How can I pay for my rental car?

You can easily complete your booking through our secure online system. At the time of booking, you’ll pay a 12-15% deposit of the total rental price. This amount depends on the vehicle model you select, with the remaining balance due when you pick up your rental vehicle in Iceland. For online payments, we accept Visa, MasterCard and American Express credit and debit cards. We utilize a secure SSL payment gateway system, powered by Valitor-Rapyd, to ensure a safe and protected online booking experience.

What is included in the rental price?

Our rental car prices come with an extensive insurance package, ensuring your peace of mind: - Collision Damage Waiver (CDW) - Super Collision Damage Waiver (SCDW) - Gravel Protection (GP) - Theft Protection (TP) - Third Party Liability Insurance Additionally, every rental includes: - Unlimited Mileage : Drive as much as you want without extra charges. - Local Taxes : No hidden fees at checkout. - Road & Carbon Taxes : Included in your rental agreement. - Free Cancellation : Cancel up to 24 hours in advance. - GPS system : Available with specific rental vehicles.

When and where can I pick up and return my car?

Pickup locations depend on the rental car you choose, and may include: - Keflavik International Airport (KEF) : 24/7 rental pickup & drop-off. - Reykjavik City Office : Open daily from 8 AM to 8 PM in summer and from 8 AM to 6 PM in winter. When you select your vehicle, the available pickup office will automatically be shown during the booking process. If your flight arrives at Keflavík International Airport, we offer a shuttle service to take you to your vehicle quickly and efficiently.

I chose airport pickup. How do I get my car?

The process depends on your booking and the specific vehicle selected: • Shuttle Service : Take the free Car Rental Shuttle from the terminal to our nearby office. There, simply present your driver’s license, valid passport, and credit card. Once you’ve signed the rental agreement, you’ll get your keys and be ready to start your Icelandic adventure. • Meet & Greet Service : A representative will be waiting for you inside the arrivals hall, holding a sign with the company’s name. They’ll escort you to your vehicle and guide you through the check-in process. After you book, you’ll receive an email with detailed information and instructions about your pickup method. Either way, it’s a smooth handover designed to get you to your Iceland rental car and onto the road quickly!

How do your reservation and free cancellation policies work?

Reservation confirmation: After booking, you'll receive a confirmation. Print it and bring it along when you pick up the vehicle. A valid credit card is required at pickup — yours or a passenger's, but the cardholder must be present. Reservation cancellation: We offer free cancellation under the following conditions: - Cancel 24+ hours before you pick up → Full refund. - Cancel within 24 hours of pickup → The booking fee will be non-refundable.

Will my driver's license be valid in Iceland?

If you hold a valid driving license from an EEA or Nordic country, you’re good to go. For licenses from outside these regions, they must be: - In English or written in the Latin alphabet. Otherwise, an International Driver’s License will be required. If you have a foreign driver’s license, we recommend checking ahead to ensure compliance with Iceland's rental regulations.

What documents do I need to pick up a rental car in Iceland?

To pick up your rental car in Iceland, please bring: 1. Your passport. 2. A valid driver's license (issued at least 12 months ago). 3. A valid credit card (must belong to one of the passengers).

What are the requirements for driving in Iceland?

To legally rent a car in Iceland, you must: 1. Meet the minimum age of 18 years old, although certain models require drivers to be at least 20 (or 23 for luxury models and larger 4x4 vehicles). 2. Have held a valid driver’s license for at least 12 months. For questions about the minimum age required for a specific model, contact us at info@carsiceland.com

Is a deposit required for the rental?

No deposit is required for renting a car in Iceland with us! However, we do require a valid credit card (or debit card in specific cases) for security purposes. By signing the rental agreement, your card will be registered for any additional costs such as car insurance, optional extras, or any fines incurred during your rental period.

What is the minimum rental period with Cars Iceland?

The minimum rental period is 24 hours for the cheapest rental car.

What should I be aware of when driving in Iceland?

To ensure a safe Iceland road trip, keep an eye out for: - F-roads : These rugged, unpaved roads require a 4x4 rental car. - River crossings : Some roads require you to cross rivers. Drive carefully! - Animals on the road : Especially sheep in rural areas. - Strong winds : Always hold your car door firmly when opening. - Gravel roads : Reduce speed when transitioning from paved to gravel surfaces. Remember that driving off road is forbidden. - Maximum Speed limits : 30-50 km/h in cities, 80 km/h on gravel roads, 90 km/h on highways.

