Frequently Asked Questions

Keflavik Airport Office

Located at Blikavöllur 3, 235 Keflavik, a short walk from Keflavik International Airport.

Summer opening hours (May 15 – November 1):
Open 24 hours a day, 7 days a week.

Winter opening hours (November 2 – May 14):
Open daily from 05:00 to 02:00.

24/7 keybox pickup: Available throughout the year, including outside regular office hours.

Customers collecting their vehicles outside opening hours should complete their online check-in and arrange keybox pickup in advance. After-hours keybox collection must be arranged no later than 01:00, one hour before the office closes.

Reykjavik City Office

Located at Fiskislóð 22, 101 Reykjavik.

Opening hours: 08:00–18:00 daily.

For airport pickup directions, visit Find Us.

Seating area with free WIFI

Information screens

Keflavik Airport office:

Blikavöllur 3, 235 Keflavik Airport.

Reykjavik City Office:

Fiskislóð 22, 101 Reykjavik.

Yes. You can book and pay for a rental car on behalf of another person.

The main driver must meet our rental requirements and provide a valid driving licence.

If the payment card belongs to someone other than the main driver, the cardholder must be present when the vehicle is collected.

We accept major credit cards for rental payments. You can also book using a debit card that supports online payments.

A valid credit card is normally required for the rental. However, we also accept debit cards with a 16-digit card number.

The payment card does not have to belong to the main driver, provided the cardholder is present when the vehicle is collected.

Cash payments are not accepted.

We guarantee the vehicle group you booked or an upgrade. 

Once you complete your online check-in, you can receive a Wallet Pass directly on your phone.

The Wallet Pass contains a unique QR code that helps speed up your arrival process at our partner, Blue Car Rental.

Simply scan the QR code at the office when you arrive, and you will be directed to the appropriate service queue.

Please note: The Wallet Pass is designed for the office check-in process. Customers using self-service keybox pickup should follow the separate keybox collection instructions provided before arrival.

At Iceland Car Rental, the kilometer road tax is charged as a fixed daily amount rather than based on the distance you drive.

• 2026: ISK 1,550 per day.

• From January 1, 2027: ISK 1,770 per day (approximately EUR 13 / USD 15), including the administration fee.

The applicable charge is shown during booking, so you know the cost upfront. The road tax does not cover tunnel or bridge tolls, parking charges, or attraction fees, which must be paid separately when applicable.

At Iceland Car Rental, the kilometer road tax is applied as a fixed daily rate of 1550 ISK rather than charging per kilometer driven. This means you know the cost upfront, with no tracking of your mileage and no surprise charges when you return the car.

Some vehicles on our website are marked as Guaranteed Model. This means the exact vehicle shown is the model you will receive when you arrive.

In the rare case that the vehicle becomes unavailable due to operational reasons, we will always provide a free upgrade to a higher category vehicle. We will never downgrade your booking.

When a vehicle is listed as “or similar”, the exact model may vary depending on availability. However, the replacement vehicle will always be in the same category or better.

We will never downgrade your booking, and if you reserve an automatic transmission vehicle, it will always remain automatic.

Our goal is to ensure you receive a vehicle that meets or exceeds the category and features you selected when booking.

Your Iceland Car Rental booking already includes full insurance with zero excess on covered damage.
You may also have separate cover through a travel insurer or payment-card provider. Whether that policy reimburses any charges you remain responsible for depends on its own terms.

Check with your provider before travelling.

Yes. Full insurance with zero excess on covered damage is included in your Iceland Car Rental booking. You do not need to purchase an additional insurance package to receive this included cover.
Coverage exclusions and the responsibilities set out in your rental agreement still apply. Please review our Insurance page for more details.

Zero excess applies to damage covered by the insurance included in your rental. It does not remove the exclusions or responsibilities in your rental agreement.
Exclusions include damage caused by intentional acts, gross negligence, driving under the influence, and driving where prohibited by the rental agreement. This is not a complete list.

Please read the rental terms for the full conditions.

You can book additional extras online or at the counter, but they involve extra cost and are subject to availability. 

Please view our Extras page for details

The Roadside Assistance Waiver is an optional extra and is not included automatically. It can be added when booking and covers eligible roadside assistance charges under its terms.
If you need vehicle assistance during your rental, call the assistance number in your rental agreement. Zero excess on covered vehicle damage does not automatically mean that every roadside assistance charge is waived.

Yes. You can return your vehicle outside staffed opening hours using the designated key-return box at your booked return location. Follow the return instructions provided with your booking and return the vehicle at the agreed time.

Our team will inspect the vehicle after the location reopens.

At Keflavik Airport, the terminal is a short walk from the rental location. See Find Us for directions.

Petrol and diesel vehicles

Yes. Our standard fuel policy is full-to-full. You receive the vehicle with a full tank and must return it with a full tank.

If you purchase a prepaid fuel option, the return requirements will follow the conditions of that option.

If the vehicle is returned with insufficient fuel under the standard policy, refuelling charges and applicable service fees may apply.

Electric vehicles

Return your electric rental car with at least 75% battery to avoid a charging fee. If the battery level is below 75% when you return the vehicle, the following charging fee applies:

• 75–100% battery: No charge
• 50–74% battery: 5,000 ISK
• 25–49% battery: 10,000 ISK
• Below 25% battery: 15,000 ISK

We recommend planning your final charging stop so you arrive at the return location with at least 75% battery.

You can contact us by email regarding any items left behind in the car and we will do our best to help you reclaim them.

