18 Car Rental Iceland Tips For Newcomers

The cheapest car rental in Iceland with great service is a deal that is often sought after by tourists visiting this European country. Auto hire search via the internet is easy to do. But in reality, there are so many choices out there. Therefore, we want to help you. We will give you some useful car rental Iceland tips and strategies on how to get the best prices agreement.

Traveling with friends or family is fun. Especially if your trip is always smooth without any problems. The Iceland road trips with your beloved family can be more cost-effective and practical because you can make unforgettable moments with them. As you know, when you start to drive your own auto then you have sufficient time and freedom to explore every tourist spot you visit. This way is flexible, easier when arranging luggage, and certainly more comfortable individually.

But when traveling abroad or to the state, most people want to rent a vehicle as their transportation advice. This stage is usually done after they book flight tickets and choose the appropriate accommodation.

car rental Iceland tips are important for road trips

Things You Should Consider To Save More Car Rental Costs

To find the affordable auto rental price in accordance with your expectations then you have to make a little effort. Some of them are as we describe below.

1. Early online reservation

Book a rental vehicle online long before the pick-up schedule will usually find a cheaper offer if compared to going directly to the counter. Another plus is that you probably have a lot of vehicles choices. In addition, the order process can be done easily and quickly. Negotiating prices with a rental company at Reykjavik or Keflavik airport is the last thing you need to do before starting your adventure in Iceland.


Of course, you want everything to be finished soon after a long and tiring flight. Therefore, before you leave, ensure you bring all the necessary documents. As proof of booking and rates to avoid obstacles that may occur. As a precaution, you can scan documents and store it in a personal email to make it easier to access.

2. It is better to frequently check auto hire fees

Every day the Iceland rental prices from various companies may change. This is your chance to find a price that fits your budget. These rate changes always occur, just like when you place an order for an airplane ticket.

An easy way to monitor price fluctuations is to use a trusted aggregator site. You can do it easily, fast, not confusing in real-time. Cancellation of reservation can be done easier if compared to canceling flight tickets. You can take 100% of your money back if the cancellation is done a few days before the pick-up schedule or delivery of the vehicle. In this case, there must be no extra or additional charge on your credit card.


So the trick is when you make an order early and you see the price goes down then you can make a cancellation and re-order at a much lower price. This price change usually occurs before the weekend. When the stock of the vehicle is excessive and they need to compete with others to get the client. So, do more frequent monitoring of prices at that time.

3. Be careful of pick-up and drop-off times

Most people underestimate pickup and drop-off times. But it shouldn't be. Ignoring it will be the same as paying for something you don't do. European cars use a 24-hour system rent. This is what causes you to set the pickup and drop-off time carefully.

pick up and drop off times

Suppose let's say you pick up a car at 9 am. Then if you returned at noon the last day, you still would have to pay for a full-day rental. Even though you only use it for three hours. So you shouldn't schedule pickup too early before you need it. Try to set it correctly, so you don't lose. Don't forget to ask about the choices regarding pickup and drop-off along with the costs. In this case when you want to a drop-off in a particular place or city in Iceland, at different times.

4. Choose a vehicle wisely and as needed

The mistake of choosing the type of vehicle can make you spend more money. Suppose if you come in summer to Iceland and will only use it on the Ring Road or in Reykjavik then a two-wheel drive is enough to meet your needs. We think you don't want to spend more money on pick a four-wheel drive vehicle in this situation. In addition, you better choose the car with the smallest size as long as it is still able to accommodate your luggage comfortably.

choose the car rental type wisely

Using a luxury car or SUV might tempt you. But you also have to think about fuel costs and also the function of the vehicle. A comfortable road trip is very important. Think again about the auto you will choose, is it too small or not? Of course, it's also not convenient if it's too narrow and doesn't fit the number of passengers and your luggage.

5. Free pickup at the Airport

Pick up at the airport is more comfortable. But ensure you are not exposed to additional fees for this service. Many auto hires in Keflavik airport or Reykjavik offers free airport pickup to the rental station. But you still have to know the policies they set.

get free pick up in the Keflavik or Reykjavik airport

Alternatively, if you don't find a free pickup service, you can use public transportation to go to the off-airport location, which is a location close to the city center. From this area, you can be picked up by shuttle bus to the rental station at a much cheaper cost. Check if transportation access is easy to find at affordable prices.

6. Do you not need it immediately?

Suppose you currently don't need a rental car then you can use the free shuttle to your accommodation and make a reservation for the next day. This way you can save rent a day and pay less because of the location outside the airport. Don't forget, you can also do the same thing at the end of your trip.

When you need the car rental in Iceland

7. Pay attention to one-way fees

When you rent a vehicle somewhere, then drop it off at another place and you have to pay for the pickup, then this fee is called a one-way fee. Why would I be charged for something like this? The reason is Iceland's auto rental company must cover expenses to return the car to its original place. So what makes me have to pay one-way fees? You have to pay this fee when you bring it to cross country, airport, cross-city or sometimes in certain locations in the city.

pay attention to one-way fees

Reserve a car ahead of time earlier is always better. You can have more time and understand the Iceland hire company Ts & Cs. Note whether this one-way fee is included in the price you must pay when booking online? If yes, you don't need to spend money again when you pick up it.

Do you really have plans to pick up and drop-off in a different place? If so, then the thing you should know is that they are less often to charge fees for two locations within the same city. Although not always the case. So, to find a reasonable price according to your budget, you should still make a reservation early. Then you can start your search with them in sufficient time.

