Top 10 Car Rental Services in Iceland

Before anything else, sorting out your car rental is one of the smartest moves you can make when planning a trip to Iceland. The right vehicle — matched to your route, the season, and your own comfort level — makes all the difference when you’re switching between paved roads, gravel tracks, and raw mountain terrain.

A lot of visitors start by comparing what’s on offer. If you’re keeping costs down, a compact or midsize car handles urban driving, day trips, and summer roads perfectly well. They’re a natural fit for Reykjavik, the Golden Circle, and the South Coast — anywhere the tarmac holds up.

Iceland suits a wide range of travel styles. Serious adventurers usually go straight for a 4×4, which is essential in winter and required on approved F-roads in summer. If comfort is the priority, plenty of companies have high-spec vehicles with room to stretch out. And if you’d rather sleep in the car than book accommodation every night, a motorhome sorts out both transport and a bed in one go.

What follows is a breakdown of the leading car rental companies in Iceland — what each one does well, what their insurance looks like, and what to expect at the airport. There’s also a comparison table below if you want a quick side-by-side view of prices, fleet ages, and vehicle types.

Key Takeaways

• Iceland has a solid range of well-regarded rental companies with modern fleets, airport pickups, and clear insurance structures.

• Most companies run newer or low-mileage vehicles, which matters a lot when you’re covering serious ground on Iceland’s main routes.

• Many top-rated agencies near Keflavik International Airport offer free shuttles or meet-and-greet services, so you’re not standing around after a long flight.

• Campervan and mini camper options are widely available for itineraries built around Iceland’s camping sites.

• Several providers have vehicles capable of handling Highland F-roads in summer.

• Most leading companies include Collision Damage Waiver in their basic packages, with upgrades available to cover things like gravel road damage and volcanic ash exposure.

Overview of the Top Car Rental Companies in Iceland

Finding the right car rental in Iceland is really about weighing up four things: service quality, price, insurance coverage, and how easy pickup is at the airport. We’ve looked closely at some of the most reputable agencies in the country to help you narrow it down.

The table below gives you a fast comparison of ratings, vehicle options, price ranges, and what each company does best. Detailed profiles of each rental company follow, covering their insurance options, vehicle types, and airport pickup arrangements.

Blue Car Rental

Guide to Iceland 2026 rating: 8.8 from 996 reviews
Fleet years: 2022 to 2025
Price range: 90 USD to 520 USD (13,000 ISK to 72,000 ISK)
Vehicle categories: small cars, medium cars, station wagons, SUVs, premium cars, and vans

Blue Car Rental is a popular pick for travellers landing at Keflavik International Airport. Their office sits just 300 meters from the terminal, and a complimentary shuttle meets guests directly in the arrivals hall — which takes the edge off after a long journey.

A full-to-full fuel policy and unlimited mileage make it a practical choice for long drives around the country. The fleet includes models built for F-road travel in summer, and reviews consistently mention quick pickups and vehicles in good shape. If you’re visiting Iceland for the first time, this is a reassuring option.

Basic rentals typically come with Collision Damage Waiver and Theft Protection. GPS units, 4G Wi-Fi, extra driver coverage, and child seats are all available as add-ons.

MyCar Rental

Guide to Iceland 2026 rating: 9.6 from 493 reviews
Fleet years: 2023 to 2025
Price range: 90 USD to 590 USD (14,000 ISK to 81,000 ISK)
Vehicle categories: small cars, medium cars, station wagons, SUVs, premium cars, and vans

MyCar Rental consistently ranks among the highest-rated car rental companies in Iceland. The fleet is new or low-mileage — something you notice when you actually get behind the wheel. Their office is just outside the airport, and the complimentary shuttle runs smoothly.

They run a full-to-full fuel policy with unlimited mileage and offer everything from small city cars to 9-seat vehicles, including models approved for Highland routes. Reviewers regularly single out the pickup experience and the condition of the cars.

Collision Damage Waiver and Windscreen Protection are commonly included. You can add a 4G internet box, extra driver coverage, child seats, and roof boxes for vehicles where that’s an option.

Project Car Rental

Guide to Iceland 2026 rating: 9.4 from 135 reviews
Fleet years: 2019 to 2025
Price range: 140 USD to 1,470 USD (20,000 ISK to 205,000 ISK)
Vehicle categories: SUVs, station wagons, vans, and mini campers

Project Car Rental is a locally-owned company based at Keflavik Airport. What sets them apart is the personal meet-and-greet when you land — someone is actually there to hand over the keys, and reviewers notice the difference that makes.

