It wouldn’t be fair to say that Iceland is the most beautiful country in the world, but the breathtaking natural landscapes of this Northern European country make it a place we should all consider visiting at least once in our lives.
As opposed to other countries in Europe, there’s no train in Iceland, as well as not that many buses available.
However, its highways and roads are an adventure on their own, and you will find incredible surprises on your ride (such as horses!) making it a great opportunity to rent a car with one of the many car rental companies in Iceland and witness what this island has to show.
It is never an easy task to decide on a car rental company, and surprisingly, the options for renting a car in Iceland are abundant, with the most familiar international names, as well as several local options that are worth considering.
Whether you want to rent a car at Keflavik Airport, in Reykjavik, or ride a road trip in Iceland to visit Akureyri, Húsavík, Vík í Mýrdal, Seyðisfjörður, Siglufjörður, Kópavogur, or Selfoss, we have created the Ranking of the Best Car Rental Companies in Iceland in 2023 to help you choose your next car rental booking, which, by the way, you can do easily and at the best price on this website.
#1 – Lotus Car Rental (9.6/10) 🏆
Lotus Car Rental is a popular option for local car rental companies in Iceland which claims to offer transparent services, with no fees more than the ones stipulated at the moment of renting a car.
Their fleet offers all of the cars most people would need for a good ride in Iceland, from small cars to move around Reykjavik, to 4×4 vehicles to travel almost any road on the Icelandic highlands.
Their office is located at the Keflavík International Airport, where you can pick up your car as soon as you land in Iceland to start your adventure, or you can request them to drop off your car at any location both, in the cities of Reykjavik and Keflavík without having to pay any extra fee.
A company that might be appealing for its transparency at the moment of setting fees, might be a concern, especially for those new to car rental companies.
Lotus Car Rental customer ratings:
- ⭐ Excellent cleanliness of the car
- ⭐ Excellent service at the rental desk
- ⭐ Very quick pick-up process
- ⭐ Very quick drop-off process
- ⭐ Excellent overall value for money
#2 – Hertz (8.5/10) 🥈
When deciding for a company to rent a car in Iceland, choosing the local options is important and it’s worth doing so. But there’s nothing wrong with relying on the most popular international companies, such as Hertz.
Hertz is a heavyweight in the car rental industry, and they count with offices in several countries in the world, being Iceland yet another of their locations, and they do a very work here.
Hertz Iceland, a franchise of Hertz, has been operating independently on the land of ice and fire for over 50 years with 13 rental locations across the country. Won the World Travel Award for ‘ Iceland’s leading car rental company for the fifth time in the year 2022, Hertz Iceland has once again delivered a promising ‘report’ in their service and rental cars.
As a company with offices focused on Iceland, they do count with a fleet of a small, medium, and large sizes of 2WD and 4×4 vehicles, as well as campers and minibusses for those travellers wanting to be one with the Icelandic landscape.
If you travel often, and you have found yourself using Hertz for your car rentals, and especially if you are a member of their rewards program, you might want to keep getting more points by continuing to choose Hertz for your Icelandic adventures.
Hertz customer ratings:
- ⭐ Excellent cleanliness of the car
- ⭐ Excellent service at the rental desk
- ⭐Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Very good overall value for money
#3 – Lava Car Rental (8.5/10) 🥉
Founded in 2016, Lava Car Rental is a local family-owned car rental company offering brand new and reliable cars in Iceland at affordable prices. Their fleet consists of a wide range of economy cars, 4WD/SUVs, and campervan rentals in Iceland.
Their main office is conveniently located just a few minutes’ drive from Keflavik International Airport and they offer a free shuttle service for pick-ups and drop-offs at the airport. They also offer delivery in Reykjavik for a supplement.
If you are planning an adventure trip to Iceland, Lava Car Rental is specialized in 4×4 vehicles, both SUVs and campervans, that are suitable to drive on the Highlands F-roads, gravel roads, and Iceland’s winter weather conditions.
The company is known for its transparency: there are no hidden fees, has extensive knowledge about Iceland, and provides excellent customer service before, during, and after the trip. They are also convenient as they accept credit cards and debit cards.
Lava Car Rental customer ratings:
- ⭐ Very good cleanliness of the car
- ⭐ Excellent service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ⭐ Very good overall value for money
#4 – Blue Car Rental (8.4/10)
Blue Car Rental is an Icelandic car rental founded in 2010, and as many car rentals in the country, it is located near Keflavík International Airport, within 300 meters of its entrance, but they also offer services in the capital Reykjavik.
Their fleet of cars is varied, with a wide range of vehicles to choose from, which can get you covered for everything you might be planning to do during your trip to Iceland.
