There is actually one main mode of transport by car. There are no railways, buses rarely run and only in some locations cycling the weather is not very good here.
If you don’t want to rely on hitchhiking throughout your trip to Iceland, then you will probably need to rent a car.
But renting a car can be one of the most expensive items in your budget, probably right after spending on accommodation.
Therefore, I recommend everyone to book a car in Iceland as soon as possible, because during the season the cheapest cars will quickly disappear from the offers and the most advantageous ones are then quickly occupied.
In Iceland, there is the possibility of renting a car from the locals, but even here the offer of cars is limited and vehicles at the lowest prices are at least for July and August for longer periods already occupied.
But if you have nothing else left, then you can use the GuidetoIceland.com website to compare prices from individual rental companies in Iceland and possibly book a car through them.
In the offer you will find most Icelandic rental companies and their cars, so you can choose from the smallest Toytota Yaris cars with front-wheel drive, through the popular Dacia Duster with 4 × 4 drive to the large Toyota Land Cruiser or camping vans.
However, it may not be the best method to decide on the basis of price alone. The quality of Icelandic car rental companies is not always the same.
I’ve heard stories of car rentals charging tourists high sums for vehicle damage that has often been there before. Alternatively, they intentionally increase prices in the event that something happens to your car and you are not covered by insurance.
Therefore, I would recommend that you always take a picture of the car when it is handed over, so that you can see what condition it was in, and you then had evidence in hand that you can use.
The most famous car rentals in Iceland?
The most famous Icelandic car rental companies (if I do not take into account global brands such as Avis, Budget or Hertz) are probably Blue Car rental.
This rental is recommended in all Facebook groups for tourists heading to Iceland and only exceptionally was someone not satisfied with them.
Rentals such as:
Lotus Car rental
Geysir car rental
Car insurance in Iceland
If you look at car rental prices in Iceland, then you may be thinking that they are not as high as they say everywhere.
However, these prices are without the extra insurance that is necessary in Iceland in many cases. And even with insurance, the final price can reach thousands of crowns for renting a car per day.
A common car insurance is insurance against sand, which can scratch the car in strong winds. Gravel protection insurance is similarly used, because many of the roads in Iceland are not paved and you only drive on gravel, which can of course damage your car.
On the contrary, insurance that you will almost certainly not use in Iceland is theft insurance. Thefts are really rare outside the capital and you can often see that the locals (especially in winter) leave the car in the parking lot and go shopping.
Car rental on a debit card
In Iceland, most car rental companies are ready to rent a car on a credit card. In this case, you do not have to pay a deposit or extra insurance, because if something happens to the car, the money will be deducted from your card.
Read more: Car rental in Iceland for a debit card
However, if you do not have a credit card, car insurance may cost you a little more expensive, because in the conditions it may be necessary to pay premium insurance or pay a deposit, which can easily be worth CZK 10,000 or more.
For this reason, you should always read the terms and conditions of the company and, if necessary, call or write them an email and make sure that they can lend you a car even without a credit card.
Car rental for under 25 years
Some car rental companies have additional information in the conditions, which concerns the age of the driver. If you are a young (and inexperienced driver), you may not want to rent a car at a classic Icelandic rental company.
Fortunately, this does not apply to car rentals from locals through Carrenters, so you can try your luck there