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Car Rental in Iceland - Vehicle recommendation AND Blue or Lava ?

Hi there,

Our first time to Iceland next month for 5 days! We are driving the Golden Circle and going down to Vik and then up to Snaefellsness area with all the great spots enroute! :)
Car rentals are so expensive. I've read the local car companies are better priced than int'l recognized names.

Initial research has the 5 day rental the same as both of our plane tickets!!!
We are not going on F roads; know to get full insurance and looking for an automatic.
Do you also recommend GPS add on or will Google Maps on our phone work fine?
1. Would love any help on the best vehicle recommendation in the lower range to also save on fuel economy. Gathering we don;t need a 4 wheel drive?
2. Recommended car rental co?
Thanks ever so much! :)

Posted by
10261 posts

Do you also recommend GPS add on or will Google Maps on our phone work fine?

I can’t help you with any of the other questions as I’ve not rented a car in Iceland, but I can tell you I’ve rented cars in a number of European countries and I never get the GPS add on. I much prefer Google maps. Most rental cars will have CarPlay, or the equivalent, which makes it easy to see the directions as you’re driving.

Posted by
8504 posts

My 2 cents worth from our earlier trip, which might or might not be worth 2 cents to you now, is that we got an all-wheel-drive (AWD) Chevy SUV from Hertz. Having AWD cars at home, that was important for us in Iceland, but that trip was in April, and it was 11 years ago. Like Mardee, I’ve relied on Google Maps, and I have been the navigator, while my husband drives.

Hertz had the best AWD price in Reykjavik in 2014, but I have no idea what the local competition is charging now. We’ve used the insurance protection our VISA credit card offers, which saves paying for the rental company’s coverage. I also don’t recall if we had an automatic or manual transmission. Four wheel drive doesn’t equal four wheel stop, but when we hit a patch of black ice (again, this was in early April), my husband was able to slow down, steer to the side of the road, and get stopped, while a small VW sedan ahead of us flipped off the road, killing a passenger (really bad day for many people). A somewhat bigger vehicle, with AWD, was essential for us.

We did drive the Golden Circle one day, and onto the Snaefulsness Peninsula on another. Those were great routes.

Posted by
3500 posts

We always get 4WD or 4x4 in Iceland. We drive that at home too though so are used to it. In September the weather starts to turn and I would not go without those plus I would not get anything less than say a RAV4 or a Duster.

As for Blue vs Lotus this is my take. We have had 5 rentals either blue. Four were great, but the last one was last September and it was an awful experience and I swore I would never use them again. Fast forward to now and in a week we are renting from them again only because we need to pick up in downtown Reykjavik. So they get this one chance to redeem themselves a bit. Plus we have had better luck at their Reykjavik office vs KEF. Blue no longer guarantees the vehicle you choose but Lotus does. The lady rental we had a RAV4 reserved but for a cr***y Kia shortage with very high miles (km), one big dent plus scratches literally everywhere and it was filthy dirty inside dnd out. It would also just randomly stop while driving. When I brought all of this to their attention let’s just say their customer service needs an overhaul.

Posted by
3500 posts

Oh and we do not opt for the gps. We just use Waze or google maps. We do get the WiFi unit as some lodgings have weak WiFi and this works well. Plus if we are hiking etc.

Posted by
29 posts

Thanks so much! :)

Mikliz97: Curious why you pick up in Reykjavik vs the airport? Do you take a bus to get into Reykjavik and rent later? Or is it as you said you've had better luck in Reykjavik renting vs the airport?
When you mentioned the weather changes in Sept - we are going near the end of Sept - how do you mean - more rain, wind and less sunny days?
Greatly appreciate all you help! :)

Posted by
29 posts

I noticed the Duster runs on diesel. I presume you can get that at any gas station in Iceland as in the U.S.? Any pro's or cons?
Good price with Lava but says 2022-2024 - does that run the risk of being more beaten up and better to opt for a newer one?

Posted by
3500 posts

Yes the Duster is diesel and it is available everywhere.

We are renting in Reykjavik because we will be flying down from Akureyri so will fly into Reykjavik at the domestic airport, not KEF.

Posted by
7760 posts

Having four wheel drive or not doesn't really matter if you encounter black ice. What matters then is mostly how good your tyres are, and how you're driving. And if you're not going on any F-roads your don't need four wheel drive.

What you should be worried about in late September is probably wind. It can get very windy in Iceland, and if it does smaller cars have an advantage.

Posted by
3500 posts

We have found the 4x4/AWD vehicles with a bit more clearance to be helpful on any gravel road whether it be a road a short road to a parking lot. The gravel areas get a lot of potholes and the extra clearance has saved us a number of times. You still need to go slow of course but that is what we have found to be helpful.

Posted by
8488 posts

I agree that it’s ground clearance that matters, not AWD - except in winter. Will you use any unpaved roads? Some waterfall parking is unpaved, anyway. Note that roads under repair may be temporary gravel, making the extra gravel and wind-blown insurance essential. Read the sticker that says Hold Door With Two Hands When Opening!

I’d. consider renting at KEF for the largest choice of vendors, vehicles, and prices, unless you are sleeping in Reykjavik that night. Just an idea.

We used Waze navigation App.

Posted by
3 posts

Just returned from 10 days driving the ring road. Highly recommend trying to get a hybrid as gas prices so expensive. We rented through Hertz using AAA and with full insurance it ended up being less than local companies, key was to book in advance.

I purchased a ten day esim through Airlo for $30 and used google maps for the trip with no issues except Google incorrectly stated road between airport and Reykjavik was closed. The esim worked great, I always had coverage even in most remote areas of route 1.

Posted by
3500 posts

Yes, Google has that road incorrectly listed as closed. There is quite a bit of construction on it right now, but we used Waze and it gave us an alternate road which basically paralleled it and saved a bunch of time.

Posted by
32 posts

We were in Iceland in June; and rented an electric car to avoid the cost of gas. It was a Tesla, so had built-in navigation stuff (which we only figured out how to use halfway into the trip, but that's on us). I also used Apple Maps on my phone. We rented from one of the international companies (Hertz maybe?). There were charging locations at all the big tourist spots and in Reykjavik itself. We didn't go to Snaefellsness or Vik though, so don't know about coverage out there, but suspect it would work fine.

Posted by
333 posts

We also rented a Tesla with built in navigation from LAVA. They offer alternative chargers in addition to the TESLA chargers. The Tesla chargers are not always displayed on the car screen but easy to find with navigation on your phone. WE used a combination of Tesla chargers and alternatives, which were easy to find.