8. Choose unlimited mileage packages if necessary

Iceland is a country that has lots of interesting places to explore. So, if you have a plan to travel long distances or if you are likely to add your travel route at any time, unlimited mileage is the right choice. You will not worry about the cost of each kilometer that you take. Even though you have to pay more for this package. But if you just travel short distances then limited mileage is a wise choice.

car rental Iceland unlimited mileage

9. Understand about fuel policy

By understanding the fuel usage policy, you can save on car hire costs. Every auto hire company has its own policy for fuel use. So which is the best? Everyone can be in a situation and have different plans for travel. So they will pay in a different way according to their needs. You only need to choose which one you think requires less expenditure and you will be fine.

For example, say you decide to choose the "Full to Full" package. Then you will drive it from the station with full fuel, but you also have to return it with the same conditions. Most of the case, they will ask for some deposit with a certain amount first. They will not really take your money, only they will hold the deposit until the fuel check on the vehicle that you rent is done.

What happens if you return the car to an empty tank or less fuel volume? They will deduct money from the deposit to replace fuel loss when dropping off. Maybe you will lose because they can charge more for each liter. In fact, you can buy it at a local gas station at the cheaper price. Not only that, you can also be charged for refueling. So it's better if you follow the fuel policy rules and choose the policy that best suits your needs.

10. Driver's age requirements

The age requirement for driving a rental car in Iceland is 20 years old. Age under 25 and above 65 may be categorized as a risk driver. Therefore, they may be charged additional fees. But this age group may vary according to the type of vehicle.

The best step if you are traveling with your friends is to register one of those over the age of 25 as a driver. In addition, the person must have a valid full driver license for a period of at least twelve months as a driver.

11. Do you need the additional driver?

At some auto hire sites in Iceland, you may find additional driver offers. But this will require additional fees. Now the question is whether you currently need an additional driver? The answer will come back to you again. If you only drive close distance and come in friendly weather then maybe you don't need it. But if you are going to travel a long distance via F roads or go to highland then you will most likely need it.

The reason is that driving long distances with unpaved roads has a greater risk. Especially if it's winter. Drivers may be tired, lose concentration, and accidents occur. Therefore additional drivers are wise choices. You can add the additional driver's name to the contract because if another driver has an accident and his name is not mentioned in the contract then you can be in big trouble. Insurance will not cover your claim and you must pay all damage costs personally.

To save your money tries to find an affordable car rental company in Iceland who will not charge if your spouse or domestic partner is registered as an additional driver.

12. VAT and no hidden cost

We recommend that you understand well the contents of offers from auto hire companies. What costs are included in it? Also, ensure there are no hidden fees. You can check whether the price includes VAT 24% (local tax) or not. You can also further check what you will receive, such as Personal Accident Insurance, CDW, and from October to April, you should get studded winter tires. The more you get the better. From here, you can compare offers from other car hire companies. Choose the most economical in your opinion.

13. Additional costs for GPS, baby or booster seats

Extra cost for rates GPS is approximately 1300 ISK per day. Therefore, if you bring your own portable GPS, you can save 10-15 USD per day. Usually, booster seats are free. While for baby seats you can be charged around 4,000 ISK for one time. So it's better that you bring your own safety seat and you can save around 35-40 dollars. The law in Iceland requires that you provide protection for children when traveling. Therefore, if you bring an infant, then you must use a baby chair that meets the standards.

14. How to save with car insurance

Insurance is important in driving. Before you decide to make a payment with a credit card, first check whether the card company has paid for your insurance. You can make this request by asking your credit card operator. Make sure you use the card for rental reservations.

When renting a car, you should not always be sure at the beginning that you are covered properly. Everything must be clear. What coverage do you get from the insurance?

Ask an auto hire company in Iceland whether the car you want to rent can be protected by the policy that you currently have. Furthermore, you can also contact an insurance service provider to ascertain whether additional coverage is needed. But remember, to pay for the coverage you already have is unreasonable.

The level of car theft cases in Iceland is very low. Maybe you don't want to use TP Insurance for that reason. This can certainly make rental costs cheaper. But all will come back to you to decide.

15. Use a credit card rather than the debit card

Acceptance of debit card usage by car rental companies can vary depending on the location. In addition, each company has own rules regarding its use. So if you can use it at this time, it is not certain that other rentals will accept it. Credit cards can reduce this confusion.

If you use a debit card, the rental party will usually request a larger deposit. Not only that, the deposit return time will also be longer, even up to days. Therefore, you should use a credit card for reservations.

16. Discounts and other special offers

Try to always find discounts and special offers. One site that can help you is destinationcoupons.com. But still, you have to get great service because that also becomes meaningless if the service isn't satisfactory. If you are lucky, you can find a discount of 20-40%, includes unlimited mileage and no extra cost.

In addition, also pay attention to the seasonal months. Usually, winter is the time for them to give maximum discounts because of less traffic. Even if you come in groups, you can receive free wifi GPS and discounts by renting more than one camper. This offer can also apply to rentals and other types of vehicles.

17. Take photos and video

Before getting out of the parking lot, make it a habit to always take photos and video of the rental car that you will use first. Do this for inside and outside. You can use your mobile phone for this purpose. The photos must display the appropriate time and date.

You must check carefully whether there are scratches or damage to the car. So, it's better if you take a little time. If you find it, make sure you fill out the required documents and take a copy. Or you can also store it in your mail. It will be more safety. This is proof that the damage has existed before and not done by you. This step is very important so that you don't have to pay for damage that you didn't do.

18. Check the credit card after rental

You should check the statement on your credit card after you have finished renting a car. In some cases, additional or extra costs can occur for services that you don't receive or don't even ask for. This can and may actually happen. So, a double check is better.

Those are some car rental Iceland tips about how to get an affordable car hire company that can meet your needs. Hopefully, you can still receive quality services, save money, and enjoy your road trip comfortably.

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