn’t mention winter tires or offer them in extras.CDW. Winter tires info n/a in site, however, in the Terms it is stated that winter pack comes at an extra cost.Third party and airport surcharge. CDW not included. Winter tires included.TP insurance, CDW & winter tires
Price (per day)$43/ day Toyota Aygo manual$33 per day Toyota Aygo manual$42/ day Toyota Aygo$48 if paid at the office. $42 per day if paid in full online.$42 per day, Toyota Aygo manual.$39 per day, Toyota Aygo.$43 per day, Toyota Aygo manual$44 Toyota Aygo manual$40 per day. Toyota Aygo$85 per day, Suzuki Vitara 4×4 (there wasn’t a single 2WD available)$59 Kia Picanto manual$33 Toyota Yaris manual$38 per day Hyundai i10$34 Toyota Aygo$32 Toyota Aygo$27 Toyota Aygo manual$24 Toyota Aygo manual. This is basic price: once you add unlimited km and CDW basic insurance, price per day is actually $42$22 Aygo but it doesn’t explicitly state whether any insurance is included or not. No option to add any extras.$39 Toyota Yaris only if prepaid. Otherwise, $46$42 Kia Picanto$50.21 per day Toyota Yaris$33 per day Toyota Yaris$88 per day Mazda 2 economy$34 per day Toyota Yaris$28 per day Hyundai 120$34.2 per day Ford Fiesta$34.2 per day Ford Fiesta$37 per day VW up$39 per day Hyundai i10$49 per day. Hyundai i11No 2WD available. Mitsubishi 4×4 for $219 per day$53 per day Swift manual type.
Payment methods10% online, the reminder, at the office in Iceland.10% online, the reminder, at the office in Iceland.14% online and the reminder, at the office in Iceland.Two options: the whole amount (cheaper) or in the office (more expensive)10% downpayment.Two options: Pay full online / pay at pickup. Price doesn’t change.Two options: pay in full now or pay on arrival (but the price is more expensive)In office.Several options: Pay 100% now (refundable under conditions) Pay 15% now – non refundable.In officeIn officeIn office.100% onlineInfo not available, automatic redirection to a web aggregator.Pay 50% now Pay 100% now Pay on arrival (same price)Pay now Pay on arrival (more expensive)Pay now. cancellation charges. pay later – more expensive.Pay now and Pay later (same price but you accumulate more loyalty points with pay now)Pay now with discount, pay on arrival, more expensiveIn officeTotal onlinePay at arrival (more expensive) Pay full online (cheaper)A prepayment online and the remainder in office. The prepayment depends on the cost of the rental.In the officeIn the officePay now: cheaper; Pay in office: more expensive.Pay now: cheaper; Pay in office: more expensive.In the officeEntirely online and in the office at the same price.100% online.Pay now: cheaper; Pay in office: more expensive.In the office
How diverse is the fleet?★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★
24/7 assistance (customer service availability)
Multilingual support✓ English, Spanish, Portuguese and French.✓ English, Spanish, Portuguese and French.✓ English, Spanish, Portuguese and French.✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English✗ English✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English / Icelandic✗ English✗ English✗ English / Icelandic
Cancelation and refund policy24 hours before pickup, 100% refund.48 hours before pickup, 100% refund.Up to 48h before the day of pickup.48 hours before the rental day, free cancellation. After that, 3 days of rental will be charged.48 hours before the rental day, free cancellation.Bookings canceled with more than 48 hours prior to the pick-up time are fully refundable.24 hours before pickup, 100% refund.✗ impossible to find on website or within the terms!Fully refundable until 48 hours before the day of collection.Cancelations made 15 days or more prior to the pick up, no charges will be made. Cancelations within 14-4 days before the day of collection, will incurr in a 10% penalty.Free of charge up to 48 hours before the rental is due to start.24 hours before pickup, 100% refund.If you cancel with 2 days or more before the start of rental, no charges will be made.24 hours before pickup, 100% refund.Get a full refund if you cancel more than 24 hours before the rental (100%).Prepaid rentals will get a refund minus the cost of 3 days of rental.Cancelations made 24h or more before the rental pick up time will get a full refund. Those cancelled within 24h or less, will get a 50% refund.If the renter cancels more than 30 days before the pickup time, a 25% cancellation fee applies.N/A in the T&C, users might have to contact the company directly for clarification.Prepaid rates are non-refundable.Cancellations made more than 48 hours before the rental start will receive a full refund of the down payment.The prepayment is non-refundable unless you opt for the cancellation insurance, which costs $7.50 per reservation.Free cancelation is provided, however, no period or conditions are stated in the terms.If the renter cancels 30 days or more before the pickup time, a 25% cancellation fee applies.Cancel before pickup, get a 100% refund of the paid amount. Unused days are also fully refunded.Cancel before pickup, get a 100% refund of the paid amount. Unused days are also fully refunded.16 days before – No charge. 15 to 8 days before – 40% of total value. 7-2 days before – 50% of total value. 1 day before – 80% of total value. No show – 100% of total value.Up to 48 hours before the scheduled start of your rental: full refund.Non-refundable unless you opt for enhanced insurance.N/A in the Terms & ConditionsFree cancellation up to 16 days before pickup. Otherwise, 40-100% cancellation fee, depending on the timing of cancellation.
Fuel policySame-sameSame-sameFull-FullYou can choose from: 1. Full-full 2. Fuel up front (you pay for a full tank when collecting the car) 3. Pay on return.Full-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-FullFull-Full
