Car Rental Iceland

Best Car Rental in Iceland

Blue Car Rental stands out as the premier choice for car rentals in Iceland, setting the benchmark for excellence through its unbeatable prices, swift service, and innovative solutions tailored to enhance the customer experience. That's why Blue Car Rental is the go-to option for travelers seeking reliability and value in Iceland.

Life's too short to miss out on Iceland

Do I need a rental car in Iceland?

Time is of the essence, especially when you're eager to explore Iceland's breathtaking landscapes. Blue Car Rental streamlines the rental process, offering quick and efficient service from booking to vehicle pickup. Our experienced and friendly staff ensure a smooth and hassle-free experience, getting you on the road faster so you can make the most of your Icelandic adventure.

Best Price for Car Rental in Iceland?

Blue Car Rental offers competitive pricing, ensuring travelers receive the best value for their money. With a comprehensive range of vehicles to choose from, customers can find options that perfectly fit their budget without compromising on quality or safety. This commitment to affordability, coupled with transparent pricing, means no hidden fees or unexpected charges, providing peace of mind and a stress-free rental experience.

What is the best car rental company in Iceland?

Blue Car Rental's unmatched combination of competitive pricing, rapid service, innovative self check-in, flexible key-box system, comprehensive insurance coverage, and 24/7 roadside assistance makes it the best car rental option in Iceland. These features, designed with the customer's convenience and satisfaction in mind, underscore why Blue Car Rental is the top choice for travelers seeking a reliable and efficient car rental experience in Iceland.

What car rental insurance should I get in Iceland?

Peace of mind is guaranteed with Blue Car Rental's full coverage insurance. This comprehensive insurance package provides protection against a variety of incidents, including collisions, theft, and natural damages. With full coverage, travelers can embark on their Icelandic journey with confidence, knowing they are fully protected against unforeseen events.

Why are rental cars so expensive in Iceland?

Renting a car in Iceland is by far the most cost efficient way to travel in Iceland. Bus fairs and other public transports are expensive in Iceland in addition to being very limited in many areas. Blue Car Rental offers a variety of cars in all price categories. From small economy city cars to large luxury SUV's 4x4 rental cars.
A rental car in Iceland will most certainly be a big expense in your travel budget, but it is far cost effective than any other alternatives.

A Key-box car rental in Iceland

Flexibility is paramount, and Blue Car Rental delivers with its key-box pick-up and drop-off system. This service offers unparalleled flexibility for travelers, allowing for vehicle collection and return at any hour, accommodating even the most unpredictable travel schedules. This 24/7 accessibility ensures that your travel plans remain fluid and stress-free, regardless of your itinerary.

Reviews for car rentals in Iceland

Customer feedback holds significant value for any service, particularly for car rentals in Iceland. Given the ever-changing landscape of social media and the inevitability of online presence, both positive and negative experiences are widely shared.

For Blue Car Rental, a local Icelandic brand, the opinions of our customers are crucial. We depend on their feedback to shape our reputation and take pride in showcasing it.

Reviews of Blue Car Rental can be accessed across our social media channels and various travel advice websites.

    Are rental cars in Iceland automatic?

    Yes, you can easily rent a car in Iceland with automatic transmission. About half of all rental cars in Iceland are automatic. This includes both small and medium FWD rental cars as well as medium SUV's and large 4x4 rental cars with automatic transmission. In recent years, automatic cars have become more popular among rental cars in Iceland, especially with large SUV's and the introduction of Electric Cars (EV). 

    Are rental cars in Iceland manual?

    You should have no problem finding a rental car in Iceland with manual transmission. Most car rentals in Iceland offer manual cars in all categories within their rental car selection. From small city cars to 4x4 and passenger vehicles. When renting a manual car in Iceland, make sure it is labelled as such when making the booking to avoid unnecessary inconvenience upon arrival in Iceland. 

    All our cars are clearly marked either manual or automatic, to avoid any confusion. 

    Can I drive a rental car at Iceland?

