The Ultimate Car Rental in Iceland

Frequently asked questions

Still have questions after going through all the information? No worries! We’ve compiled answers to the most common queries travelers have when booking an Iceland car rental for their trip.

• How does the payment goes?

  You can easily complete your booking through our secure online system. At the time of booking, you’ll pay a 12% deposit of the total rental price, with the remaining balance due when you pick up your 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 does the rental price cover?

  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?

  Car rental pickup and return is available at these convenient Iceland car rental locations:

  
  

  - 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.

  
  

  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?

  When arriving at Keflavik Airport, simply follow these steps:
  
  

  1. Take the Car Rental Shuttle to our nearby Blue Car Rental office.
  2. Present your driver's license, valid passport, and a credit card.
  3. Sign the rental agreement, receive your keys, and start your Icelandic adventure!

• 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 in order to pick up my car?

  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 20 years old (or 23 for luxury models and larger 4x4 vehicles).
  2.Have held a valid driver’s license for at least 12 months. Meet the minimum age of 20 years old (or 23 for luxury models and larger 4x4 vehicles). Have held a valid driver’s license for at least 12 months

• Is a deposit required for the rental?

  No deposit is required! 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 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 emergency roadside assistance work?

  We provide 24/7 emergency breakdown assistance. Take your mobile phone and simply call our emergency line at +354 773 7070.
  
  

  Want extra peace of mind? 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.

• 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).