How to Get the Best Deal Renting a Car in Iceland

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Folks who took advantage of the low fares to Iceland on WOW Air are wondering how to get a good deal on a rental car in Iceland.  Because the usual rental places like Avis, Budget, and Hertz, can be much more expensive there.

How To Get The Best Deal On A Car Rental In Iceland

Iceland Is a Beautiful Country! But Car Rentals Can Be Expensive. Find Out How to Get a Good Deal!

I’ll show you how to find lower prices on car rentals in Iceland.  And give you some specific recommendations from my experience there.

A Trip to the Land of Fire and Ice Index:

Go Native, but Check the Usual Suspects

When I think of car rental companies, I think of HertzAvis, National, etc.

Iceland has lots of local car rental companies with better prices, depending on what you’re looking for.  It’s worth checking them, as well as your preferred car rental chain.

How To Get The Best Deal On A Car Rental In Iceland

There Are Many Options for Car Rentals in Iceland. I Found the Locals Companies Were the Best!

If you want something specific, like automatic drive or unlimited mileage, the local companies usually have better prices.  But if you’re loyal to 1 car rental company, always check to make sure you’re getting a good deal.

A Few Icelandic Car Rental Companies

Link:   Plan Iceland

When I recently visited Iceland, I found a local car rental company was cheapest.

If you want to explore the vast, mountainous interior, or places with rougher roads (like the Westfjords), the local companies generally had better prices for 4-wheel drive rentals.

From Keflavik airport, I was picked up in a van and driven the ~2 minutes to the lot where the rental car agencies keep their cars.

I found lots of options on the Plan Iceland website.  Here are a few I recommend:

1.   Go Iceland

Go Iceland has offices at Keflavik Airport (KEF), and in Reykjavik.  They offer 24-hour pick-up and drop-off service.

All of their cars include taxes, a Collision Damage Waiver (CDW), and unlimited mileage.

How To Get The Best Deal On A Car Rental In Iceland

Go Iceland Has a Great Weekly Rate of $527, Including Taxes, Collision Damage Waiver (CDW), and Unlimited Mileage

Their weekly rate for a 4-wheel drive vehicle is $952.

Again, I don’t think it’s absolutely necessary to rent a 4-wheel drive vehicle unless you’re going off-road, the Highlands, or Westfjords.  But the better handling is very helpful and will save you time on some of Iceland’s rough roads.

How To Get The Best Deal On A Car Rental In Iceland

The Weekly Rate for a 4-Wheel Drive Vehicle Is $952 in August

Check them out if you need to rent a car in Iceland!

2.   Iceland Car Rental

Iceland Car Rental is the company I ended up renting from.  Because they had the best price for my travel dates and what I was looking for.

Their cars include unlimited mileage and Collision Damage Waivers.

How To Get The Best Deal On A Car Rental In Iceland

Iceland Car Rental’s Selection Starts at $625 Per Week in August

If you prefer automatic transmission, they have a good selection.  I personally prefer manual transmission.

How To Get The Best Deal On A Car Rental In Iceland

If You’re Looking for Automatic Transmission, Expect to Pay More. This 1 is $818 Per Week

I had a great time driving around Iceland!

3.   Auto Car Rental

Another 1 I’ll recommend is Auto Car Rental.

Their cars also include a Collision Damage Waiver and unlimited mileage.

How To Get The Best Deal On A Car Rental In Iceland

Auto Car Rental Is Also Worth Checking Before Your Trip to Iceland

Their rentals are all pick-up and drop-off as they do not have an office in the airport.  But they are just a few minutes away.  So be sure to schedule a pick-up if you rent from them.

How Do the Big Companies Compare?

You may decide to rent from 1 of the big companies to earn free car rentals or points with their airline or hotel partners.

1.   Avis

Avis has decent prices that start at $552 per week.

