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Cheap Car Hire at Keflavik, Iceland

Cheap Car Hire at Keflavik, Iceland
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Debit Card Accepted
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Cheaper to Buy
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Hassle-free Experience
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Welcome to Keflavik: Iceland's Gateway to Adventure!

Welcome to Keflavik, the small yet mighty town located just 50 kilometers (31 miles) from Reykjavik, Iceland's vibrant capital. As the home of Keflavik International Airport (KEF), this charming town serves as the entry point for travellers looking to explore Iceland’s natural wonders, from glaciers and volcanoes to hot springs and geysers. Keflavik is a perfect base to embark on Iceland’s stunning road trips, such as the famous Golden Circle, or to venture further into the dramatic landscapes of the south coast, the Reykjanes Peninsula, or even the remote Highlands.


Keflavik Airport is well-equipped with various car hire services, allowing you to pick up your vehicle upon arrival and begin your Icelandic adventure right away. Whether you are exploring Reykjavik or taking a scenic drive along Iceland's Ring Road, having a rental car gives you the freedom to explore at your own pace, and is the ideal way to experience the country’s incredible beauty.


For exploring the capital and nearby attractions, a compact car is ideal. However, if you plan on venturing further into Iceland’s rugged terrain, a 4x4 or SUV is recommended to navigate through gravel roads, icy conditions, and volcanic landscapes.



Driving in Keflavik and Iceland

Driving in Iceland is relatively straightforward, but it’s important to be aware of the unique conditions you might encounter, especially in the winter months. Keflavik itself is a small and quiet town, but it provides the perfect access point to explore Iceland’s wider natural wonders. The country has well-maintained roads, but some routes, particularly in rural and remote areas, may be gravel roads or unpaved trails.


Start your journey by driving through Reykjavik, a modern city with a laid-back vibe and unique architectural charm. From there, you can venture out to some of the nearby natural wonders, such as the renowned Blue Lagoon, which is just a 20-minute drive from Keflavik. The Blue Lagoon’s geothermal waters are known for their healing properties, making it an ideal spot to relax after a long flight.


If you head west from Keflavik, you’ll find the Reykjanes Peninsula, a geothermal wonderland with volcanic landscapes, hot springs, and impressive lava fields. Don’t miss the spectacular Gunnuhver hot springs and the Bridge Between Continents, a unique spot where you can literally walk from the North American tectonic plate to the Eurasian one.



One of the main benefits of hiring a car in Iceland is the ability to explore beyond the usual tourist spots and enjoy the full range of this fascinating country’s natural beauty. Whether you’re drawn to towering waterfalls, dramatic coastlines, or the otherworldly beauty of volcanic craters, Iceland offers something for every type of adventurer.


Drive along the Golden Circle, a 300 km loop from Reykjavik that will take you to three of Iceland's most iconic sights: the Gullfoss waterfall, the Geysir geothermal area, and Thingvellir National Park, where you can witness the rift between the North American and Eurasian tectonic plates. This route can be done in a day, but take your time to stop and enjoy the breath-taking landscapes.


If you’re keen to explore Iceland’s southern coast, you can drive to the famous Seljalandsfoss and Skogafoss waterfalls, or visit the stunning black sand beaches of Reynisfjara near Vik. The views are awe-inspiring, and the black sand beaches are unlike anything you’ll see anywhere else in the world.


For a more remote experience, head further east to the Vatnajokull National Park, home to the largest glacier in Europe. Along the way, you’ll pass through stunning coastal cliffs, fjords, and fields of volcanic ash, making the drive a journey of its own.


If you're traveling in winter, be aware that weather conditions can be unpredictable. Roads may be icy or snowy, especially in the northern regions. A 4x4 vehicle is highly recommended during the winter months, as it provides better traction and stability on icy roads. Always check weather conditions and road closures before setting out, and make sure your rental car is equipped with the necessary winter tires.


Keflavik, Iceland

Population: Approximately 15,000 (Keflavik town)

Annual Visitor Figures: Over 2 million international visitors

Average Summer Temperatures: 10°C (50°F)

Average Winter Temperatures: -1°C (30°F)

Time Zone: GMT (Greenwich Mean Time)


Our Protection Levels for you
Basic protection
Basic
Market Standard
Basic coverage with standard experience
Coverage LevelLow
Credit Card DeductibleVery High
Additional Journey30+ mins
ExperienceExpect upsell & hassle
Credit Card NeededALWAYS
Plus protection
Plus
Exclusive to ReservAway!
Lower Deductible with an improved experience
Coverage LevelLow
Credit Card DeductibleMedium - High
Additional Journey30+ mins
ExperienceExpect upsell & hassle
Credit Card NeededALWAYS
Best protection
Best
Exclusive to ReservAway!
Zero Deductible with the best experience
Coverage LevelFull
Credit Card DeductibleZero
Additional JourneyZero
ExperiencePremium & Smooth
Credit Card NeededUsually NOT
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Protection Comparison

