Iceland car rental companies are everywhere, all competing for your business. Having so many options is great, but when everyone promises the best deals, it can be difficult to know which company is actually right for you.
So how do you choose? What do rental packages really include, which extras are worth paying for, and how can you tell if a rental company is reliable? Before you take out your credit card, here are the key things to consider when comparing car rental companies on Iceland.

Price: Look Beyond the Cheapest Deal
Price is usually the first thing travelers look at when choosing a car rental company in Iceland. Iceland is not a cheap destination, so getting good value for money matters. However, the best value does not always come from the lowest advertised price.
Some rental companies offer cheap daily rates but charge extra for essential items such as insurance or services. Windscreen insurance is a common example, and it can make a big difference to the final cost if it is not included.
At Firefly Iceland, our booking system is designed to be simple and transparent. You choose exactly what you are paying for and see the full price upfront, with no hidden charges. A credit card in the main driver’s name is required to complete the booking.
If you have questions, you can call us during office hours on (+354) 522 00 22 or email firefly@firefly.is and our local customer service team will be happy to help.

Do Your Homework: Read the Terms and Conditions
Every car rental company in Iceland has its own rules, and these are explained in the Terms and Conditions. While they may not be exciting to read, they are essential when comparing rental companies properly.
For example, a standard rule with many rental companies is that non-4×4 are not allowed on F-roads. These roads can be dangerous and require experience and the right vehicle. Knowing this in advance can influence whether a rental company fits your travel plans, especially if you are considering visiting the Highlands.
Understanding what a rental company expects from you as a driver helps avoid confusion and unexpected costs later.

Insurance: Compare Coverage, Not Just Cost
Insurance is something many drivers only think about after something goes wrong. Most Iceland car rental companies include basic coverage, but there are often exclusions, and these vary between providers.
One of the most strongly recommended add-ons in Iceland is windscreen protection. Gravel roads are common throughout the country, and loose stones regularly cause cracks or chips in windscreens. This can happen even on short drives and popular routes.
Without coverage, replacing a windscreen can be expensive. Choosing a rental company that clearly explains insurance options and exclusions makes a big difference to peace of mind during your trip.

Driving in Iceland: Understanding Road Restrictions
F-roads in Iceland lead to some of the country’s most remote and beautiful areas, but they are also the most challenging roads to drive. These require full attention, experience, and the right permissions from your rental company.
Not all rental vehicles are allowed on F-roads, and most car rental companies only permit certain vehicles to be used there. Rules differ between providers, so it is important to check this before booking.
A reliable rental company makes these restrictions clear during the booking process so you know exactly where you are allowed to drive.

Reviews and Customer Feedback
Reviews are one of the best ways to understand how a car rental company actually operates. They provide insight into pricing transparency, customer support, and how issues are handled in real situations.
At Firefly Iceland, we value customer feedback and use it to improve out services. If you would like to share your experience or photos from your trip, you can do so on Facebook or by tagging your images on Instagram with #fireflyiceland
FAQ: How to Choose a Car Rental Company in Iceland
- What should I look for when choosing a car rental company in Iceland?
Look for transparent pricing, clear insurance information, understandable Terms and Conditions, and reliable customer support.
- Is the cheapest car rental company always the best option?
No. The cheapest option may exclude important coverage or include hidden fees. Comparing total cost and policies gives better value.
- Why is windscreen insurance important in Iceland?
Gravel roads are common, and windscreen damage happens frequently. Coverage policies vary between rental companies.
- How can I tell if a car rental company is reliable?
Clear communication, transparent pricing, easy contact options, and consistent customer feedback are strong indicators.

Conclusion: Choose a Rental Company You Can Trust
Choosing the right car rental company in Iceland is about more than just finding the lowest price. Transparency, clear insurance options, understandable Terms and Conditions, and reliable customer support all play a major role in ensuring a smooth and stress-free trip.
By taking the time to compare rental companies properly and understanding what is included before you book, you can avoid unexpected costs and focus on enjoying your journey around Iceland. A trustworthy rental company should make the process simple, honest, and easy to understand from start to finish.
At Firefly Iceland, we believe that clear pricing, local support and straightforward policies help travelers feel confident on the road. When you know what to expect, picking up your rental car becomes the first easy step of your Iceland adventure.





