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ICELAND TRAVEL GUIDE

Best Car Rental in Iceland (2026 Guide) – Why We Always Recommend Blue Car Rental

Updated

by Icelandic Adventure

One of the biggest decisions you’ll make when planning an Iceland road trip is choosing the right car rental company.

Your hire car isn’t just transport—it’s your ticket to exploring waterfalls, glaciers, black sand beaches and everything else Iceland has to offer.

After multiple trips around Iceland, including driving the entire Ring Road, we’ve rented cars ourselves and spent countless hours researching the best options.

Our recommendation?

Blue Car Rental.

Here’s why we continue to recommend them for anyone planning an Iceland adventure.


Why Choosing the Right Rental Company Matters

Hiring the cheapest car isn’t always the best decision.

In Iceland, your rental company also needs to provide:

  • Reliable vehicles
  • Good customer support
  • Fair insurance options
  • Clear pricing
  • Fast collection and return

When you’re hundreds of miles from Reykjavík, knowing you’ve hired from a reputable company provides real peace of mind.


Why We Recommend Blue Car Rental

We’ve always had excellent experiences with Blue Car Rental.

From collecting the vehicle at Keflavík Airport to returning it at the end of our trip, the whole process has always been straightforward.

Some of the biggest reasons we recommend Blue include:

  • Local Icelandic company.
  • Modern fleet.
  • Collection at Keflavík Airport.
  • Reykjavík collection option.
  • Online check-in.
  • Key box collection for faster pick-up.
  • A wide choice of vehicles, from small city cars to 4x4s and SUVs.

Our Experience

We’ve used Blue Car Rental for several Iceland adventures and they’ve always provided clean, modern vehicles that were well prepared for Icelandic conditions.

Whether we’ve been exploring the South Coast, driving the Golden Circle or completing the Ring Road, we’ve always found the cars comfortable, reliable and easy to drive.

Having a dependable vehicle means you can simply enjoy your holiday without worrying about unnecessary stress.


Which Car Should You Hire?

The best vehicle depends on the time of year.

Summer

If you’re visiting between May and September and sticking to the Ring Road, Golden Circle and South Coast, a standard 2WD car is usually more than enough.


Winter

If you’re travelling between October and April, we’d strongly recommend choosing an SUV or 4×4.

Snow, ice and strong winds can make driving much more challenging during winter.


Highlands

Planning to drive Iceland’s famous F-roads?

You’ll need a suitable 4×4 vehicle, as standard cars are not permitted on these mountain roads.


Insurance

One of the biggest questions people ask is:

“Do I need extra insurance?”

Every rental includes mandatory insurance, but Iceland’s unique road conditions mean it’s worth understanding the available cover before you travel. Blue Car Rental offers different protection packages that can reduce your financial liability if something goes wrong.

Things to think about include:

  • Gravel damage
  • Windscreen chips
  • Sand and ash damage
  • Theft protection
  • Roadside assistance

Our advice is simple:

Read the policy carefully and choose the level of cover that matches where and when you’re travelling.


Collection at Keflavík Airport

One thing we really like is how convenient collecting your vehicle is.

Blue Car Rental offers:

  • Airport collection
  • Online check-in
  • Self-service key collection

This means you can often get on the road much faster after landing.


Is Blue Car Rental Good Value?

In our opinion, yes.

They may not always be the absolute cheapest option, but we’d much rather pay slightly more for:

  • Reliable vehicles.
  • Excellent customer service.
  • Transparent pricing.
  • A smoother experience.

When you’re spending thousands on an Iceland holiday, choosing a trusted rental company is well worth it.


Our Exclusive Discount

We’ve partnered with Blue Car Rental because it’s the company we genuinely recommend.

By booking through our affiliate link, you’ll receive 5% off your rental, and it also helps support Icelandic Adventure at no extra cost to you.

🚗 Book your Blue Car Rental here:

https://www.bluecarrental.is/?affiliate=IcelandicAdventure


Planning a Ring Road Adventure?

If you’re travelling for a week or more, you might also want to consider a campervan.

We completed our own Ring Road adventure with CampEasy, and it completely changed the way we experienced Iceland.

Our readers also receive an exclusive FREE Easy Start Pack.

🚐 Book your CampEasy campervan here:

https://campeasy.com/?tap_a=107011-a856e5&tap_s=8902128-1989f0


Stay Connected

Having reliable mobile data makes driving around Iceland much easier.

We constantly use it for:

  • Google Maps
  • Weather forecasts
  • Road conditions
  • Fuel stations
  • Aurora forecasts

We always travel with Saily eSIM.

📱 Save 10% here:

https://go.saily.site/aff_c?offer_id=101&aff_id=15717


Frequently Asked Questions

Is Blue Car Rental based in Iceland?

Yes. Blue Car Rental is one of Iceland’s best-known locally owned car rental companies and has been operating for over 15 years.


Can you collect your car at Keflavík Airport?

Yes.

Airport collection is available, making it easy to begin your road trip shortly after landing.


Should I book in advance?

Absolutely.

During summer, vehicles can sell out months ahead, especially SUVs and campervans.

Booking early usually gives you the best choice and pricing.


Is Blue Car Rental popular?

Yes. It’s consistently one of the most recommended local rental companies among Iceland travellers and has a strong reputation within the travel community.


Final Thoughts

Choosing the right rental company can make or break your Iceland road trip.

After exploring Iceland on multiple occasions, we genuinely believe Blue Car Rental offers one of the best combinations of reliability, customer service and value.

Whether you’re planning a weekend exploring Reykjavík and the Golden Circle or an unforgettable two-week Ring Road adventure, having a dependable vehicle allows you to focus on what really matters—discovering one of the most incredible countries in the world.

If you’re ready to start planning your Iceland adventure, we wouldn’t hesitate to recommend Blue Car Rental.

Happy driving!

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