When planning a trip to Iceland, it is easy to assume your international flight will land in Reykjavík. After all, most guidebooks and travel sites speak of the nation’s capital as the gateway to the “Land of Fire and Ice.” In reality, nearly all trans‑Atlantic and European arrivals touch down at Keflavík International Airport (KEF), located about 45 kilometres southwest of the city. Reykjavík Airport (RKV), the smaller airfield just behind the downtown harbour, handles almost exclusively domestic hops and the occasional short‑haul flight to Greenland and the Faroe Islands.
Why does this matter? Because confusing the two airports can lead to missed pick‑ups, unnecessary taxi rides, or booking your rental car at the wrong location. If you plan to rent a car in Iceland, and most visitors do, because self‑driving is the easiest way to reach Iceland’s waterfalls, black‑sand beaches, and geothermal pools you need to know where you will actually land, pick up your luggage, and collect your keys. Our step‑by‑step blog on beginning your journey from KEF, Iceland Car Rental at KEF Airport—Start Your Adventure, walks you through the process from arrivals hall to open road.
Equally important is choosing the right rental partner. Blue Car Rental’s extensive fleet, streamlined online check‑in, and 24‑hour service at both KEF and its downtown Reykjavík office make the transition from plane to pavement seamless. For a primer on matching the right vehicle and insurance to your itinerary, see our Quick and Simple Guide to the Best Car Rental in Iceland.
By understanding the clear distinction between Reykjavík’s two airports and setting up your rental logistics accordingly, you can avoid confusion, save money, and focus on the spectacular scenery that awaits beyond the runway.
Understanding the two main airports in Iceland
Before diving into the details of Reykjavík Airport and Keflavík International Airport, it helps to picture them as two complementary gateways. Keflavík (KEF) functions as Iceland’s front door for nearly all global arrivals, whereas Reykjavík Airport (RKV) is the nation’s domestic living room, connecting the capital with outlying towns and nearby territories. Understanding this division of labour is the key to planning smooth transfers, choosing the right pick‑up point for your rental car, and avoiding costly detours.
Reykjavik Airport (RKV)
Set just south of Reykjavík's downtown waterfront, Reykjavik Airport puts you mere minutes from the city’s hotels, cafés, and landmarks like Hallgrímskirkja. It began as a WWII airfield and today remains the lifeline for Iceland’s towns in the Westfjords, North, and East. From here you can hop on a 40‑minute flight to Akureyri, reach Egilsstaðir in under an hour, or board an Air Iceland Connect turboprop bound for Nuuk in Greenland. Because virtually all traffic is regional, security queues are short, baggage reclaim is swift, and parking is inexpensive. Facilities, however, are limited to a small café, free Wi‑Fi, and a handful of car‑hire desks that keep shorter hours than their KEF counterparts.
If you are spending a few nights in the capital before hitting the Ring Road, you can pick up a vehicle at Blue Car Rental’s downtown office (five minutes from RKV) and start exploring Reykjavík’s street art, museums, and geothermal pools without trekking back to Keflavík. Our guide Car Rental Reykjavík – Start Your Iceland Adventure breaks down why city pick‑up can save you both time and money.
When to choose Reykjavik airport (RKV): Short domestic hops, quick day‑trips to North Iceland, or travellers who want a completely car‑free stay in the city before venturing farther afield.
Keflavik International Airport (KEF)
By contrast, Keflavik International Airport is Iceland’s global gateway, welcoming more than six million passengers a year. Set on the Reykjanes Peninsula’s moon‑like lava fields, KEF was built in the 1950s as a NATO base and now hosts daily wide‑body arrivals from North America and Europe. Inside the terminal you’ll find duty‑free shopping, multiple cafés, showers, luggage storage, and even a quiet zone for weary red‑eye travellers. Most importantly for road‑trippers, the rental‑car village, served by a free shuttle which houses every major brand, with desks staffed 24/7.