Available vehicle types (2WD, 4×4, economy, luxury, vans, etc.)Diverse fleet: economy, urban, 4×4, luxury, and vans.Diverse fleet: economy, urban, 4×4, luxury, and vans.Every type of vehicle, including 9 seaters.Every type of vehicle, including minivans.Every type of vehicle, except minivans for larger groups.Every type of vehicle, including campers.Every type of vehicle, including minivans.Every type of vehicle except electric, minivans.Every type of vehicle except electric4×4 onlyEvery type of vehicle, including motorhomes.Every type of vehicle, including campers.Every type of vehicle, including motorhomes.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle except vans for more than 7 people.Limited vehicle variety, mostly 4×4 and no option for large capacityEvery type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Every type of vehicle, including minivans.Lacking models like 7 seaters, the economy range is very limited.Lack of diversity in economy range.Lacking medium size, more 7 seaters.No 7 or 9 seatersEvery type of vehicle, including 9 seaters.Literally 3 cars, none 2WD.Every type of vehicle, including campervans.
Driving license requirementsType B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo. For renting 10-seater (9 passengers + driver) or more vehicles, driving licence D (Type D) is required.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance. Driving license for vehicle group OVMR must include approval for category D.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo.Type B, minimum 1 year of issuance, written in Latin alphabet, not expired and with photo. For renting 10-seater (9 passengers + driver) or more vehicles, driving licence D (Type D) is required.
Minimum renting age (is there an age surcharge?)20 years for 2WD and 23 for large cars and 4×4. No age surcharge.20 years for 2WD and 23 for large cars and 4×4. No age surcharge.The registered driver must be at least 20 years old and 23 years old to rent a large size car and have held a current driving license for at least 12 months.The driver must be at least 20 years old. 23 for SUVs. Drivers who are 18-19 years old are subject to an additional Young Driver fee.The renter must be 20 years of age.For 2WD, the minimum age is 20, while for large cars and 4×4, it’s 23. There is no age surcharge, but an extra charge of 2900 ISK allows drivers under 20.20 years for 2WD and 23 for large cars and 4×4. No age surcharge.20 years for 2WD and 23 for large cars and 4×4. No age surcharge.20 years and 25 for larger cars. No age surcharge.Not mentioned in the terms.20 years and 25 for larger cars. No age surcharge.18 years, no age surcharge.The minimum age is not mentioned in the terms.An extra charge allows younger drivers and those with less than 12 months of a license.20 years for 2WD and 23 for large cars and 4×4. No age surcharge.20 years and 1 year of license, 21 and two years, 22 and two years, 25 and three years of license. CHARGE for driver under 25.All drivers must be at least 20 years old.Minimum 20 years old. Renter/driver who is 20-25 years old are subject to an additional young driver fee.22 years for 2WD and 23 for large cars and 4×4. 25 for luxury cars. No age surcharge.At least 20 years old and maximum 79 years old.18 years, with young driver surcharge between 18-20 years.Minimum age is 23 years old. Any driver must have minimum 2 years driving experience.The minimum driver’s age is not specified.The renter/driver shall be at least 20 years old. 20-25 years old are subject to an additional young driver fee.19 years. Young additional driver 19-20 yrs $10.7 per day. A valid driver’s license for at least one year is required prior to rental.20 years. Young additional driver 19-20 yrs $10.7 per day. A valid driver’s license for at least one year is required prior to rental.All drivers must be over 20 years for passenger cars and 23 for larger vehicles with a valid driver’s license for at least one year is required prior to rental.The driver must be at least 18 years old. All drivers must have held their license for at least one year before the start of the rental. There’s a young driver fee for those between 18-19. Not specified.The driver’s age is not mentioned.The Minimum Driving Age for this rental is 21. The Maximum Driving Age for this rental is 85. Renter and each additional driver Age 20 to 25 are subject to an additional fee of 15 EUR per day.22 years for 2WD and 23 for large cars and 4×4. 25 for luxury cars. No age surcharge.
Is a credit card mandatory?Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Not mentioned in the terms.Credit card only.Credit card only.Credit card only.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit card only.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit card only.Credit card only.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit card only.Credit card only.Credit card only.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit card only for the chosen model.Credit card only for the chosen model.A credit card in the main driver’s name is required for booking and renting a vehicle.Only credit. The name on the payment card(s) must be the same as the name on the driving license for the main driver.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit cards are accepted, with the possibility of using a debit card under certain conditions.Credit card only
Additional charges (any hidden fees?)A handling fee of 8,500 ISK for all fines. If someone smoked inside the car, the renter will have to pay ISK 15,000 for cleaning fee.A handling fee of 10,000 ISK will be applied to all fines. Smoking inside the vehicle will result in a cleaning fee of 35,000 ISK.There is a handling fee of 5.000 ISK for all fines or charges. Fueling fee is 10,000 ISK and smoking / cleaning fee is 15,000 ISKYoung Driver fee, a 100,000 ISK fine for damages (in addition to the deductible), and a 7,000 ISK fee for no-shows.ISK 4,500 handling fee will apply for any unpaid fines. If the vehicle is returned extra dirty there is a cleaning fee of ISK 15,000, smoking fee is 35,000 ISK.A small additional fee will apply for pick-up and drop-off at a chosen location in Reykjavík or Keflavík.Handling fee of 8500 for fines. Cleaning fee 15,000, smoking fee 45,000.Fueling fee (amount not specified); negligence charge (amount not specified).Handling fee 7533 ISK, damage fee 15,067 ISK, off road fine 301,000 ISK, smoking fee 37,000 ISK, admin fee of 5273 ISK for shipping packages, 7533 one-way rental fee.Pay ISK 15,000 cleaning fee if car is extremely dirty. Damage car pickup fee 350 ISK minimum 100,000. Location pickup fee.Airport pickup surcharge. Admin & Fueling fees.Vehicle Pick up fee after damage is 350 ISK per km.There is a handling fee of $38. If the car is returned extra dirty or if someone smoked inside the car, the renter will have to pay $117 for cleaning fee. If the car is returned with a flat tire, the renter is charged at the time of drop off, total of $224 for a small and medium-sized car.