Landing at Keflavík International Airport (KEF) is the moment every Iceland road trip really begins. But the hour between stepping off the plane and driving away in your rental car is also where most travellers get confused: where exactly do you pick the car up, how do you get there, what do you pay on the spot, and what do you actually need to bring? This guide from Aurora Car Rental Iceland answers all of it for the 2026 season.
Where do you actually collect the car?
Aurora Car Rental Iceland does not operate a desk inside the terminal building. Our base is at Suðurbraut 890, 262 Keflavík, roughly 10 minutes by road from the airport. This is deliberate, and it works in your favour: no queueing behind twelve other passengers at an airport counter, no airport concession fee baked into the price, and no rushed handover in a crowded car park.
You have two options once you land:
- Free transfer — tell us your flight number when you book. We monitor arrivals, so a delayed flight is not a problem. We collect you from the terminal and drive you to the base.
- Taxi — a taxi from KEF to Suðurbraut takes about 10 minutes if you prefer to travel on your own schedule.
The same applies on the way back. At the end of your rental we bring you from the base to the departure terminal, again at no charge. If your flight leaves at 05:00, that is fine — we work around flight times, not office hours.
What you need to bring
| Requirement | Detail |
|---|---|
| Driving licence | Valid, held at least 1 year. EU/EEA, UK, US, Canadian licences accepted as-is. Non-Latin alphabet licences need an International Driving Permit. |
| ID | Passport or national ID card. |
| Minimum age | 20 for standard cars, 23 for campers and the 9-seat bus. |
| Payment | Cash on collection — ISK or EUR. No credit card block, no deposit held. |
| Booking confirmation | Email confirmation on your phone is enough. |
The absence of a security deposit is worth pausing on. Most Icelandic rental companies place a hold of 200,000–350,000 ISK on a credit card, and that hold can sit on your account for a week or more after you fly home. Aurora Car Rental Iceland does not do this at all.
2026 fleet and daily rates
Eleven vehicles, all maintained for Icelandic conditions. Prices below are low-season daily rates; June to August rates are higher, and the difference is largest on campers.
| Vehicle | Type | From (ISK/day) |
|---|---|---|
| SsangYong Tivoli | Compact SUV | 12,000 |
| Dacia Duster 2018 | 4x4 SUV | 12,500 |
| Dacia Duster 2022/23 | 4x4 SUV | 13,000 |
| Kia Sportage | 4x4 SUV | 14,000 |
| SsangYong Korando | 4x4 SUV | 14,000 |
| Korando + Roof Tent | 4x4 + camping | 22,000 |
| Dacia + Roof Tent | 4x4 + camping (4 people) | 29,000 |
| Bus, 9 seats | Group transport | 30,000 |
| Camper Van, 3 people | Campervan | 45,000 |
| Camper Van, 6 people | Campervan | 45,000 |
| Toyota Hilux / Musso 2026 | Pickup 4x4 | 65,000 |
You can see full specifications, transmission type and seating for each vehicle on our fleet page.
What is included in the price
Every Aurora Car Rental Iceland booking includes, at no extra cost:
- Basic insurance (CDW) — included in the daily rate, not sold as an upsell at the counter.
- Unlimited mileage on paved and gravel roads.
- Airport transfer both ways.
- Wi-Fi hotspot and GPS in the vehicle.
- Flight monitoring — we track your arrival so a delay does not cost you the car.
- Hotel pickup in the Keflavík and Reykjanes area if you spend the first night before collecting.
Optional extras are charged per day: tyre insurance at 3,000 ISK, child seats at 4,000 ISK, an additional driver at 2,000 ISK, and a full range of camping equipment from 1,000 ISK per item per day. Tyre insurance is the one we recommend most often — gravel roads in the Highlands and the Westfjords are hard on sidewalls, and a single replacement tyre costs far more than the daily premium over a two-week trip.
