Welcome to Iceland! Renting a car at Keflavík International Airport (KEF) is a great way to explore the country, but knowing the pickup process, paperwork, costs, and local traffic rules can help make your trip smoother. In this article, you will find all the important information you need for a successful car rental.
Numerous international and local car rental companies operate at the airport. Pickup points are usually located within the airport building, near the baggage claim area, or in separate buildings. Most major car rental companies are present, such as Sixt, Hertz, Avis, Europcar, and Budget. It is advisable to check the exact location on your booking confirmation.
To suit Iceland's diverse landscapes, a wide selection is available. The most common categories are:
| Category | Daily Price (EUR, estimate) |
| Economy | 30-50 |
| Compact | 40-60 |
| Mid-Size | 50-80 |
| SUV (Small) | 80-120 |
| SUV (Large) | 120-200+ |
Prices may vary depending on seasonal changes and availability.
To rent a car, you generally need a valid driver's license (an international permit may be required if your license is not issued in Latin characters), identification (passport or ID card), and a credit card. Most car rental companies require a minimum age of 20, but higher age limits may apply to certain categories. A deposit is usually required at the time of booking and pickup, which will be refunded according to the terms and conditions. Cash payments are rarely accepted.
It is important to clarify the insurance terms. CDW (Collision Damage Waiver) covers collision damage, but generally does not cover tires, the undercarriage, or glass damage. Theft Protection provides protection against theft and vandalism. Excess Insurance reduces the amount of the deductible. It is advisable to ask the rental company what damages are not covered by the insurance and in what cases a deductible must be paid.
There are no toll roads in Iceland, but you have to pay to use some tunnels. Speed limits are generally 90 km/h on main roads, 80 km/h on gravel roads, and 50 km/h in towns. Parking in Reykjavík is often paid, and you must pay attention to parking regulations, as they are strictly enforced. In winter, driving conditions can be difficult due to snow and ice, so it is advisable to drive carefully and request winter tires.
If your driver's license is not issued in Latin characters, you probably will.
Most major credit cards are accepted, but it is advisable to inquire in advance.
Immediately call the police and the rental company's customer service.
No, but you have to pay to use some tunnels.
CDW is basic, but it is worth considering Theft Protection and Excess Insurance as well.
The deposit is usually paid by credit card and will be refunded at the end of the rental if there is no damage to the car.
Most rental companies require a minimum age of 20, but it may be higher for certain categories.
Parking is often paid, pay attention to the signs and parking regulations.
Not necessarily, but it is recommended in the interior and in the highlands.
Most cars use gasoline or diesel fuel, check the contract.
Immediately notify the rental company, as lateness may incur a fee.