How to rent a car in Iceland

Renting a car in Iceland may not be the cheapest way to explore the island (it's tough to beat hitch hiking) but it doesn't have to blow your budget. With public transportation being non-existent outside of the larger cities, like Reykjavik, renting a car gives you the freedom at a fraction of the cost when compared to the sightseeing tours sold at tourist information centers. Below are six ways to save money on your Iceland car rental:

Check online: Often the best deals on Iceland rental cars can be found online. We are able to cut the cost by nearly half by booking our rental car through Hertz.com; instead, of renting it from a tourist center. It was also cheaper to book it online compared to renting the car in person from Reykjavik. One of the cheapest rental car companies we found was SADcars.com. If you book online through their website, they offer a 15% discount.

Get your rental car at Keflavik International Airport: The airport is located approximately an hour from Reykjavik, so in order to get to the city you can either pick up your rental car at the airport or pay $20-$25 each way to get to and from the airport on the shuttle bus.

Get to know your vehicle: The longer you keep the rental car the cheaper it becomes.

No need for extra insurance: When we rented our car, the agent recommended that we didn't need the theft insurance because car thefts in Iceland are low.

Gas is pricey: One thing not to overlook is the cost of gas in Iceland. Petrol in Europe is more expensive and it is sold by the liter not the gallon. In Iceland, gas cost approximately $5 per gallon.

The Low Down: Sept. 1 in Iceland signals the beginning of the low season, which runs until May 31. Renting a car in Iceland becomes even cheaper during that time. And by cheaper I mean $35/day vs. $85/day - it's a HUGE price difference. This is something we wish we knew ahead of time because we rented our car on 8/31 and found out about the price difference after we returned it on 9/1. Bummer.


Looking for more tips for visiting Reykjavik. Stop by Randy Kalp's site where you can find out all about camping in Reykjavik and other destination ideas.

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