$32 processing fee fines. Smoking fee of $320. Additional fine of $267 for off-driving.Handling fee of 8500 for fines. Cleaning fee 15,000, smoking fee 45,000.Modifying the reservation has a cost of $21. Fueling fee, handling fee, etc. not specified in conditions. Option to prepaid toll cost offered, however, at a much higher price than the official website.Not specified in the terms and conditions.There is a fee for modification of reservation of $53. A location fee of $66. One-way fee of 7,000 ISK applies when there is only an office in KEF and RKV. Out of hours fee of 7,000 ISK applies. A processing fee of 7,000 ISK. 27,000 ISK administration fee. A young driver fee of 1,400 ISK per day.Several different fees (cleaning, delay, for pickup, etc.), however, amount or cost is not specified.Young driver fee, admin fee, cancellation fee, etc.Young driver fee a) Parking fine + 3,000 ISK b) Speeding ticket + 3,000 ISK c) Toll fine + 3,000 ISK d) Missing fuel + 3,000 ISK.Administrative charges if you don’t add full protection.Additional fee according to the price list but does not specify which ones or how much.Amendment fee of 50 EUR and administrative/location fees of 7000 ISK.Out of hours fee: $160 Fines/Charges/Fees Amount [ISK] Fine for smoking in car 50,000 Fuel cost per liter for missing fuel According to daily rate at Olis Fuel filling administration fee 3,500 Administration fee for parking tickets 2,000 (per ticket) Administration fee for traffic violations 2,000 (per request) Administration fee for postal services of lost and found 6,000.Out of hours fee: $160 Fines/Charges/Fees Amount [ISK] Fine for smoking in car 50,000 Fuel cost per liter for missing fuel According to daily rate at Olis Fuel filling administration fee 3,500 Administration fee for parking tickets 2,000 (per ticket) Administration fee for traffic violations 2,000 (per request) Administration fee for postal services of lost and found 6,000.An administration fee of 4900 ISK will be charged for parking tickets.Administration fees and all other miscellaneous charges not specified in value.Out of hours fee. Where accepted, an additional fee of 60 GBP is payable. One-way fee when there is only KEF as an office.A standard admin fee of 50.00 EUR for fines.Charges for services with airport pickup, fees for one-way rentals, and handling fees.
Rental conditionsMeet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Not mentioned in the terms.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.Meet the minimum age requirement, have valid documentation and a credit card. Vehicle inspection at pickup and return is required.
AvailabilityGood. Low in high season.Good. Low in high season.Good. Low in high season.Good. Low in high season.Good. Low in high season.Good. Low in high season.Good. Low in high season.AverageGood. Low in high season.LowGood, low in high season.Good, low in high season.AverageGood, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Good, low in high season.Low, many cars supposedly “sold out”.AverageAverageAverageGood. Low in high season.Good. Low in high season.Good. Low in high season.PoorLow. There are several categories already “sold out” in January.
Location (geographic coverage)KEF and RKVKEF and RKV – hotel pickup in KEFKEF. Hotel in KEF & RKVKEF & RKVKEFKEF & RKVKEF & RKVKEF & RKVKEF & RKVKEF airport & KEF areaVarious cities and villages of IcelandKEF & KEF areaKEF & RKVKEFKEF & RKVKEF & RKVKEF & RKVKEFKEF and RKVKEF and RKVKEFKEFKEFKEFKEFKEF, RKV, AkureyriKEF, RKV, AkureyriKEFVarious cities and villages of IcelandKEFKEF13 cities / towns around Iceland including KEF and RKV
Pick-up and drop-off options (and flexibility)Contactless options, online check-in beforehand and 24h.24h options24h. with option for pickup at KEF & RKV hotelsPickup at KEF until 1:00 AM, for return they do offer 24h. Only a 30-minute margin before charging another full day.Self-Service 24/724h option only in summer.Contactless options, online check-in beforehand and 24h.No special options, limited to office.No special options, limited to office, they charge a one-way rental fee even though they only offer rentals in RVK and KEFKEF hotel delivery for a fee24h options; but there is a surcharge at airport offices.KEF hotel pickup freeNo special options.Self-service options.Contactless options, online check-in beforehand and 24h.No special options.No special options.Option for pickup outside of hours but with an extra cost.Option for pickup outside of hours with a key drop box.Option for pickup outside of hours but with an extra cost of $53No special options.Outside the normal working hours a fee of 105.00 Euro appliesNo special options.Out of hours fee of 7.000 ISK applies for each pick-up/drop-off outside our operation hours. This fee applies between 6 PM and 5 AM.Out of hours but for a very expensive fee: $160Out of hours but for a very expensive fee: $16024h. No special options.FREE Reykjavík Hotel Shuttle24h. No special options.24h. No special options.Many offices, but pickups and returns are limited to office hours and not all are 24h.
Is the downpayment refundable?Yes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditions✗ impossible to find on website or in terms!Yes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsYes, under certain conditionsNo.Yes, under certain conditionsNo.Unknown.No.Yes, under certain conditionsNo.Not very clear, not specified in the terms.No.Yes.Yes.Yes, under certain conditionsYes, under certain conditionsYes, with payment conditions.Not mentioned in the conditions.Yes, under certain conditions