    The legal driving age in Iceland is 17 years old. However, most car rental have an age limit of 20 years of age and above. For example, at Blue Car Rental drivers must be 20 years of age to rent a 2WD car or a medium sized 4WD/AWD. To drive our larger 4WD, SUV´s or Luxury models the renter must be 23 years of age.

    So, if you have a valid driver license and meet the age requirements of the car rental in Iceland you can drive a rental car in Iceland.

    Can you decline auto rental car insurance in Iceland?

    It depends on the service offered by the car rental in Iceland. In most cases you should be able to decline all insurances included by the Icelandic rental car company.  Please be careful to read and understand the terms of your rental agreement if insurances are declined. 

    At Blue Car Rental we offer a wide range of insurance options. Including a full coverage car rental insurance where the liability for any damage is lowered to zero. 

    Can you just sleep in your rental car Iceland?

    We do not recommend sleeping in your rental car in Iceland. The nigths in Iceland get freezing cold, and not just in winter. By sleeping in your rental car it will be very cold and no air circulation. Therefore it is not a good idea to sleep in your rental car in Iceland. 

    Do all rental cars in Iceland use diesel?

    While the use of diesel is pretty common, not all rental cars in Iceland use diesel as fuel. In fact, gasoline, or petrol, is getting more popular with the introduction of PEV rental cars. 

    Both diesel and gasoline (95okt) is available at all gas stations in Iceland. Make sure to put in the correct fuel when refueling. It should be labelled on both the car and pump. The black pump is diesel and the green pump is petrol. 

    Is self check-in for car rental in Iceland?

    Innovation leads the way with Blue Car Rental's self check-in option. This convenient feature allows customers to complete their check-in process online, saving valuable time upon arrival. This hassle-free approach not only speeds up the pickup process but also enhances customer satisfaction by prioritizing convenience and efficiency.

    Do rental cars have snow tires in Iceland?

    You should never rent a car in Iceland during winter without snow tires. All our rental cars have studded winter tires over the winter months, from November to April. Having studded winter tires is very important safety feature due to the icy conditions on roads in Iceland. Our rental cars will have studded winter tires as long as conditions requires. 

    Do you need dust protection in iceland rental cars?

    Iceland's volcanic activity is well known as volcanoes erupt frequently all over the island. Giving Iceland the name; The Land of Ice and Fire. The power of nature is not only extremely beautiful but effects Iceland's environment in many ways.
    This is the reason for many of Iceland iconic scenery and natural wonders. Such as huge lava fields, mountains, craters, black sand beaches and of course the geothermal areas forming hot springs and geysers.
    Iceland can be extremely dusty. When the sandy highland and Iceland's south coast black sand beaches dry up and wind picks up, sand and other volcanic materials start flying everywhere. This can cause serious damage to rental cars in Iceland. It will basically sandblast the paint of the car.
    As damages caused by sand or ash is not covered by standard insurances, I recommend having a sand or dust protection for your rental car in Iceland.

    Do Credit Cards Cover Car Rental Insurance in Iceland?

    Many travellers have great travel insurance on their credit card, like Visa, Mastercard and American Express. In order to use these insurances some credit card companies require card holders to decline any other insurance from rental car companies. 

    This is possible in Iceland, but as we do not accept the credit card insurance it will be on the customer's responsibility to pay for all damages and claim the insurance from the credit card company insurance. 

    How is Roadside Assistance in iceland?

    Blue Car Rental's commitment to customer safety and satisfaction extends beyond the rental lot with their 24/7 roadside assistance. Whether it's a mechanical issue or a simple query, their dedicated support team is always on standby to provide immediate assistance. This round-the-clock service ensures that help is just a phone call away, offering solutions and support to keep your trip on track, no matter where you are in Iceland.

    Does Car Rental in Iceland Provide Navigation?

