Iceland: Lagoon Car Rental

Iceland: Lagoon Car Rental

Before we visited Iceland recently, everyone we spoke to about it said a) what a beautiful country it was and b) you must hire a car. Now having been and seen and explored it for myself I can categorically state that everyone was 100% correct on both counts. I could not imagine being there and not having a car. Therefore, when we got the opportunity to work with Lagoon Car Rental during our trip, we jumped at the chance.

Lagoon Car Rental Hire Car

Pick up and Optional Insurance Policies

Lagoon Car Rental offer pick up from the airport to their office where you actually pick the car up from, door to door service from the outset made what could have been a confusing situation for us, extremely easy. Upon arrival at the rental office, we ran through the paperwork and added a couple of extra insurances on to our agreement:

  • Super CDW – lowers the deductible of the standard collision damage waiver from €2.980 to €600. €13 p/day*
  • Gravel Protection – brings your self risk for any paint chips down to €0 and limits your self risk for windscreen and headlight damages to only €98. This is the most common type of damage in Iceland. €11 p/day*

We felt the additional insurances were vital as many of the roads in Iceland are gravel, plus if we had, had an accident the cost of repair would have fair outweighed the amount we spent on the insurance polices. The pick up process could not have been simpler, we went through some straight forward paperwork, checked the car over from damage and that was it, the keys were handed over. As we had never hired a car before we were pleased with how smoothly this went, having heard so many horror stories from people regarding hire car companies.

Another reason we took out the extra insurance was neither of us had ever driven on ‘the other side of the road’ (being British, we are one of the few countries in the world that drive on the left), we were initially worried about driving in Iceland. We needn’t have been as all the main roads on the island are single carriage way and wide. Also, once out of Reykjavik the traffic flow was minimal. In fact on a number of our journeys we didn’t pass another vehicle for miles. It is important to remember it is the law in Iceland to drive with your headlights on, so if you do hire a car, don’t forget to check before setting off anywhere.

Lagoon Car Rental Open Road Iceland

Our Hire Car

We were lucky enough to be given an almost brand new Kia Sportage, which is classed as a medium-sized car. Lagoon Car Rental do offer a number of different cars in different sizes dependant on your needs. It came complete with heated seats and steering wheel which were very welcome, especially first thing in a morning when the car had been stood in freezing conditions over night. The car was perfect for our needs and luggage, it easily fitted two adults, two large suitcases, two small rucksacks and four bags of groceries with plenty of room to spare, in fact we didn’t even us the back seats. It was also a 4 wheel drive car, however we didn’t see any snow during the duration of the trip, but if we had we still would have been able to explore. The car was bigger than my car at home however it was roughly the same size as Mr ESLT’s, therefore I thought it was a reasonable request that he did the majority of the driving, to which he agreed without hesitation. I don’t know if that’s because he loved driving the car or he feared for his life every time I got behind the wheel.

Lagoon Car Rental Car

Stay Connected

We were also provided with a 4G Wifi router for our trip so you can stay connected the whole time. I cannot recommend this magic piece of technology enough, without it we would have been lost – literally. Google Maps was our best friend the whole time in Iceland. I could simply type our destination in on my iPhone whilst connected to the 4G and then follow the directions given, which saved us a fortune on data roaming charges. It meant we could also search the net for cool places to visit or stop off at, of which there are a million and one (we LOVED Iceland).

Lagoon Car Rental Hire Car


After three wonderful days of exploring it was time to drop the car off in Reykjavik city centre, before spending three days there. As we had received the car with a full tank of fuel it had to be returned with a full tank of fuel. Fuel stations were few and far between out in the wilds of Iceland however there are plenty in and around Reykjavik making it an easy task to fill up before giving it back. Our car was diesel, and considering how expensive most things are in Iceland, fuel did not seem to be. We drove around 850km during the three days we had the car (we certainly made the most of it) and to fill the tank up cost us around £70, which we considered to be a bargain.

Lagoon Car Rental Car at lodge Iceland

Drop Off

The actual drop off process couldn’t have been easier either, we simply drove to Lagoon Car Rental’s office located at Sundagarðar 8, 104 Reykjavík. The guy gave the car a once over in order to check we had not damaged it in any way, which we hadn’t (high-five to us) and we begrudgingly handed the key over. We did worry how we were then going to get from the office to our hotel in central Reykjavik especially as we had all our luggage with us, however we needn’t have as the guy told us to jump back in the car and he dropped us off right at the front door which is included in the rental price.

Lagoon Car Rental Hire Car

We truly believe that you cannot see the real Iceland without hiring a car and we would like to thank Lagoon Car Rental for making the process extremely easy. We are already planning our return journey to Iceland in Summer 2018 and we will not hesitate in using Lagoon Car Rental again.

  • We were provided with car and 4G wi-fi router by Lagoon Car Rental Iceland in exchange for honest review

* Prices correct at time of publication



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  1. I just got back from Iceland yesterday, and I also hired a car out there! Everyone told me not to because of the weather and not being able to use the car to explore, but I couldn’t stand the idea of sitting on a coach for hours on end, so I went ahead and hired one. I cannot believe how much easier it makes life, and the scenery is amazing! We ended up driving in all weather conditions, but had no problems at all even in the snow. We got the same the extras as you, but ours were a bit more pricey than that, so might have a look at Lagoon when I go back for my summer ring road trip…thanks for sharing your experiences!

  2. December 18, 2016 / 5:46 pm

    I usually rent from Sixt when I am there but door service is a nice perk! And I agree you absolutely must have a car if you really want to see all the Iceland has to offer.

    • December 18, 2016 / 6:03 pm

      We have been looking to rent a car in California and Sixt where recommended for that, will have to check them out. Have you been to Iceland a number of times? We loved it in winter but imagine it is just as beautiful, if not more so, in Summer?

      • December 19, 2016 / 12:51 am

        I’ve been twice, once in May and once in July and I’m going back this March for my first winter, its amazing in the summer, so green and lush, definitely go back!

  3. December 20, 2016 / 5:24 pm

    Sounds amazing, we have July 2018 pencilled in already pencilled in for our return trip. Have a great trip in March 🙂