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Car rental in Iceland

I’ll be coming off a cruise in Reykjavik next July and want to rent a car for several days. We hope to travel the south coast and stay there a few nights before returning for our last night at the airport (8am flight next day).
Anyone have recommendations on rental companies and what insurance is really necessary? I was looking at some of the fine print and it seems we’ll get hit with drop off location charges and possibly’after hours’ charges if we keep it late our final day.

Posted by
2041 posts

We have used Blue Car Rental on 4 of our 5 trips so far. They have locations both in town in Reykjavik down by the harbor and then a location at the airport. There is no drop off fee to pickup and drop off at the two different locations. We have always opted for the full insurance. Our CC has it, but there are some limits and I do not want to have to p ay out of pocket and then get reimbursed for an incident, especially it if it something major. For me, peace of mind is worth the cost. We have been to Iceland on numerous trips, and for long periods, so I know what can happen and for us, this is the decision we are comfortable with. We do not do this anywhere else, but Iceland is a whole other ballgame!

Posted by
351 posts

Another vote for Blue Car Rental. We used their location at the airport and it was very easy. We paid for the zero deductible full coverage and I would definitely recommend that in Iceland. There are a lot of hazards even along the well-traveled parts of the south coast - wind, sand, rocks/gravel roads, etc. - even in summer.

When we dropped the car off we walked in, handed them the keys and they said since we had purchased that insurance that was it...no worries about inspections, dings, sand damage, etc. Dropoff took about 2 minutes. To me, the peace of mind was worth the added cost.

Posted by
679 posts

I third the suggestions! Even though you'll be there in July bad weather, including strong winds, can happen any time in Iceland. The extra wind and sand insurance is worth it.

Posted by
75 posts

Thanks everyone - we've booked our blue car for this coming July!

Posted by
2041 posts

Nice! If by chance you find a coupon or other special before then, you can email them and they will apply it. They are really good with this.

Posted by
5 posts

I would recommend Lava Car Rental. They offer a good price with insurance included and they accept debit cards.