Our Hire Cars

Discover Iceland Your Way

Iceland deserves to be explored in the right way. We believe that hiring a car in Iceland is the ideal way to explore all that it has to offer. Plan your adventure as and how you want it: the sights you want to see, the road trips you take, and even the playlist for your journey! In short, we want to make sure you see Iceland your way.

Small

Always Included

  • Full Insurance on all rentals
  • Zero Excess on Covered Damage
  • Gravel, Sand and Ash Protection
  • No Deposit Required
  • Free Cancellation
  • Unlimited Mileage
  • Contactless Keybox Pickup
  • Fuel Discount Key

The price includes the following insurance!

  • Collision Damage Waiver (“CDW”)
  • PAI (Personal Accident Insurance)
  • Third-party liability insurance

Medium

Always Included

  • Full Insurance on all rentals
  • Zero Excess on Covered Damage
  • Gravel, Sand and Ash Protection
  • No Deposit Required
  • Free Cancellation
  • Unlimited Mileage
  • Contactless Keybox Pickup
  • Fuel Discount Key

The price includes the following insurance!

  • Collision Damage Waiver (“CDW”)
  • PAI (Personal Accident Insurance)
  • Third-party liability insurance

Large

Always Included

  • Full Insurance on all rentals
  • Zero Excess on Covered Damage
  • Gravel, Sand and Ash Protection
  • No Deposit Required
  • Free Cancellation
  • Unlimited Mileage
  • Contactless Keybox Pickup
  • Fuel Discount Key

The price includes the following insurance!

  • Collision Damage Waiver (“CDW”)
  • PAI (Personal Accident Insurance)
  • Third-party liability insurance

Electric Vehicles

Always Included

  • Full Insurance on all rentals
  • Zero Excess on Covered Damage
  • Gravel, Sand and Ash Protection
  • No Deposit Required
  • Free Cancellation
  • Unlimited Mileage
  • Contactless Keybox Pickup
  • Fuel Discount Key

The price includes the following insurance!

  • Collision Damage Waiver (“CDW”)
  • PAI (Personal Accident Insurance)
  • Third-party liability insurance

FAQ

How old do you need to be to rent a car in Iceland?

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The minimum age to rent a car in Iceland is 20 years. Some larger vehicles and 4x4 models may require a higher minimum age. Age requirements are always shown clearly during booking.

Will my driver's license be accepted?

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Yes. A valid driver’s license held by the main driver is accepted if it is written in Roman characters and has been held for at least one year. Licenses not written in Roman characters require an international driving permit. Learn more in our Driving in Iceland guide.

Where do I pick up and drop off my rental car in Iceland?

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Walk from the arrivals hall to the Departure Hall, then exit the terminal and cross the P1 parking area to Blue Car Rental’s office (our partners) at Blikavöllur 3 (about 4 minutes)

Can car rental in Iceland be paid for without a credit card?

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Yes. Debit cards and prepaid cards are accepted as long as they display a 15 or 16 digit card number. The card holder must be present at pickup. For full details on coverage and charges, see car rental insurance in Iceland.

Difference between AWD and 4WD

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The terms "all-wheel drive" and "four-wheel drive" are often used interchangeably, but they really shouldn't be. There are key differences between the two. Perhaps you've never known the differences between all- and four-wheel drive and were afraid to ask, or maybe you didn't realize they mean different things. 

Basically, an all-wheel drive system can send a variable amount of torque to each axle, and the driver doesn't typically control this. A four-wheel drive system sends a fixed amount of power to each axle, and it can be switched on or off by the driver. So, how do they go about doing their jobs? Generally, an all-wheel drive system uses a center differential to distribute the engine's torque between the two axles, while four-wheel drive relies on a transfer case, which functions like a locked differential.

At this point you might be wondering why there's a need for both of these types of systems, since the aim of both is to distribute power to all four wheels. Four-wheel drive is great for off-roading and other low-traction scenarios, since the system sends a fixed amount of power to each tire. Whichever tire has the most traction is guaranteed to get the power it needs, helping prevent the vehicle from getting stuck.

But four-wheel drive often doesn't work on the road for the exact same reason it works so well off road. In a corner, the wheels of a car spin at different speeds. With four-wheel drive selected, the system tries to get each wheel spinning at similar speeds, which makes on-road cornering difficult. That's why most four-wheel drive systems can be operated in a two-wheel drive mode, which is recommended for road use.

All-wheel drive systems are great for road usage because they can actively send power to the wheel (or wheels) that need it most. Some all-wheel drive systems have a fixed torque split between the front and rear axles, but those don't have the same issues with cornering as four-wheel drive systems since they rely on a differential rather than a transfer case.

Of course, there are lots of different types of all- and four-wheel drive systems that buck these conventions.

Discover Iceland Your Way

Our fleet of quality cars includes an option for every adventure, from small cars for easy city exploration to 4x4 vehicles, so that nothing stands between you and the open road. Select the ideal model for you, and the dates for your visit, then book your rental car today. Rest assured, our prices are fully inclusive of everything you need, keeping you safe and protected while on Iceland’s roads. Hire your rental car and hit the Icelandic roads as soon as you land in Reykjavík. Our office is based near Keflavík Airport. Here’s how to find us.

Our entire rental fleet is available at fully inclusive prices, with no hidden fees. This includes insurance, 24-hour breakdown assistance, and unlimited mileage for your trip.

Please remember that the price can change at any time and is not guaranteed until you make a confirmed booking.