Cleaning requirementsOnly pick up trash and belongings.Only pick up trash and belongings.Return the vehicle in the same condition as upon reception, excluding normal wear and tear. Place any optional extras (GPS, WIFI, etc.) in the glove compartment.Return the vehicle in the same condition as upon reception. Leave any optional extras in the boot/trunk (GPS, WIFI etc.),Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Only pick up trash and belongings.Only pick up trash and belongings.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, excluding normal wear and tear.Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Leave any optional extras in the glove compartment (GPS, WIFI etc.)Return the vehicle in the same condition as upon reception, except for normal wear and tear from us. Otherwise cleaning fee may apply.
Years of experience in the industry (of the company)More than 10 yearsMore than 10 yearsMore than 10 yearsMore than 20 years7 years9 years21 yearsMore than 30 years30 years13 years50 yearsmore than 10 yearsmore than 10 years11 years9 years10 yearsMore than 10 yearsMore than 10 yearsMore than 10 yearsMore than 10 yearsMore than 10 yearsMore than 10 yearsMore than 5 yearsMore than 9 yearsMore than 10 yearsMore than 10 yearsMore than 10 yearsMore than 50 yearsInfo N/A5 yearsMore than 20 years
Local or franchise?LocalLocalLocalFranchiseLocalLocalLocalLocal but reliant on other companies.LocalLocalFranchiseLocalLocal but reliant on other companies.Use a global price aggregatorLocalLocal, it went bankrupt in 2020 and is now owned by Blue Car Rental.FranchiseFranchiseLocal but reliant on Holdur (Franchise)FranchiseFranchiseLocalFranchiseFranchiseFranchiseFranchiseFranchiseFranchiseFranchiseFranchiseFranchiseFranchise
Website and reservation process speed and simplicity★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★★
Our reviewUser-friendly, abundant information on cars and booking process, easy access to terms and conditions.Easy to navigate, more modern interface, plenty of information available about the cars and the booking process, easy access to terms and conditions.Easy to navigate, more modern and pleasant interface. There’s perhaps a lack of additional details and info in the terms.Easy to choose vehicles but rental conditions are in different steps and the FAQ does not answer all the most common questions. Some buttons promoting the cancellation policy do not work.Easy to navigate and information available simply and intuitively. The interface may seem somewhat outdated.Easy to navigate and information available simply and intuitively. The interface may seem somewhat outdated. Some information is ambiguous, such as stating there’s free cancelation when conditions actually apply.Easy to navigate, very intuitive, modern, information easy to find and interesting options like managing the reservation on the web.Old website, although you can search availability easily, the information is scanty and insufficient.Website although seemingly modern, the colors make it difficult to read certain areas. Rendering problems, things often overlap, the information tends to be ambiguous.Ugly, outdated website, absolute lack of vital information for a rental.The website falls short on information. Being a franchise, the website is not dedicated to Iceland and many things are generic for all countries, then you have to specifically search for what applies and what does not to Iceland.Basic website, somewhat old-fashioned, information rather scanty although it fulfills its function of searching cars relatively well.The website is very short on information about the reservation and the rental process itself. There are terms but they are difficult to see, there are no reservation conditions.Website with multiple technical faultsEasy to navigate, modern website, easy to add extras. Could improve the FAQ and the info of the terms / access.Website easy to navigate, information at hand and option to manage reservation online.The website is acceptable but generic for a franchise. Information tends to be global, requiring specific searches for the desired country.The website is user-friendly for selecting vehicles but lacks crucial information. Pricing details are unclear, and there’s no information on what is included. There’s also no option to add extras. The terms and conditions are way too generic and brief.Acceptable for the basics. Old website, but with information relatively easy to find.Technically acceptable page but lacking vital information for the rental.Acceptable for the basics. Lacks more detailed information.Website easy to navigate, with information easily accessible and well broken down. Sometimes they have very intrusive banners.The website is outdated, typical for a franchise. Information is generic, requiring users to search for details specific to each country and car.The website has a modern design but lacks specific rental information. As a franchise, it covers broad topics that vary by country. However, in the terms, some details are unspecified, giving the impression of a standard document.The page has frequent technical errors, displays information poorly, cuts off details, and shows terms and conditions in the wrong language, even after changing preferences (appearing in German).The page covers the basics but contains contradictory information. As a franchise, details are sometimes generic and then become specific to the chosen car, leading to confusion.It is exactly the same as Dollar, just a different color. Same conditions, almost the same models (except for a 7 seater) same terms and same interface.The page facilitates an easy booking process but falls short in terms of information, which is contradictory in various places and challenging to find depending on the context.The page is functional, but being a franchise, the terms and conditions are vague. They sometimes contradict each other, depend on the car, or have scattered information across different sections.Page with technical faults, generic and franchise with contradictory info.Website with technical faults, very scant information, and very little variety of fleet.Easy to choose vehicles, but information on the rental process and conditions is harder to find and located in unintuitive places. The website fails and sometimes shows ridiculous prices.