Hassle-Free Desk*
Credit Card Deductible
Cover Level
How to Claim
Protection Provider
Market Standard
ReservAway Exclusives
Basic protection
Basic
Plus protection
Plus
Standard protection
Standard
Best protection
Best
High
High
Low
None
Basic
Full
Partial
Full
N/A
Reimburse
N/A
N/A
Direct
3rd Party
Direct
Direct

*Hassle-Free Desk: The dreaded moment when the rental company hits you with upsells, extra inspections, or credit card dramas—turning what should be a quick pick-up into a drawn-out negotiation.


Third-Party Protection: What you need to know
Some companies might call it 'Full Protection' or 'Premium Protection', but we're here to tell you the facts.
Third-party protection does cover you fully against damage costs, just like our best product. However, the rental desk experience? That's still going to be the same as if you'd picked the basic option.
What is Third-Party Protection?It's an independent coverage that protects you from damage costs the rental company could charge. It works well but doesn't change how things go down at the rental desk.If you're interested in third-party protection, Rental Cover is our preferred partner. You can learn more or purchase coverage directly by visiting their website.
What is expected at the Rental Desk:Even with third-party protection, you'll still face the usual desk drama—deposits, credit card holds, and those upsell attempts. While you're financially protected, the hassle at the desk doesn't go away.We believe in keeping things clear: while third-party protection covers you well, the customer experience remains basic.
The Role of the Car Rental Company:Rental companies insure their cars, and they need you to either buy their protection or leave a deposit. Third-party protection takes care of the financial risks, but the rental company still holds the cards at pick-up.Want to avoid the hassle entirely? Read more about our Best Protection, which keeps both your wallet and your rental process smooth.

Why book with us?

If you're still unsure, see more reasons to book with ushere..
Shield check iconNo hidden fees. Ever.
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Tailoring Your Rental Experience
Understanding Your Needs
At ReservAway.com, we understand that every traveler is unique, and that is why we are dedicated to meeting your specific needs and preferences. Whether you are planning a family vacation, a business trip, or a weekend getaway, we are here to ensure that your car rental experience is tailored to suit you.
Tailored Recommendations
Our user-friendly platform allows you to input your travel dates, locations, and preferences, so we can provide personalized recommendations that match your requirements. Whether you prioritize price, convenience, or specific vehicle features, we'll help you find the perfect rental option.
Expert Guidance
Not sure where to start? Our team of car rental experts is here to assist you every step of the way. From selecting the right vehicle to understanding insurance options and navigating potential fees, we'll provide expert guidance to ensure that your rental experience is smooth and hassle-free.
Empowering Your Travel Experience
At ReservAway.com, we are dedicated to empowering you to make informed decisions and ensuring a seamless travel experience. With transparent pricing, comprehensive information, dedicated customer support, and by exclusively presenting options available directly at the rental car company's desk, we are here to assist you in maximizing your journey.
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Key Information to Help You Decide

Not sure where to start? Let us guide you through the car rental process, from start to finish:

Once you've searched for your dates and locations, consider these critical factors when selecting a car rental company:


Your Needs: Tailor your search to match your specific requirements for the journey. Use filters to narrow down options and ensure that the rental meets your exact needs.
Price: Compare prices from multiple suppliers to find the best deal that fits your budget. Our platform allows you to easily compare rates and choose the most cost-effective option for your trip.
Customer Scores: Check customer reviews and ratings to understand satisfaction with your chosen provider. Hearing from fellow travelers can provide valuable insights into the quality of service and overall experience.
Convenience: Evaluate the pickup and drop-off locations to ensure ease and accessibility during your trip. Choose locations that are convenient for your itinerary and minimize travel time to and from rental sites.

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What Do You Need to Pick Up the Car
To pick up your rental car, you'll need the following:
Car license icon
Driving license
A valid driving license in the name of the main driver.
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Identification
A passport or other form of identification.
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Credit card
A credit card in most cases is required in the name of the main driver with sufficient funds.
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Voucher
A printed Voucher or an e-Voucher, where available.

More Information Made Simple

Wondering about extras like additional drivers, one-way fees, reduced security deposits, or cross-border fees? we have got you covered. Our straightforward explanations and easy-to-use filters make renting a car a breeze.
Confused? Still have questions? Our friendly car hire advisors are here to assist you every step of the way. Get in touch, and we'll ensure everything is crystal clear for your rental experience. You can also click below to read more detailed explanations.

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