Are you thinking about renting a car in Iceland and are confused about what to know and what not to know? Well, I’ve put together this post to help iron out some of the details that you may need to know and give a little peace of mind before you hop into a vehicle on your trip to Iceland.
I’ll start off with a reminder that this post is not everything you will need to know about renting a car in Iceland as I’m sure you’ll receive more information once you get to the car rental vendor you choose. If you follow the tips that I picked up along the way, hopefully you’ll be able to get into your rental car with a lot more confidence on what to do and what not to do. I will also let you know that regardless of the information provided in this post, you are still solely responsible for reading all the fine print, the terms and conditions of the rental agreement, and responsible for all costs/charges incurred as a result of your own actions when renting a car while in Iceland.
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I’ve been to Iceland several times and have booked ground transportation in multiple ways. I’ve booked through a tour package, rented a car on my own, and also booked through bus companies when I arrived in Iceland. I suggest that if you’re independent like me and like to plan your own itinerary and go at your own pace, then renting a car would be the best way to get around in Iceland.
Do your research before you go
It’s best to do your price shopping and make your reservation before you get to Iceland. It will most likely cost you less money and you have more of a guarantee that you will be able to get into a car upon arrival. Granted there are still sometimes hiccups with reservations, reserving before you go is the best way to save money.
Some rental companies provide more coverage than others included in the cost of your rental, so make sure you see which coverages are included and which ones are optional.
Check with your credit card companies to see if they provide any insurance coverage while renting internationally. Some cards provide insurance benefits but may require you to decline the coverages offered by the rental car agency.
If you would like to search for cars before you go and are interested in a great selection and great prices, I’ve included a search form at the bottom of this post in order to to assist in booking your next car rental.
Credit Card HoldsÂ
Now that you’re full swing into your commitment to renting a car while in Iceland, I wanted to take a moment to talk about what you may have read or heard about large temporary holds that are placed on the car you use to rent a car in Iceland.
I had heard and read about people having huge temporary holds being put on their credit card or small credit checks on the card being used to verify that you have a large enough balance to support the temporary hold or deposit. I had heard that many rental companies holds were close to $2000+ € for a deposit. The hold can also be for the deductible in the event you opt to not get all of the additional optional insurances and end up return the car with damage.
This really depends on the rental company that you use. I personally did not experience a large hold on my credit card. I used Avis Iceland to rent while in Iceland. I again suggest that you read all of the documentation that you get in your email when you reserve the rental as some rental car companies may have information advising you to call certain numbers or go online to verify that your card is accepted and has the sufficient credit available to authorize that hold.
Your credit card company needs to be aware of the rental as well since often times it will flag in their systems if you’re charging something over the limit they have set to prevent fraud. They may already be aware that you’re outside the country but you may want to make sure that they are aware that the rental company may place a substantial hold on the card that you want to be allowed. So, call your credit card companies before you leave your home country!
Know what is included in the price
As I mentioned, not all rental companies are created equal. Some include basic insurance. Some companies make you pay extra for child car seats or GPS. Some companies do not give you unlimited mileage and may have you pay extra for excessive miles. Some companies charge extra if you bring the rental back after the pre-scheduled time you requested in your reservation. Check to see if the company you are renting from requires you to bring the rental car back with a full tank. Some companies offer an option to just prepay for gas/petrol so that you can bring the car back with whatever gas is in it and they will just charge you gas based on how much it costs for them to refill the tank. This might be a good option because gas stations are sparse in Iceland and everything is very far apart. The last thing you want is to not prepay for gas through the rental company and then you can’t find an open gas station close to the airport to fill up before you return the rental. I have an entire post coming up about the different types of insurance you can get when renting a car in Iceland.
The example below is what you might see before you book your rental:
If I have not already said it enough times, read the fine print & if you don’t understand anything, ask questions before you leave your home country.
Be aware that not all rental cars come with 4×4 and there are only certain roads that you can actually go on that are designated as off-road. For those from the U.S. or other countries where you are used to driving automatic transmission vehicles, most of the rental cars in Iceland are manual transmission a.k.a stick shift. So, when you make your reservation for a car from the Keflavik Airport or any other location in Iceland, make sure you select the option for an automatic transmission unless you know how to drive a manual.
For your own safety and protection
Once you actually get to the car in Iceland and before you drive away from the airport, I always recommend doing a walk around the car to look for damage. Most rental companies will give you a form to fill out if you find damage larger than a quarter. Some companies don’t offer the form unless you ask for it. It is better to document the damage before you leave the airport because in the event that the rental company makes a damage claim against, you will have paper or email documentation to prove that you notified the rental agency at initial notice. Make sure you mark any damage that is normally larger than a quarter on the form. I also recommend taking photos or a video of the damage as well so that you have evidence. If there is no damage, I still suggest taking photos of the interior and all the way around the exterior just for proof.
Take a photo of your starting and ending mileage so that if a claim is filed, the claim is not for damage caused by a renter after you. The mileage can be verified by your insurance company once the rental company’s damage claim comes in with an estimate. I have heard that some rental companies claim damage that was caused by renters who purchase the optional insurance coverages with renters who do not purchase the optional insurance. The rental company doesn’t want to have to make a claim using their own insurance, so it’s easier to blame it on a renter who didn’t purchase the optional insurance and has no proof that the damage wasn’t there when they took the rental car away from the airport. I don’t want to make you think badly about rental companies, but just make sure you document and keep proof.
If your rental car company gives you the option to get a GPS, I suggest that you get it. I know what you’re thinking and I’m sure many others have thought that the mapping app on their phone can assist but if you don’t have cell service then you’ll be like a duck out of the water. I suggest the GPS because when we rented, our GPS had built-in WiFi so we were able to save minutes/data on our phones by being connected to WiFi all day. It came in handy for checking in for Instagram photos or any other apps you want to check in to while on the road.
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Having WiFi or a solid signal also really can be great if you get caught in extreme weather or have an accident so you can call for help. It’s also smart to have cell service as a backup. If you need a SIM card before you go, I’ve had great success with Drimsim. I have also used OneSimCard Prepaid International SIM. Both give you the option of adding an additional amount to your balance or add additional data services on the go so that you can stay in communication. I like to be prepared before I leave on my trip. I know some people buy SIM cards once they land but I like to be able to just turn my phone on when the airplane gets to the gate and the captain turns off the fasten seat belt sign. My business and sanity will not wait for me to seek out a SIM card and sometimes some smaller airports don’t have access to SIM cards.
If you still have not made up your mind on what to see while in Iceland, I’ve linked a post I wrote before that might help you develop an itinerary to make your way around the island and get the most out of your trip. Please also take some time to check out the Harpa once you arrive in downtown Reykjavik.
If you’re looking for something a little bit more adventurous, why not try hiking on an actual glacier and doing a bit of ice climbing?
I will also have a guide coming up that will include information on what you should know before you actually drive in Iceland. So keep checking back for more information.
Any questions? Leave a comment please and thank you for reading!
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