We now have a broader view, don’t we? Well, it’s time to start filtering this information and focus on the best car rental companies in Iceland. Shall we begin?

What is the best car rental company in Iceland in terms of quality and price for this upcoming 2024? 

Now that you’re on a first-name basis with the various rental companies and know who the top players are, let’s dive into the good stuff. It’s time to rank the crème de la crème of car rental companies in Iceland, looking beyond just popularity.

We’re considering the full package – the services they offer, we prioritize local companies over franchises, the perks of the rental, and of course, the nitty-gritty of the price per day. Picture this: we crunched the numbers based on a 14-day rental during the less touristy times, and that includes all the taxes and jazz. We aimed to stick to the same car model (Toyota Aygo) or at least the same category.

And now, drumroll, please! Here’s what we got:

#1 – Cars Iceland (9.7/10) 🥇

With an impressive final score of 9.7 out of 10, Cars Iceland is undoubtedly the standout winner in our comparison. Scoring a remarkable 4.9 on platforms like Google Reviews and 4.7 on Facebook, Cars Iceland’s ace in the hole is its customer service. 

Most customers shower praise on this company: efficient and friendly, quick to address any queries, multilingual support (one of the few local companies we found catering in English, Spanish, French, or Portuguese), and 24-hour assistance.

Cars Iceland’s fleet is diverse, from 2WD and 4x4s, to large vans, allowing any kind of traveler to find their ideal car in various price ranges. And here’s where Cars Iceland really shines. The daily rate includes default insurances like SCDW, GP, TP and winter tires, providing a much more comprehensive and worry-free rental.

Their cancellation policy is also among the most flexible on the market, offering the option to cancel up to 24 hours before the rental day for a full refund.

What do customers say about them?

  • Exceptional experience and superb customer service
  • Cars are in excellent condition
  • Easy to find location for pick-up and drop-off.
  • Cleanliness
  • Good overall value for money

#2 – ReykjavikCars (9.4 /10) 🥈

In second position, we have ReykjavikCars, another top scorer in terms of customer service. Customers appreciate their round-the-clock assistance and multilingual support, which is an advantage for the international audience.

Also, worth noting is the option of hotel pickup in the Keflavik area that they offer their customers, along with 24h office hours. All this comes with an extensive fleet and competitive prices.

What do customers say about them?

  • Questions and queries are diligently responded to
  • Reasonable prices
  • Straightforward check in process.
  • Fast and efficient shuttle service
  • Introduction to car could be better

#3 – Iceland Cars (9 /10) 🥉

Iceland Cars is another major player in the car rental scene in Iceland.

One of the major advantages of Iceland Cars, in addition to their customer service, is their extensive and diverse fleet. In it, you will find models as interesting as the Kia X-Ceed, a hybrid car that provides greater autonomy and fuel savings, or off-road titans like the Hilux 4×4 with very appealing features.

They also offer the option of pick-up and drop-off at hotels or accommodations in Keflavik or in the capital, Reykjavik. Likewise, they have very interesting insurance options that are hardly found with other competitors, such as coverage for water damage.

What do customers say about them?

  • Smooth pick-up and drop off
  • Great Insurance add-on options
  • Smooth communication
  • Flexible reservations
  • Limited service hours for hotel pickup and return.

#4 – Go Car Rental (8/10) 🏆🏆

And very close to third place we have Go Car Rental, our runner up.

The main advantage of this provider lies in the plethora of options and equipment to choose from, ranging from very comprehensive insurance combinations (for an extra cost, of course) to… guitars! You never know when the muses might visit during your trip to Iceland…

If you’re a very, very young driver (under 20 years old) with less than 12 months of driving experience, this is one of the few companies that, for an additional fee, would allow you to rent a car in Iceland.

