There is some money to be saved by renting a car in Iceland from a smaller local company instead of the bigger ones. PIC Andrei!

There is no shortage of car rental companies in Iceland. In fact tons of new start-up agencies have surfaced these last couple of years. But where do you get the very best deal?

Indeed, prices vary somewhat and for those with less to spend it will undoubtedly be worth it to make a price comparison.

Basically the big international agencies, Avis, Europcar and Hertz will be most expensive here whilst the least expensive are the small local companies few have heard of. Naturally the big ones have larger fleets and more selection of vehicles and services are often much better.

Very roughly put prices for compact or medium-sized car for 24 hours in high season will put you back approximately 160 to 220$ / 135 to 180€ with the bigger companies. Higher still with insurance and pickup from airports. For lesser known companies you can possibly get away with a similar type of car for 145 to 200$ / 125 to 170€ per day.

Team Total Iceland urges you to take out extra insurance. Car agencies here play hardball regarding any dents, scratches or damages to cars and the roads in general are horrible. Double that for roads in the highlands where roads are sometimes nothing but dirt tracks. Do photograph the car extensively before you take off should you have any disagreement with the rental agency. A smart idea is to video the car before acceptance on your smartphone if you have such a thing. Also keep in mind you will need a 4×4 vehicle to drive on highland roads.

Take theft insurance if you want but the likelihood of that happening in Iceland is a snowball in hell. As we have covered before unless you are scared to death of traveling you do not need any GPS-system. The Icelandic road system is as simple as Forrest Gump.

Below is a list, not exhaustive, of smaller local car agencies in or around Reykjavik area. Those are, on average, cheaper than the bigger ones and not necessarily worse options than the larger international ones. In some cases even better with more personal services.

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