Iceland Rental Car Tips - 5 Things to Know BEFORE You Book

Rental cars in Iceland can be expensive, so I am sharing 5 things you need to know before you book that will save you money (possibly $300 or more), time, and understanding of the rental car process here.

Here is my Ultimate Guide to Renting a Car in Iceland:
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If you enjoy my content on YouTube, then you'll love the fun content I make on Instagram & TikTok. I share often about Iceland travel inspiration, observations of the culture, and more.

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Make sure you have the right clothing packed for Iceland by grabbing my Free Ultimate Packing Checklist. It has comprehensive lists of winter and summer essentials to wear here.

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Want a gorgeous authentic Icelandic Sweater like mine? Shop here for one:
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Are you a company that wants to work with me: Send me an email at jewells(at)allthingsiceland(dot)com
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All Things Iceland podcast
Hear interviews with natives and ex-pats that dive deep into Icelandic history, language, nature, and culture, as well as learn new Icelandic words and phrases.

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Time Stamps
00:00 Introduction
00:22 Process to rent a car in Iceland
01:35 Best time of year to rent a car in Iceland
04:02 The right car for your adventure in Iceland
05:33 Is extra insurance necessary?
09:09 Mileage limits - Read the fine print
10:31 The Ultimate Guide to Renting a Car in Iceland

[beachyTravels]

I just used your code and saved over $100 🥰 Whoo hoo! thank you

[camhabibi]

Based on personal experience, you need to be extra careful around other drivers especially tourists. When we parked at Vik black sand beach, the tourists next to us didn't hold their car door firmly and the wind slammed it into our rental car. It happened 5 or 6 times before I had to say something. They didn't seem to mind that their rental vehicle was damaging our rental vehicle.

[darriendastar]

This was really, really, really good nuts-and-bolts advice that most guide books to a country would overlook. Thank you for i) thinking about it and ii) taking the time to make this video. It's much appreciated.

[AngieRomero]

I'll be in Iceland for a week starting this saturday. Your insta and youtube videos have been unbelievably helpful, thank you!!!

[seelo]

Thank you! I’m planning on going to Iceland next year and this is very helpful

[PD-vsvf]

Love this channel. Thank you so much for the tips! 😘

[robbybobby]

Thank you so much!! very useful information.

[imsbvs]

I purchased top up insurance in the UK prior to travelling, and made sure I had insurance against damage caused by gravel and sand & ash damage of the paintwork. On my first trip (in August) I had a manual car (in fact I hired two cars on this trip), the second trip I went for an automatic 4 wheel drive car with studded tyres (October) and unlimited mileage.

[happymack]

💕Thank you! I hope you’re having a splendiferous autumn 😊

[tobe]

When I visited, I used Blue Car rental, by the airport. They also included the 3 different insurance, and unlimited miles. They also gave me a chip (I’m sure that’s the incorrect word 🙈) on the keychain that gave me a gas discount. They also offered a specific type of optional insurance (don’t remember the name of it) that takes care of everything the other insurances didn’t cover and all I had to do was make sure the gas tank was full upon return. I had zero issues with them and wouldn’t mind using them again.

Maybe you could do a video on purchasing gas in Iceland (how to read and use the gas pump), and the reasons why they may possibly hold funds, when paying by card, and for how long. That was an interesting experience for me, and I was thankful that I was able to budget for that.

Love all your videos and I can’t wait to visit again!! I want to visit in the winter time, my next time. I just know the island would be beyond gorgeous! I’m doing my research, now, on things to do to stay safe and keep the environment safe and protected.

[tacrewgirl]

Thanks Jewels for the helpful information.

[HrRezpatex]

It does not always work for different reasons, but when i can i rent a car from private people, that truly save you a lot of money.
In many of the East European countries i have visited i do that with both homes and cars.
The problem with that is that you usually need to get to know someone there first, so for the first week or so, you are pretty much stuck with a hotel and rental car companies..
But when i for example visited Ukraine, renting a room from private people was not a problem even if you did not know anyone, because it was so many that did it, that most people knew someone that was willing to do this. With cars it took a bit longer time to establish trust..

When it comes to renting room private, that also often give you inside local experiences that you normally would not get as a common tourist at a hotel. 🙂

[MsMorganGirls]

My daughter and I had an unexpected 6-hour flight delay during our layover in Iceland. Instead of sitting around the airport, we rented a car and drove around. It was very cool. We didn't go too far astray. Sketchy internet (no Google Maps) and the map wasn't to scale or easy to read. It was only $100-ish for the day. Definitely worth it--we saw Blue Lagoon, which was amazing, along with the Viking Museum.

[stephrainspirite]

We were so happy to see our tires studded when we rented our car a few weeks ago :)

[katalinfulop]

Thank you for the 10% Coupon code ! Saved me $68 !

[geetarz]

If you’re renting in the winter, do a full check of the vehicle before you leave the rental location. We made the mistake of renting from Enterprise at the Reykjavik Bus Station, and all the cars are sat outside… I fully defrosted our Land Rover Discovery, but the wipers had already been damaged by previous drivers, meaning they hardly touched the windscreen. Low sun, and lots of road spray made for a horrible driving experience. The cruise control also broke on day 1. We returned it the same night and got switched to a Jeep Wrangler that had no screen wash in it!

Definitely avoid that depot - there are 3 rental companies there, all storing their cars in sub-zero temperatures with what seems to be a single garage failing to maintain them.

[rachwsj]

hello (: love your content so much! could I check if there's any trustable recommended private tour guides/tour packages for a week long in Iceland? thank you!

[Radaos]

I am arriving in Iceland next Monday for the Airwaves Festival. Rented a car with your discount code. Thanks Jewells!

[antonday]

Hey Jewels would you mind doing a video describing all the road signs in Iceland? I was there in May and was taken aback by the beauty. Most of the road signs were understandable, but the signs at the end of peoples drives were different.

[sunilthapa]

Nice Video! is the insurance mandatory when we check in at the car rental there?