The cancelation policy is also quite flexible, up to 24h before the rental day for a full refund.

What do customers say about them?

  • Great Airport shuttle service
  • Hassle-free pickup and return service
  • Easy to find location for pickup and drop off.
  • Cars in great shape
  • Slow refund process

#5 – Lotus Car Rental (7 /10) 🏆

And our last standout is Lotus Car Rental. A company known for very interesting perks, such as reduced roadside assistance costs thanks to an extra insurance that is difficult to find with other competitors in the country.

Their fleet is also quite extensive, diverse, and modern, making it perfect for couples, friends, or much larger groups of travelers.

Similar to Go Car Rental, they allow drivers under 20 years old to rent with them by paying an additional fee.

What do customers say about them?

  • Great extra insurance options
  • Well-maintained vehicles
  • Cleanliness
  • Quick transfer from the airport
  • Service at the rental desk could be better

Providers$ / dayCustomer Service Insurance (no deductible)MileageMultilingual SupportCancelation policy 
Cars Iceland$44 CDW, SCDW, GP & TP insurance included and winter tires.4.9/5Liability waiver $26 / dayUnlimited✓ English, Spanish, French & Portuguese24 hours before pick-up, 100% refund.
ReykjavikCars$33 CDW insurance included, winter tires & fuel discount card.4.8/5Platinum insurance $32 / dayUnlimited✓ English, Spanish and Portuguese48 hours before pick-up, 100% refund.
IcelandCars$42 CDW, SCDW; GP & TP Insurance included.4.6/5Platinum insurance $39 / dayUnlimited✓ English, Spanish, French & Portuguese48 hours before pick-up, 100% refund.
Go Car Rental$35
SCDW, GP & TP insurance included.
4.8/5Premium Plus+ $54 / dayUnlimited✗ English24 hours before pick-up, 100% refund.
Lotus Car Rental$40 SCDW, TP insurance and winter tires included.4.8/5Platinum insurance $39Unlimited✗ English48 hours before pick-up, 100% refund.

In a nutshell, here’s a summary of the above at a glance:

Most popular companyMost popular type of carAverage priceGood value for money?
Cars IcelandDacia Duster 4×4 2023 model$64 / day🤑✓ Good Price with good insurance options included
ReykjavikCarsHyundai i10 2WD$37 / day🤑✓ Good Price
IcelandCarsToyota Aygo 2WD$42 / day🤔? Not bad, but when comparing the same level of insurance, other competitors come cheaper
Go Car RentalDacia Duster 4×4$60 / day🤑✓ Good Price with good insurance options included
Lotus Car RentalToyota Aygo 2WD$43 / day🤔✗ For a 2WD, there are better prices out there.

Now, let’s get into the more technical side of things.

Testing the Best Car Rental Providers in Iceland

Once we filtered out the main competitors, we selected these powerful companies and subjected them to performance tests

Things to consider when choosing a rental car company

If web search data isn’t among the most determining factors, what are those factors, then? Let’s find out.

Customer Service

When the unexpected happens, a responsive customer service team can be a lifesaver. Evaluate providers based on reputation, customer reviews, and the efficiency of their support systems.

🎖️ Top Contenders: Cars Iceland, Iceland Cars & ReykjavikCars

24/7 Assistance and Multilingual Support

Emergencies don’t follow a schedule, and language barriers can add complexity. Look for providers offering round-the-clock assistance to ensure a smooth experience. 

A destination like Iceland, that people from all over the world visit, the option to be assisted in your language and have a much clearer understanding of all the conditions of your rental is crucial.

🎖️ Top Contenders: Cars Iceland & ReykjavikCars

Insurance Coverage

Understanding the extent of insurance coverage is essential. Delve into the types of insurance offered, their limitations, and any additional costs associated. In the case of Iceland, most companies include the basic CDW insurance.

Other companies include better coverage in their base price, such as SCDW (Super Collision Damage Waiver), Gravel Protection, and Theft Protection.

When comparing prices, it’s important to always check what’s included because sometimes the prices may seem very attractive, but it turns out that they don’t include insurance or only a very basic one. And when you add the rest of the insurance, the price is equal or more expensive than other competitors.

Regardless, we always recommend adding the best insurance with zero deductible. In a country like Iceland, it’s the most sensible option.

🎖️ Top Contenders: Cars Iceland, Iceland Cars & Lotus Car Rental

Roadside Assistance

Breakdowns can happen to anyone. Assess the availability and responsiveness of roadside assistance provided by each rental company.

In the case of Icelandic companies, the vast majority offer 24-hour roadside assistance, but all of them charge the cost of the service. The comparison focuses on who provides the service at the best cost, and who offers options to help you avoid those potential payments.

🎖️ Top Contenders: Lotus Car Rental & Go Car Rental

Cancellation and Refund Policies

Life is unpredictable, and plans can change. Examine the cancellation and refund policies of each provider to avoid unnecessary hassle.

