Car Rental at Keflavik International Airport (KEF) – Pickup, Prices, and Local Driving Tips

Picking up a rental car at Keflavik International Airport is a popular way to start your Icelandic adventure. The process is generally straightforward, but understanding the costs, paperwork, and local driving conditions beforehand will make your trip smoother. This guide covers everything you need to know about renting a car at KEF, from choosing the right vehicle to navigating Iceland’s unique roads.

Finding Your Rental Car

Rental car desks are typically located within the arrivals hall of the airport. You’ll find representatives from several companies offering a range of vehicles. Most operate desks inside the terminal, while some may offer shuttle services to off-airport pickup locations. Common rental companies at Keflavik include well-known international providers. Allow ample time for paperwork and vehicle inspection, especially during peak season.

Choosing the Right Vehicle

Iceland’s terrain is diverse, so your vehicle choice matters. Here are ten popular options:

1. Economy Cars: Ideal for budget travelers and city driving.
2. Compact Cars: A good balance of affordability and space.
3. Standard Cars: Comfortable for longer journeys on paved roads.
4. Intermediate SUVs: Offer higher ground clearance for gravel roads.
5. Full-Size SUVs: Provide ample space and capability for families or groups.
6. 4x4 SUVs: Essential for exploring the Highlands and challenging terrain.
7. Minivans: Perfect for larger groups or families needing extra space.
8. Luxury Cars: For those seeking a more comfortable and stylish experience.
9. Convertibles: Enjoy Iceland’s scenery with the top down (weather permitting!).
10. Campervans: A popular option for independent travel and exploring remote areas.

Here’s a general idea of daily price ranges (prices change by season and availability):

Important Rental Details

To rent a car in Iceland, you’ll generally need a valid driver’s license, a credit card in the renter’s name, and a passport. The minimum age is typically 20, but some companies may require renters to be 23 or older. A security deposit is standard, and the amount will be held on your credit card. Payment methods are usually major credit cards; debit cards are often not accepted.

Insurance is a crucial consideration. Collision Damage Waiver (CDW) is often included, but it usually has a high excess (the amount you pay if damage occurs). You can reduce this excess by purchasing additional insurance. Theft Protection is also available. Carefully review the terms and conditions of each insurance option and ask the rental agent to explain any unclear points.

Driving in Iceland

Icelandic roads can be challenging. While the Ring Road (Route 1) is generally well-maintained, many roads, especially in the Highlands, are gravel or unpaved. Speed limits are typically 90 km/h (56 mph) on paved roads and 80 km/h (50 mph) on gravel roads. Be aware of sheep and other animals crossing the road, especially in rural areas. Tolls apply to certain tunnels; these are usually automatically charged to your rental car. Parking in Reykjavik can be limited and expensive; look for designated parking areas and pay attention to parking regulations.