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Car rental in Iceland — all-in, gravel damage covered

The Ring Road, the Golden Circle, the highlands: Iceland is a country made for driving. SunnVio arranges and compares your car or 4x4 at Keflavik, all-inclusive insured and with no excess, so you do not have to buy expensive gravel and windscreen packages at the counter.

Request your rental car for free
All-inclusive insured
No excess
Free cancellation until pick-up

Why arrange your Icelandic rental car through SunnVio

Iceland is the country where the insurance makes the difference. Gravel and wind cause more damage than anywhere else in Europe, and suppliers exclude exactly that damage as standard so they can sell you expensive extra packages at the counter: windows, windscreen, tyres, wheels, underbody. With us it is already included. You get one all-in price with a reliable supplier at Keflavik and drive off without buying extra cover.

What does a rental car in Iceland cost?

As a guide, all-in and for two weeks in October from Keflavik: a small car from around €600, a compact 4x4 such as a Dacia Duster or Suzuki Jimny from around €800, a mid-size 4x4 such as a Kia Sportage from around €950, and a large off-roader such as a Land Cruiser or Defender from €2,600. In summer prices are higher. Also budget for the distance charge (see below) and expensive fuel. Send us a free request and you will have a price for your dates within one day.

Pick-up locations in Iceland

Almost everyone collects the car at Keflavik airport, 45 minutes from Reykjavik; pick-up in Keflavik town or at your hotel is also possible. Other locations we arrange on request.

Keflavik Airport (KEF)Keflavik townHotel delivery KeflavikReykjavik (on request)

Popular routes: the Golden Circle and the south coast to Jökulsárlón (5-7 days), the full Ring Road (10-14 days), Snæfellsnes and the Westfjords.

Rental companies per airport

These are the rental companies you can book through our booking system at the main airports, with desk opening hours and phone number. Expand an airport.

Rental companies at Keflavík (KEF) – 23

Through SunnVio you can choose from 23 rental companies at Keflavík (KEF). 11 of them have their desk at the airport itself; 12 use a shuttle to a nearby office.

Rental companyPick-upDesk opening hoursPhone
AbbycarBlikavöllur 2, Keflavík, Suðurnesjabær, 235 At the airport (meet & greet) Daily 09:00–16:00 +3544197978
AvisKeflavik International Airport, Keflavik, 235 In the terminal Daily 06:00–01:00 +3545914000
BudgetKeflavík International Airport, Keflavík, 235 In the terminal Daily 06:00–01:00 +3545626060
EuropcarKeflavik International Airport, Keflavik, 235 In the terminal 24 hours a day +3544616000
Europcar IcelandKeflavík International Airport, Keflavík, 235 At the airport 24 hours a day +3544616194
GoldCarKeflavík Airport, Reykjanesbær, 235 At the airport 24 hours a day +3544616000
HertzFlugvellir 11, Keflavík, Reykjanesbær, 230 Shuttle to office / At the airport 24 hours a day +3545224430
PaylessKeflavík International Airport, Reykjanesbaer, 235 In the terminal Daily 06:00–01:00 +3545914000
SixtKeflavik International Airport, Keflavík, Suðurnesjabær, 235 At the airport Daily 05:00–02:00 +3545402222
SurPriceArnarvellir 4, 235, Keflavík, 235 At the airport (meet & greet) Daily 09:00–16:00 +3544197977
Test Supplier At the airport 24 hours a day –
Ace Rent a CarFlugvellir 20, 260, Keflavík, Reykjanesbær, 230 Shuttle to office (meet & greet) 24 hours a day +3545673000
AlamoFlugvellir 31, Keflavík, Reykjanesbær, 230 Shuttle to office (meet & greet) Daily 06:00–02:00 +3545199300
City Car RentalBogatröð 1, Keflavík, Reykjanesbær, 262 Shuttle to office (meet & greet) Daily 04:00–18:00 +3545115660
DollarFlugvellir 11, Keflavík, Reykjanesbær, 230 Shuttle to office 24 hours a day +3545224430
EnterpriseFlugvellir 31, Keflavík, Reykjanesbær, 230 Shuttle to office Daily 06:00–02:00 +3545199300
FireflyFlugvellir 11, Keflavík, Reykjanesbær, 230 Shuttle to office 24 hours a day +3545224430
Green MotionFuglavík 43, Keflavikurflugvollur, 230, Iceland Shuttle to office Daily 06:00–18:00 +3545511115
NationalFlugvellir 31, Keflavík, Reykjanesbær, 230 Shuttle to office Daily 06:00–02:00 +3545199300
Right CarsIðavellir 5a, Keflavík, Reykjanesbær, 230 Shuttle to office (meet & greet) Daily 04:00–18:00 +3545115660
RoutesBorgatrod 1, Keflavík, 262 Shuttle to office Daily 04:00–18:00 +3545115660
ThriftyFlugvellir 11, Keflavík, Reykjanesbær, 230 Shuttle to office 24 hours a day +3545224430
WheegoBogatröð 1, Keflavík Shuttle to office (meet & greet) Daily 04:00–18:00 +3545115660

