Budget Car Hire in Iceland

Driving in Iceland is a pleasure. You will enjoy picturesque landscapes and quality roads.

Traveling by car in Iceland

Iceland ("country of ice")is a small northern country located between Greenland and America. It is called the island of volcanoes, glaciers and waterfalls. Iceland has many glaciers and active volcanoes. Volcanic tourism is very popular here, with a visit to the lava flow and the most famous Geysir geyser, as well as travel to wild parks and thermal springs. It is here that you can see such a unique spectacle as the Northern Lights and many other natural paintings. State official website: iceland.is

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Settlements of Iceland were erected, as trade and fishing ports. At the moment, the main occupation of the local residents of this city is the extraction and processing of seafood. If there is a desire to get to know the cities and sights of Iceland better, it is better to have a personal or rented car with you. Each locality of this state is unique in its own way.

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If you rent a car in Iceland, you will have a chance to get acquainted with this amazing country at the right time for you and at your own pace.

Reykjavik.

It is the largest city and also the capital of Iceland. It is home to 60 - 70% of the inhabitants of the total population of the country (about 150 thousand), so it is still the most densely populated. Despite the fact that the city is located near the Arctic Circle, it is quite warm here in winter. In summer, the night lasts 4 hours a day, and in winter daylight hours are only 4 hours. Downtown Reykjavik is lined with low-rise, brightly colored buildings to combat northern depressions. Places of interest: Bessastadir residence, Harpa Hall and Conference Center, Cathedral and National Square. Reykjavik is considered the cleanest and most comfortable place to live.

Kopavogur.

Kopavogur is a geothermal town with a large number of thermal springs. Located next to Reykjavik and is considered the second most populous in Iceland. Many baths, saunas, spas, and an outdoor pool have been built in Kopavogur.

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Hafnarfjordur

Located 10 km from Reykjavik. The harbor of the city is similar to the shape of a horseshoe. Hafnarfjördur has a lot of industry but is one of the cleanest in Iceland.

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Akureyri.

Icelanders consider it the second capital, located in the north of the country. Akureyri is considered the fourth largest in the country. The famous Godafoss waterfall and Lake Mývatn are located here.

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How to rent a car in Iceland.

Most car rental companies in Iceland are located in Reykjavik or near Keflavik International Airport (40 minutes from Reykjavik). For those who plan to travel around Iceland only by driving a car during their entire stay in the state, it is more practical to take a car near the airport and return it there before flying home. Regardless of what time of day your plane lands, you have the opportunity to rent a car at the airport, as car rental companies operate around the clock. However, if the car is required for you only for part of your trip, then you can pick it up in Reykjavik. It is possible to pick up a car within the airport and return it to Reykjavik or vice versa. In some cases, there is an additional charge for this, but there are organizations where this service is provided free of charge.

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Renting a car in Iceland is quite expensive. To drive along the main highway No1 and around the city, a passenger car will do: from 60 € per day without insurance.

To travel along the mountain paths, as well as other areas on the island, where the roads are not very good, then much it is better to give preference to an all-wheel drive SUV: from 125 € per day. The conditions for renting a car are approximately the same, but may differ, for example:

Hasso. It is possible to rent a car (sedan) when the age has reached 20 years and the driving experience is more than 1 years, but an SUV is provided only from 23 years old. Required documents: identification document, driver's license and credit card.

Minimum rental period is 1 day. You can buy and leave the car at the international Keflavik Airport. They provide a car with a full tank, with the same need and return it back, if this is not done, then they will take it from your credit card within 32 EUR. Basic insurance is included in the rental price. However, there is also an extended type of insurance, details need to be found out on the spot.

Geysir. The rules are the same as in 1 company, except that luxury cars will become available only only if you are over 25 years old. In this car rental it is allowed to take a car, without a credit card, if you give a deposit of 2000 EUR.

Driving in Iceland.

Main highways are excellent for any driver as they are perfect and traffic is zero. However, driving off asphalt, on mountain paths, is another form of travel.

  • All mountain roads in Iceland (the interior of the island) are gravel. The surface of gravel paths is often loose, for this reason you should drive very carefully, and also slow down if you encounter an oncoming car.
  • Worth remembering! Dirt roads on maps of Iceland and on warning boards are marked with the letter F. The car rental agreement usually indicates whether your car is allowed to drive on a dirt road. In addition, such paths often turn out to be narrow and go into the mountains.
  • In the city, the speed limit is 50 km/h, on gravel roads in the countryside - 80 km/h, and on paved roads - 90 km/ h.

What are the types of parking.

  • Parking rates in Icelandic settlements are 100-250 kroons/hour. In certain parking lots in Reykjavik, the first two hours are free. Payment is possible through a parking meter or cashier.
  • Parking lots near natural monuments are covered with gravel and fenced with small posts. There are commercial parking lots near national parks, and there are free parking lots near waterfalls, lakes, geysers.
  • In addition, free parking lots will be located near hotels, hotels and in the camping area, since their cost is included in the payment for accommodation in these places.

There is one more distinguishing feature in Iceland - this is the frequent hit of animals on the road. It is believed that the number of sheep and horses in this area exceeds the population.

Rent an electric car in Iceland.

Electric cars are becoming more affordable. Iceland has always been worried about the environment and the ever-increasing oil prices. Today, electric vehicles are in great demand in this country and there are plans to create 200 new electric vehicle charging stations over the next 3 years.