What are Iceland’s F-Roads?

F-roads are rough, unpaved mountain roads that lead to Iceland’s Highlands. They are off-road driving routes that require a 4x4 vehicle by law. A sturdy Toyota Land cruiser or a Dacia Duster will do the job. There aren't any gas stations here, do plan accordingly for a safe trip and reduced fuel costs.

Should I rent an automatic or manual car in Iceland?

That depends on the type of trip you have planned! Automatic cars → Easier to drive, especially in tough conditions. Manual cars → More fuel-efficient, often cheaper, and preferred by some experienced drivers.

Do you provide studded tires for winter rentals?

Yes! From November to April, all our car rental options come equipped with studded winter tires for extra grip on gravel roads and icy conditions.

If I return the car early, am I eligible for a refund?

Unfortunately, refunds are not available for early returns unless arranged before pickup at our car rental locations.

How does roadside assistance work?

We provide 24/7 emergency breakdown assistance . When you pick up your rental car, you’ll receive a dedicated contact number to use in case of an accident or any unexpected issue on the road. Want extra peace of mind? For some vehicles, you can add Road Assistance Waiver when you pick up for just 900 ISK per day , covering you anywhere in Iceland.

Do you offer 'total protection' insurance, and does it cover off-road driving?

When you rent a car in Iceland, you can choose the Liability Waiver at any of our car rental locations. It is our most complete insurance package to protect you for any possible damage to your rental car. It reduces the liability amount for damages to zero. However, it does not cover off-roading as it is strictly prohibited in Iceland! Driving off marked roads is illegal and heavily fined due to environmental damage. Stick to designated routes and respect the speed limits to protect Iceland’s fragile ecosystem

Will I receive the exact rental car I selected?

We guarantee that you’ll receive a rental car from the same category as the one you booked. However, we cannot promise the exact make or model when you pick up the rental in Iceland.

What should I check before returning my rental vehicle?

Before returning your rental car in Iceland, please: - Remove all personal belongings. - Fill up the fuel tank at one of Iceland’s gas stations before returning the car at any of our car rental locations. - Give it a quick rinse if excessively dirty (so we can inspect for damages).

Car Rental in Iceland ▷ KEF Pickup & Free Insurance

Rent a car in Iceland with Cars Iceland. A smart choice.

Taking a road trip through the land of fire and ice is a once-in-a-lifetime adventure. That’s why picking the best car rental company in Iceland really matters. We’ve streamlined our booking process to be straightforward and transparent. Your satisfaction isn’t just our goal, it’s pretty much the foundation of everything we do and commit as locals.

At Cars Iceland, we have the know-how, passion, and experience you want when renting a car here. Why? Let us show you.

Aerial view of a winding river and rugged Icelandic highlands with a car crossing a bridge, symbolizing the adventure and freedom of exploring Iceland with a rental car.

Convenient pick-up at Keflavik International Airport

When your journey to Iceland is a dream come true, the last thing you want is a complicated start with an Iceland rental, right?

With Cars Iceland, collecting your rental car is quick and seamless, allowing you to get on the road and begin your adventure without delay. Our depots are conveniently located near Keflavik International Airport, making the transition from flight to rental car effortless. Touch down and go!

We offer several flexible Iceland rental options for pick-up. Head directly to our office if you prefer, or take advantage of our complimentary KEF airport shuttle service for a smooth transfer. Alternatively, you have our meet & greet service, where a member of our team will welcome you at the airport and ensure you reach the office comfortably and efficiently. Your car rental in Iceland awaits!

Likewise, we understand that travel plans can change, with flights arriving late at night or early in the morning. That’s why our Keflavik International Airport office operates 24 hours a day, 7 days a week. No matter when you land, your Iceland rental car is ready when you are, helping you keep your itinerary on track and your experience completely stress-free.

Easy Reykjavík car rental
pick-up options

We know everyone’s different and has their own way of traveling. Not everyone needs to grab their rental car at Keflavik International Airport. That’s why at Cars Iceland we offer Reykjavík pick-up options for some of our models, so you can pick what works for you.

