Iceland Car Rental Keflavik Airport

Iceland Car Rental Keflavik Airport – Affiliate Disclosure: This post on Iceland Car Rental Tips contains affiliate links. If you click on a link and make a purchase, I may receive a small commission on your purchase. All opinions are entirely my own.

In my experience, this means paying a lot of attention when booking a rental car in Iceland. The unusual geography and climate of this northern nation means that basic insurance for a rental car in Iceland is not sufficient.

Iceland Car Rental Keflavik Airport

Iceland Car Rental Keflavik Airport

When trying to rent a car in Keflavik on our first trip (KEF is Iceland’s international airport), I experienced what is commonly known.

Pick Up Service: Keflavik Airport

. Judging by the many travel forums that are looking for a cheap rental car in Iceland – I was not alone.

The cost of renting a car at the Iceland airport was not only a shock but it was also difficult to choose Iceland car rental insurance options.

For example, sand and ash protection and gravel protection were not insurance options that I had heard of before booking Iceland. Of course, the insurance surcharge adds to the high cost of renting a car in Iceland.

In this post, I share my best Iceland car rental tips, as well as the essentials for driving in Iceland. Please use the menu below to find what you need quickly.

Car Rentals In Keflavik From $23/day

Important Disclaimer: I intend the information on this site to be a review of topics of interest derived from my experience traveling to Iceland. I am not an expert on cars, rental cars or insurance in Iceland. I try to ensure that the content is current and accurate, but I do not guarantee its timeliness or accuracy. For more information, see our Terms of Use and Privacy Policy.

We took several road trips in Iceland. We ourselves visited the Golden Circle Islands in the summer and winter, went hiking on the Westman Islands and took a multi-day adventure through southern Iceland in the winter visiting glacier ice caves.

Through these adventures, we discovered that it is very important to pay additional rental car insurance in Iceland. This could not have been more evident on our first trip. Upon returning our rental car, we were seated next to a surprised couple in the office. They were just told that they would have to pay $2,000 for the damage to their car due to the gravel.

Iceland Car Rental Keflavik Airport

I sat quietly with my fingers crossed and waited for my fate. Flashbacks of the road came to mind when a truck passed us, stones strewn all over the vehicle. Fortunately, by a miracle, our car was not damaged. However, I took this opportunity to pepper the agent with questions. I wish I could warn others about the potential pitfalls when renting cars in Iceland.

Iceland Car Rental Tips To Keep Travels Running Smooth

I have some ideas on how to find the best car rental companies in Iceland. If you want to rent a car in Iceland

Option, Hertz Island, Budget Island, Avis, Sixt and Europcar cars are directly at Keflavik Airport. You’ll usually pay a premium for this, but it’ll be more convenient and time-saving.

As with other car rental companies in Iceland, you need to take a bus to pick up your vehicle. This can mean waiting outside in bad weather, which from experience feels less bearable after an international flight. That said, it can cut Reykjavík car rental prices by almost half. AutoEurope offers an easy platform to compare prices between these major rental car providers.

Note: With AutoEurope, you can expect additional insurance options to be offered when you pick up your rental car. Iceland has unique terrain that requires additional coverage (

Why You Should Rent A Car In Iceland

). This will usually cost an additional $15 to $30/day. Please read the insurance section in this post (it is the most important part).

Personally, I am a fan of some local companies (Lagun, Reykjavik Cars and Blue Car Rental Island). These Iceland car rental companies often offer better service and better prices than their international counterparts.

At first glance, the price couldn’t be better. When you add insurance and extras (like a GPS) – that’s when you realize the savings.

Iceland Car Rental Keflavik Airport

Some of these Iceland car rental companies also offer a premium insurance package. It can be good value. That being said, there are a few things to note when booking KEF airport car hire with a local provider.

Car Pickup & Drop Off At Iceland International Airport (kef)

First you have to take a short shuttle to your rental car. This can be less than ideal after red eye or if you are visiting Iceland in winter (bad weather). Alternatively, all of these companies also offer car rental pick-up and drop-off in the city of Reykjavik.

Second, you should clarify the age of your Iceland car rental. This is usually marked on the website. You want to know if the car you are renting in Iceland is new or used. Personally, I don’t care if my rental car is not new, but I know that it is important for some (in this case, it would be better to rent it through AutoEurope).

Before renting a car in Iceland, read full reviews for the rental company you are considering.

Most Iceland car rental claims stem from the fact that people are uninsured. Repairs in Iceland are exceptionally expensive. Iceland’s unique geography creates many hazards along the roads (sand, ash and gravel) that most travelers have not encountered.

Keflavik Iceland International Airport Car Rental

Although I elaborate on this in the next section, I cannot impress upon you enough how important it is to purchase additional gravel protection (GP) insurance. Sand and Ash Protection Insurance (SAAP) can also be very important (morning volcanic eruptions).

Note: I’m the type of person who generally thinks that extra car insurance is a money saver. Even in Iceland, I suck and buy a premium insurance package, fully covered.

Skyrocketing prices are the norm for hotels and car rentals in Iceland. This is especially true in the high season from May to October. Get your Iceland car rental reservation once you’ve decided on your plans. Due to supply issues, rates are unlikely to drop.

Iceland Car Rental Keflavik Airport

Still want to cover your bases? Make sure your booking is flexible and can be canceled if you find a better rate.

The Ultimate Guide To Renting A Car In Iceland

If you’re renting from one of the Iceland airport car rental companies pictured opposite, including Reykjavík Cars, Blue Car Rentals, Lagoon Rentals and SADCars Island, you just need to pick up your rental car. Need to take.

We usually take the bus and it’s not long (about 20-30 minutes). It’s just something you want to know if you’re short on time.

You may also want to consider the time of year. The wait for the Keflavik car rental shuttle in June is usually much better than in December.

In addition to your normal car insurance coverage (collision, liability, etc.), there are a few other Iceland car insurance options that you should consider. This is the most important section of this entire post, because insurance can go very wrong in this rough country.

Faq About 4×4 Car Rental Iceland

Important note: If you think your credit card insurance policy will cover your additional rental car insurance needs in Iceland, I recommend that you contact your provider first to clarify. Iceland is an “exception” in some policies. Ask to have a copy of the policy with you.

With some exceptions, many policies do not cover vehicles above a certain value (~$50-75K + USD). Trucks and 4x4s are also often excluded from coverage.

With most policies, this coverage also includes damage to the car’s windshield, lights, front bumper, mirrors and hood if rocks or stones are thrown at the vehicle by another car.

Iceland Car Rental Keflavik Airport

According to the company I rent, the most common complaints are body and windshield damage caused by gravel roads. This type of damage can cost thousands of dollars for the underinsured. Repair costs, like everything else, are high in Iceland. This is the only type of insurance I recommend.

The Benefits Of Renting A Car In Iceland

When it’s windy in Iceland, sand and ash can damage the paintwork of cars. For this reason, Iceland car rental companies offer SAAP (Sand and Ash Protection).

This is more likely to be a problem on the South Coast and Highland F roads in the spring and fall when there is no snow or natural ground cover. That said, it’s still possible for damage to occur at any time of year, depending on soil conditions.

If it makes you feel better, go for it, but considering the fact that Iceland has the lowest crime rate just about everywhere, I’d personally pass.

Note: Not all car rental companies allow you to purchase gravel or sand and ash protection insurance through their website. This can be done on the spot when you pick up your car.

Iceland Car Rental


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