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Car Rental Recommendations In Iceland Along With Driving Tips

We did a lot of research on car rentals and read a lot of reviews before we left for Iceland. Ultimately, Blue Car Rental seems to have the best prices and reputation and their rates include unlimited mileage and insurance protection for our last trip. If you want a standard name brand, good ol’ Hertz and Dollar are available at the airport as well. Amanda rented from Hertz on her trip to Iceland and had a good experience. And we would rent from Blue Car Rental again and had no problems.

All car rental companies will push hard for you to purchase supplemental sand and ash insurance to protect you from sandstorms caused by heavy winds. We declined the coverage because this phenomena rarely occurs in the summer, but it’s up to you and your risk tolerance. Also, check to see what coverage you get through your credit card that you are going to use when you rent. Many will cover this type of damage but check to be sure.

Tip: Be sure to thoroughly inspect your car for existing damage before leaving the rental shop.

For most travelers, you will mostly stay on paved roads, so a regular passenger vehicle is sufficient. Gas is expensive, so rent the most fuel-efficient vehicle that your family and luggage can comfortably fit. Big minivans and SUVs that seat 6 or more are uncommon in Iceland so you may have to rent 2 cars if you have a big family (which is what Amanda had to do on her trip).

Warning: When parking, be very careful when opening the doors because they can be easily damaged by strong gusts of wind. Try to park facing the wind so the doors don’t get ripped off. Remind your kiddos to hold on tight or have them wait for you to open the door for them!

Directions to Car Rentals: From the airport, you can take a shuttle bus to the car rental agencies. Once you clear customs and enter the Arrivals Hall, you will see a sign for Car Rental Shuttle Service and the various rental company logos. Blue Car Rental will be your second stop on its route.

Tip: If you prefer, you can even walk to most of the rental car locations in less than 5 minutes by exiting the airport at the Meeting Point Area and crossing the parking lots.

Driving Tips

Iceland is super easy to navigate with one main road (Route 1, also known as the Ring Road) circling the entire island. We thought we might have difficulty as "it is located just off the Ring Road" is a common direction given for places in Iceland. But they are not kidding, the Ring Road is the only major road outside of Reykjavik and you will not have problems finding your way. 

1. Before your visit, download a Google map of Iceland. It is small enough to save to your phone, and you can “pin” all of your stops on the map. That way you still have a map if your phone loses service.

2. Pay attention to your gas gauge. You’ll drive long stretches of the Ring Road without encountering any gas stations. In general, you can fill up in the small towns that dot the Ring Road, such as Hella, Selfoss, Hvolsvöllur, Vik, Kirkjubæjarklaustur, Hof, and even the Westman Islands. 

3. If your credit card is not “chip and pin-enabled”, you will have to enter the gas station to complete the transaction by purchasing a prepaid gas card from the attendant to use at the pump. Add enough money, so that you can then use this same gas card at other same brand gas stations during your trip. Another advantage of the prepaid gas card is that you can use it at stations that don’t have an attendant on the premises. We used Orkan gas to fill up and purchased their prepaid card, because an Orkan gas station was conveniently located at each leg of the road trip including the airport, Vik, and the Shell Freysnesi Gas Station near Skaftafell National Park. With the advent of wireless cards and tapping to pay, this is becoming less of a problem.

4. One lane bridges are common on the Ring Road and there is always a sign warning you about an upcoming one. In almost all cases, traffic from both directions is treated equally, meaning that whoever appears to be getting to the bridge first has the right of way. Go slow and make sure the other car is planning to pull over to wait for you to cross.

5. If you see a picnic sign or parking sign while driving along the Ring Road, it is going to be a worthy and beautiful photo opportunity. And be sure to use the laybys to let locals pass you if you are going slow (and you will probably be going slow as you gawk at the scenery!)

6. Drive with caution and obey the speed limits. Note that the bridges can be slick as well.

Final Thoughts

I hope you have a great time in Iceland, it is one of our favorite places to visit. Check out some of the blogs below to get more tips and inspiration for your trip!