Iceland Car Rental Companies

We used Blue for our car rental out of the airport at Keflavik and they were excellent to work with.

A word of note - even if you don't do it elsewhere, in Iceland I'd recommend buying whatever additional / excess coverage you can get from the rental company. Just about everywhere in Iceland the roads can be difficult and gravel/sand/wind are often concerns. With Blue we turned our car in at the end of the week without any delay or concern despite having several knicks from rocks and so forth over the week driving around. The extra insurance added peace of mind for us.

I would suggest you book directly with your rental company to avoid miscommunication or other problems that sometimes come from Kayak-like booking services.

In short, Blue is an excellent option but definitely look at maxing out your insurance options with them despite the added cost.

Thanks Steve!
We definitely intend to book full coverage. We’ve done that for a couple of other rentals when traveling in Europe and it was so nice to just turn the car in and walk away without any worry:)

It’s good to hear about your first-hand good experience with Blue. That brand seems to come up a lot in our research.

We have used Blue on 5 or 6 of our trips. All were good, except one, and I swore I would never use them again. Of course due to circumstances, we did so they had a chance to change my mind, and they were good on that last one;)

I will say make sure that the vehicle you get is not a POS. On that one bad rental, it was bad. I will say that their office in Reykjavik has significantly better customer service than the KEF location.

We do always get the full insurance, zero liability. There are too many things that are unique to Iceland such as wind blowing cars off the road, blowing car doors off, sand and ash storms, etc.

I have not heard of Konvin or Northbound. Lotus is another local company like Blue, and comes highly recommended. Several friends have used them and liked them, FWIW.

We've used Blue on all of our trips to Iceland. Lotus is also recommended often. I've never heard of the other ones your mention. We like dealing directly with Blue; they are very responsive to our email questions.

Thanks for the input!
I haven’t heard of Lotus, that will be one to check.
Sounds like Blue is probably a solid choice.

We rented with Blue as well, and it was good all around. Just so you know, their office is outside of the airport where all the cars are parked. Not a big deal since you have to walk out there to get your car regardless of rental company, but wanted to let you know in case you go with them and are looking for the desk in the airport. We got the zero liability coverage (although does not totally covers all things as some things like doors being blown off, cracked windshield, and flat tire are still not covered as I read in the contract they sent over). Nonetheless, it's good to know that other minor knicks and scratches will not become an issue. Also, if you go for full coverage, you pick up your key via a locker, which was kind of fun (it gave escape room vibes) and not have to wait or go through a pickup spiel in the office.

Maryam--The windshield is covered with Blue under the Gravel Protection. It is common to have windshield damage due to al the rocks, etc.