Today, there are 13 charging stations in Iceland, 6 of which are built in Reykjavik. Charging an electric car takes about 60 minutes, but there are already fast stations on sale that can cut the time by 2 times. There are several electric car rental companies in Iceland, but with a very modest fleet. For example: Tesla Model Y - Long Range offered by LocalCarHires. The rental price for 7 days will be €1200.

Good to know

Most Popular Agency

Payless

Most popular car class

Standard

Average price

25 € / Day

Best price

18 € / Day

Monthly price chart. Approximate prices for 7 days rental

January
€301
February
€279
March
€268
April
€359
May
€288
June
€431
July
€647
August
€534
September
€295
October
€200
November
€275
December
€527

Popular rental locations in Iceland

Documents needed to rent a car

Driving license
Credit card
Voucher
Passport
Attention!

A valid international driver's license is required!

Car rental tips in Iceland

Download Google maps offline

The presence of an offline navigator allows you to save on roaming. It is enough just to download the necessary maps from Google Maps and get directions even without a network connection. To do this, enter the phrase "OK MAPS" in the application, select the desired area and download offline maps to your smartphone.

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Early Booking Discount

Iceland is now in ever-increasing demand, which affects the high demand for car rental. By booking online, you can avoid any unpleasant surprises after you arrive at your destination. Both with the car itself and with its rent.

It is better to book a car at least one and a half months before the trip. As the required date approaches, the number of available offers is reduced, and the cost of the remaining models increases. If plans change and the trip is postponed, then you can cancel the rental without any sanctions 2 days before it starts.

Which car to choose for rent

Choose a car according to the purpose of your trip. You can drive around the city and its surroundings in a compact car VW Up or Ford Fiesta. These models are the most popular with our customers in Iceland.

In the mountains, more powerful transport will be required. Pay attention to the volume of the engine - it must be more than 1.6 liters. An all-wheel drive crossover would be ideal. Fiat Tipo Estate will cost €32 per day. By the way, before leaving, do not forget to refuel with a margin. On the rises, the fuel goes one and a half to two times more. Gas stations in mountain villages are rare.

What you need to pay attention to at the time of receiving a car

Before picking up, you are required to carefully inspect the car and point out to the rental company manager for scratches, damage and defects, such as dirty seat upholstery. You should check the ignition and the fuel level in the tank. You need to know the conditions for returning the car - where exactly, with what amount of fuel to return the car.

The rental agreement must include a telephone number to contact the rental company. It is designed so that customers can get help in emergency situations, such as when a car breaks down or in the event of an accident. A call to the rental company should be done first, even before the arrival of the police.

Insurance advice

Rental companies in Iceland may offer different insurance options. They differ in price and set of options. Here are the basic types:

  • Third Party Liability (TPL)/Third Liability Protection (TLP). This is a third party liability protection. If you are the culprit of an accident, the insurance will compensate for the costs of the victims for you.
  • Collision Damage Waiver (CDW). This is to protect your vehicle from any damage. She works with a franchise. This is the amount that you will have to pay in case of damage in any case. The company will cover anything over the limit. The insurance does not cover theft.
  • Theft Insurance (TI)/Theft Protection (TP)/Theft Waiver (TW). This is car theft protection. Operates with a franchise.
  • Super Loss Damage Waiver (SLDW)/Theft Protection+Collision Damage Waiver (TP+CDW). Full protection against theft and damage, even if you are the culprit of the accident.
  • Personal Accident Insurance (PAI). This is medical insurance for the driver and passengers.

If you want to save money and choose the cheapest insurance, carefully inspect the car upon receipt. Make sure the machine is not damaged. Iceland 8

Fuel prepayment terms

When you pick up your car, you may be asked to pay for a full tank of fuel right away. This condition will suit you if you plan to travel long distances. For a couple of trips around the city, you don’t need so much fuel, and therefore it doesn’t make sense to overpay. Pay attention to the fuel policy when booking a car. If necessary, use the special filter to select the most convenient option for you.

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Mileage without limits

Before renting a car, you should check with the rental company if there is a limit on the daily mileage for a car. Typically, tourists use a rental car to travel not only around the city, but also to travel to neighboring cities and even countries. If such a restriction exists, it is recommended to choose a rental option where there is no limit. In this case, the total cost of mileage will be lower, since you will not have to pay extra for exceeding the mileage. On our site, in the search results, check the filter "Unlimited mileage" to see the offers you need.

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Compare conditions of different rental companies

When choosing a rental car in Iceland, you should carefully read all the terms of the rental. This is due to the fact that different companies may differ not only in rental prices, but also in conditions for limiting mileage, the cost of additional services, and the amount of the deposit. To compare rental conditions, it is convenient to use the search and booking system on our website.

Which rental company to choose

When renting a car in Iceland, you should carefully read all the conditions offered by the rental company. Depending on the specific company, they may differ in mileage, insurance coverage, deposit amount, accompanying services and their cost. You should choose proven and reliable companies that offer new cars and stand out due to the well-thought-out organization of work with customers. Additionally, you can study the rating of distributors, which is also available on our website.

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If we talk about the best companies in Iceland, then it is worth highlighting EUROPCAR with a rating 9.9 and SIXT, the average rating of which is 9 points.

Car pick-up procedure

Before signing a car rental agreement, it should be carefully checked for damage and defects. Do not be shy to point out the identified problems and problems - then you will not have to answer for them. When returning, pay attention to the fuel in the tank. Its volume must correspond to that prescribed in the agreement.

Also, do not ignore the phone number provided by the technical support representative when concluding the contract. After all, even the most experienced driver is not insured against a breakdown, accident or other force majeure event. In such a case, contact a specialist before the arrival of the police.

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