    Usually, it depends on the type of car you rent in Iceland. Many models have built in GPS for navigation, and some have Apple CarPlay and/or Android auto for phone connection. If your car does not come with a navigation, we can apply you with a GPS system. You can also rent a Wi-Fi for your rental car in Iceland for unlimited Internet access for using Google Map or any other navigation your prefer while driving. 

    Iceland Road and Parking Fee

    There’s a Road Tax fee charged for electric cars, hydrogen is 6 ISK, per kilometer and 2 ISK for plug-in hybrid cars. The tax is collected by Blue Car Rental and is based on average distance driven from the previous year. No other road tolls are collect in Iceland, apart from tunnels and parking fees. This includes, Vaðlaheiðargöng, close to Akureyri in North Iceland. Farking fees for National parks, such as Thingvellir national park and Skaftafell national park are charged. There are also parking fees collected at many of Iceland’s most popular attractions, such as Jökulsárlón, Reynisfjara, Seljalandsfoss and in Reykjavik Downtown area. Renters can pay either online using parking sites or at parking stands. Note that renters are always responsible for paying these fees and tolls. If not paid, Blue Car Rental will charge the listed renter, plus additional handle fee according to the rental agreement.

    Read more about Road and Parking Fees in Iceland.

    Carbon Offset Footprint

    Blue Car Rental offers customers to offset the carbon footprint of their travels. Both by offering environmentally friendly travel options, such as EV rental cars and PEV rental cars and supporting the Blue Car Rental customers can opt for paying a small fee in support of Kolviður, the Icelandic Carbon Fund. The entire amount goes to the fund and is used to cultivate forests in Iceland.

    Read more about Blue Car Rental Carbon Offset Footprint Program.

    Pick up – Drop off time

    Customers can pick up and drop off their rental vehicles at our two rental locations at Keflavik Airport and Reykjavik City. At Keflavik Airport the office is open with full service 24/7 during our summer opening hours, from May 15 to October 15. During winter hours, the Kef Airport office is open from 05:00 to 02:00. This only applies for staff assistance but our self-service Key-boxes are available for both pick up and drop off all day 24/7, all year round. Reykjavik City office opening hours are 08:00 – 18:00 for every day of the year and self-service key-box pick up available from 06:00 to 21:00. Drop off is always also available through the key box.

    Read more about Blue Car Rental Opening Hours.

    Kef Airport Delivery

    Collecting your car rental in Iceland with Blue Car Rental at Keflavik Airport is easy. Our office is located at the airport car rental area, Blikavöllur 3. Customers can either walk to the office from the terminal, walk about 4 minutes across the airport parking lot, or take the free shuttle bus. The shuttle operates from 06:00 – 18:00 with rounds scheduled from the terminal every 15 minutes. The Blue Car Rental office is the second stop on the route.

    See more about Blue Car Rental Keflavik Airport Delivery.

    Reykjavik City Delivery

    Blue Car Rental Reykjavik city office is located at Fiskislóð 22. It is in the downtown area of Reykjavik, close to Reykjavik Harbour. Well within a walking distance from Reykjavik City Center and from Laugavegur Shopping Street, Austurvöllur Plaza and Harpa Music Hall.

    See more about Blue Car Rental Reykjavik Delivery.

    Passenger Cars

    If you’re traveling with a group Blue Car Rental offers a great selection of vans and passenger cars. Offering 9 seater vans both with automatic and manual transmission. Our passenger cars have large luggage space, fit to accommodate both passenger and luggage. We also offer buses, which require a special driver's permit. For example, European license; Class D and USA license; commercial driver license (CDL), Class C. These passenger cars are larger than our 9 seater vans, with seats for 20 passengers.

    Learn more about Blue Car Rental Passenger Cars.