If you will mostly be staying in Reykjavik, there are options on small cars, perfect for a family or a small group; but for those wanting to visit as much as they can, then a 4×4 vehicle will most likely be necessary for this adventure, and you will probably have more than one option available for rent.
Their main office is near the Keflavík Airport, approximately a 4 minutes walk from the airport, but they do offer an airport shuttle service which will take you to their office to pick up the car. They also have offices in the capital Reykjavik, as well as in the city of Keflavík.
Overall, a very good local company that knows the Icelandic landscape well enough to offer the best cars for your trip, and overall good customer service and locations at the most visited places in the country.
Blue Car Rental customer ratings:
- ✔️ Very good cleanliness of the car
- ⭐ Excellent service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Very good overall value for money
#5 – Camping Cars (8.1/10) 
Iceland is such a beautiful country, with a landscape so impressive, that it would be hard to only stay in Reykjavik. This is why so many people decide to get a 4×4, rooftop tent, and go camping along the breathtaking Icelandic roads.
This is precisely what Camping Cars, another local Icelandic company, aims to help with, by offering the best vehicles for people wanting to do more than just ride the regular roads.
They are located at 5 minutes from the Keflavík International Airport, and an employee will wait for you at the airport on your arrival, for you to sign the paperwork and get your vehicle, and they also offer a shuttle to the airport once you have delivered the car free of charge.
If you are planning to take a different kind of vacation, really becoming part of the road, and staying at the wonderful Icelandic highlands on a comfortable rooftop tent, then Camping Cars might be the company you are looking for.
Camping Cars customer ratings:
- ✔️ Good cleanliness of the car
- ⭐ Excellent service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Very good overall value for money
#6 – Iceland Car Rental (8.0/10) 
This company with a very self-descriptive name is another very popular option among the many local car rentals available in Iceland.
Iceland Car Rental’s main office is located at the Keflavík International Airport, which makes it convenient for you to pick up your car as soon as you arrive in Iceland, but they do have an office in the capital Reykjavik, and they also offer a shuttle service from the airport to their parking lot.
Additionally, this company allows you to drop off your car in two towns: Akureyri and Egilsstaðir for a fee, which might be convenient for those staying at any of these places.
Overall, Iceland Car Rental is a solid option, with experience and a good reputation, which can be another option to consider when deciding for a company to start your adventures in Iceland.
Iceland Car Rental customer ratings:
- ✔️ Very good cleanliness of the car
- ⭐ Excellent service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Very good overall value for money
#7 – SIXT (7.9/10)
Sixt Rent a Car, founded in 1912 in Munich, Germany, is one of the largest car rental companies in Europe and a leading car rental company worldwide.
Today it operates in more than 100 countries, with more than 2200 car rental offices around the world, and of course, also in the main locations in Iceland.
Sixt provides luxury, premium, convertible, and family cars as well, but at a fair price. Its fleet in Iceland features Toyota, Hyundai, Opel, Chevrolet, Ssangyong, Suzuki, Nissan, BMW, Volkswagen, and more premium car brands.
Sixt is an efficient and speedy car rental service in the country. It helps you choose the right car for you. Sixt has a luxurious fleet of modern cars and, thus, affordable gas mileage.
Another thing is that it has friendly 24-hour customer service with multilingual staff. So, you do not need to worry about anything at all. When you pay on arrival, it provides you with free cancellation. It is good because you can change your mind at any time.
Sixt customer ratings:
- ✔️ Very good cleanliness of the car
- ⭐ Excellent service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Very good overall value for money
#8 – Mex Rent a Car (7.6/10)
Mex Rent a Car is a company founded in 1994 based in Mexico. Mex Rent a Car offers its customers a wide network of service centers strategically located in the main cities, airports, tourist areas, and urban zones of Latin America, is now in an expansion period and is already present in many European countries, and of course, also in Iceland.
The company’s mission is to offer the best cars at the lowest price, having in its fleet recent models and a great variety of categories, from economy to SUVs and VANs; and its service is oriented to all types of customers, from tourists to executives on business trips and/or local customers.
Mex customers rated:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#9 – Avis (7.5/10)
Another famous company among the international car rentals which offer good services in Iceland is Avis Rent a Car, and they have several offices around the island, including one at the Keflavík International Airport, in the capital Reykjavik, and in other major cities such as Akureyri.
Avis in Iceland does make sure to provide a service that is adequate to the particularities of the Icelandic geography, counting with a fleet with 4WD or 4×4 cars to ride the Icelandic highlands.
