If you plan to rent a car for your Iceland trip, most of the practical questions at Keflavik International Airport (KEF) come down to timing, location, and paperwork: where the rental desks actually are, what to bring to pickup, where to get fuel before you return the car, and how the return process works.
Quick answer
Car rental at Keflavik works like this: you land, collect luggage, and either walk to an in-terminal desk or take a short shuttle to an off-site office, check your confirmation email to know which applies to you. Bring a valid driver's licence, the credit card used to book (for a card imprint, not necessarily a blocked deposit, depending on the company), and your booking confirmation. Fuel up at a station near the airport before returning the car, since most rentals use a full-to-full fuel policy. Returns are usually possible 24/7 via key drop-off, even outside staffed hours.
Are car rental desks inside the Keflavik terminal, or off-site?
Both models exist at KEF, and it depends on which company you booked with. Some rental companies operate a desk physically inside the terminal building. Others, including Blue Car Rental, run their office a short distance from the terminal and bring customers there by a free shuttle that meets arriving passengers just outside the doors.
Blue Car Rental's Keflavík Airport office is at Blikavöllur 3, next to the airport: about a 5-minute walk from the terminal across the P1 car park. It is open 24/7 from 15 May to 1 November; from 2 November to 14 May it opens at 05:00 and closes at 02:00.
Neither model is inherently faster, an in-terminal desk can still mean a queue, while an off-site office with a shuttle is often quiet and quick once you're through arrivals. What matters is knowing which one applies to your booking so you're not searching the terminal for a desk that isn't there. Your booking confirmation will state the pickup type; if in doubt, the Keflavik Airport location and delivery details page explains exactly where to go and how the handover works.
If you'd rather skip the counter altogether, Blue Car Rental has moved the rental process from the desk to your own phone or computer: online check-in lets you complete your details before you arrive, with key-box pickup (for customers who add the Liability Waiver and complete online check-in) available so you can collect the car keys without waiting for staff, useful for very early or very late flights.
What should you have ready when collecting a rental car?
Have four things ready: a valid driver's licence, the credit card in the main driver's name, your booking confirmation, and your flight number (helpful for tracking delays, even if you already submitted it online). A few minutes of preparation here avoids the most common holdups at the counter.
- Driver's licence, valid, and in Latin/Roman characters. If yours isn't, bring an International Driving Permit alongside it.
- Credit card in the main driver's name, used for a card imprint at pickup. Blue Car Rental takes only a credit-card imprint, with no funds held or blocked; other companies' policies may differ, so it's worth confirming if you're renting elsewhere. See our breakdown of car rental deposit options in Iceland if this is your first time renting abroad.
- Booking confirmation, digital is fine, but have it accessible without needing airport wifi.
- Flight number, lets the rental company track delays so your pickup is still honoured if your flight is late.
- Questions written down, fuel type, insurance cover, road conditions for your route. It's easier to ask everything at once than to call later.
How far ahead should you plan to rent a car in Iceland?
Book before you travel rather than on arrival, particularly for summer dates, early-morning arrivals, and specific vehicle types like automatics or 4x4s. Walk-up availability at KEF is inconsistent and tends to be limited to whatever is left, not what you'd have chosen.
Booking ahead also means you can add your flight number, compare vehicle categories properly (2WD, 4x4, EV, or family-sized), and understand insurance options before you're standing at a counter with a queue behind you. If your trip came together quickly, a last-minute car rental in Iceland is still usually possible, it just narrows your choices.
Is there a gas station near Keflavik Airport?
Yes. There's an N1 station on Njarðarbraut, about 5 minutes' drive from the terminal (last checked July 2026), commonly used by travellers topping up fuel right before returning a rental car. It's a normal, well-signed petrol station rather than something you need to search hard for, most rental staff can point you to it directly if you ask at pickup.
Fuel policies differ between companies, so it's worth confirming yours at pickup rather than assuming. The table below covers the models you'll typically encounter across Icelandic rental companies.
| Fuel policy | How it works | What to watch for |
|---|---|---|
| Full-to-full | Car is given full, returned full | Most common; refuel near the airport before drop-off to avoid a refuelling charge |
| Full-to-empty | Pay for a full tank upfront, return empty | Rare for short rentals; you're paying for fuel you may not use |
| Pre-purchased fuel | Fuel included in the rate | Uncommon; check if unused fuel is refunded |
Since fuel policy affects your final cost, it's one of the details worth checking before you sign anything, our guide to hidden costs of renting a car in Iceland covers this and similar points that are easy to miss at the counter.
How does returning a car at Keflavik Airport work?
Returns at KEF are usually available 24/7 through a key drop-off box, even outside staffed office hours, useful if your flight home is very early or your last day is tight on time. Confirm the exact drop-off location and procedure when you pick up the car, since it can differ from where you collected it.
Build in a buffer before your flight: refuel, drive to the return location, and allow time for a quick check of the car rather than rushing. If your rental includes a shuttle back to the terminal, ask how long that takes at pickup so you can plan your departure from your hotel or the Ring Road accordingly.
Pickup and return at a glance
| Stage | What to expect | What helps |
|---|---|---|
| Arrival | Terminal desk or shuttle to off-site office, depending on company | Check confirmation email for pickup type |
| Documents | Licence, credit card, booking confirmation, flight number | Have physical or digital copies ready |
| Vehicle check | Walkaround, note existing damage, test lights and wipers | Photograph the car before driving off |
| Fuel before return | Refuel near the airport (e.g. N1 station) | Confirm full-to-full vs other policy at pickup |
| Return | Staffed desk or 24/7 key drop-off | Confirm return location and allow buffer time |
Vehicle and insurance choices worth deciding before you land
Choosing the right vehicle and cover matters more than most travellers expect, and it's easier to decide before you're at the counter than in the moment. If your route stays on paved roads and Route 1, a 2WD may be enough; if you're heading onto F-roads or driving in winter, a 4x4 is the safer and, on F-roads, legally required choice. Our 4x4 questions to ask yourself guide walks through this decision by route and season, and browsing the fleet shows what's available across 2WD, 4x4, EV, family, and premium categories.
On insurance, every Blue Car Rental booking includes CDW, SCDW, Gravel Protection, Theft Protection, and Third-Party Liability as standard. Tyre cover, along with water damage, including legal river crossings, underbody, wind and door damage, sand and ash, falls under the Liability Waiver. Illegal crossings or off-road driving aren't covered by any waiver, which is worth knowing if your itinerary includes F-roads. Full details are on the insurance and coverage options page.
Mistakes to avoid when planning your pickup
- Booking "Reykjavik" by mistake. Search specifically for Keflavik Airport or KEF, a city-centre listing is a different pickup point entirely.
- Skipping the walkaround. A quick photo record of existing scratches or chips takes two minutes and avoids disputes later.
The bottom line
Most of the stress around Keflavik Airport car rental comes from not knowing which pickup model applies to your booking, not from the airport itself, KEF is compact and well-signed once you know where you're heading. Confirm your pickup type, have your documents ready, check your fuel policy, and build a little buffer into your return, and the airport becomes a straightforward start and finish to the trip rather than something to worry about.
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