Keflavik Airport Car Rental: Everything You Need to Know

The Shuttle

Most rental operators — including Go Iceland, Enterprise, and Sixt — maintain facilities near rather than inside the terminal. After collecting your luggage, exit through arrivals, find your rental company's shuttle stop, and wait 5–15 minutes for pickup. Go Iceland's location is approximately 3 minutes from the terminal, with complimentary coffee service during check-in.

What You Need to Bring

• Driving licence held for a minimum of one year
• Credit card in the driver's name (debit cards are not accepted)
• Booking confirmation
• International Driving Permit if your licence is not in the Roman alphabet

Minimum driver age is 20 for standard cars; 23–25 for larger 4×4s. Budget £200–£500 for the security deposit hold, which is released when you return the car undamaged.

Standard 2WD (Economy/Compact)

Suitable for the Golden Circle, South Coast to Vík, Reykjavík vicinity, and summer Ring Road driving (May–September). A Toyota Yaris or similar handles 90% of Iceland's tourist routes. The Ring Road is entirely paved, as are access roads to major waterfalls. Cost: £40–£70/day in peak season.

SUV/4×4

Legally required for F-roads (highland routes like F35, F26, F208), the Westfjords, Kerlingarfjöll, Landmannalaugar, and all winter driving (October–April). A 4×4 is not optional for F-roads — it is a legal requirement. Cost: £80–£150/day depending on model.

Campervan

Go Iceland offers manual and automatic 2–4 berth campervans equipped for Iceland's climate. Wild camping is prohibited but official campsites provide facilities nationwide. Cost: £100–£200/day (factor in accommodation savings against hotel costs).

Realistic Cost Breakdown

Standard 2WD for one week in July: base rate £350 + CDW £120 + gravel protection £70 + additional driver £50 = £590 total.

4×4 SUV for one week in February: base rate £700 + Super CDW £180 + sand and ash protection £70 + winter tyres (included) = £950 total. Add £150–£250 for fuel, giving £750–£1,200 all-inclusive per week.

• CDW (Collision Damage Waiver) — mandatory and included: Reduces liability for rental car damage. Typical excess £1,500–£2,500. Does NOT cover tyres, windscreens, or undercarriage damage — Iceland's three most common claims.
• GP (Gravel Protection) — highly recommended: Covers windscreen and paint damage from flying stones, extremely common on Iceland's gravel approach roads. Cost: ~£10/day. Without it: £400–£800 liability for a new windscreen.
• SCDW (Super CDW) — optional: Reduces excess to zero for collision damage. Cost: £20–£30/day. Recommended for nervous drivers or anyone who wants zero financial risk.
• SAAP (Sand and Ash Protection): Protects against volcanic sand and ash damage. Essential for winter and spring travel.

Speed Limits and Enforcement

• 50 km/h in built-up areas
• 80 km/h on gravel roads
• 90 km/h on paved roads

Iceland uses automated speed cameras extensively. Fines are sent to rental companies who will charge your card plus an admin fee of £50–£100.

Weather and Road Conditions

Check road.is and en.vedur.is (Icelandic Met Office) before every drive. Roads can close with hours' notice due to snow, ice, or volcanic activity. Weather changes rapidly — clear skies can become whiteout conditions in 30 minutes.

Fuel Strategy

Never let your tank drop below one-quarter full. Vast distances between stations exist in the Westfjords and Highlands. Most stations are unstaffed and require a credit card with PIN. Diesel is cheaper and more widely available for larger vehicles.

Single-Lane Bridges

Iceland has hundreds of single-lane bridges. The vehicle closest to the bridge when both approach has right of way. Approach slowly due to narrow dimensions and limited visibility.