They offer a free shuttle service in central Reykjavik which can be convenient, and if Avis is your car rental company of choice anywhere else in the world, you can still use the benefits of their rewards program on the island, which might be important for you.
Avis customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#10 – Europcar (7.4/10)
Europcar is another world leader in car rental, and of course, is also present at all major locations in Iceland, including Keflavik International Airport.
With over 60 years of experience in the car rental sector, Europcar guarantees good service and offers a wide variety of cars to meet all rental needs.
Its main objective is to satisfy the needs and expectations of each and every one of our clients and provide them with the best service available at all times, helping to make their visit to Iceland as pleasant and memorable as possible.
Europcar customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Very good service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#11 – Lagoon Car Rental (7.2/10)
For a very young, familiar Icelandic car rental company, yet a solid option that really looks after customer safety and comfort, Lagoon Car Rental is a great option that many happy travelers have been given an opportunity to, and have had a good experience.
This company is surprisingly young, founded in 2015 with a small fleet of cars. But they have grown steadily, and grew their fleet with a variety of campers, for those who cannot resist the landscape of the Island and would like to camp on the road.
As it is the case with most Icelandic car rentals, Lagoon offers a wide variety of vehicles, from small cars to move around Reykjavik and other cities, as well as 4×4 to really travel Iceland, including studded tires to safely ride the Icelandic winter.
Lagoon Car Rental’s main location is at the Keflavík International Airport where pickups are free of charge, while pickups at their office in Reykjavik charge an extra €59 fee, which is included on all of their rentals.
They also offer a shuttle service in the cities of Keflavík and Reykjavik in any part of the cities.
This is a solid local car rental option, which a few years of existence may surprise when compared to the decent fleet and good customer service. The extra fee if you want a pickup outside of the airport might be inconvenient, but most travelers prefer to pick up and return to the airport.
Lagoon customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Very good service at the rental desk
- ⚠️ Slow pick-up process
- ⚠️ Slow drop-off process
- ✔️ Very good overall value for money
#12 – RAS Car Rental (7.2/10)
RAS Car Rental is a local company that was founded in 1985. It has a good reputation, with reliable cars of the latest models and no hidden fees.
They specialize in 4X4 and SUV rentals, although they offer cars of all sizes and types, from small, economical cars to the larger, more comfortable 4X4s, SUVs, Vans, and Minivans.
They usually deliver rental cars to Hafnarfjordur, about 10 km south of Reykjavik, but they also offer delivery and return at Keflavik Airport.
RAS Car Rental customer ratings:
- ✔️ Very good cleanliness of the car
- ✔️ Very good service at the rental desk
- ⚠️ Slow pick-up process
- ⚠️ Slow drop-off process
- ✔️ Very good overall value for money
#13 – Interrent (7.2/10)
Interrent is a subsidiary branch of Europcar
Interrent customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Very good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#14 – Geysir / Route1 (7.1/10)
Geysir is an Icelandic family business founded in 1973 in Keflavík. Today Geysir is one of the largest car rental companies in Iceland and also owns the ROUTE1.IS
Geysir offers a wide range of new vehicles, from 1 to 3 years old, of all sizes and types, from small cars to SUVs, trucks, and motorhomes. With the rapid renewal of the fleet, Geysir can minimize pollution and customer quality as much as possible.
They also offer electric cars for the short or long term. Perfect for companies and individuals, inviting you to participate in the ecological transition of mobility.
Geysir / Route1 customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Very good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#15 – Procar Car Rental (7.0/10)
Procar is a local car rental company in Iceland founded in 2009 which enjoys a lot of popularity when it comes to renting a car in Iceland. Their office is located near to the Keflavík International Airport, and they offer a free shuttle service from the airport to their office.
When it comes to offices available, it might feel rather limited, but if you plan to get your car when you arrive at the airport, and drop it off the day you are leaving, this might not be inconvenient.
Their prices are one of the things that attract customers the most, as they offer good deals, and have 4×4 vehicles available to get to the beautiful Icelandic highlands.
When travelling to Iceland, Procar is certainly a company worth considering among the many local options available, as you might find the best deal for your trip. Do consider that you’ll need to pick up and drop off at the Keflavík Airport only.
Procar customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#16 – Icerental 4×4 (7.0/10) 🥉
Founded in 2013 Icerental 4×4 is a family-owned local car rental company that has grown considerably in its six years of existence. This company does exactly what its name suggests: offering the best 4×4 vehicles for people to travel around Iceland safely and comfortably.
Their main office is located near the Keflavík International Airport and they offer a quite convenient airport shuttle service for free, which will take you to their office in the city of Keflavík.