All rentals come with unlimited mileage and a full-to-full fuel policy. The fleet runs from standard SUVs and station wagons through to larger vans and well-equipped mini campers, with Highland-capable options available in summer.

Collision Damage Waiver coverage comes as standard. Gravel Protection insurance, child seats, and camping gear can all be added for those planning to spend time outdoors.

Ring Car Rental

Guide to Iceland 2026 rating: 9.0 from 311 reviews
Fleet years: 2019 to 2023
Price range: 110 USD to 315 USD (16,000 ISK to 44,000 ISK)
Vehicle categories: SUVs, mini campers

Ring Car Rental is family-run, and that comes through in how they handle things — friendly service, efficient airport pickups, and a genuine interest in making your trip work. A number of their vehicles come with rooftop tents fitted, which saves a lot of hassle for anyone planning to camp without lugging extra gear.

The fleet is mainly 5-seat vehicles and mini campers, both capable of basic overnight use, on a full-to-full fuel policy with unlimited mileage. Many are equipped for Highland travel.

Standard coverage usually includes Theft Protection. You can also add extra driver coverage, a 4G internet box, camping gear, and child seats.

Go Car Rental

Guide to Iceland 2026 rating: 8.8 from 438 reviews
Fleet years: 2017 to 2025
Price range: 120 USD to 590 USD (17,000 ISK to 82,000 ISK)
Vehicle categories: small cars, medium cars, station wagons, SUVs, and vans

Go Car Rental is locally owned and carries a wide range of vehicles. They’re based near Keflavik Airport and run a regular shuttle that keeps things moving when you first arrive.

From compact cars through to larger SUVs suited for Highland routes, the range is decent. All rentals come with a full-to-full fuel policy and unlimited mileage. Collision Damage Waiver is included as standard, and guests can waive insurance coverage while still keeping third-party liability in place.

Useful add-ons include GPS devices, a 4G internet box, extra driver coverage, and child seats.

Key Car Rental

Guide to Iceland 2026 rating: 10.0 from 37 reviews
Fleet years: 2018 to 2025
Price range: 100 USD to 690 USD (14,500 ISK to 96,000 ISK)
Vehicle categories: SUVs, vans, station wagons, premium vehicles, mini campers, and camper vans

Key Car Rental is a strong pick for anyone who wants dependable vehicles and round-the-clock availability. They’re at Keflavik Airport with free pickup and drop-off, and the fleet stretches from standard cars to camper models with roof tents.

Every rental runs on a full-to-full fuel policy with unlimited mileage. Seating goes up to 9 passengers, and several models are approved for Highland routes. Customers tend to mention the smooth handover and the attentiveness of the team.

Collision Damage Waiver and Theft Protection come as standard, with Full Protection available as an upgrade. A 4G internet box, child seats, and camping extras can all be added.

Lotus Car Rental

Guide to Iceland 2026 rating: 9.4 from 139 reviews
Fleet years: 2021 to 2025
Price range: 120 USD to 1,220 USD (17,500 ISK to 171,000 ISK)
Vehicle categories: mini campers, SUVs, medium cars, premium cars, vans, and camper vans

Lotus Car Rental has built a reputation for reliability, particularly among travellers who want roof-tent vehicles or fully-equipped camper vans. Their office is at Keflavik Airport with a shuttle service for arriving passengers, and most of the fleet can handle Highland routes.

All rentals run on a full-to-full fuel policy with unlimited mileage, covering everything from 2-seat to 9-seat vehicles. Reviews frequently mention the condition of the cars — well-maintained seems to be the consensus.

Insurance options are a highlight here, including Platinum Insurance for comprehensive coverage. Families will find booster seats, baby seats, and roof boxes available, and physical maps of the Icelandic landscape can be added for those who prefer paper over a screen.

Auto Car Rental

Guide to Iceland 2026 rating: 8.8 from 41 reviews
Fleet years: 2019 to 2025
Price range: 30 USD to 490 USD (4,000 ISK to 69,000 ISK)
Vehicle categories: small cars, SUVs, and vans

Auto Car Rental is a locally owned operation near Keflavik Airport that competes on price without much fuss. The selection covers compact cars for solo travellers, SUVs for smaller groups, and 9-seat vans that work well for families.

They run a full-to-full fuel policy with unlimited mileage, and Highland-capable vehicles are available for summer routes — useful for budget-minded travellers who still want flexibility.

Standard rentals generally include Collision Damage Waiver and Theft Protection. GPS devices, extra driver coverage, and child seats round out the main add-ons.

