Useful Information

Here you can find every thing you need for your car hire in Iceland. If you need further assistance, e-mail us at

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Bookings and Payments

  • expand_moreIs there a minimum / maximum age for renting a vehicle in Iceland?
    To rent a car in Iceland from Lagoon Car Rental, the driver needs to be at least 20 years old. The driver should also be in possession of a valid driving license and should have held it for at least one year. To rent our larger 4WD, SUV´s or Luxury models the renter must be 23 years of age. 
  • expand_moreWhat documents are necessary to rent a car in Iceland?
    • A valid driving license issued in your country of residence and held for at least one year is required. We accept all foreign drivers’ licenses. However, we require the license to be in English, with Latin characters or accompanied by a valid translation, since we need to be able to understand the information on the license. Please note that your international driving license is valid only if accompanied by your regular driving license, which must be valid.
    • Your valid credit card with an expiry date after the due drop-off date. We do accept debit cards with 16 digit number. You must also present a debit/credit card for those charges which have not been prepaid (such as extras, refuelling charge, service fees, parking and speeding tickets and excess due in the event of damage to or loss of the rented vehicle). We accept all major credit cards. Please note that we do not take any pre-authorization or require our customers to leave a deposit while they have the rental car in Iceland.
  • expand_moreIs it possible to modify my reservation after it is confirmed?
    After you book your rental car in Iceland you can always modify your booking in accordance with our acceptance terms and conditions through manage booking. "Manage booking" can be found at the top at our website. If you have any problems, you can always reach us by e-mail and our customer service will assist you. 
  • expand_moreDo you take pre-authorization/deposit on my credit card or a deposit for my rental car in Iceland?
    We require all customers to present a valid credit card at pickup. However, we do not take any pre-authorization/deposit or require our customers to leave a deposit while they have the rental car in Iceland. If the renter is not able to present a credit card, we do accept 16-digit number debit card.
  • expand_moreDo all your rental cars in Iceland come with studded tires?
    Yes, during winter all our rental cars in Iceland come with studded tires. Our top priority is customer safety, and studded tires are the safest way to travel the icy roads of Iceland during winter. All our rental cars are equipped with studded winter tires from 1st of November until the 15th. of April each year. Studded tires are not allowed on a different period according to Icelandic laws and regulations.
  • expand_moreWhat is included in the rental rate?
    The rental rate always includes:
    • Unlimited kilometres
    • 24% value added tax (VAT)
    • Collision damage waiver (CDW). Please note that the customer has the option of declining CDW at pick-up
  • expand_morePayment
    The quoted total rate will include any extras you select during the booking process, as well as tax. Credit cards are charged the same day the booking is made. We accept all major credit cards (Visa, MasterCard, American Express, Diners Club). The renter may also be able to book with a debit card if you have the online payment option available on it. The renter, or someone traveling with the renter, also needs to submit a credit card on arrival when he picks up the vehicle. We require the renters to submit credit card but if you only have debit card, we accept debit cards with a 16-digit number on the front.
  • expand_moreHow will I know that my reservation for my rental car in Iceland has been confirmed?
    At the end of the reservation process, you will receive a “Reservation Confirmation” page with the reservation number indicated. You will also receive a confirmation email containing the details of your reservation within 10 minutes of the booking. If you do not receive a confirmation mail, please send us an email.
  • expand_moreDo I get a full refund if I cancel my reservation after it is confirmed?
    If you cancel your booking 24 hours or more before pickup, you get a 100% refund of what you have paid. If you do not show up, or cancel within 24 hours of the scheduled pickup, the payment is non-refundable. 
  • expand_moreIs there a minimum duration for my car rental?
    There is no minimum rental period. However, when renting a car, you always pay for the first 48 hours.
  • expand_moreMy driving license has been stolen; can I present a theft declaration instead?
    Under certain restricted conditions, the declaration of theft or loss of the license may be accepted if the issue date is sufficiently recent in terms of local legislation and if the local regulations are complied with. Please contact customer support for more details.
  • expand_moreDo you guarantee that I will receive the vehicle I booked?
    When you book your rental car in Iceland with Lagoon Car Rental, we try our very best to provide exactly the vehicle type you booked. You are always assigned to an available vehicle within the vehicle group you chose, and not similar models. However, sometimes unanticipated circumstances can occur, such as damages or repairs that prevent us from providing the vehicle reserved. In such an eventuality, we guarantee the same category of vehicle or a higher category.

