Iceland car rental decoded: What travellers wish they knew before booking

Let’s be honest: Iceland looks like another planet—in the best way. Black sand beaches. Glacier lagoons. Waterfalls you can walk behind. And the freedom of seeing it all at your own pace? That’s what makes self-drive road trips the most popular way to explore.

But before the adventure begins, you hit a wall:

“Which car rental company should I use in Iceland?”
Cue the Google spiral of stress.

You’re bombarded with options, upcharges, horror stories, and fine print. And it’s only after hours of research (and reading about someone’s €2,000 scratch fee) that you realize… you just want something simple. Something fair. Something that works.

This post is your shortcut. We’ve gathered the wisdom of past travelers—what they wish they knew before booking their Iceland car rental—and paired it with practical tips to help you get it right the first time.

1. Iceland’s beauty demands flexibility, so your rental should too

Want to chase the Northern Lights on a whim? Pull off for a photo of grazing Icelandic horses? Take a detour to a lesser-known geothermal pool?

That’s why most visitors rent a car. But not all car rentals give you the freedom to be spontaneous.

Many companies:

• Lock you into tight insurance terms
• Add huge deposits or hidden fees
• Penalize you for gravel, wind, or even opening your car door “wrong”

It’s no surprise that the top-rated rental companies in Iceland (like Zero Car Rental) do things differently. They simplify the process so the car enhances your trip—not overshadows it.

2. You don’t need a PhD to understand Icelandic rental insurance

Rental insurance in Iceland is notoriously confusing. Here's what most first-timers don’t realize:

• CDW (Collision Damage Waiver) doesn’t mean you’re fully covered
• Many policies still charge you an excess fee of €1,500+
• Gravel, ash, wind, and even sheep (yes, sheep!) might not be covered
• You’ll often be upsold coverage at the desk—when it’s too late to compare

That’s why smart travelers look for all-inclusive policies that leave nothing to chance. One customer summed it up best:

“Zero Car Rental’s no-deductible insurance was a game-changer. I didn’t worry once about where I parked or what the weather was doing.”

In other words: if your insurance has fine print, it’s not peace of mind.

3. KEF Airport pickups don’t need to feel like a bad spy movie

You just landed after a red-eye. You’re jet-lagged, hungry, and outside in Icelandic wind that slaps like a Viking.

Now what?

1. If you rented with a traditional agency, prepare for:
2. A long line at the rental desk
3. Paperwork you don’t understand
4. An attempt to upsell extra insurance you thought you already had

Now imagine instead:

1. Your car is already waiting
2. You receive a lockbox code via email
3. You walk up, unlock it, grab your keys, and drive off
4. That’s the Zero model. No lines. No nonsense. Just Land. Grab. Drive.

It’s why travelers mention our airport pickup as one of the most relaxing parts of an otherwise chaotic arrival day.

4. Winter driving isn’t scary with the right car—and support

Yes, Iceland in winter is magical. But road conditions can be brutal: ice, wind, snowdrifts that appear out of nowhere. Choosing the right vehicle isn’t optional—it’s survival.

Most travelers don’t realize this until it’s too late. They end up:

• Driving a tiny 2WD through a snowstorm
• Paying extra at the desk to “upgrade”
• Or nervously calling support… and getting voicemail

Our advice? Pick a 4x4 or AWD vehicle with winter tires included (as required by law). But more importantly, choose a company with 24/7 roadside assistance built into the price, like Zero does—no upsell, no deductible, no finger-pointing if something goes wrong.

If your plans include Ring Road, fjords, or any route in February: this matters.

5. EVs are not just for Reykjavík—and can save you a lot

Thinking about renting an electric vehicle in Iceland? Good news: you’re not alone, and you’re not crazy.

More travelers are realizing:

• Iceland’s electricity is 100% renewable (read: cheap)
• There’s a growing network of fast chargers, even outside major cities
• Many EVs now have excellent winter range and traction
• Zero’s EV fleet is already one of the most praised in the country, with options ranging from small hatchbacks to family-size crossovers.

And the bonus? You save on fuel (and emissions), without sacrificing adventure

6. What “great customer service” really looks like when you're in the middle of nowhere

• Here’s a scenario we hear all too often:
  You’re halfway around the Ring Road, in a foggy fjord, and a warning light flashes. You try to call your rental company, and… no answer.
• This is where customer service becomes more than a nice-to-have. It’s essential.
• That’s why renters talk about Zero’s support team like they’re old friends. Whether it’s:
• Helping you figure out if a road is safe
• Remotely unlocking your car if you misplace the key
• Or sending help within the hour—without extra fees

…you’re not alone on the road. And that’s worth more than any discount.

7. The best-kept secret of Iceland travel forums: just book early and book smart

Let’s pull back the curtain: Most online Iceland travel threads say the same thing when it comes to car rentals.

“Just book with someone who includes everything in the price. It’s not worth saving €50 to stress for a week.”

That’s exactly why Zero exists. It’s not the cheapest. It’s not trying to be. But it is the most hassle-free—and thousands of past renters have said as much.

Still skeptical? Run a quick search for “Zero Car Rental Iceland reviews.” See what people are saying. You’ll notice a theme: it’s easy, it’s fair, and it works.

Conclusion: If you want to explore Iceland freely, your car rental matters more than you think

Your rental car isn’t just transportation—it’s your freedom to roam, your shelter from storms, and your connection to places tour buses can’t reach.

So yes, choosing the right Iceland car rental is a big deal. But it doesn’t have to be stressful.

When you find a company that includes everything in the price—from insurance and roadside support to real human service—you get what every traveler wants:

Peace of mind. And more time to enjoy the road ahead.

Ready to start your Iceland journey the easy way?
Book now with Zero Car Rental and see why thousands of travelers wouldn’t rent with anyone else.