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Renting a car in Iceland

Updated: Jun 26, 2023

Blue Car Rental Iceland, Self-driving

Car Rental

We went along with Blue Car Rental. Although it is not the cheapest car rental company in Iceland, it has relatively good reviews online and includes Theft Protection (TP), Gravel Protection (GP), Collision Damage Waiver (CDW), and the Super Collision Damage Waiver (SCDW) for free. During winter, they will also provide studded winter tires for all cars.

We paid 54,000 ISK (about 690 SGD) for:

- 4 days of an auto 4WD car rental (45,600 ISK)

- 1 additional driver surcharge (2,400 ISK)

- Additional Sand and Ash Protection (SAAP) (1,500 ISK per day)

Should you wish to look for a cheaper car rental company, consider using Discover Car Hire.

FAQ: Is a 4WD required?

4 wheel-drives are required for off-road driving. However, during winter, most of these roads are closed so we used most of the main roads. But for the sake of safety, I would advise first-timers to Iceland to pay more for the 4WD. The winds can be really strong when driving in the South Coast, and we literally saw the smaller 2WDs swerve off the lanes.

FAQ: Is Additional Sand and Ash Protection (SAAP) needed?

Drivers are advised to add the additional sand and ash protection, especially when you intend to drive to the South Coast. You would be driving on gravel roads most of the time and strong rain or wind may cause damage to the body and windows of the car. When we returned the car, our car didn't look as white as the above, so do purchase additional insurance for a peace of mind.

FAQ: Do we need to reserve the cars in advance?

Do book your car online prior to arriving to ensure that there is a car for you (especially during the peak seasons). You wouldn't want to end up with a situation where you do not have a car, spoiling your entire trip.

When we returned the car, we noticed a group of teenagers at the Blue Car Rental office asking for a car but to no avail. I overheard the car rental staff to advise them to wait as there are some cars that will be returned.

FAQ: Where can we collect the cars?

Blue Car Rental has two locations:

1. Keflavik International Airport (walking distance or take the shuttle bus)

2. Reykjavik City (pick-up service at an additional cost of 3,000 ISK)

Since Blue Car Rental just shifted to their new office when we were there, they offered us free pickup service at our accommodation! :)

The Process

When you are at the office, they will get you to sign some forms, and show you to the car.

Do remember to take pictures of the cars, especially problematic areas (dents, scratches, etc) so that you have some form of evidence if they charge you for damage upon return.

After the administration are done, you are ready to go!

I hope these information helps in booking your cars in Iceland! Have a safe trip!

If you are still wondering about what's the best way to get around Iceland, read our blog post on: How to get around Iceland?

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