Grabbing your keys here means you can be on Route 41 to Reykjavík in under ten minutes, or merge straight onto Route 1 for a clockwise Ring Road adventure. For ideas within arm’s reach of the runway, see Iceland Car‑Rental: Best‑Kept Secrets Near Keflavik Airport. Blue Car Rental’s KEF counter offers online check‑in, key‑box collection, and no‑deposit rentals, letting you bypass the crowds and hit the road while others wait in line.
Why pick up at Keflavik airport (KEF)? Immediate highway access, full 24‑hour services, wider vehicle classes (including 4×4s and EVs), and all‑inclusive insurance bundles designed for Iceland’s notorious gravel and wind conditions.
Together these two airports complement each other: RKV keeps Iceland connected internally, while KEF connects the island to the world. Knowing which one suits your itinerary and booking your car in the correct location will save you both time and krónur.
Renting a Car in Iceland: Reykjavik vs. Keflavik
For most travelers, the question is not whether to rent a car in Iceland but where to pick it up. Because nearly all long‑haul arrivals come through Keflavík International Airport (KEF), collecting your vehicle at the airport is usually the most seamless option. Car‑rental desks, including Blue Car Rental, stay open for every trans‑Atlantic arrival, and the rental village is served by a free shuttle that runs during the day. From the keys counter it is a five‑minute drive to Route 41, the dual‑carriageway that leads directly to Reykjavík and connects to the Ring Road.
Picking up at KEF also puts you on the doorstep of some spectacular first‑day detours. The Blue Lagoon is fifteen minutes south, while the Reykjanes Peninsula’s steaming vents and lunar lava fields lie just beyond. Our post on Hidden gems at Reykjanes peninsula highlights a handful of stops that most tour buses skip.
What if you plan to spend a couple of nights in the capital before heading off? In that case, postponing pick‑up until you reach the city can save a day or two of rental fees and parking hassles. Blue Car Rental’s downtown office is only five minutes from Reykjavík Airport and offers the same vehicle classes and full‑cover insurance bundles you find at KEF. You can stroll from your hotel, sign digitally, and drive away in under ten minutes.
Choosing the Right Vehicle at Each Airport
- Economy hatchbacks are perfect for travellers sticking to paved roads in summer. They’re cheaper to fuel and easier to park in the city. Learn more in Advantages of Economy Car Rental in Iceland.
- Family SUVs and 4×4s shine when your itinerary includes gravel tracks or highland F‑roads. Winter visitors especially benefit from extra ground clearance and AWD traction—our guide to 4×4 Cruising in a Winter Wonderland explains why.
- Electric and hybrid models are increasingly popular along the Southwest and the Ring Road, thanks to Iceland’s expanding charging network and the environmental appeal of renewable energy.
Why Airport Pick‑Up Often Wins
- Time efficiency: No need to arrange an airport shuttle or wait for a hotel check‑in before starting your adventure.
- Wider fleet selection: Specialty vehicles—electric crossovers, nine‑seat vans, roof‑top tent campers—tend to book out first at the airport location.
- 24/7 staff and roadside support: Blue Car Rental maintains full‑time coverage at KEF, so late‑night arrivals can hit the road without delay.
- Immediate route access: From KEF you can loop the Reykjanes Peninsula, dive straight into the South Coast, or head north on Route 1 without threading city traffic.
Situations Where City Pick‑Up Makes Sense
- Urban explorers who plan to rely on Reykjavík’s walkable core for the first few days.
- Budget travellers visiting in shoulder season who can score discounted mid‑week city rates.
- Late return flights: Dropping the car in town and taking an airport shuttle back can shave a day off your rental timeline.
Whichever option you choose, book early, especially between June → August and December → February, Because Iceland’s fleet is finite and last‑minute inventory is scarce.