The one thing you cannot book: 10–15 August 2026
A note that catches people out. Iceland sits in the path of a total solar eclipse in August 2026, and demand for vehicles across the country during that window is unprecedented. The entire Aurora Car Rental Iceland fleet is fully reserved from 10 to 15 August 2026. If your travel dates fall inside that range, our booking system will show no availability — that is not an error. Dates before 10 August and from 16 August onwards are bookable as normal.
Fuel, tolls and the road tax
Iceland has one road tunnel with a fee — Vaðlaheiðargöng near Akureyri, payable online after passing through. There are no other tolls on the Ring Road. Fuel stations are self-service and take chip-and-PIN cards; N1, Orkan and Olís cover the island, though the gap between stations in the east and the Westfjords can exceed 100 km, so refill when you are at half a tank rather than a quarter.
Iceland also applies a distance-based road tax of approximately 7 ISK per kilometre driven, collected by the vehicle owner and passed through on your rental. Budget for it: a 2,000 km Ring Road loop adds roughly 14,000 ISK.
How long does the handover take?
Plan for 20 to 30 minutes at the base. We walk around the vehicle with you, photograph any existing marks, explain the tyre type fitted for the season, show you where the spare and jack live, and go through what to do if you have a problem on the road. If you booked camping equipment, we check it together before you leave rather than after you discover a missing pot in a campsite at Skógar.
Then we hand over the keys and you are on the road. The Ring Road exit from Keflavík is about five minutes from the base, and Reykjavík is 45 minutes east.
Choosing the right car for your route
| Your plan | Recommended vehicle |
|---|---|
| Golden Circle + South Coast, summer | SsangYong Tivoli or Dacia Duster |
| Full Ring Road, any season | Dacia Duster 2022/23 or Kia Sportage |
| Winter, northern lights hunting | Kia Sportage or SsangYong Korando |
| F-roads, Landmannalaugar, Highlands | Toyota Hilux / Musso 2026 |
| Camping trip, 2–4 people | Dacia + Roof Tent or Camper Van 3 |
| Group of 7–9 | Bus, 9 seats |
Frequently asked questions
Does Aurora Car Rental Iceland have a desk inside Keflavík airport?
No. Our base is at Suðurbraut 890, 262 Keflavík, about 10 minutes from the terminal. We provide a free transfer in both directions, and we monitor your flight so a delayed arrival does not affect your pickup.
Do I need a credit card or a security deposit?
No. Aurora Car Rental Iceland takes no security deposit and places no hold on a credit card. Payment is in cash on collection, in Icelandic krónur or euros.
Is insurance included in the daily rate?
Yes, basic insurance is included in every rental. Tyre insurance is a separate optional extra at 3,000 ISK per day, and we strongly recommend it for gravel roads, the Highlands and the Westfjords.
Why can I not book a car for 10–15 August 2026?
The whole fleet is reserved for that period because of the August 2026 total solar eclipse over Iceland. Availability resumes from 16 August 2026.
What licence do I need to rent a car in Iceland?
A valid driving licence held for at least one year. EU/EEA, UK, US and Canadian licences are accepted directly. Licences issued in a non-Latin alphabet require an International Driving Permit alongside the original.
Can I collect the car late at night or very early in the morning?
Yes. We work to flight times rather than fixed office hours. Send us your flight number when booking and we will be there, whether that is 23:40 or 05:15.
How much does fuel and road tax add to a trip?
Iceland charges a distance-based road tax of roughly 7 ISK per kilometre, so a 2,000 km Ring Road loop adds about 14,000 ISK on top of fuel. There are no motorway tolls; the only paid tunnel is Vaðlaheiðargöng near Akureyri.
Ready to pick up your car at Keflavík?
Free airport transfer, insurance included, no deposit, cash on arrival. Book your 4x4 or campervan for the 2026 season.
Aurora Car Rental Iceland — Suðurbraut 890, 262 Keflavík | WhatsApp: +48 729 854 633 | carrentalaurora@gmail.com