Rental Cars in Iceland airport and Reykjavik: Blue Car rental Iceland

There are plenty of car companies at the airport to choose from. The myriad goes from the well-known ones, like Sixt, Enterprise, and Hertz, to local companies like Blue Car Rental Iceland. All of them offer a shuttle bus nearby the P2 parking, but if you prefer to walk, it’ll take you less than five minutes to their airport offices.

From the rental offices to Reykjavik is around 45 minutes with usual traffic. There are no tolls on the way. Another favorite option is to visit first the Blue Lagoon on the way to Reykjavik (a 20-minute drive from KEF Airport).

Some of the links on this post contains affiliate links. If you click through and purchase something we may receive payment. Although all these recommendations are based on our personal experience.

When we want to rent a car, we usually use one website to search for a vehicle with our preferences within different companies. The most used for us are Skyscanner and Rentalcars.

Are cars automatic in Iceland?

There are many filters you can check when you are looking for a car, but four of them are indispensable in Iceland:

  • Don’t forget to check cars with unlimited mileage. This will allow you to travel without distance restrictions.
  • Very important to check which type of car do you prefer, manual or automatic. There are automatic cars, but they are more expensive, and if you plan to go on the F-roads, we recommend getting a manual car. Some of the icelandic roads can be very challenging, so you would like to completely control your car engine. 
  • In Iceland, many roads are classified as F-road. You are only allowed to access this road in some specific cars (usually 4×4). We recommend using a 4×4 vehicle for visits outside Reykjavik, so you are not constrained to the sites you can visit. If you want to visit e.g., Dyrhólaey, Svínafellsjökull, or F570 in Snæfellsjökull, a 4×4 is recommended or mandatory.
Road to Dyrhólaey
Road 864 to Dettifoss (East Side)
  • Fuel Policy is something that you need to keep in mind. If you choose “same to same,” you need to agree with the rental company on the amount of fuel you need to bring back the vehicle. Gas stations work differently in Iceland; you should have a card with a 4 digit pin number or a gas station card for more of the stations. The gas company will hold a preselected amount of money from your card (we never choose more than 10 000 ISK). After the purchase, you will be charged just for the amount you use, and it can take time to see this reflected in your card statement. Have a look at this video for more tips.

Tip 1: The car price change depending on the number of days you choose. Check different alternatives before making a final decision.

Our experience with Blue car rental Iceland

We stayed in Iceland for seven days. Of these sevens days, we spent one day in Reykjavik. We came from Germany and Italy, and one of our flights was too late. So our first thought was to rent a car at the airport. Because of the considerable time difference between our flights, we decide to rent it in Reykjavik the next day. The next thing we noticed was that most car companies charge us an extra fee if we want to pick up the car directly in the city, except one, Blue Car Rental. Since they don’t work 24 hour, there is a key drop-off service out of working hours without any additional cost (just remember to take a car video or pictures at the beginning of the rental and after if you drop it without a personal inspection). So in the end, we pick up the vehicle in their city office and return it to the airport for no extra fee.We also found a discount code for this company which came perfect for our budget (If you want help searching for a code don’t hesitate to contact us). Additionally, free cancellation is possible, which is very important in these times. In conclusion, we pay 69795 ISK (~ 470 €/555) for six days with the included insurances.

Canvas Glamping

Tip 2: Together with the agent from the car company, you should do a thorough check out. This will prevent you from paying for any previous damaged. The best option is to take a video during the inspection.

All about driver’s license. How to drive on Iceland roads?

Do you know if your driver’s license works in Iceland? Do you need an international driver’s license? What if your driver’s license is not in Latin characters? For this other important information when renting a car in Iceland, keep reading:

  • Before traveling to Iceland, ensure you have a valid driver’s license. You need to have a valid license older than one year to drive on Iceland’s roads. Also, to rent a car, you need to be at least 20 years old for a passenger vehicle or 23 to rent a 4×4 or all-wheel-drive vehicle.
  • If you have a valid driving license with a license number, a photograph, a valid date, and in Latin letters, in that case, you won’t need an international license. If this is not the case, you will have to apply for an international license.
  • Do you know how to drive in Iceland? You need to check the transit rules in Iceland. This is very important since some roads can be challenging. It is common to find animals on the road (sheep actually outnumber people in Iceland!) and single-lane bridges. Sometimes you will need to drive under extreme weather conditions. Don’t forget to check the videos and flyers on website to better understand the rules, speed limits, and signs.
  • You can check website or Iceland Met Office for the weather condition and for road information (sometimes unusual weather conditions can lead to the close of some roads).
  • Many webcams at different points of the road shown the weather condition.
  • The most important is to avoid an accident and remember that fines in Iceland are costly, starting at 70 000 ISK (~ 475 €/565 $). There are several traffic cameras around the road.
  • Headlights are required around the clock while driving.
  • Install the Döff app to contact the emergency service if you need help, without calling.
  • You can submit your travel plan in so someone can reach in case of a problem.


The appropriate insurance for your car is a crucial topic that you need to consider. You would like to maximize your coverage, keeping your budget to the minimum. We spend a long time checking the insurance policies offered by the rental companies and evaluating if it was worthwhile or not to get one. Our decision: as we mentioned before, the Icelandic weather is unpredictable and dangerous sometimes, causing damage to the cars (flying doors are not uncommon), so we decided to take full liability coverage. We recommend you to do so and make cuts in other areas (e.g., shop in the supermarket and cook your meals). In this way, you can focus entirely on enjoying the scenic views. Blue Car Rental includes in the base price most of the insurances.


Camper-vans are another perfect way to visit Iceland. We will not cover this topic here. You can check Indie Campers and Camp Easy for more information. We consider renting a van, but because you need to park the van in specific camping areas that can be crowded sometimes, we decide to spend the nights in guesthouses.

For more ways to get to Iceland International Airport or Reykjavik, check our post: Best ways to get from Iceland International airport (Keflavik) to Reykjavik downtown. You will find there the most popular and well-known alternatives as well as the cheaper ones that most people don’t know.

Iceland the ultimate guide

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