When to Use Reykjavik Airport
Although most international travellers will enter Iceland through KEF, Reykjavik Airport (RKV) still plays a vital role. Especially for those wanting to maximise their time in the capital or to venture quickly to Iceland’s remote corners without a long drive. Below are the main scenarios when opting for RKV makes practical (and sometimes financial) sense:
1. Fast Domestic Connections
If your itinerary includes far‑flung towns such as Akureyri, Ísafjörður, or Egilsstaðir, flying from RKV shaves hours off a journey that would otherwise take half a day by car. Domestic carriers run multiple daily flights, meaning you can land in the north before lunchtime, pick up a local rental, and still have the afternoon free to chase waterfalls.
2. Short City Breaks
Visitors planning a quick Reykjavík city break often prefer to remain car‑free until they’re ready to explore Iceland’s countryside. Because RKV sits less than 5 minutes by taxi from downtown hotels, you can be checked in and strolling Laugavegur while others are still commuting from KEF. Once you’re ready to roam beyond the capital, simply walk to Blue Car Rental’s city office, collect your vehicle, and set off—our post on Discover Reykjavík with Rental Cars outlines popular day‑trip loops that depart right from the harbour.
3. Day‑Trips by Air
Adventure seekers use RKV as a springboard for scenic flights over volcanoes or for quick hops to Greenland. These excursions depart early and return late, letting you experience two Arctic destinations in a single day.
4. Event‑Focused Travel
Travellers visiting Reykjavík for festivals, business conferences, or sporting events may have no need for a vehicle during the first part of their stay. Collecting a car from the city after your event finishes can cut down on parking fees and traffic headaches.
5. Combining Air and Road
Some itineraries blend domestic flights with classic road‑trip segments: fly north, drive the Diamond Circle, then meander back to the capital via the Westfjords and Snæfellsnes. RKV’s flights serve as useful “shortcuts” for condensing a two‑week circuit into a ten‑day holiday.
Pro tip: If you do pick up your vehicle in town, plan an early detour to Þingvellir, Gullfoss, or the South Coast. Our Guide to Thingvellir National Park maps out a perfect first outing that avoids morning traffic.
While RKV’s car‑rental desks keep shorter hours and have smaller fleets than KEF, Blue Car Rental’s downtown branch five minutes away more than compensates, offering the same full‑cover insurance bundles, no‑deposit policy, and quick key‑box pickup for after‑hours collections.
Transport Options: Keflavik Airport to Reykjavik City
Several transportation methods connect KEF and Reykjavik city center. Popular options include airport shuttle services like Flybus, private transfers, taxis, and rental cars. Renting a car directly from Keflavik Airport provides unmatched flexibility, enabling travelers to manage their schedules independently and explore the country without constraints.
Renting with Blue Car Rental
Blue Car Rental stands out as a preferred car rental company in Iceland, offering exceptional convenience and quality service. With prominent rental locations at Keflavik International Airport and a conveniently located office in Reykjavik near the domestic airport, Blue Car Rental ensures maximum ease and accessibility for travelers. Known for its quick vehicle delivery service, streamlined online booking process, and comprehensive insurance packages designed specifically for Iceland's unique driving challenges, Blue Car Rental is dedicated to enhancing the rental experience. Additionally, the innovative Wallet Pass service enables seamless car pickups and drop-offs, minimizing wait times.
Getting from KEF to the City with Your Blue Car Rental
After collecting your vehicle at Keflavík Airport, driving to downtown Reykjavik is straightforward. Follow Route 41 for roughly 45 kilometres—about 45 minutes under normal conditions. En route you’ll pass well‑signed gas stations and supermarkets, useful for stocking up before hitting the Ring Road. If you prefer not to drive immediately, you can take the Flybus or a taxi into town and pick up your car later at Blue Car Rental’s city branch.
Need a visual? Our detailed guide Driving from Keflavik Airport to Reykjavik Made Easy breaks down the entire route, including speed limits, fuel stops, and scenic detours like the Blue Lagoon. For anyone planning to park overnight in the capital, don’t miss our Parking in Iceland – Car Rental Reykjavik Guide for zones, fees, and insider tips.
Combining Blue Car Rental’s fast‑track service with clear driving directions means you can step off the plane, collect your keys, and be checked into your Reykjavik hotel—or cruising the Reykjanes Peninsula—long before the tour buses roll out.