How To Get The Best Deal On A Car Rental In Iceland

Avis Weekly Rentals Start at $552 Per Week in August, but Does NOT Include a Collision Damage Waiver

Avis car rentals in Iceland include unlimited mileage.  But they do NOT include a Collision Damage Waiver like the local companies.

This isn’t a deal-breaker if you have a credit card that offers primary car insurance.  Or 1 that allows you to waive the Collision Damage Waiver.

However, if you do decide to pay for the Collision Damage Waiver, keep in mind that it is an extra daily charge o~$21 to ~$26 per day with Avis.  That can add up fast if you are in Iceland for more than a few days.

2.   Hertz

I wouldn’t recommend Hertz unless you have no other option.  Their prices were the highest.

While unlimited mileage is included, a Collision Damage Waiver is NOT.

How To Get The Best Deal On A Car Rental In Iceland

Weekly Car Rentals at Hertz Start at $680, More Than All the Others

And if you need an automatic transmission, expect to pay even more.

How To Get The Best Deal On A Car Rental In Iceland

A Car With Automatic Transmission Starts at $1,535 With Hertz

I’d definitely recommend a local car rental company over Hertz!

Note:   Regardless of whether the Collision Damage Waiver is accepted or included, if your rental car is damaged you’ll be responsible for a non-waivable fee.  This can be over $2,000 depending on the type of vehicle!

3.   Sixt

Sixt has great prices in Iceland.  Their cheapest rental starts at ~$404 per week.

The biggest downside is that only 100 kilometers (~62 miles) per day are included in the price.  After that, you’ll pay an extra charge depending on the vehicle, starting at 28 cents per kilometer (~45 cents per mile) for an economy car. 

How To Get The Best Deal On A Car Rental In Iceland

Sixt Has Great Prices! But Only 700 Kilometers (435 Miles) Are Included Per Week

If you’re only in Iceland for a few days, this might not be an issue.  But if you plan on doing serious exploration, you might exceed this amount.

Sixt offers an option to add unlimited mileage starting ~$11 per day for economy vehicles.  This could be a great option.  But it depends on how long you plan to stay and what type of car you plan to drive.

As always, check around before you decide.  And pick the 1 that’s best for you!

4.   Hotwire

I’ve written about how to get great rental deals with Hotwire.  But that wasn’t the case with Iceland.

How To Get The Best Deal On A Car Rental In Iceland

Weekly Rentals on Hotwire Start at ~$661

While I’d still recommend checking, don’t expect Hotwire to beat the local car companies on price.

Sites NOT Worth Checking for Car Rentals in Iceland

I looked at a few other places because I wanted to get the best price on my car rental.  But these 2 sites did NOT have any options in Iceland:

  • Chase Travel Portal
  • Costco Travel

Usually you can get great deals on car rentals with the Chase Travel Portal and Costco Travel, but unfortunately, they are not useful in Iceland.

How To Get The Best Deal On A Car Rental In Iceland

Costco Travel Only Serves the US and Canada for Car Rentals, and the Chase Travel Portal Does NOT Have Any Options, Either

So save your time and stick to the other sites mentioned above!

Car Insurance in Iceland

Link:   Chase Sapphire Preferred

Link:   The Platinum Card from American Express

Nearly all of the local car rental companies in Iceland include a Collision Damage Waiver (CDW), as well as taxes, in their final price.

But if you find a great price on a rental where it’s NOT included, you can get the protection anyway by using the right credit card.

For example, with the Chase Sapphire Preferred, the Collision Damage Waiver is automatic.

Why Not Use the Rental Car’s Included Collision Damage Waiver?

While a basic Collision Damage Waiver is included in some car rental rates in Iceland, you’re still responsible for a deductible of ~2,000 Euros (~$2,185).  But you do NOT have to pay the deductible if you choose the “Super Collision Damage Waiver” option.

That said, I don’t think it’s worth it to purchase the “super” coverage if your credit card already provides you with a Collision Damage Waiver.