Foss Car Rental

Guide to Iceland 2026 rating: 10.0 from 44 reviews
Fleet years: 2017 to 2022
Price range: 110 USD to 710 USD (16,000 ISK to 99,000 ISK)
Vehicle categories: small cars, SUVs, and motorhomes

Foss Car Rental is worth a look for anyone planning to camp their way around the country. They operate from Keflavik Airport with a complimentary shuttle, and their motorhomes — which sleep up to six people — are a particular draw for groups who’d rather skip the hotels.

Every rental comes with a full-to-full fuel policy and unlimited mileage. The range goes from compact cars through to larger SUVs, and reviewers regularly mention how clean the vehicles are and how approachable the staff tend to be.

Standard insurance covers Collision Damage Waiver, Gravel Protection, and Theft Protection. Roadside assistance, child seats, and camping gear are available as add-ons.

Lava Car Rental

Guide to Iceland 2026 rating: 8.6 from 271 reviews
Fleet years: 2019 to 2025
Price range: 120 USD to 710 USD (17,500 ISK to 99,000 ISK)
Vehicle categories: small cars, medium cars, station wagons, SUVs, and campervans

Lava Car Rental has earned some genuine recognition — including Iceland’s Leading Car Rental Company at the World Travel Awards for two consecutive years. Based at Keflavik Airport, they run shuttle services directly from the arrivals area.

The fleet runs from compact cars to campervans that sleep two, all on a full-to-full fuel policy with unlimited mileage. Several vehicles are Highland-capable, and reviewers consistently praise both the customer service and the quality of the cars.

Standard coverage typically includes Collision Damage Waiver and Theft Protection, with zero-excess coverage available as an upgrade. Campervan renters can add cooking gear to arrive fully prepared. GPS units, 4G internet boxes, extra driver options, and child seats are all on the list of add-ons.

Choosing the Right Vehicle in Iceland

The right car rental in Iceland depends on when you’re going, where you’re heading, and what insurance you’re comfortable with. Roads here range from smooth tarmac to loose gravel to demanding F-roads in genuinely remote areas. The weather shifts fast, so getting the vehicle choice right from the start matters more than it might in other countries.

Select a Car Based on the Season

Summer driving is generally straightforward. Small or medium cars handle the Golden Circle, the South Coast, and Reykjavik routes without any trouble on well-maintained roads.

Winter is another matter. Ice, strong winds, and reduced visibility make larger vehicles and 4x4s a practical necessity rather than a luxury — stability and traction count for a lot when conditions turn.

Match Your Vehicle to the Route

Your route is the clearest guide to what vehicle you actually need. Iceland’s road classifications tell you a lot:

• Paved roads: Accessible via Ring Road, the Golden Circle, and routes near Reykjavik, these can easily accommodate any standard vehicle.

• Gravel roads: Often found in rural regions and at popular natural sites, these require vehicles with higher clearance for better comfort and control.

• F-roads: Mountainous paths in the Highlands strictly require 4×4 vehicles during summer months, often involving steep inclines and potentially river crossings.

Fuel Policies and Mileage

Nearly all rental agencies use a full-to-full fuel policy — you pick up a full tank and return it the same way. Paired with unlimited mileage, this means you can drive as far as you like without worrying about hidden charges, which suits anyone planning to cover multiple regions in a single trip.

Select the Right Insurance

Insurance is one area where it pays to think carefully. The right coverage stops an unfortunate incident from turning into an expensive one. Here are the common options:

• Collision Damage Waiver (CDW): Standard protection that limits financial liability for damage up to a certain amount, typically included in most rentals.

• Gravel Protection: Essential for traversing loose-stone paths that could chip paint or damage headlights.

• Sand and Ash Protection: Particularly advisable for areas like the South Coast, where high winds can carry volcanic debris that harms vehicle surfaces.

• Full Protection or Super CDW: Popular among longer road trippers, this option limits or entirely removes renter liability.

Finding the Right Car Rental for Your Icelandic Journey

It comes back to knowing your route, the time of year, and what kind of vehicle actually suits your plans. Small or medium cars are fine on paved roads, 4x4s become necessary in winter or on F-roads through the Highlands, and campervans or mini campers make sense when camping is part of the trip.

Comparing vehicle quality, pricing, insurance options, and airport logistics will get you to the right answer. With the correct vehicle and adequate coverage in place, you’re well set to handle whatever Iceland’s roads and weather decide to throw at you.

For more specific guidance, check out our guides on rental car sizes in Iceland and tips for effectively navigating car rentals in the country. These resources can further assist in selecting the best vehicle for your travel needs.