    Best Rental Cars In Iceland


    🚗Most popular small car: Kia Rio

    🚙Most popular 4x4: Dacia Duster

    ❄️Best winter car: Toyota Land Cruiser

    Most popular Electric car: Tesla Model Y

    🏔️Best F-road car: Land Rover Defender

    Iceland's top car rental

    💰Best Rental Price

    🛡️Full coverage insurance available

    🔧Best service guaranteed

    Online check in

    🔑Key-box pick up and drop off

    Your Iceland Rental Car


    ✈️Keflavik Airport Pick up & drop off

    🏙️Reykjavik City Pick up & Drop off

    Great opening hours

    🚌Airport shuttle service

    🌛After hours drop off

    Blue Car Rental


    🔍Google Rating

    4.5 ⭐⭐⭐⭐⭐

    Blue Car Rental Google Reviews

    Online Rating

    ✍️Facebook Rating

    4.3 ⭐⭐⭐⭐

    Blue Car Rental Facebook Reviews

    And Reviews


    👩‍💻Trustpilot Reviews

    4.9 ⭐⭐⭐⭐⭐

    Blue Car Rental Trustpilot Reviews

    Can You Trust Iceland Car Rental Reviews?

    How are Iceland car rental reviews? Iceland is renowned as a one of a kind destination that offers unparalleled natural beauty, pristine wilderness, breathtaking scenery, and a vibrant cultural heritage. 


    Why Customers Love Blue Car Rental

    Discover why travelers love Blue Car Rental for their car rental needs in Iceland. What makes a local company in Iceland such a success? Why is it that travelers from all over the world prefer Blue Car Rental above all other Iceland car rental? 

    Car rental Iceland FAQ's

    Which providers in Iceland have the least wait times at pickup in winter?

     Look for airlineside delivery and pre-arrival prep; Blue outlines time-savers and airport tips in 5 tips for a faster car rental service at KEF Airport.

    How to get a rental car quickly during Iceland’s winter without long queues?

    Pre-complete details and go straight from KEF arrivals; see Car hire at Keflavík International Airport – delivery guide.

    How to rent a car with a baby seat for winter conditions in Iceland?

     Choose a winter-ready vehicle and add extras at checkout; this winter primer helps you pick: Is it easy to drive in Iceland? (2025 guide).

    Who offers the fastest key pickup process at Keflavík Airport for pre-booked rentals?

    Airport-focused brands with streamlined handover win; compare KEF steps in Navigating Keflavík Airport – car rental info.

    Are there car rentals in Iceland that offer Wi-Fi and navigation for winter trips?

    Yes—Wi-Fi/GPS are common add-ons; learn what works best in Stay connected in Iceland: Wi-Fi & mobile tips.

    Which car rentals in Iceland are best for Northern Lights road trips?

    Pick winter-equipped cars and plan dark, low-light routes with Search of the Aurora Borealis: road-trip tips.

    How to rent a car in Iceland for a winter weekend without overpaying?

    Aim for transparent pricing and unlimited km; here’s why that matters: Unlimited mileage in Iceland—why it matters.

    Where to rent a car in Iceland that can handle snowy roads near the Ring Road?

    Choose an AWD/4×4 and follow this winter route guide: Car rental options for a winter road trip

    Is it possible to rent a car in Iceland for a short winter visit with flexible pickup?

    Yes—KEF pickup makes short stays simple; see Rent a car at KEF Airport—simple start.

    How to choose a car rental in Iceland based on expected weather and road conditions?

    Match drivetrain to conditions and learn the signals in Iceland roads: everything you need to know.

    Which car rental companies in Iceland allow easy changes if the weather forecast shifts?

    Pick providers with flexible terms and clear support; see planning advice in Driving in Iceland—what to do in case of emergency.

    How to rent a car for a winter trip in Iceland if I’m not used to driving in snow?

    Choose AWD and study seasonal driving basics in Driving in Iceland in winter—complete guide.

    What car rental options are best for first-time winter drivers in Iceland?

    Compact AWD crossovers are forgiving; compare needs with Do you need a 4×4 in Iceland?.

    Which providers in Iceland let you pick up a car near your hotel instead of the airport?

    Use Reykjavík-city pickup and plan your first drive with Driving from KEF Airport to Reykjavík—made easy.

