Renting a car is one of the best ways to explore Iceland beyond Reykjavík. It gives travellers the freedom to follow their own itinerary, stop at viewpoints and reach places that are difficult to access by public transport.
However, choosing a rental car should involve more than finding the lowest daily price. The vehicle, insurance, payment conditions, company reputation and pick-up process can all affect the experience.
Choose the Right Vehicle for the Season and Route
The right vehicle depends on the time of year, itinerary, number of passengers and amount of luggage.
A small two-wheel-drive car is often suitable for Reykjavík, the Golden Circle and the South Coast during summer. For winter journeys, longer road trips or areas such as the Westfjords, a larger SUV or four-wheel-drive vehicle may provide greater comfort and stability.
Travellers planning to visit the Highlands must select a vehicle specifically approved for F-roads. Not every SUV is permitted on these mountain roads, which are generally accessible only during summer.
Luggage space should also be checked carefully. A vehicle may fit five passengers but not five large suitcases. A company with a varied fleet makes it easier to find the right option. Lava Car Rental, for example, offers economy cars, 4x4s, campervans, electric vehicles and luxury models.
Whatever the season, travellers should monitor weather and road conditions and allow time for possible delays.
Check the Age and Condition of the Vehicle
The age and condition of the vehicle can affect reliability, comfort and fuel efficiency.
Older rental cars generally have higher mileage and may be more likely to experience mechanical issues or show signs of wear. Newer vehicles are more likely to include modern safety and convenience features such as rear-view cameras, Bluetooth and Apple CarPlay or Android Auto.
Travellers should check the listed model, features and luggage capacity, and confirm whether they are booking a specific model or simply a vehicle from the same category.
A well-maintained older car can still be suitable, but choosing a company with a modern fleet, regular maintenance and clear quality standards can provide greater reassurance.
Look Beyond the Headline Price
The lowest advertised rate is not always the best value.
Travellers should check whether the price includes unlimited mileage, taxes, airport-related fees and basic insurance. Additional charges may apply for extra drivers, younger drivers, equipment or broader protection.
It is also important to understand how Iceland’s kilometre-based road tax is charged. Depending on the company, it may be included, added as a daily fee or charged separately.
Cancellation conditions should also be reviewed. Flexible bookings may cost more but offer greater peace of mind if plans change.
A reliable company should display the main charges clearly before payment. Benefits such as unlimited mileage and no young-driver fees can also make a meaningful difference to the final cost.
Understand the Insurance
Insurance is especially important in Iceland, where gravel roads, strong winds and sand or ash can cause costly damage.
Travellers should compare the excess, included protection and exclusions rather than choosing a package based only on its name.
Lava Car Rental includes third-party liability, collision damage, theft and gravel protection as standard, with an excess of 150,000 ISK. Customers can upgrade to Full Protection, which adds sand and ash and tyre protection and reduces the excess to zero for damage covered by the package.
However, no protection covers every situation. Damage caused by negligence, driving through water, wind catching an open door, underbody impact or driving in prohibited areas may remain excluded.
Customers should therefore read the rental agreement carefully and understand what is and is not covered.
Check Payment and Deposit Requirements
Payment conditions vary between rental companies.
Some providers require a credit card in the main driver’s name, while others accept debit cards under certain conditions. Travellers should also check whether the company places a security hold on the card, as this can reduce the available balance during the trip.
Some companies offer rentals without a traditional security deposit. Lava Car Rental also accepts debit cards when Full Protection is selected, which can be practical for travellers who prefer not to rely on a credit card.
Check the Company’s Reputation
Before booking, travellers should review the company on independent platforms such as Google and Trustpilot.
The overall rating is useful, but recent reviews often provide a clearer picture. Look for repeated comments about vehicle condition, transparent charges, pick-up efficiency, communication and how problems are handled.
No busy rental company will receive only positive feedback. What matters is whether complaints are isolated or form a recurring pattern. The way a company responds to negative reviews can also reveal its professionalism.
Review the Pick-Up and Return Process
Travellers arriving at Keflavík International Airport should check whether the rental office is inside the terminal, within walking distance or reached by shuttle. Opening hours are particularly important for late-night or early-morning arrivals.
Customers should receive clear instructions about the meeting point, required documents and what to do if their flight is delayed.
Lava Car Rental operates near Keflavík Airport, offers a free shuttle service, and provides online check-in for eligible direct bookings.
The return process should also be clear, including where to return the vehicle, how much time to allow and how to reach the terminal.
Focus on Overall Value
Choosing a rental car in Iceland is about balancing price, vehicle suitability, age, insurance, convenience and company reputation.
A slightly higher daily rate may offer better value when it includes unlimited mileage, suitable protection, a modern vehicle and straightforward airport arrangements. The cheapest option can quickly become more expensive once essential extras are added.
For travellers looking for a broad fleet, practical payment options, clear insurance options, and local experience, Lava Car Rental is a strong option to consider.
With the right vehicle and realistic planning, driving can become one of the most enjoyable parts of a trip to Iceland.