We cannot be held responsible for items left in the vehicle at the end of the rental.

We charge a shipping and service fee.

At our office at Keflavik airport

Blikavöllur 3

235 Keflavik Airport

When dropping off your rental we suggest you do it 3 hours prior to your flight.

At our office in Reykjavik

Fiskislóð 22

101 Reykjavik

Please make sure you have all your items with you when returning your rental car.

Additional service fees may apply when Iceland Car Rental needs to process charges or provide services arising during your rental.

Examples include:

• Unpaid parking or speeding fines

• Unpaid tunnel tolls

• Missing fuel or insufficient EV charge

• Damage administration

• Lost property handling

Some administration fees start at ISK 2,000, while others vary depending on the service or charge involved.

Any applicable fees are determined according to the rental agreement and our Terms and Conditions.

We offer a 60-minute grace period after your agreed return time.

If you return your vehicle more than 60 minutes late, you may be charged for an additional rental day or 10.000 ISK in late fee's.

If you expect to be late, please contact us as soon as possible. We understand that unexpected circumstances can arise and will do our best to assist you.

Any extensions or changes to your rental must be agreed with us in advance.

If your car breaks down, please call us immediately. The phone number is located at the top of the rental agreement.

We will decide the best course of action depending on the level of breakdown.

If the car can be repaired, we will guide you to the nearest service garage where the car will be inspected.

In cases of complete breakdown, we will bring you a new car as fast as possible.

We always try to find the best and fastest solution for both parties.

We have service contacts all around the country.

Included in all rentals is a fuel discount key/fob.

This key is only usable at Olís/Ób gas stations.

With this key, you get:

Discount of every litre of fuel (self-service).

Discount at the service station restaurant.

How to find the nearest gas station.

All over Iceland, there are parking lots that you must pay to park in.

A large percentage of renters receive a speeding or parking fine during their visit because of uncertainty with Icelandic law and regulations.

We collect a payment for every unpaid ticket/fine we receive, plus a service fee of 2.990 ISK for each ticket/fine.

Road tolls, parking and entrance fees are charged electronically in certain areas. Make sure to follow parking instructions and pay when required. 

Here is a list of the most common areas:

Reykjavík capital city

Akureyri city

Skaftafell, Vatnajökulls national park

Seljalandsfoss waterfall

Þingvellir national park

Fagradalsfjall (volcano)

Lukkutangi (Seal beach)

Jökulsárlón (Glacier lagoon)

You can use an app or pay online to pay for parking in most areas.

There are two apps available that cover most parking spaces:

Parka

Easy Park

Landmannalaugar

Our fleet is 100% smoke and vape-free.

An extreme cleaning fee will be charged if the non-smoking policy is violated.

Vadlaheidargong tunnel is a 7,5 km tunnel, located on the ring road close to Akureyri in Northern Iceland. 

There is a toll for driving through the tunnel, which can only be paid online. If you pay within 24 hours, before or after passing through the tunnel, there will be no fine. 

Please note that if you do not pay online, the car rental will be notified and will charge your credit card for the fare plus the service fee.

More information about the tunnel and how to pay can be found here.

We recommend checking the weather and road conditions before you start your day.

• Safetravel.is for weather alerts and safety information, www.safetravel.is
• Weather forecast from the Icelandic Met Office, http://en.vedur.is
• Road conditions and wind speed, updated every 10 minutes, www.road.is

Real-time web cameras around the country, https://vegasja.vegagerdin.is/eng/

If anyone is injured or there is immediate danger, call 112 first.

When it is safe, contact the vehicle-assistance number in your rental agreement and follow the instructions you receive. Take photographs and exchange details with any other parties when safe to do so.

Report damage even if you believe it is covered by your included insurance.

Extending the rental duration is possible at the time of check-out or during the rental, subject to our acceptance, vehicle availability and extra payment.

Yes. Check the vehicle against the condition report before driving away. Take clear photographs or a video and report any damage that is not already recorded.

For keybox pickups, follow the damage-reporting instructions supplied with your booking. If those instructions are missing or unclear, contact the vehicle-support number in your rental agreement before setting off.

We also recommend taking photographs when you return the vehicle.

Yes. Our rental vehicles are equipped with studded winter tyres from November 1 onwards during the winter season.

Winter tyres may also be fitted earlier if seasonal weather conditions require them.

Snow chains are not commonly used in Iceland, and we do not provide them with our rental vehicles.

Always check weather forecasts and road conditions before driving, particularly during the winter months.

If you arrive later than your scheduled pickup time, your reservation will not automatically be cancelled.

Your vehicle will remain reserved for you, but we kindly ask that you notify us of any delays as soon as possible.

Please note that your scheduled return time will remain unchanged, even if you collect the vehicle later than originally planned.

If you are unable to collect your vehicle, contact us as soon as possible.

No-shows and same-day cancellations are subject to a charge of 100% of the rental amount, in accordance with our cancellation policy.

Please contact us as soon as you know your flight is delayed or cancelled. Include your booking reference, flight number, and revised arrival time so we can confirm your collection arrangements.

For a KEF keybox pickup, complete the required online check-in and follow the collection instructions provided for your booking.

A flight disruption does not automatically change your booked collection time or cancellation conditions.

Contact us before changing your plans.

Bring your passport, booking confirmation, valid physical driving licence, and the payment card required under your booking conditions.

If an International Driving Permit is required, bring it together with your original driving licence. It does not replace the original licence.

For keybox collection, complete the required online check-in before arrival and keep your collection instructions available.