Renting a car in Iceland is relatively expensive; it may well be worth arranging a car in advance over the Internet or through your travel agent, who may be able to offer a better deal. A typical price for a compact car without insurance is around IKr 7,000 per day, with 100 km (62 mi) free, plus about IKr 50 per km, or about IKr 13,000 for a compact with unlimited mileage and all insurance. A four-wheel-drive vehicle for rougher roads will cost about IKr 14,800 per day, with Collision Damage Waiver (CDW) and 100 km (62 mi) included plus IKr 100 per km. There are many car-rental agencies in Iceland, so it is worth shopping around for the best buy. If you plan to explore the interior, make sure you rent a four-wheel-drive vehicle. As elsewhere in Europe, many car-rental agencies provide cars with standard transmission unless you specify automatic (which shouldn't cost extra).
Avis, Budget, and Hertz operate offices in the Leifur Eiríksson Terminal at Keflavík Airport. Hasso Car Rental is also a competitive car-rental option. SG Car Rental specializes in larger vehicles, and SS Car Rental provides a discount to members of the U.S. military who present their military ID.
Budget (Vatnsmyrarvegur 10, 101. 562-6060. www.budget.is.)
Hertz (522-4420 Both Airport and Reykjavik Desks.)
Hasso Car Rental (Smiðjuvegur 34, Hafnarfjörður, IS-200. 555-3330. www.hasso.is.)
Saga Car Rental (Keflavík Airport, Blikavollur 3, Keflavík. 515-7110. www.sagacarrental.is.)
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