Something we noticed when making this comparison is that most companies advertise ‘Free Cancellation’ on their main page, but then you realize it is under specific conditions, such as the timing of your cancellation.

Make sure to read the Terms & Conditions and the cancellation policy to avoid surprises later on.

🎖️ Top Contenders: Cars Iceland & Blue Car Rental

Fuel Policies

Fuel policies vary widely. Determine whether the provider operates on a ‘full-to-full’ basis, or if there are fees for returning the vehicle with less fuel than initially provided.

99.9% of car rental companies in Iceland offer a full-to-full fuel policy. There’s only one that offers different options to the clients when it comes to fueling. With Avis, you can choose full-to-full fuel up front (you pay for a full tank when collecting the vehicle) or pay for it upon return.

🎖️ Top Contenders: Avis Car Rental

Equipment and Extras

From heated seats to GPS navigation, assess the additional equipment offered by each provider. These extras can enhance your driving experience and your journey in general.

🎖️ Top Contenders: Cars Iceland & Go Car Rental

Vehicle Options

Consider the types of vehicles available, especially if you have specific requirements like driving on F-roads or if you want a 4×4 for winter conditions. Do you prefer an electric car or a hybrid? What about big groups? Are there vans available for you and your crew?

🎖️ Top Contenders: Cars Iceland & Go Car Rental

License and Age Requirements

Understand the driving license and age requirements imposed by each provider. Some may have age restrictions or additional charges for younger drivers.

The vast majority of companies in Iceland require the driver to be at least 20 years old and have a minimum of one year of driving experience. Only a few allow younger drivers, but there is usually an additional charge.

🎖️ Top Contenders: Cars Iceland & Blue Car Rental in terms of general policy. For very young drivers (18 y.o), Lotus Car Rental, Icerental 4×4 & Dollar (for a surcharge).

Credit Card Usage

Clarify whether a credit card is necessary for renting a vehicle and if any additional charges are associated with its use. Also, if these companies also accept debit cards in case you do not own a credit one.

🎖️ Top Contenders: Cars Iceland, Blue Car Rental, Lotus Car Rental.

Hidden Fees and Charges

Unpleasant surprises in the form of hidden fees can quickly turn a good deal sour. Always scrutinize the terms and conditions to identify any undisclosed charges.

A pleasant surprise we’ve encountered is that a large portion of companies (especially local ones) are quite transparent when communicating possible charges. Almost none have hidden fees per se, but there are detailed fees for specific services.

In all honesty, these fees are entirely fair and only apply if you break the rules of the contract. Charges for things like smoking in the car, leaving it filthy, incurring fines that the company would then have to manage on your behalf, etc. If you comply with everything, you won’t have to pay anything. Makes sense, right?

However, we found that some companies (especially franchises) do have hidden charges for pick-up or drop-off at certain offices. So, keep your eyes open!

🎖️ Top Contenders: Most local companies

Rental Conditions

Thoroughly inspect the rental conditions, especially the vehicle inspection process for damages, to avoid disputes when you return it. 

🎖️ Top Contenders: Most companies offer the same collection and return process.

Availability and Location

Check the geographical coverage of each provider. While some are widespread, others might have limited availability in certain regions. When it comes to renting a car in Iceland, 99% of the car rental companies are located either in Keflavik (near the international airport) or in Reykjavik. Only a couple of companies offer services in other Icelandic towns.

🎖️ Top Contenders: Europcar Iceland, Dollar, Thrifty & Budget.

Pick-up and Drop-off Options

Evaluate the flexibility in terms of pickup and return locations, as well as additional services like the possibility of a 24/7 pick-up/return service or contactless options.

🎖️ Top Contenders: Cars Iceland, Iceland Cars & Blue Car Rental

Mileage Policy

Different providers may have varied mileage policies. Be aware of any restrictions regarding the number of miles you can drive per day. Luckily, most companies offer unlimited mileage.

🎖️ Top Contenders: All of them, except Sixt and Routes Car Rental, who do have limited mileage rentals.

Cleaning Policies

Returning a clean vehicle is common courtesy, but each provider may have different expectations. Familiarize yourself with their cleaning policies and avoid any ‘cleaning fees’. Most Icelandic companies require you to return the vehicle in the same conditions as when you received it, except for normal wear and tear incurred during your journey.

🎖️ Top Contenders: Those with the lowest cleaning fee (should you return a filthy car) are Cars Iceland, Blue Car Rental & Lava Car Rental.

Industry Experience

Consider the years of experience each rental company brings to the table. Established companies often have a higher track record of reliability. Take into account that franchises have a blown up track record because they count their ‘outside-of-Iceland’ experience. We’ve focused on local companies that we know to have enough experience within the Icelandic market.

🎖️ Top Contenders: Geysir Car Rental, Blue Car Rental, Go Iceland, Cars Iceland & KEF Car Rental.

Local vs. Franchise

Decide between opting for a local rental company or a franchise. Local businesses offer a more personalized touch, while franchises often provide consistency. In our car rental in Iceland comparison, we have added which companies are local and which are franchises.

