Car rental in Iceland

We did fine with Blue Car, office in Reykjavik and you can drop at airport no extra charge.

We have used Blue twice now and had no issues at all. The other one that I have read about that is good is Lotus. I would not even consider the others as there are so many horrible reviews. Cheap and car rental are two terms that do not go together in Iceland, for a reason. For instance, just a few weeks ago we rented a Toyota RAV 4 for the day and it was $295. Last summer we had a Land Cruiser for 11 days and it was right at $3000. Granted that is a larger vehicle, but the RAV 4 is pretty standard and that was not cheap.

Yes i know that it can't be very cheap but we can't afford 1300€ for 7 days. I have seen blue car rental and i've read some very good reviews. Does anyone have experience from GO car rental? There are also many good reviews.

Right now car rentals all over the world are much more expensive than in the past. Has to do with supply chain issues, and the demand for both new and used cars. We used Blue on our trip last year and really like their service. But they aren't cheap.

Because you've mentioned "cheap", don't forget to get the most insurance that you can because the wind and sand damage can be serious. Adds to the cost, but is necessary.

We will take the full insurance, we want to be sure that we won't pay anything else there if something happens. Thank you all for your answers!

Just a note that the full insurance still does not cover everything. Read up a bit more just so you know what you are getting into.

I've used Blue Car more than once and they are professional - no hard upsell on insurance like other companies there will try to do. "Cheap" is a relative term but their prices weren't any higher than other companies there. I have been very happy with them. Check the credit cards that you have. There are several where you are FULLY covered, even for Iceland, if you use them to pay for the car. I have a Chase Sapphire and that was the case with this card.