But keep in mind if a Collision Damage waiver is included with your credit card, you’ll only get the benefit if you decline basic coverage from the car rental agency.  So be sure to turn down the included “free” coverage to avoid the deductible.

How To Get The Best Deal On A Car Rental In Iceland

You’ll Need Extra Insurance Coverage to Protect Against Storm Damage

A Collision Damage Waiver only covers theft and damage to your rental car.  You may still want to get other insurance because of Iceland’s unique weather conditions.

It’s not unusual to experience rain and snow in Iceland during any month of the year.  And the melting snow in summer has been known to cause floods.

How To Get The Best Deal On A Car Rental In Iceland

Iceland Is a Country Full of Active Nature. That’s What Makes It So Beautiful!

Most car rental companies in Iceland offer extra protection to the underbelly of the car, where rocks are likely to hit.  I declined this coverage.

Iceland can also be very windy.  So if you’re driving off-road, you should be very careful.

While the Collision Damage Waiver is helpful, you might want to take precautions and purchase extra insurance if you’re doing off-road or rough terrain exploration!

I personally declined this coverage, because I don’t find it worth the money.  But you may prefer the peace of mind!

Bottom Line

Iceland is a beautiful country with gorgeous landscapes.  And you’ll most likely be driving to see them.

Car rental prices in Iceland can be high, so it’s worth taking extra time to find a good deal.

I rented a car through Iceland Car Rental.  It was the cheapest option and I had a good experience.

But you can also get a good deal with the bigger companies if you know what to look out for!

Be sure to investigate insurance options beyond what credit cards offer if you’re planning to go off-road or venture off the main highways.

Please share your experiences driving or renting a car in Iceland!

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14 responses to “How to Get the Best Deal Renting a Car in Iceland

  1. I rented from Lagoon car rentals and could not have been more pleased with the car we had. Practically brand new, super nice service, they even gave us a box of Icelandic chocolates! I’d highly recommend them.

    I was there in March and we had terrible weather but not once did we feel we should have gotten a 4X4, and it was a subject that was debated quite awhile. As long as you stay on the normal roads you’re fine with just a normal car in most circumstances, we were really surprised at how nice the roads in Iceland are. You’d think with so much bad weather the roads would be full of potholes but they weren’t.

  2. We went to Iceland the first week in August. We rented a camper van from Go Iceland. We debated getting a 4×4, but in the end decided we didn’t need it. If we were there longer and would have time to go to some of the big parks like Thingvellir a 4×4 would have been necessary and great. We were also surprised by the quality of the roads. The Ring Road was practically perfect – no potholes! There were gravel roads that weren’t F roads that were quite bumpy that we needed to travel on to get to various waterfalls or the beach, but the camper van handled non-F gravel roads fine.

    Renting a camper van turned out to be a great thing for us. It rained one day we were there, so we didn’t have to brave that in a tent. It kept us warmer when we camped near the glaciers. It was actually really comfortable to sleep in. My husband is 6 feet tall and even he slept well. We got the smallest camper van Go Iceland offered. The camper van didn’t allow the driver seat to recline which was uncomfortable for my husband. But in general it was a great way to travel around Iceland. We declined the insurance offered by Go Iceland and went with the coverage offered by our Hilton Reserve card. That was the only card that we had that would cover a camper van. A few nights we stayed at camp grounds. The rest of the time we stopped where ever we wanted. Each town has a pool where you can pay to take a shower.

    As a side note, I’m a vegetarian and I didn’t have problems finding food. Most restaurants had at least one vegetarian option on the menu. It was an amazing trip! It’s definitely worth going! We started talking about going back even before we left Iceland!

  3. We used SADCars. Saved a whole lot of money over each of the options you listed above. The car wasn’t anything special (I think it was a 1984 Corolla – you’ll understand when you check out the company), but it ran well and got us where we needed to go. Didn’t need anything fancy and was about a third of the cost of the cheapest of all of the options above.

