If you’re on the fence about renting a car in Iceland, don’t be. It’s actually a pretty good idea. However, before moving forward with your decision, there are some things you should consider. You’ll want to understand all of the car rental requirements and figure out how to select a car rental company.

In this guide, we’ll provide all of the details about car rental in Iceland that’ll hopefully help your road trip go smoothly. Are you curious to learn more? If you are, just keep reading.

Car Rental Requirements for Iceland

If you plan on renting a car in Iceland, there are a few things you’ll need. As with any situation when you can rent a car, it’s in your best interest to weigh all of the pros and cons and cover yourself in case of an accident. Here’s the insurance and protection you need for car rental in Iceland:

Third-Party Liability and Collision

The car rental company in Iceland should include third-party liability and collision damage waiver coverage for you. It’s legally required for rental providers to have third-party liability, and a rental service should provide it free of cost.

However, in addition to that, you can also need collision damage coverage to minimize your personal liability if there’s an accident. Be sure that you ask the car rental company about the complementary services they offer.

F-Road Coverage

When you’re driving on F-roads, anything can happen. That’s why they generally require separate coverage. If you plan on driving down an F-road, be sure to inform the rental company so that they can provide you with the proper vehicle for that type of landscape.

Just keep in mind that many car rental providers don’t include coverage for water damage, and most F-roads go across rivers. Therefore, you run the risk of being charged a significant fee for water damage.

Gravel Protection

What you may not know about Iceland is that not many of its roads are paved. Therefore, there could be significant damage to the rental car’s paintwork and windows. Stones and debris are always flying and hitting the car while you’re driving on these types of roads.

Gravel protection is essential if you know that you’ll be traveling across rocky terrain. However, you can skip gravel protection if you only plan to drive within Reykjavik.

How to Rent a Car in Iceland

The process for renting a car in Iceland is pretty straightforward and similar to the same process that you go through at other destinations. Many Iceland rental services are located within the major airports, and that’s where visitors will pick their car up and drop it off.

Not only that, but car rental services will usually have a person standing at the airport with a sign that displays the company’s name and logo. In most cases, they’ll greet you there and drive you a short distance to the rental office to get your car.

This process happens because most rental car services are not actually located at the airport, but close by. Sometimes the car company may be even further away if it’s located in Reykjavik City.

On the other hand, you may not have to meet anyone to take you to the rental provider. You also have the option to walk to the car rental zone, which is only a 5-minute walk from the Keflavik Airport.

Reasons to Rent a Car in Iceland

You may be wondering if renting a car in Iceland is even a good idea, and actually, it is. But it all depends on what you have planned.

If you plan to go outside of the city and explore some of the outskirts, renting a car is a good idea. It allows you the freedom to explore various locations without the restrictions of relying on a driver.

Not only that, but it’s a lot better than riding the bus. Although buses are widely available, sometimes they’re not feasible for time and distance. You don’t want to adhere to a bus schedule or worry if the bus can take you to the destination that you’re trying to reach.

If you’re going on a trip with multiple people, car rental in Iceland is an excellent idea. You all can split the cost of a rental, and take turns driving. It’s a win-win!

When Not to Rent a Car in Iceland

There are other times when renting a car in Iceland isn’t the best idea. This scenario primarily applies to the winter. As you may know, winter in Iceland can be very harsh, and there’s often lots of ice on the ground and severe snowstorms.

Unless you have experience with driving in this type of environment, renting a car isn’t recommended. Even if you are an expert at driving in the snow, you still may want to refrain from driving if you’re not familiar with Iceland’s roads and environment. Essentially, it’s much better to be safe than sorry.

Speaking of driving through snow and ice, look here for more information regarding driving in Iceland.

The Basics of Car Rental in Iceland

Car rental in Iceland makes a lot of sense. It’s definitely a good idea if you are going with a group, or visiting different parts of the country. Hopefully the information above helps you to better understand how to get your rental and have the best trip ever.

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