Where to hire a car in Iceland

If you are going to Iceland, then it is necessary to realize that there is actually one main mode of transport by car. There are no railways, buses are rarely used, and only some localities do not like cycling here.

If you don’t want to rely on hitchhiking all along your trip to Iceland, then you probably need to rent a car.

Renting a car can be one of the most expensive items in your budget, probably just after the cost of accommodation.

Therefore, I recommend everyone to book a car in Iceland as soon as possible, because during the season the cheapest cars quickly disappear from the offers and the most advantageous are then quickly occupied.

In Iceland there is a possibility of renting a car from the locals, but even here the offer of cars is limited and the vehicles at the lowest prices are already occupied at least for July and August.

But if you have nothing else to do, then you can use GuidetoIceland.com to compare prices from individual rental companies in Iceland and possibly book a car through them.

You can find most of the Icelandic rental companies and their cars, so you can choose from the smallest front-axle toytota Yaris, the popular Dacia Duster 4×4, to the big Toyota Land Cruiser or camping vans.

Car Rental-Island

Maybe, however, it may not be the best method to decide by price. The quality of Icelandic car rental is not always the same.

I have heard stories of when car rental companies charged tourists for a high amount of damage to a vehicle that was often there before. Alternatively, they intentionally raise prices if something happens to your car and you are not covered by insurance.

Therefore, I would recommend taking a photo of the car when handing it over so that you can see what the condition was and you then had in your hand evidence that you can sweep.

The best known car rental companies in Iceland?
The most famous Icelandic car rental companies (if I don’t consider global brands like Avis, Budget or Hertz) are probably Blue Car rental.

This rental is recommended in all Facebook groups for tourists heading to Iceland and only rarely was not satisfied with them.

Similarly, the rentals are:

Lotus Car Rental
Geysir car rental
Car insurance in Iceland
If you look at car rental prices in Iceland, then you may think that they are not as high as they say everywhere.

However, these prices are without the extra insurance that is often necessary in Iceland. And even with insurance, the final price can reach thousands of crowns for renting a car per day.

Frequent car insurance is sand insurance, which can scratch the car in strong winds. Similarly used is the gravel protection insurance, because many of the roads in Iceland are not asphalted and you drive only on gravel, which can of course damage your car.

On the other hand, insurance that you will almost certainly not use in Iceland is theft insurance. Thefts are rarely outside the capital and you can often see that the locals (especially in winter) leave the car running in the parking lot and go shopping.

Rent a car on a debit card
In Iceland, most car rental companies are ready to rent a car on a credit card. In this case, you do not have to pay a deposit or extra insurance, because if anything happens to the car, they will withdraw your money from the card.

Read more: Rent a car in Iceland for a debit card
However, if you do not have a credit card, car insurance may cost you a little more, because under the conditions you may need to pay premium insurance or pay a deposit, which can easily be worth CZK 10,000 or more.

For this reason, you should always read the terms and conditions of the company and call or email them to make sure they rent your car without a credit card.

Car rental for younger than 25 years
Some car rental companies have additional information in terms of the age of the driver. If you are a young (and inexperienced driver), you may not want to rent a car in Iceland.

Fortunately, this is not true when renting cars from locals through Carrenters, so you can try your luck there.