AlamoAvisBudgetEuropcarHertzIce Rental
Iceland Car Rental

Iceland Car Rental

Keflavik - Reykjavik International Airport

Full Coverage Insurance

4x4 Rental

Where to rent a car in Iceland?

Most of the car rental companies are located at Keflavik Airport which is same as Reykjavik International Airport. Keflavik Airport and Reykjavik International Airport are the same airport. Most of the travelers think that Reykjavik International Airport and Keflavik Airport are two separate airports which is not true.

Which car rental insurance should you buy in Iceland?

Basic collision damage waiver and theft protection is included in the rates shown on Carla car rental. You can purchase full coverage on Carla at a discounted price. Full coverage insurance inclusions are shown below. Sand and ash protection is also recommended in Iceland.

Is renting a car in Iceland a good idea?

Only option to discover Iceland is renting a car. There are no trains, buses are scarce and public transportation is nearly non-existent. There are day tours which are not cheap and you can not set your own schedule. Most of Iceland's most beautiful landscapes are accessible only to 4-wheel drive vehicles. It might be a good idea to rent an SUV to go offroad. Actually Iceland is a nice territory to try 4 wheel drive SUV’s. Paved roads are accessible to standard cars.

Can you rent a car in Iceland with a US license?

Yes, you can rent a car in Iceland with US driver’s license. There is no need for International Driver Permit - IDP.

Can you rent automatic cars in Iceland?

Yes, most of the car rental companies offer automatic transmission cars.

Car Rental Companies in Iceland:

  • Alamo
  • Enterprise
  • GreenMotion
  • Firefly
  • Budget
  • Avis
  • Ace
  • Hertz
  • Europcar
  • Sixt
  • Hasso Car Rental
  • Orange Car Rental
  • Rhodium
  • Go Car Rental
  • Surprice
  • Ice Rental
  • Thrifty
  • Mex Rent a Car
  • Fox Rent a Car

You can search all of these car rental companies in Iceland with Carla car rental app to get best value deals.

Speed Cameras in Iceland

YThere are fixed speed cameras in Iceland. There is a warning a few meters ahead. Speed limit on paved roads is 90 km/hour (55 miles/hour).

Tips for driving a rental car in Iceland

  • Prefer a 4x4 to enjoy offroad
  • Purchase full coverage insurance
  • Watch out for strong winds
  • Watch out for animals hopping into the road
  • Fill your gas tank ahead. There are not many gas stations in Iceland and the nearest gas station may be 100 miles away. Always fill your tank when you see a station.

Is there Uber in Iceland?

No. There is no Uber or Lyft in Iceland. Cabs are only found in city center.

Iceland Car Rental Locations

  • Reykjavik Car Rentals
  • Akureyri Car Rentals
  • Keflavik Car Rentals
  • Hofn Car Rentals
  • Egilsstaðir Car Rentals
  • Hafnarfjordur Car Rentals
  • Husavik Car Rentals
  • Isafjordur Car Rentals
  • Sauðarkrokur Car Rentals
  • Vestmannaeyjar Car Rentals
  • Þórshöfn Car Rentals
  • Vopnafjordur Car Rentals
  • Þorlákshöfn Car Rentals
  • Skagastrond Car Rentals
  • Bildudalur Car Rentals
  • Talknafjordur Car Rentals

Full Coverage Insurance sold on Carla covers the following:

If, during the period of insurance, you are responsible for any loss or damage to a Rental Vehicle as shown below, we will pay up to the amounts shown in the Benefit Table that you have to pay in respect of such loss or damage:

  • Damages to vehicle's bodywork
    • Includes damages caused by single & multiple vehicle accidents.
Full Value
  • Theft & Vandalism of vehicle
Full Value
  • Damages excluded by rental companies
    • Includes types of damage that rental companies do not insure, including internals, roof & undercarriage.
Full Value
  • Windscreen, mirrors, lights
    • Includes all internal and external glass & lights.
Full Value
  • Wheels & tyres
    • Includes punctures, fittings, replacements
Full Value
  • Key Coverage and Lockout
    • Includes callout fees, key loss, replacement, key programming.
Full Value

  • Towing & Roadside Assistance costs
    • Includes roadside repairs & towing costs.
Full Value
  • Climate related damages
    • Includes damage caused by rain, fire, hail and wind. Ash, sand and gravel damage and wind-blown doors are also covered.
  • Processing fees
    • Includes Admin fees charged by rental companies.
Full Value
  • Drop off/relocation of damaged vehicle
Full Value
  • Loss of use/demurrage fees
    • Includes fees charged by rental companies for lost income while the vehicle is being repaired.
Full Value

Policy Limitations

Minimum & maximum age at date of issue19 - 85

Theft of Vehicle

You are covered for any costs incurred in relation to an incident of theft, vandalism or attempted theft.

Windscreens, Headlights & Other Lights

You are covered for any windscreen, glass or light damage costs including chips, cracks, replacement and fitting.


You are covered for any costs incurred in relation to tyre puncture repairs or replacement.

Key Coverage

You are covered for any costs incurred in relation to replacing a lost or stolen rental vehicle key, including replacement locks and locksmith charges & key delivery. You must follow the guidelines prescribed by the rental company.

Towing & Roadside Assistance Costs

You are covered for any towing or roadside assistance costs following physical loss or damage to or mechanical breakdown of the rental vehicle which results in a charge to you that has not and will not be reimbursed by the rental company. In the event that the towing charges derive from a “loss of key” or similar key-related issue, the driver must follow the process and guidelines prescribed by the rental company. If a towing company attends to the vehicle rather than an authorised locksmith, and where the rental company's process guidelines have not been followed, related costs will not be recoverable through this policy.

Administration Costs

You are covered for any rental company charges associated with processing your collision or damage event. These include but are not limited to handling fees, carriage fees, postal fees, accident fees, administration fees or anything of a similar nature.

Drop Off/Relocation of Vehicle

You are covered for any drop off charges you incur in the event of an accident that necessitates the relocation of a vehicle from the accident site.

Loss of Use Charges

You are covered for any rental company charges related to the loss of use or sale of the rental vehicle whilst it is off the road being repaired (also called "demurrage").

Download Carla Car Rental app to get special deals and better car rental experience.Download Now!