Optionally, they can also deliver your car for a fee anywhere at Reykjavik, you just need to provide the address or the accommodation where you are staying in, and you’ll get your car.
Depending on where you would like to get to on your trip to Iceland, a 4×4 vehicle will be the best option, if not the only viable one, and for this case, Icerental 4×4 might be the way to go.
Icerental 4×4 customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#17 – Enterprise (6.8/10)
Enterprise Rent-A-Car is another international car rental company offering its services in Iceland. Like most international companies operating in Iceland, their main office is at the Keflavík International Airport, as well as two locations in the capital Reykjavik: BSI Bus Terminal and the Skarfabakki Harbour.
This is a company with a very high reputation in the US, which might make you want to consider them for your trip to Iceland, which among other things, will allow you to continue to get points if you are affiliated with their rewards program.
Overall, Enterprise is a very good international car rental company that offers services in Iceland. Choosing them might be especially a good idea for those who are clients of Enterprise, and would like to get their services on their trip to Iceland.
Enterprise customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ✔️ Quick pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#18 – Firefly (6.8/10)
Firefly is a subsidiary branch of Hertz. They offer a wide range of cheap rental cars in Iceland, specializing in cheap medium-sized 4WD SUV rental.
Firefly customer ratings:
- ✔️ Good cleanliness of the car
- ✔️ Good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#19 – Budget (6.8/10)
Budget is a subsidiary branch of Avis
Budget customer ratings:
- ⚠️ Cleanliness of the car should be better
- ✔️ Good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#20 – Icerentalcars (6.5/10)
Icerentalcars is a family-owned car rental in Iceland. Our main goal is to provide excellent and personal service to all our clients.
They are offering car rental service both in Keflavik Airport and in Reykjavik city, in a good range of new cars, vans, and minivans in different sizes and styles, from the most reliable car brands, such as Volkswagen, Toyota, Suzuki, Nissan or Land Rover, to meet the requirements for your holidays in Iceland.
Icerentalcars customer ratings:
- ⚠️ Cleanliness of the car should be better
- ✔️ Good service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ✔️ Good overall value for money
#21 – GLOBAL Rent-a-Car (6.1/10)
GLOBAL Rent-a-Car is a German company with an attractive offer and good value for money, as its prices are fair and transparent, without hidden charges or additional costs.
Like all other suppliers, it offers all kinds of vehicles from all ranges.
GLOBAL Rent-a-Car customer ratings:
- ⚠️ Cleanliness of the car should be better
- ⚠️ Poor service at the rental desk
- ⚠️ Slow pick-up process
- ✔️ Quick drop-off process
- ⚠️ Overall value for money could be better
#22 – Green Motion (5.9/10)
Green Motion is a car rental company focused on low-CO2 cars, hybrid cars, and full-electric cars.
It has received numerous prestigious awards and prizes praising its work within the car rental sector, especially for the use of eco-friendly technology.
On our website, you can book at the best price with Green Motion all kinds of models and categories of various manufacturers such as BMW, Toyota, Nissan, Citroen, Lexus, Volkswagen, Mercedes Benz, or Audi.
Renting a car with Green Motion gives every leisure and business traveler the opportunity to help us reduce CO2 emissions by renting a car and enjoying the best rates and service.
Green Motion customer ratings:
- ⚠️ Cleanliness of the car should be better
- ⚠️ Poor service at the rental desk
- ⚠️ Slow pick-up process
- ⚠️ Slow drop-off process
- ⚠️ Overall value for money could be better
#23 – Payless (5.7/10)
Payless is a subsidiary branch of Avis
Payless customer ratings:
- ⚠️ Cleanliness of the car should be better
- ⚠️ Poor service at the rental desk
- ⚠️ Slow pick-up process
- ⚠️ Slow drop-off process
- ⚠️ Overall value for money could be better
#24 – FairCar (5.1/10)
FairCar Iceland is a family-owned car rental company founded in 2011, and established on the principles of honesty, integrity, and loyalty. Its mission is to rent quality cars at fair prices and satisfy all customers. As well as creating long-lasting relationships and repeat customers.
According to customers’ opinions, their cars are old in relation to other companies, although they are clean and well maintained.
FairCar customer ratings:
- ⚠️ Cleanliness of the car should be better
- ⚠️ Poor service at the rental desk
- ⚠️ Very Slow pick-up process
- ⚠️ Slow drop-off process
- ⚠️ Overall value for money could be better
We hope you liked this article. Now you can continue reading our article about the differences between Avis, Budget, Hertz, Europcar, Payless, Sixt, Thrifty, Dollar, Alamo, National, and more, or use our search engine below to book your car.
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