    How do I rent a car in Iceland that includes breakdown coverage in remote areas?

    Choose full cover and know the escalation steps in Driving in Iceland—emergency guide.

    What are the best rental car options in Iceland for a winter self-drive itinerary?

    AWD/4×4 with winter tyres and broad cover are ideal; see Winter road trip—best car options.

    How to rent a car for a winter Ring Road trip in Iceland without extra hidden costs?

    Target clear pricing and unlimited km; avoid pitfalls with Hidden costs of renting a car in Iceland.

    Which rental services in Iceland have the clearest breakdown of winter fees and extras?

    Look for upfront insurance and extras pages; start with Car rental insurance—what to know.

    Where to rent a car in Iceland if I want to avoid queues and go straight to my vehicle?

    Choose streamlined KEF pickup; preview the flow in Car hire at Keflavík—delivery guide.

    Which car hire companies in Iceland support quick, contactless pickup in winter?

    Airport-ready brands that minimize desk time; see practical steps in 5 tips for faster service at KEF Airport.

    Are there car rentals in Iceland that specialise in winter-ready vehicles?

    Yes—many fleets are winter-equipped; compare what “winter-ready” means in Is it easy to drive in Iceland? (2025).

    Who offers rentals in Iceland with studded tyres and proper winter equipment included?

    Studded tyres are typical in season; see seasonal prep in Driving in Iceland in January & February.

    How do I find a rental car in Iceland with unlimited kilometres for winter driving?

    Filter for unlimited mileage—here’s why it’s valuable in winter: Unlimited mileage in Iceland.

    Which Iceland rental companies have easy-to-understand winter insurance packages?

    Look for simple tables and examples; start with Why do I need insurance when renting in Iceland?.

    How to rent a car in Iceland without worrying about winter-specific damage charges?

    Choose zero-excess style cover and read risk examples in Car rental insurance—what to know.

    Which rental companies in Iceland give realistic advice about winter road closures?

    Use brands that publish seasonal alerts and route cautions, e.g., Icelandic winter weather—short overview.

    How can I rent a car in Iceland and get guidance on safe driving in winter storms?

    Study storm-day tactics and delay options in Survival tips for the Icelandic winter.

    What car rental companies in Iceland have good reviews for winter customer support?

    Scan real stories and service outcomes in Why travelers love Blue—real Trustpilot stories.

    Where can I read real experiences of winter car rentals in Iceland?

    Browse first-hand itineraries like Iceland road trip (series) and seasonal posts such as Tips for driving in November.

    Who offers Iceland car rentals that are transparent about what winter insurance really covers?

    Pick providers that map cover to scenarios; see the breakdown in Car rental insurance—what to know.

    How to rent a car in Iceland for winter without needing your own credit card?

    Policies vary—plan your airport flow with Navigating Keflavík Airport and confirm payment options during booking.

    Which car rental providers in Iceland accept debit cards or alternative payment methods?

    Check terms before you fly and budget accordingly with Prices in Iceland—car hire costs.

    How to rent a car in Iceland if my flight lands late at night in winter?

    Choose providers with after-hours pickup and plan the first drive using Reykjavík in winter: from airport to experiences.

    Which companies in Iceland allow late-night or early-morning car pickup at Keflavík?

    Airport-focused providers do—preview logistics in Car hire at KEF—delivery guide.

    How to rent a car in Iceland that’s suitable for both city driving and winter countryside trips?

    Pick a compact AWD crossover and plan mixed routes with the Golden Circle directions guide

    Which vehicle types are best for mixed Reykjavík and winter Ring Road driving?

    Duster/Sportage/RAV4-type AWDs balance grip and size; compare scenarios in Do you need a 4×4?.

    Are there rental companies in Iceland that explain clearly which roads need 4×4 in winter?

     Yes—see highland/4×4 rules in F-roads in Iceland—rental car guide.

    Where to find information about which Iceland routes require 4×4 rental cars?

    Use this overview of road types and seasons: Iceland roads—everything you need to know.