If you’re hanging out in the city first, choose a quick Reykjavik car rental pick-up. Wander along Laugavegur, chill in some local cafés, or check out a museum before you hit the road for your Iceland rental car adventure. When the weather’s looking good, just head for the Ring Road and go exploring.

Car rental planning is easy, even if you start out in town and want to drop off the rental car at the airport. Just return it wherever makes sense for your flight. It’s all about making your car rental process easy and things comfy for you.

Local car rental in Iceland

Cars Iceland has been a trusted name in the Icelandic car rental industry since 2013. As a local car rental company, we understand the unique needs of travelers exploring the stunning landscapes of Iceland. Whatever rental car you need or wherever you want to go, we have the perfect vehicle for you.

Whatever rental car you need or wherever you want to go, we have the perfect vehicle for you. We go beyond the rental car service to ensure you have an unforgettable trip. We don’t just rent cars, we live the Icelandic experience every day!

About Us

Aerial view of Iceland’s scenic coastline and winding roads, showcasing the vast landscapes accessible with a rental car along the Ring Road.

Drive safely, enjoy more!

Being local means more than just operating in Iceland; it means living here, driving these roads ourselves, and knowing first-hand the challenges and joys of exploring this land. From navigating Reykjavík’s city streets to venturing into remote fjords and volcanic highlands, we know what kind of rental vehicle and service will make your journey safe and memorable.

Iceland rewards unhurried travel, and if you’re driving Iceland for the first time and need car rental planning tips, you can count on our team to share route hacks about the weather and road conditions that will save you time…and stress.

Our team isn’t just behind a desk; we’re fellow travelers and adventure seekers who love to share insider tips, seasonal advice, and routes that go beyond the guidebooks. With us, you’re not just renting a car in Iceland, you’re getting local knowledge and support every single step of the way.

No hidden fees & with insurance package included

At Cars Iceland, transparency for rental cars is key. We offer straightforward pricing with no hidden fees. Our rental packages come with insurance included and unlimited mileage, so you can drive with peace of mind. Whether you're renting a car in Reykjavik or exploring the remote areas of Iceland, you can trust us to provide reliable and affordable car rental services. What you see is what you get.

Need more equipment?

Aerial view of a road cutting through dark lava fields with vibrant blue geothermal water nearby, showcasing the unique landscapes accessible from Reykjavik with a rental car.

4.9★ rating from over 3,000 travelers

Yes, you read that right, our quality service has earned us a superb reputation. Our passion and dedication for offering quality cars in Iceland have earned us an excellent reputation. Join thousands of visitors and discover why Cars Iceland is a top-rated choice for car rental in Iceland.

Aug 2025

5.0

Paulina K

Big 5 stars from us! The reservation, collection, and drop-off all went smoothly, and the customer service was extremely friendly and supportive. They guided me on how to get to their site and even kept my camera lens safe when I accidentally left it in the car. Whenever we come back to Iceland, Cars Iceland always be our first choice for car rental. Thank you!

Sep 2025

5.0

Becky P

Pick up and drop off were very easy and I appreciated that. Instructions were very thorough on what to expect and what to do. I’d rent from your service again in a heartbeat!

Aug 2025

5.0

Jessie Garretson

Cars Iceland was easy to book with and make selections based on our individual needs (like car seats, wifi, insurance). We had no problem finding and walking the five minutes to their location from the airport with two bags, a 10-year-old, and a toddler in tow! The car was pristine, had an excellent navigation system, and was comfortable for our trip. Highly recommend.

Transparent Pricing

Understanding your car rental Iceland cost is key to a stress-free trip. That's why we're committed to transparent pricing:

All‑Inclusive Daily Rates (Premium car rental insurance)
Unlimited Mileage & 24/7 Roadside Assistance
Free Cancellation up to 24 h
Free Keflavik airport pick-up

+10
years experience

+10,000
vehicles rented

+70,000
rental days

+37
nationalities of clients

Explore Iceland like never before!

Choose your dream ride from our state-of-the-art vehicle fleet and don’t let anything stop you!

