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Cars Iceland

Retailer / private label

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Icelandic family-run car rental company offering Keflavik Airport (KEF) pickups with free CDW, TP, TPL and PAI insurance included.

Last updated September 26, 2026

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Overview

Cars Iceland is an Icelandic car rental company founded in 2013 by two close friends who wanted to help travellers discover the country's nature and wildlife. It operates as a local, family-run business and has grown into a team of more than 20 employees managing a fleet of over 50 new vehicles. Its core service is car rental in Iceland, with a strong emphasis on pickups at Keflavik International Airport (KEF) and a fully online booking process. The company positions itself around transparent pricing and included coverage. Every rental comes with a complimentary insurance bundle comprising Collision Damage Waiver (CDW), Theft Protection (TP), Third-Party Liability (TPL) and Personal Accident Insurance (PAI), plus unlimited mileage. Customers can add optional upgrades such as a Premium Insurance bundle or a Zero Excess package that reduces deductibles to zero and adds Sand & Ash, Tire Protection and Gravel Protection. The fleet spans city and economy cars, 4x4s and SUVs, minivans, luxury vehicles, electric cars, hybrids and automatics, with daily rates advertised from around 6,452 ISK for city and economy models. Cars Iceland markets itself on customer trust, displaying high review scores across Google, Facebook and Trustpilot, and promising 24/7 customer service. The company also runs a travel blog with practical driving guides, such as advice on driving in Iceland in February, reflecting its focus on helping visitors navigate Icelandic road and weather conditions. It states that it donates 10% of its earnings to a children's shelter in Bolivia. As a privately held Icelandic company, Cars Iceland does not disclose a parent group or stock listing. Its brand identity centres on being a trustworthy, locally rooted alternative for self-drive holidays in Iceland, combining airport convenience, inclusive insurance and a modern vehicle fleet.

History

Cars Iceland was founded in 2013 by two close friends who shared a love for the Icelandic way of life, nature and wildlife. Their goal was to make it possible for as many people as possible to discover what Iceland has to offer. To build the business, they assembled a team of car rental experts who became the backbone of the company, which describes itself as a local, family-run car rental business. From its early days, the company committed to a set of core values: honesty, quality and familiarity. On honesty, Cars Iceland states that the prices displayed during online booking include everything, with no hidden costs. On quality, it says it conducts thorough quality checks and maintains a top-notch customer service team because a trip to Iceland is often a once-in-a-lifetime, bucket-list journey. On familiarity, it aims to treat every customer as if they were the only customer, recognising that travellers have different needs and priorities. Over its first decade, Cars Iceland grew from a small team into a company of more than 20 employees operating a fleet of over 50 new vehicles. It built its service around Keflavik International Airport (KEF) pickups, 100% online booking, competitive rental prices and 24/7 customer service. A defining feature of its offering became the inclusion of a free insurance bundle — Collision Damage Waiver (CDW), Theft Protection (TP), Third-Party Liability (TPL) and Personal Accident Insurance (PAI) — together with unlimited mileage on every rental. Alongside its core rental business, Cars Iceland developed a travel blog offering practical driving guidance for visitors, including detailed advice on driving in Iceland in February, covering winter weather, daylight, road conditions and safety. The company also states that it donates 10% of its earnings to a children's shelter in Bolivia, framing this as part of giving back. By the 2020s, Cars Iceland presented itself as a globally trusted rental brand, displaying review scores of 4.9 on Google (848 reviews), 4.7 on Facebook (94% score) and 4.8 on Trustpilot (95 reviews). Its fleet expanded across categories including city and economy cars, 4x4s and SUVs, minivans, luxury vehicles, electric cars, hybrids and automatics, with optional insurance upgrades such as Premium Insurance and Zero Excess. The company remains privately held and locally run, with no disclosed parent group or stock listing.

  • 2013

    Cars Iceland is founded by two close friends as a local, family-run car rental business.

  • Company grows to more than 20 employees and a fleet of over 50 new vehicles.

  • Cars Iceland builds its service around Keflavik Airport (KEF) pickups, online booking and a free CDW, TP, TPL & PAI insurance bundle.

  • The company reports review scores of 4.9 on Google, 4.7 on Facebook and 4.8 on Trustpilot.

Products and positioning

A locally rooted, family-run Icelandic car rental brand emphasising transparent pricing, inclusive insurance, airport convenience and high customer trust.

  • City & Economy car rental

    Auto or manual, 4 seats, 1 bag, from 6,452 ISK per day.

  • 4x4 & SUV rental

    Auto or manual, 5 seats, 4 bags, from 7,854 ISK per day.

  • Minivan rental

    Auto or manual, 9 seats, 9 bags, from 27,865 ISK per day.

  • Luxury car rental

    Auto or manual, 5 seats, 4 bags, from 18,107 ISK per day.

  • Electric car rental

    Auto, 4 seats, 1 bag, from 7,516 ISK per day.

  • Hybrid car rental

    Auto, 5 seats, 3 bags, from 8,529 ISK per day.

  • Automatic car rental

    Auto, 4 seats, 1 bag, from 6,671 ISK per day.

  • Premium Insurance upgrade

    Bundle of CDW, SCDW, PAI, TPL, TP & GP at a lower price, from 4,000 ISK per day.

  • Zero Excess insurance

    Bundles CDW, SCDW, PAI, TPL, TP, Sand & Ash, Tire Protection and Gravel Protection with zero deductible, from 5,400 ISK per day.

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