Best Car Rental Iceland: A Complete Guide for a Seamless Trip
When planning an Icelandic road trip, securing the best car rental Iceland has to offer is one of the most important steps. Whether you're chasing the northern lights, driving the Golden Circle, or venturing toward the rugged south coast, a reliable vehicle makes all the difference. With so many car rental companies in Iceland, choosing the right one can feel overwhelming. This guide will help you understand your car rental options, compare rental car companies, and decide whether a standard rental car or a fully equipped camper van from Iceland Campers suits your needs best.
Why Renting a Camper Van is the Best Way to Discover Iceland
While a traditional rental car may get you from place to place, a camper van transforms the journey into an adventure. In a country where accommodations can be expensive and remote locations are part of the charm, having your lodging and transport combined is a game-changer. A camper van offers the freedom to stop wherever the views are breathtaking, cook your own meals, and sleep near natural wonders like waterfalls, hot springs, or beneath the northern lights.
Unlike a basic car rental, a camper van eliminates the need to constantly search for hotels or stick to fixed itineraries—giving you full control over your Icelandic road trip, day and night. It’s not just travel; it’s a lifestyle perfectly suited to Iceland’s wild, scenic landscapes.
Camper Vans vs. Rental Cars
While many travelers choose a traditional car rental, those looking for the full Icelandic experience may want to consider a cozy camper. With us, your camper van rental includes sleeping space, a heating system, cooking equipment, and other amenities. You’ll save on accommodation and meals and have more freedom to explore areas like the ring road, f roads, and even sleep under the night sky.
Understanding Iceland Car Rental Options
There are several car rental companies operating throughout Iceland, from international names like Blue Car Rental and Lotus Car Rental, to local companies like us at Iceland Campers who offer camper rentals. Knowing what’s included in your rental agreement—such as unlimited mileage, gravel protection insurance, or free cancellation—can save you from surprises later on.
Best Car Rental Companies in Iceland
- Blue Car Rental – Popular for their wide selection of automatic cars and solid customer reviews.
- Lotus Car Rental – Known for offering rental insurance packages that suit all budgets and covering all types of gravel roads.
- Iceland Campers – The top choice for travelers who want a camper van and camping solution. We focus on campervan rental in Iceland for the ultimate road trip experience.
Each rental company offers a different experience. We prioritize flexibility, affordability, and customer support, especially for visitors aiming to explore the more remote parts of the country.
What to Look for in a Rental Car
- Valid driver’s license (and sometimes an international driver’s license)
- Winter tires (essential for travel from October to April)
- Unlimited mileage to avoid surprise charges
- Collision damage waiver and ash insurance for peace of mind
- Gas tank and refueling policy clarity
- No hidden fees in the fine print
Recommended Cars for Iceland Travel
- Small car – Best for summer trips and city driving
- Four wheel drive – Ideal for f roads and winter travel
- Electric vehicle – Great for budget-conscious travelers with a green mindset
- Luxury vehicles – For those looking to tour Iceland in comfort
Camper Vans: The Better Alternative?
While the best car rental company for one traveler might be a traditional provider, many adventurers discover that a camper van offers more value. Camping vans let you avoid booking hotels, carry your gear, and reach stunning mountain roads and remote campsites. We offer various vehicle types and setups, from basic to full-featured, with free cancellation, roadside assistance, and excellent customer service.
Picking Up Your Car or Camper
Most car rental companies operate directly from Keflavik Airport, Iceland’s main international airport. Some also offer convenient pickup from the Reykjavik Domestic Airport or city center locations. We offer both airport pickup and a quick shuttle service to our nearby depot.
Rental Insurance and Age Limits
Iceland has unique driving conditions. For this reason, rental car insurance options are essential. Look for packages that include gravel protection, collision coverage, and third-party liability. Also, be aware of the minimum age requirement (usually 20) and any applicable young driver fees.
Tips for Renting a Car in Iceland
- Book early—especially in peak season
- Confirm what’s included in the rental price
- Choose the right car category for your planned route
- Read the rental agreement carefully
- Avoid hidden fees by clarifying policies
- Always return your vehicle with a full tank if required
Don’t Overlook the Campers
If you’re comparing rental car companies, don’t forget that Iceland Campers offers a travel solution that many overlook. A camper van rental is not just about saving money. It’s about turning your Icelandic adventure into something truly special. Our fully equipped vans come with sleeping bags, roof tents, heating systems, and more. Perfect for staying cozy during chilly nights.
Plan Your Iceland Road Trip
From the Golden Circle to the wild Icelandic Highlands, having a reliable car in Iceland is essential for discovering the island’s incredible natural beauty. Plan your stops, use a navigation app to find gas stations, and don’t forget to check the weather forecast daily.
Book with Iceland Campers
We offer flexible rental periods, competitive pricing, and a fleet of modern, reliable vehicles. Whether you need a standard rental car or a cozy camper, we are your best choice for a safe and memorable journey. We also provide:
- Free cancellation
- No hidden fees
- 24/7 roadside assistance
- Easy online car rental booking
Ready to hit the road?
Book your camper van today with us and experience the freedom, comfort, and adventure of exploring Iceland.
FAQs
What kind of rental car do you need in Iceland?
The type of car you need depends on the season and your travel plans. For summer travel on paved roads, a compact or economy car may suffice. However, if you're heading into the Icelandic Highlands or navigating F-roads, a four-wheel-drive (4x4) is required by law. Always match your vehicle to your planned route.
Is Blue Car Rental in Iceland good?
Yes, Blue Car Rental is a well-known rental company offering good service, a large selection, and rental insurance options.
Is it cheaper to rent a camper van in Iceland?
In many cases, yes. A camper van rental often includes accommodation and cooking gear, making it more cost-effective for longer trips.
Do I need to rent an SUV in Iceland?
You only need an SUV if you plan to access f roads or travel in winter conditions. Otherwise, a regular rental car will suffice.
Can an American rent a car in Iceland?
Yes, with a valid US driver’s license, you can rent a car in Iceland.
Are F-roads accessible by all rental cars?
No. F-roads require a 4x4 vehicle. Standard rental cars are not permitted and insurance will not cover any damage incurred on these roads. Always confirm with your rental agency if your car is suitable for your planned route.
Is it easy to drive in Iceland?
Driving in Iceland is straightforward, but conditions can be challenging due to weather and road surfaces. Keep both hands on the wheel, follow weather updates, and avoid off-road driving, which is illegal.
How far in advance should I book a rental car?
Book as early as possible, especially during summer (June–August) or holidays. Iceland is a popular destination and rental cars sell out quickly.
Are there electric vehicles available for rent?
Yes, some companies offer electric cars. Be aware that charging stations are limited outside major towns, so plan routes accordingly if renting an EV.
