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Car Rental Iceland



How can I pay for my rental?

Be sure a car is waiting for you by booking online. During the high season, costs can increase and car availability may be limited.  


In order to guarantee your booking, you will need to pay a small amount (12% - booking fee) of the total cost of the rental upon making your online reservation. The remaining balance can be paid in person when picking up your vehicle in Iceland. 


For your online rentals, we accept Visa, Mastercard, JCB, Diners Club, CUP and American Express credit cards.  We use a secure SSL online payment gateway system powered by to ensure a safe and secure online booking experience.


What is included in the rental price?

You are important to us and because we work differently than other car rental companies in Iceland, when you rent a car with Cars Iceland we automatically include the following insurance plans within the rental price.


- Collision Damage Waiver (CDW)

- Super Collision Damage Waiver (SCDW)

- Gravel Protection (GP)

- Theft Protection (TP)


In addition to this we also provide you with:


- Unlimited mileage

- 24% Local VAT

- GPS (in certain models)


Where can I pick up and drop off my car?

a. KEF Airport Office 

b. Reykjavik City Office


*Reykjavik City Area and Reykjavík City office is offered between 08:00am - 18:00pm 



When is the pick up and drop off service open?

We customize this service to fit your personal needs and coordinate our efforts with your flight arrival and departure or whatever time works for you. 


We offer a 24/7 pick up and drop off service to and from Keflavik Airport and also around the Keflavík city area. The rest of our locations are open every day from 08:00 am to 20:00pm during the summer and from 08:00 am to 18:00pm in the winter. 


I booked a pickup at the airport, how do I retrieve my car?

When entering the Arrival Hall at Keflavik International Airport, please look for the Car Rental Shuttle service and our logo. Cars Iceland's office will be your second stop on its route.


In case you do not see us please call our pickup phone service that's always open by contacting us at +354 773 7070. They will escort you to your vehicle and complete the paperwork on site.


Reservation and cancelation policies.  How do they work?

Due to lack of availability during the summertime, searching for a rental car in Iceland can be difficult from the periods of June to August. For that reason, we recommend you make your booking well in advance to ensure you get the model you want at the best price.

As soon as you make your booking you will receive a booking confirmation. So please print it out and bring it to pick up your car. Note that you will always need to show a valid credit card when you pick up your vehicle.  It can be your card or any of the passengers' cards. However, the card owner must always be present.

In the event you have to cancel your booking; let us tell you a little bit about our cancelation policy.


- If you cancel more than 24 hours prior to the beginning of the rental you will get a full refund of what you have paid.

- If you cancel less than 24 hours before the beginning of your rental or fail to pick up the vehicle then the cancelation fee will be similar to the booking fee.


Is my driver's license valid in Iceland?

Driver’s licenses from any EEA and Nordic country (including Faroe Islands) are valid in Iceland (all categories). Driver’s licenses (B-category only) from other countries outside the EEA and Nordic countries are valid.


What documents are necessary when I pick up my car?

a. Valid passport of the renter.

b. Valid driver's license of the driver (valid for at least the past 12 months).

c. Valid credit card of one of the passengers.


For additional drivers, a and b will also be needed. Renter must be 20 years of age and 23 to rent a large or luxury car and have held a valid driver´s license for at least 12 months. 


Do you require a deposit to rent a vehicle?

Not at all. The only thing we need from you is a valid credit card. By signing the rental contract upon arrival we will register your credit card information. This credit card authorization can be used to pay other additional extras such as supplemental insurance, parking & traffic fines, damages or any other costs that the renter may accrue during their stay.


What is the minimum rental period?


Minimum rental period is 24 hours.


What should I be cautious of when driving in Iceland? 

- Fording rivers.

- Leaving the paved road because of icy conditions or distractions.

- Animals on the road.

- Strong wind damage when opening doors..

- Losing traction on gravel roads especially when asphalt meets gravel.

- Undue damage to wheels and tires by undetected flat.

- During the wintertime, when the temperature is around 0°C.


Do you provide studded tires in the wintertime?

Yes. Our goal is to make our customers feel secure while driving in Iceland in wintertime so from November through April all the cars we offer are equipped with studded winter tires. With this feature, we provide our customers with as much security as possible.


If I bring the car back early can I have a refund?


Unfortunately no refund is possible, except when you let us know prior to pickup.


How does the emergency breakdown assistance work?

We offer 24/7 emergency breakdown assistance which means you can call our Emergency line any day, 24 hours a day +354 773 7070.


Our agency has service partners all around the country. If something breaks down, or if you have an accident or the car breaks down we will of course replace the car with a new one. If either something does not work properly or you have an accident we will replace the car with a new one of the same car class. And in the unfortunate case that you are involved in a collision/accident we will also provide you with a replacement vehicle. 


Can I be sure that the selected vehicle is available?

We always guarantee you the same or higher category, but not the brand and/or model.


We will always guarantee that you will receive a vehicle within the same or higher class as the type of car you have chosen.  However, we cannot promise that the vehicle will be the same make or model which you have initially picked. 


What do I need to check before dropping off my vehicle?

When you drop off your vehicle, you’ll need to:

  • Make sure it’s clean inside

  • Fill up the fuel tank and ensure the battery is fully charged

  • Spray down the outside with water if necessary, so that we can check for damage

  • Collect all of your personal belongings

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