Opening hours as provided by the rental company. Pick-up outside these hours is sometimes possible for a surcharge; the exact pick-up point and times are in your booking confirmation.

Source: our booking system. Last updated: .

What to know about renting a car in Iceland

Iceland has rules of its own and a new distance charge. Open whatever is relevant to you.

Which driving licence do I need in Iceland?
A valid European driving licence is enough; you must have held it for at least one year. An International Driving Permit is only needed if your licence is not written in Latin script. Bring your passport or ID card.
What is the minimum age to rent a car in Iceland?
With the suppliers we work with it is 23 for a 4x4 such as a Dacia Duster. For small cars the limit can be lower and for large off-roaders higher. Tell us your age when you send your request and we will find a car you qualify for.
How does the deposit and the credit card work?
The supplier blocks a deposit on a credit card in the main driver's name; for a Duster at Keflavik that is around ISK 84,000. Only genuine credit cards (Visa, Mastercard, American Express, Diners Club): no debit card, no prepaid card, no cash. If anything is charged after damage, we refund it within 30 days.
Am I fully insured, including gravel damage?
Yes. Liability, damage, theft and fire are in the price, with unlimited mileage, and we have bought off the excess for you. What matters in Iceland: damage to windows, windscreen, tyres, wheels, roof and underbody, exactly what suppliers there exclude as standard and sell expensive packages for at the counter, is covered with us. So are roadside assistance and towing. What is never covered anywhere: driving where you are not allowed to (off-road, a 2WD on an F-road) and crossing rivers; that is at your own expense.
How much do I pay in tolls and distance charge?
Since 1 January 2026 Iceland has a distance charge for every car, rental cars included: ISK 6.95 per kilometre in road tax plus a small administration fee from the supplier, together around ISK 8.70 per kilometre. The supplier reads the odometer and settles it on return; for a Ring Road trip of 1,500 kilometres expect well over ISK 13,000. Tolls exist in only two places: the Vadlaheidargong tunnel near Akureyri (ISK 2,216, to be paid online within 24 hours via veggjald.is) and the new bridge at Hofn (ISK 1,500, within 5 hours via spolur.is). Forget that and the fine reaches you through the supplier, with administration costs.
Which traffic rules are different in Iceland?
Headlights on at all times, day and night. Speed: 50 km/h in built-up areas, 80 on gravel roads and 90 on tarmac; 30 around schools. The alcohol limit is 0.2, effectively zero. Off-road driving is banned and fined up to ISK 500,000. Bridges are often single lane: whoever arrives first goes first. On gravel, lift off when meeting oncoming traffic; that prevents stone chips. In strong wind, hold your door with both hands; a door torn out of your hand is the most common damage in Iceland. Phone in hand: a fine of around ISK 40,000.
Do I need a 4x4, and what are F-roads?
For the Ring Road (Route 1), the Golden Circle, the south coast and Snæfellsnes an ordinary car is enough; those roads are paved. F-roads are the unpaved highland roads to Landmannalaugar, Thorsmork and Askja: there a 4x4 is required by law and they are only open from around mid-June to September. River crossings are never insured, not even with a 4x4. If in doubt, tell us your route when you send your request and we will advise the right type of car.
When is the best time to drive in Iceland?
June to August: long days, every road open, highest prices. May and September are cheaper and quieter, with roads still in good shape; F-roads are then often not yet open or already closed. October to April is winter: short days, snow and storms, roads that close without warning. A 4x4 with winter tyres is advisable then, and you check road.is and safetravel.is daily. Border crossings are not a subject on an island; one-way rental is possible for a surcharge.

Common mistakes you will not make with SunnVio

Read also: which insurance do you need? · excess explained · checking for damage at pick-up · do you need a credit card?.

Other destinations: Car rental in Canada · Car rental in France · Car rental in Portugal.

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