2025’s Best Car Rental Iceland: 10 Reasons to Choose a Local Company

If you’re planning to rent a car in Iceland in 2025, congratulations—you’re about to embark on one of the world’s most spectacular road trips. From the jaw-dropping waterfalls to black sand beaches and steaming geothermal areas, Iceland was made to be explored on four wheels. But before you book, one big decision can dramatically impact your experience: should you rent from a global brand… or go local?

At Zero Car Rental, we believe the answer is clear. Here are 10 compelling reasons why choosing a local car rental company in Iceland isn’t just smart—it’s essential.

1. Zero's KISS: Keep it Super Simple - with real help, real fast

Here’s the truth: Iceland’s epic landscapes come with equally epic challenges. Sudden weather changes, gravel roads, and isolated stretches are all part of the adventure. That’s why you need support that’s local, responsive, and doesn’t make things complicated.

At Zero Car Rental, we keep it super simple (KISS). If something goes wrong on the road, you call—we help. No paperwork. No confusing hotlines. No waiting to find out how much it’ll cost. Why? Because:

• Roadside assistance is included in every rental
• There’s zero deductible—meaning even if you need a tow or help starting your car, it won’t cost you a thing
• You speak to real people based in Iceland, who know the roads and weather in real time

With many global rental companies, you’ll find that “roadside assistance included” actually means “included… unless you use it.” They’ll often charge per incident—whether it’s for unlocking your doors, changing a tire, or getting towed. At Zero, our promise is in the name: zero stress, zero surprises. Whatever happens, we’ll be there—and you won’t be hit with extra fees for getting the help you need.

Bonus tip: Before hitting the road, it’s smart to check the Icelandic Road and Coastal Administration at Umferdin.is. This official site provides real-time updates on road closures, driving conditions, and live webcam feeds across the country—perfect for planning a safe, stress-free route.

2. Transparent pricing with no hidden fees

Many international rental companies lure customers with flashy low prices, only to pile on fees later for essentials like insurance, roadside support, or even mileage.

Local companies like Zero believe in clear, all-inclusive pricing. All our rentals come with full insurance and zero excess, unlimited mileage, and no security deposit—so you know exactly what you’re paying for, and what you’re not.

Want to see how much you’ll save? Just use the search bar on our homepage to check live rental prices; what you see is exactly what you pay.

3. Full insurance with zero excess included

Driving in Iceland can be a dream, but unpredictable weather, narrow gravel roads, and roaming sheep mean insurance is non-negotiable. Many travellers don’t realize that big-name rental companies often include only the basic Collision Damage Waiver (CDW)—leaving you with a sky-high deductible in case of damage or multiple complex options that will turn your rental into a luxury affair.

At Zero, we include full coverage with zero excess in every booking. That means no stress, no arguments, and no surprise charges on your credit card weeks after your trip ends.

Learn more in our guide: Why renting a car in Iceland with Zero is the best decision

4. Seamless pickup from Keflavík Airport

Many local rental companies offer faster, more efficient pickup options than traditional counters. Zero Car Rental leads the pack with our keybox pickup system at KEF Airport. You land, grab your luggage, get your code, and pick up your car—no lines, no waiting, no paperwork.

Whether you're arriving late at night or during peak hours, our fully automated system means your rental process takes just minutes. It’s part of our promise to make car rental in Iceland a zero-stress experience.

Explore how it works: Ultimate guide to Keflavík Airport: Land, Grab, Drive

5. Real reviews from real travellers

Local companies know the power of word-of-mouth. At Zero, we don’t rely on global brand reputation—we earn our trust every day, one customer at a time. That’s why we’re proud of our consistently 5-star reviews, many of which you can read directly on our website.

Unlike aggregator sites filled with complaints and unresolved claims, we offer full transparency. What you see is what you get.

6. Flexibility and personalization

Big companies are often rigid. Local companies? Agile. Need to tweak your pickup time, get advice about your itinerary, or upgrade to a 4x4 last minute? You’ll get a much better response from a team that’s actually in Iceland, understands local conditions, and can make decisions on the spot.

That local flexibility makes all the difference, especially when traveling in Iceland, where weather and plans change fast.

Safety reminder: Before heading into remote areas, visit SafeTravel.is, Iceland’s official source for alerts and emergency travel information. You can check weather warnings, submit your travel plan, and get safety tips tailored to the season and region you’re exploring.

7. Better vehicles for Icelandic conditions

Let’s be honest: a tiny city hatchback isn’t going to cut it on a windy gravel road in the Westfjords. Local companies stock cars that are specifically suited to Icelandic conditions, from 4WD SUVs with studded tires in winter to fuel-efficient hybrids perfect for the Ring Road.

Zero’s fleet is built for Iceland—whether you’re exploring the South Coast, chasing waterfalls in the North, or heading into the Highlands.

Check out our guide: Car rental Iceland: The ultimate guide for international travellers

8. More sustainable, less corporate

Choosing a local business is good for Iceland’s economy, plain and simple. You’re supporting a company that pays local taxes, employs local staff, and contributes to Icelandic communities—not one that funnels revenue to foreign shareholders.

At Zero, we’re also working to reduce emissions by expanding our fleet of electric and hybrid vehicles, and by offering smarter logistics that reduce waste and idle emissions—without passing those costs onto customers.

Driving tip: Iceland’s weather changes quickly—sometimes hourly. Always check Vedur.is, the official site of the Icelandic Meteorological Office, for accurate weather forecasts before setting out for the day. It’s an essential tool whether you’re heading to the Highlands or taking it easy around the Golden Circle.

9. No-pressure, no-upsell experience

If you’ve ever rented from a major international brand, you’ve probably endured the dreaded counter upsell—where the clerk tries to scare you into buying extra coverage or GPS you don’t need. At Zero, our entire model is based on minimalism and clarity.

There are no extras, no confusing packages, and no pressure. Everything you need is already included in the price—zero hassle, maximum fun.

Curious how we’re different? Read: Zero hassle, maximum fun: The best way to car rental Iceland in 2025

10. Better value for your money

Last but not least, local doesn’t mean expensive. In fact, once you factor in the extras most international companies charge for—insurance, second drivers, roadside support, and mileage limits—you’ll often find local companies like Zero offer better value overall.

Plus, many local companies (ours included!) offer discount codes and seasonal offers, especially for those who book early or pay upfront.

Not sure what to expect? This guide breaks down everything: How much does it cost to rent a car in Iceland?

Need travel inspiration? The official Visit Iceland site is packed with ideas and guides for every type of traveler. Combine their recommendations with Zero’s flexibility and you’ve got the perfect self-drive combo for 2025.