Frequently asked questions

Still have questions after going through all the information? No worries! We’ve compiled answers to the most common queries about renting a car in Iceland all in one place.
Questions travelers like you have when booking an Iceland car rental for their trip.

You can easily complete your booking through our secure online system. At the time of booking, you’ll pay a 12-15% deposit of the total rental price. This amount depends on the vehicle model you select, with the remaining balance due when you pick up your rental vehicle in Iceland.

For online payments, we accept Visa, MasterCard and American Express credit and debit cards. We utilize a secure SSL payment gateway system, powered by Valitor-Rapyd, to ensure a safe and protected online booking experience.
Our rental car prices come with an extensive insurance package, ensuring your peace of mind:
- Collision Damage Waiver (CDW)
- Super Collision Damage Waiver (SCDW)
- Gravel Protection (GP)
- Theft Protection (TP)
-Third Party Liability Insurance

Additionally, every rental includes:
- Unlimited Mileage: Drive as much as you want without extra charges.
- Local Taxes: No hidden fees at checkout.
- Road & Carbon Taxes: Included in your rental agreement.
- Free Cancellation: Cancel up to 24 hours in advance.
- GPS system: Available with specific rental vehicles.
Pickup locations depend on the rental car you choose, and may include:

- Keflavik International Airport (KEF): 24/7 rental pickup & drop-off.
- Reykjavik City Office: Open daily from 8 AM to 8 PM in summer and from 8 AM to 6 PM in winter.

When you select your vehicle, the available pickup office will automatically be shown during the booking process.

If your flight arrives at Keflavík International Airport, we offer a shuttle service to take you to your vehicle quickly and efficiently.
The process depends on your booking and the specific vehicle selected:

• Shuttle Service: Take the free Car Rental Shuttle from the terminal to our nearby office. There, simply present your driver’s license, valid passport, and credit card. Once you’ve signed the rental agreement, you’ll get your keys and be ready to start your Icelandic adventure.
• Meet & Greet Service: A representative will be waiting for you inside the arrivals hall, holding a sign with the company’s name. They’ll escort you to your vehicle and guide you through the check-in process.

After you book, you’ll receive an email with detailed information and instructions about your pickup method. Either way, it’s a smooth handover designed to get you to your Iceland rental car and onto the road quickly!
Reservation confirmation:
After booking, you'll receive a confirmation. Print it and bring it along when you pick up the vehicle. A valid credit card is required at pickup — yours or a passenger's, but the cardholder must be present.

Reservation cancellation:
We offer free cancellation under the following conditions:

- Cancel 24+ hours before you pick up → Full refund.
- Cancel within 24 hours of pickup → The booking fee will be non-refundable.
If you hold a valid driving license from an EEA or Nordic country, you’re good to go. For licenses from outside these regions, they must be:

- In English or written in the Latin alphabet.

Otherwise, an International Driver’s License will be required. If you have a foreign driver’s license, we recommend checking ahead to ensure compliance with Iceland's rental regulations.
To pick up your rental car in Iceland, please bring:

1. Your passport.
2. A valid driver's license (issued at least 12 months ago).
3. A valid credit card (must belong to one of the passengers).
To legally rent a car in Iceland, you must:

1. Meet the minimum age of 18 years old, although certain models require drivers to be at least 20 (or 23 for luxury models and larger 4x4 vehicles).
2. Have held a valid driver’s license for at least 12 months.
For questions about the minimum age required for a specific model, contact us at info@carsiceland.com
No deposit is required for renting a car in Iceland with us! However, we do require a valid credit card (or debit card in specific cases) for security purposes. By signing the rental agreement, your card will be registered for any additional costs such as car insurance, optional extras, or any fines incurred during your rental period.
The minimum rental period is 24 hours for the cheapest rental car.
To ensure a safe Iceland road trip, keep an eye out for:

- F-roads: These rugged, unpaved roads require a 4x4 rental car.
- River crossings: Some roads require you to cross rivers. Drive carefully!
- Animals on the road: Especially sheep in rural areas.
- Strong winds: Always hold your car door firmly when opening.
- Gravel roads: Reduce speed when transitioning from paved to gravel surfaces. Remember that driving off road is forbidden.
- Maximum Speed limits: 30-50 km/h in cities, 80 km/h on gravel roads, 90 km/h on highways.
F-roads are rough, unpaved mountain roads that lead to Iceland’s Highlands. They are off-road driving routes that require a 4x4 vehicle by law. A sturdy Toyota Land cruiser or a Dacia Duster will do the job. There aren't any gas stations here, do plan accordingly for a safe trip and reduced fuel costs.
That depends on the type of trip you have planned!