Tips for an Efficient Car Rental Experience at Keflavik Airport
Keflavík may be one of Europe’s most user‑friendly airports for self‑drivers, but a little planning still goes a long way. Follow the checklist below to shave precious minutes off the pick‑up queue, secure the best price, and drive away fully protected for Iceland’s unique road conditions.
1. Book Early—But Compare Like a Pro
Iceland’s rental fleet is finite, and peak months (June–August, late December, Easter) routinely sell out. Secure your vehicle as soon as flights are booked, then revisit prices about six weeks out. Tools like Blue Car Rental’s “flex change” policy allow free modifications, so you can lock in availability yet still benefit if a sale appears. For a side‑by‑side checklist, see our 5 Steps to Finding the Best Car‑Rental Company in Iceland.
2. Use Fast‑Track Pick‑Up Options
Complete the online check‑in the day before you fly, upload licence details, and add extra drivers. On arrival, head straight to Blue Car Rental’s key‑box or express desk. Travellers who choose the optional Delivery Guide—explained in our Car‑Hire at Keflavik International Airport Delivery Guide—often clear the lot in under ten minutes.
3. Choose the Right Insurance Bundle
Basic CDW will not cover Iceland’s most common mishaps: gravel chips, ash pitting, or torn undercarriage from wind‑lifted doors. Blue Car Rental’s Zero Worries bundle caps liability at 0 ISK and even covers wind and water damage. It’s cheaper to add this online than at the counter—plus you avoid the deposit freeze on your card.
4. Inspect, Photograph, and Sync to the Wallet Pass
Even brand‑new Dacia Dusters can pick up micro‑scratches during volcanic storms. Walk around the car, capture close‑ups of every panel, and upload via the Wallet Pass so both you and the rental team share a time‑stamped record.
5. Plan Your First 100 Kilometres
Fill up at the ÓB station just beyond the roundabout, stock provisions at the Bónus supermarket, and decide whether to head straight to the capital or detour to the Blue Lagoon. Our Iceland Airport – Unlocking the Land of Fire and Ice article suggests three scenic loops you can complete before check‑in.
6. Squeeze More Value from Your Króna
Fuel can be your biggest variable expense. Choose an economy or hybrid if you’re Ring‑Roading in summer, and use the OB debit pumps for a 3–5 ISK per litre saving. More hacks are listed in Top 7 Travel Tips for a Cheaper Iceland with a Rental Car. Booking a manual gearbox or off‑peak pick‑up time can also shave 10 % off the daily rate.
7. Map Out a Few “Soft‑Landing” Stops
Jet‑lagged? Aim for gentle mileage on day one. Our roundup of the 5 Best Sites to Visit in Iceland starts with the Reykjanes Lighthouse and ends with a sunset stroll at Krýsuvík’s bubbling mud pots—each within 30 minutes of KEF. If you’re craving a bucket‑list waterfall straight away, route 35 will lead you to Gullfoss in under two hours; see Life’s Too Short to Miss Out on Gullfoss Waterfall for timing tips.
By following these seven steps—book early, fast‑track your pick‑up, choose robust insurance, document the car, fuel smartly, and plan gentle first‑day mileage—you’ll be out of the KEF parking lot and into Iceland’s epic scenery faster than you can say “Eyjafjallajökull.”
Common Mistakes Travelers Make Regarding Reykjavik Airports
Even seasoned travellers can stumble when planning flights and car‑hire logistics. Keep these pitfalls in mind to save yourself time, money, and a few grey hairs:
- Booking the wrong airport code – Always double‑check your ticket: KEF is Keflavík, RKV is Reykjavík‑Domestic. Mixing them up can mean a 45‑km taxi ride and last‑minute rental‑car changes.
- Scheduling tight connections – Domestic flights from RKV do not wait for late KEF arrivals. Allow at least three hours between landing at KEF and boarding at RKV—or better yet, overnight in Reykjavík.
