Rental car desks at Keflavik International Airport (KEF) are Car rental desks are located in the arrivals hall on the ground floor. Many budget providers operate from off-site lots with free shuttle buses that depart from outside the terminal. Look for your company's shuttle sign at the pick-up area.. Major companies include Blue Car Rental, Lotus Car Rental, Hertz, Europcar. The fastest transfer to Reykjavik is by Flybus (45 minutes).
Car rental desks are located in the arrivals hall on the ground floor. Many budget providers operate from off-site lots with free shuttle buses that depart from outside the terminal. Look for your company's shuttle sign at the pick-up area.
Book your rental car at KEF at least 2-3 weeks ahead for the best prices, especially during summer.
Compare prices from all companies at KEF to find the best deal:
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| Transport | Duration | Cost | Notes |
|---|---|---|---|
| Flybus | 45 minutes | EUR 25 (ISK 3,499) | Direct to BSI bus terminal in Reykjavik; hotel drop-off option available |
| Airport Direct | 45 minutes | EUR 23 (ISK 3,200) | Alternative bus service to Reykjavik with hotel connections |
| Taxi | 45 minutes | EUR 120-150 (ISK 17,000-21,000) | Very expensive; only practical for groups |
| Rental Car | 45 minutes | Varies | Self-drive is the most popular option in Iceland by far |
Keflavik International Airport is Iceland's main international gateway, located on the Reykjanes Peninsula about 50 km southwest of Reykjavik. Despite the country's small population, the airport handles over 7 million passengers annually, boosted by Iceland's popularity as a tourist destination and Icelandair's transatlantic stopover programme.
A rental car is the best — and for many routes, the only — way to explore Iceland. The famous Ring Road (Route 1) circles the entire island, passing glaciers, volcanoes, waterfalls, geothermal areas, and the spectacular fjords of the east and northwest. The Golden Circle day trip (Thingvellir, Geysir, Gullfoss) is just 300 km from Keflavik and can be done in a single day.
Car rental in Iceland is more expensive than in mainland Europe, reflecting the harsh conditions vehicles endure. Gravel protection and sand/ash insurance are recommended add-ons that are specific to Iceland. In winter, studded tyres are standard and 4WD is strongly recommended even for the main roads.
For the Ring Road and main tourist routes in summer, a standard 2WD car is fine. For F-roads (highland tracks), winter driving, or reaching remote locations, a 4WD is essential and often legally required.
Route 1 is a 1,322 km road that circles the entire island. Most of it is paved two-lane road. The full circuit takes 6-8 days at a comfortable pace.
Fuel is expensive, typically EUR 1.80-2.00 per litre. Budget EUR 20-30/day for fuel depending on your route and vehicle.
Highland F-roads are only open in summer (typically late June to early September) and require a 4WD vehicle. River crossings are common and can be dangerous. Check road.is for current conditions.
Winter driving in Iceland requires experience with icy roads, limited daylight, and sudden storms. Snow tyres are mandatory, and many roads close temporarily. Always check conditions at road.is.
Country-by-country driving requirements, packing list, and emergency contacts — all in one PDF.
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