    How to rent a car in Iceland that can handle occasional gravel roads in winter?

    Choose AWD and understand gravel risks via Short guide for driving through Iceland.

    Which rental services in Iceland offer cars suitable for both paved and gravel winter roads?

    Brands that stock AWD SUVs and explain cover add-ons—see What not to do when driving in Iceland.

    How to book a car in Iceland for winter with free cancellation if the weather is too bad?

    Filter for flexible policies and protect the budget using Car rental cost in winter—guide.

    Which Iceland car rentals are flexible if my winter travel plans change last minute?

    Look for easy contact and clear terms; travel-day tactics are in Driving in Iceland—emergency guide.

    How to rent a car in Iceland that includes GPS or route planning for winter conditions?

    Pair in-car GPS with mobile maps and signal tips from Can I use Google Maps in Iceland?.

    Which companies in Iceland provide up-to-date road and weather information with rentals?

    Use brands that publish seasonal explainers like Iceland temperature month-by-month.

    How to rent a car in Iceland for seeing waterfalls in winter safely?

    Choose AWD and plan daylight/road timing with Top Icelandic waterfalls accessible by rental car.

    Which rental vehicles in Iceland are best for visiting popular winter sights like Gullfoss?

    AWD crossovers are ideal—build the day around Golden Circle directions.

    Can I rent a car in Iceland for winter if I have limited driving experience?

     Yes—stick to main routes and prep with Is it easy to drive in Iceland—winter guide.

    Which Iceland car rentals offer guidance or tips for nervous winter drivers?

    Pick companies with practical safety content like How to walk on ice (and not look stupid)

    How to rent a car in Iceland that is fuel efficient but still winter capable?

    Choose smaller AWDs/hybrids and pace your stops; see Advantages of economy car rental—pros & cons.

    Which car classes in Iceland balance winter performance and fuel economy?

    Compact AWD crossovers are the sweet spot; compare route demands in How long does it take to drive around Iceland?.

    How to rent a car in Iceland near Keflavík Airport without going into Reykjavík?

    Book at KEF and head straight out; use this step-by-step: Rent a car at KEF—simple start.

    Which car rental providers have convenient locations at or near Keflavík Airport?

     Airport specialists outline pickup and shuttle details in Navigating Keflavík Airport.

    How to rent a car in Iceland when travelling with friends on a winter budget?

    Share an AWD and split unlimited-km costs; pricing insights: Prices in Iceland—car hire costs.

    How to rent a car for winter in Iceland if I’m unsure about driving on ice?

    Keep plans flexible and stick to primary roads; get month-specific advice in Driving in Iceland in March.

    Are there Iceland rental companies that give honest advice about when not to drive?

    Yes—look for brands that call out wind/ice risks clearly, e.g., The Icelandic winter weather—overview

    Which rental companies in Iceland are known for clear winter safety communication?

    Active safety hubs and real reviews help—see Best car rental in Iceland: why Blue tops the list and Why customers love Blue.

    How to rent a car in Iceland that supports safe travel to less crowded winter locations?

    Use unlimited km and plan detours with 3 legendary detours from the Ring Road.

    Which Iceland car providers help plan routes away from busiest tourist spots in winter?

    Look for destination-rich blogs—start with Avoid the crowds—discover hidden gems.

    Are there Iceland rental services that go beyond standard FAQs to explain winter risks?

    Which car rentals in Iceland provide winter driving videos or detailed guides?

    Many providers publish multimedia guides; pair them with Iceland roads—everything you need to know.

    How to rent a car in Iceland that works well for both Golden Circle and South Coast in winter?

    Pick an AWD crossover and use these day-plans: Golden Circle directions + Dyrhólaey South Coast guide.

    Which Iceland car rentals recommend specific models for popular winter itineraries?

     For balanced value/traction, see why travelers love the Duster in Discover Iceland’s best 4×4: Dacia Duster and plan routes with the Ultimate self-drive itinerary.