Website and Booking Process

A user-friendly website and a streamlined booking process contribute to a stress-free experience. Evaluate the efficiency of each provider’s online platform.

🎖️ Top Contenders: Blue Car Rental, ReykjavikCars, Lagoon Car Rental & Lotus Car Rental

Price Range

Finally, the price – a crucial factor. Understand the price range offered by each provider to align with your budget.

🎖️ Top Contenders: Cars Iceland, Go Car Rental, Blue Car Rental, ReykjavikCars and Lotus Car Rental.

But, what is exactly the price range for a rental car in Iceland? Well, that leads us to our next section.

When to Book a Rental Car in Iceland?

Iceland is a country with a very pronounced seasonality. The time of year you travel will have a big impact on both the type of vehicle you rent and the price you pay for your rental. Here’s a table with approximate average daily rental prices for 2WD city cars and 4WD vehicles in Iceland, based on data we gathered from various car rental websites in December 2023.

Keep in mind that actual prices may vary depending on the rental company, the vehicle model you chose, rental terms and add-ons, and, of course, availability. It’s highly recommended to book in advance, especially during peak seasons, as availability becomes quite scarce in Iceland.

MonthAverage Daily Price for 2WD City CarAverage Daily Price for 4WD Car
January50 USD75 USD
February55 USD80 USD
March65 USD95 USD
April75 USD110 USD
May85 USD125 USD
June95 USD140 USD
July105 USD155 USD
August105 USD155 USD
September90 USD135 USD
October75 USD110 USD
November60 USD85 USD
December55 USD80 USD

The Importance of the Rental Provider for a Great Trip

Now that we’ve dissected each of the crucial factors to take into account when renting a car in Iceland, let’s delve a bit deeper into what puts Cars Iceland at the top of the list and why it stands out from the competition.

Renting a Car in Iceland with Cars Iceland: Your Essential Questions Answered

  1. How much does it cost to rent a car in Iceland?

It depends on the season, but the average price ranges from $44 in the low season to $99 USD in the high season for a 2WD manual economy car.

  1. What is the most popular car rental agency in Iceland?

Top five are Cars Iceland, Go Car Rental, Blue Car Rental, ReykjavikCars and Lotus Car Rental.

  1. Which car rental company is the cheapest in Iceland?

The cheapest car rental company in Iceland can vary depending on the time of year, the type of car, and the length of the rental. However, some of the cheapest companies include:

Cars Iceland, Lava Car Rental, Go Iceland, ReykjavikCars and Iceland Cars.

  1. What is the best car rental company in Iceland?

We have already created a top five based on several key features and the result was: Cars Iceland, Go Car Rental, Iceland Cars, ReykjavikCars and Lotus Car Rental.

  1. How can I find car rentals near me in Iceland?

You may use your preferred explorer and search for ‘car rentals near you’ while keeping your geolocation activated. You may also use different apps such as Google Maps, where you can find companies and services near your location easily.

  1. Where should I rent a car in Iceland?

If you are flying into Keflavík International Airport, we highly recommend renting a car directly at the airport, this will not only save you money but also time. There are also many car rental companies located in Reykjavík, the capital of Iceland, but know that you will need to find a way to get from the international airport to the city, which is 50km away. And let me tell you, rides ain’t cheap! 

  1. How much does it cost to rent a car for a week in Iceland?

You can expect to pay between $500 and $1,000 for a week-long rental. Prices will highly depend on the vehicle you choose and, of course, the season.

  1. How much does it cost to rent a car for a month in Iceland?

You can expect to pay between $1,200 to 1,800 for a 2WD manual car. An automatic, 4×4 SUV will be around $1,800 to $2,000 and up for luxury models.

  1. What is it like to drive in Iceland?

Driving in Iceland is generally safe and easy. The roads are well-maintained and there is relatively little traffic. However, there are a few things to keep in mind:

  • There’s only one ‘main road’ the Ring road, no highways to be found.
  • The speed limits are lower than in many other countries.
  • There can be a lot of sheep on the roads, so be sure to watch out for them.
  • The weather can change quickly, so be prepared for snow, rain, and wind at any moment, in any season (yes, even in summer though chances are slimmer)
  1. How old do you have to be to rent a car in Iceland?

The minimum age to rent a car in Iceland is 20 years old. However, some companies may require you to be 23 years old to drive larger SUVs. Besides that, you’ll need to have a valid full driver’s license for at least 12 months.

  1. What are the gas prices like in Iceland?

Gas prices in Iceland are usually higher than in other countries. The current gas price is approximately $2.08 USD per liter and Diesel, around $2.15 USD per liter.

  1. What are the speed limits in Iceland?

The speed limits in Iceland are as follows:

  • In urban areas: 50 km/h (31 mph)
  • On rural roads: 90 km/h (56 mph)
  • On gravel roads: 80 km/h (49 mph)

Ready, set, go. Iceland awaits!

Armed with this detailed comparison, you’re ready to choose the car rental service that best suits your needs. Whether it’s exceptional customer service, a wide range of vehicles, or budget-friendly options, the perfect ride awaits you. Safe travels!

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