Automatic cars → Easier to drive, especially in tough conditions.
Manual cars → More fuel-efficient, often cheaper, and preferred by some experienced drivers.
Yes! From November to April, all our car rental options come equipped with studded winter tires for extra grip on gravel roads and icy conditions.
Unfortunately, refunds are not available for early returns unless arranged before pickup at our car rental locations.
We provide 24/7 emergency breakdown assistance. When you pick up your rental car, you’ll receive a dedicated contact number to use in case of an accident or any unexpected issue on the road.

Want extra peace of mind? For some vehicles, you can add Road Assistance Waiver when you pick up for just 900 ISK per day, covering you anywhere in Iceland.
When you rent a car in Iceland, you can choose the Liability Waiver at any of our car rental locations. It is our most complete insurance package to protect you for any possible damage to your rental car. It reduces the liability amount for damages to zero.

However, it does not cover off-roading as it is strictly prohibited in Iceland! Driving off marked roads is illegal and heavily fined due to environmental damage. Stick to designated routes and respect the speed limits to protect Iceland’s fragile ecosystem
We guarantee that you’ll receive a rental car from the same category as the one you booked. However, we cannot promise the exact make or model when you pick up the rental in Iceland.
Before returning your rental car in Iceland, please:

- Remove all personal belongings.
- Fill up the fuel tank at one of Iceland’s gas stations before returning the car at any of our car rental locations.
- Give it a quick rinse if excessively dirty (so we can inspect for damages).

Thrilling Rental
Deals

GPS on us!

Rentals now come with free GPS!

Book now

Off-peak savings

Cheapest prices in November

Book now

Plan ahead

Early booking saves money!

Book now

🚗 Top-Rented Car:	Dacia Duster 4x4	📌 Pickup Hotspot:	Keflavík Int’l Airport
💰 Average Daily Rate:	$70	📝 Cancellation Policy:	FREE
🛡️ CDW, SCDW, TP, GP:	INCLUDED	⛽ Fuel Prices:	$2.02/L ($8.70/gallon)

A Car Rental in Iceland You Can Trust

Fast KEF Pickup & No Deposit

Our Fleet: Cars for Every Road & Every Traveler

City & Economy

4x4 & SUV’s

Minivans

Luxury

Electric

Hybrid

Automatic

View all models

How to Rent a Car in Iceland

The best car rental company: here's what's included!

24/7 customer service

Free KEF airport shuttle

Next-level roadside assistance

Costs of Renting a Car in Iceland

Join the Cars Iceland family!

Rent a car in Iceland with Cars Iceland. A smart choice.

Convenient pick-up at Keflavik International Airport

Easy Reykjavík car rental pick-up options

Local car rental in Iceland

Drive safely, enjoy more!

No hidden fees & with insurance package included

4.9★ rating from over 3,000 travelers

Transparent Pricing

Frequently asked questions

How can I pay for my rental car?

What is included in the rental price?

When and where can I pick up and return my car?

I chose airport pickup. How do I get my car?

How do your reservation and free cancellation policies work?

Will my driver's license be valid in Iceland?

What documents do I need to pick up a rental car in Iceland?

What are the requirements for driving in Iceland?

Is a deposit required for the rental?

What is the minimum rental period with Cars Iceland?

What should I be aware of when driving in Iceland?

What are Iceland’s F-Roads?

Should I rent an automatic or manual car in Iceland?

Do you provide studded tires for winter rentals?

If I return the car early, am I eligible for a refund?

How does roadside assistance work?

Do you offer 'total protection' insurance, and does it cover off-road driving?

Will I receive the exact rental car I selected?

What should I check before returning my rental vehicle?

Thrilling Rental Deals

GPS on us!

Off-peak savings

Plan ahead

Fast KEF Pickup
& No Deposit

Easy Reykjavík car rental
pick-up options

Thrilling Rental
Deals