  4. Also, checkout Just returned from a 10 day trip from Iceland with a $99 Wow air flight and rented a car from Cars Iceland ( Got the best price on a new 4×4 during high season with unlimited miles, gravel protection, theft protection (not a problem in Iceland) and CDW/Super CDW insurance.

    I was quite happy with their service, price and coverage. Picked-up at the airport and they picked up the car return at our hotel for no extra charge. The communication was great as they were able to e-mail details back and forth as needed. I did my research and found very positive reviews of their service and my experience reflects what I read.

    I checked many different sites and Cars Iceland had the best pricing. I would surely rent from them again. FYI, if you go with a local company, be aware that some of them rent older model vehicles, so there might be issues with reliability. Iceland is an amazing place to drive around and so simple to go it on your own. 1,300 miles across 10-days and around every corner is an amazing view!

  5. It was my understanding that you can’t wave the Collision Damage Waiver when it is included for free from the local companies. Does anyone have experience with this? Thanks for the help.

    Guide to Iceland also has a car booking service that had competitive rates for automatics:

  6. We rented a jeep from ProCar in Iceland. They picked us up at the airport at 6:30 am and drove us back after returning the car. We had no problems with them at all. I took their rock insurance because I heard your car is guaranteed to get dinged up on those roads. It may have been unnecessary but it gave me peace of mind during the trip.

  7. I went with Rent-a-Wreck because they were the cgeapest I could find – about €50/day. The car we got was fine and tgeir service quite good – I would use them again.

  8. I went with Rent-a-Wreck because they were the cgeapest I could find – about €50/day. The car we got was fine and their service quite good – I would use them again.

  9. I went with Rent-a-Wreck because they were the cheapest I could find – about €53/day. The car we got was fine and their service quite good; I would use them again.

  10. I’m going to be in Iceland for a few days mid-October. I think my best bet is actually Sixt booked via Sam’s Club Travel because that not only includes unlimited mileage, it also adds the LDW coverage for free. For four days I could get their cheapest car for $120! Hard to beat that.

    I actually have you to thank for your post a few months ago re: the bonuses included booking Sixt via Sam’s Club Travel. I got my Sam’s Club membership super cheap via a Groupon deal–this just makes it even sweeter.

    Having never rented in a foreign country though, I’m curious about paying–am I going to be charged for the rental in the local currency (ISK) or in USD? You had said that Sixt charges for the rental up front, and the quote I’m getting on the Sam’s Club travel site is in USD–so I’m thinking it will be charged in USD. But if not then I should probably use one of my cards that doesn’t charge a FTF. Does anyone know for sure? I may call Sixt in the morning and ask.

  11. Car rentals are actually one of the MORE affordable aspects of visiting Iceland. I found the prices to be quite similar to those of Western Europe. I’d recommend looking at the various sites you mention and then calling AutoEurope and asking them to beat the rate. They generally will. I just followed the prices on kayak and then called AutoEurope. I paid less than $60/day for a large automatic 4-wheel-drive SUV. The vendor was ProCar, and they were excellent. Good vehicle and it included a GPS. While not absolutely necessary, 4×4 is a very good idea for most visitors exploring the island.

    BTW, I don’t think you’re correct about the need to decline partial CDW. As I understand it, if it’s already included in the rate, and you have an accident,. the credit card companies will pay your overage. In my case, I automatically received CDW with a deductible, and declined the option for a (more expensive) rate will full CDW.

  12. There is also another option worth mentioning. It is the peer to peer car rental in Iceland. During the high season I think you can find the best deals there. Some cars are also good deal for the low season but the conventional car rentals are getting quite competitive for the low season.

  13. Thank you for this most valuable information! We booked a trip and are going in September 2016. The price we got with Go Iceland is about 40% less than the other quotes we received for the intermediate car we were looking for.

  14. Another great company are we used them and they were very helpful.