- Arranging city pick‑up but landing late at night – Downtown rental desks close earlier than the 24‑hour operations at KEF. If you land after 20:00, collect your vehicle at the airport or pre‑arrange Blue Car Rental’s after‑hours key‑box service.
- Forgetting to sync luggage logistics – Budget airlines sometimes limit cabin bags; if your hold luggage delays you, pre‑book a later Flybus or have a travel partner pick up the car while you wait at baggage reclaim.
- Overlooking insurance fine print – A common shock at the counter is discovering basic CDW excludes wind‑door damage—one of Iceland’s most frequent claims. Pre‑select full coverage online to avoid surprises.
- Underestimating winter road closures – Travellers who grab an economy car at RKV in December often discover their accommodation is only reachable via snowy backroads. Use Blue Car Rental’s fleet filter to select 4×4 vehicles when booking.
Avoiding these common mistakes—and reviewing our 5 Things You Must Know Before Renting at Keflavik Airport—will keep your Iceland itinerary on track and your holiday budget intact.
Facilities and Amenities: KEF vs RKV
Facilities at KEF far surpass those at RKV, reflecting KEF's role as Iceland’s international gateway. KEF provides extensive shopping options, various restaurants, comfortable lounges, and numerous car rental agencies, catering comprehensively to international visitors. Conversely, RKV’s facilities are modest, primarily intended to meet domestic travel needs, without extensive dining or shopping opportunities.
Saving Money and Finding Deals on Car Rentals in Iceland
Iceland is not a budget destination, but with a bit of planning you can trim hundreds of euros (or thousands of krónur) off your transport costs. Below are smart, road‑tested ways to keep your wallet happy while still enjoying the freedom of four wheels.
1. Travel in Shoulder Season
Late April–May and mid‑September–October see fewer crowds, lower nightly rates, and up to 25 % off daily car‑hire prices. Our breakdown of How Much a Winter Trip Really Costs shows how timing your visit outside the July–August rush can free up cash for glacier hikes or gourmet dinners.
2. Lock In Early—but Stay Flexible
Blue Car Rental lets you reserve with no deposit and modify dates or vehicle class later. Book now to secure availability, then re‑check closer to departure for flash sales or upgraded models.
3. Use Coupon Codes and Pop‑Up Discounts
Keep an eye on seasonal promos posted on Blue Car Rental’s website or subscribe to the newsletter for one‑time codes. Our guide to Finding Coupon Codes for Iceland Car‑Rental Discounts explains where to hunt for stackable offers—sometimes worth 10 % off base rate.
4. Join the Blue+ Rewards Club
Frequent visitors and families booking multiple cars should enrol in Blue+. Members earn perks such as free additional drivers, priority service, and surprise upgrades at the counter.
5. Pay in ISK, Not Euros
While some agencies accept foreign currency, paying in Icelandic krónur avoids dynamic‑currency mark‑ups on your card. Wondering if you can hand over cash? Our post Can I Pay with Euros? breaks down the pros and cons.
6. Choose the Right Insurance Bundle Upfront
Buying full coverage online is almost always cheaper than adding it at the desk. Bundles like Blue Car Rental’s Zero Worries package fold in gravel, ash, sand, wind, and water protection—avoiding costly excesses later.
7. Optimise Fuel Strategy
Opt for a diesel or hybrid if covering long Ring‑Road distances, and download stations into Google Maps before you leave the airport. For more inspiration see how you can refuel with confidence in Iceland.
By mixing timing hacks, rewards programs, coupon codes, and smart payment methods, you can rent a car in Iceland without sacrificing the experiences that brought you here.
Final Thoughts
Clarifying the differences between Reykjavik and Keflavik airports is crucial for smooth travel planning in Iceland. By renting a car from trusted providers like Blue Car Rental, travelers can effortlessly explore Iceland’s magnificent landscapes and attractions at their own pace, ensuring an enriching and memorable experience in this captivating country.
GUIDE TO BEST CAR RENTAL IN ICELAND: QUICK AND SIMPLE