During the rental period

  • expand_moreCan I modify my booking after I receive my car for rental in Iceland?
    Any changes to the rental are possible at the time of pickup in accordance with our acceptance terms and conditions. Adding or declining insurance or extras during pickup is always possible. All extensions and vehicle changes are subject to availability and additional charges.
  • expand_moreWhat can I do if there is a problem with the car?
    We offer 24/7 breakdown assistance. Customers can call us at any time of the day or night on any day of the week if they have any problems with the vehicle. Lagoon Car Rental has service partners all around the country who are ready to help if something breaks down or needs to be replaced. If you have a more severe problem with the car, we will replace it with a new vehicle as soon as possible. If the problem is due to underlying problems that were not the customer’s fault, we cover all towing fees. If the customer is responsible for the problems of the car, they will bear all towing fees.
  • expand_moreWhat happens if I damage my rental car in Iceland?
    If the car is damaged during the rental, you should contact our customer support immediately. By contacting us and sending pictures of the damages, we can speed up the process of getting an estimated repair cost. If a car comes in with a damage that was not noted in the initial condition report, we charge an estimated amount for the repairs. If you have insurance with us, you will be charged the self-risk. Please keep in mind that repair costs in Iceland may be considerably higher than what you may encounter in your own country. We try to keep our damage procedure as transparent as possible. After the customer has been charged for the damage, photos are taken of the damages and an initial damage report is filed. The vehicle is taken to a repair shop to receive a CABAS examination, an internationally acknowledged damage estimation system, to assess the cost of repair. If the initial deposit, or the self-risk, is higher than the damage estimates you will be refunded the difference. If the extent of the damage is such that the car is inoperable, we provide towing services for a fee. If you have the roadside assistance waiver it reduces the cost for any assistance to Zero. Damage claims can take up to 30 days to be processed, depending on how severe the damages are. Any enquiry regarding the status of the damage assessment and resolution procedure, missing documents or general questions regarding a damage case are to be sent to our claims department at
  • expand_moreFines: Parking tickets, traffic violations during your rental in Iceland
    Any parking tickets and traffic violations are the responsibility of the renter, who must pay the applicable fines before returning the vehicle. Congestion charges or fines received by us after the rental will be charged directly to the renter, including an administrative fee and a surcharge for late payment, if any.


  • expand_moreWhat kinds of insurance are included in the rental fee?
    In order for Lagoon Car Rental to provide the best possible rental price, the Collision Damage Waiver (CDW) is the only insurance included in the rental price.  Therefore, we want you to decide any additional insurance coverage.   Collision Damage Waiver (included)  CDW covers the body of the car. If you rent a car with only CDW the excess amount is ISK 350.000  Example:  Peter booked his rental car without any additional coverage. On his trip someone opens up a door and hits his car without notifying him, leaving a dent on the door. He returns the car with the dent. As he only has CDW the excess amount he is charged is ISK.350.000. If the damage is estimated to cost less than ISK 350.000 by a Third-Party Workshop, the difference is refunded back to Peters credit card after he returns home.
  • expand_moreI have my own insurance – can I decline Lagoon’s insurance and use my own?
    Yes. If you need to decline our CDW please send us an e-mail before your arrival or inform our representative when you pick up the car. Please also note the procedure, in the unfortunate event of anything happening to the car during the rental – you pay the full amount for the repair costs at the drop-off, and then make a claim to your insurance provider. Lagoon will be happy to provide any relevant documents for the insurance claim. We also recommend that you contact your insurance provider prior to arriving in Iceland and ask them exactly what is covered by your insurance, since many insurers do not cover all incidents and risks.
  • expand_moreWhat insurance can I add to my reservation?
    GO-ON Package (Zero Excess) For carefree vacation the GO-ON Package is the right choice for you. The GO-ON Package includes all the insurance we offer in one bundled package. Additionally, the package includes Zero Excess coverage to reduce the excess amount down to Zero on damages that are covered by our insurances. Insurances included in the package are: Collision damage Waiver (CDW), Super Collision Damage Waiver (SCDW), Gravel Protection (GP), Theft Protection(TP), Sand and Ash Protection (SAAP), and Zero Excess Protection Excluded are any damages not covered by insurances as stated in Article 29 and 32 in the Rental Agreement and terms and conditions. See here:   Example: Peter is unfortunate and slides his car to a fence when driving on a black-iced road resulting in dents and scratches on the front bumper and fender. The day after he returns the car and through inspection the dents and scratches are noticed. As Peter made the wise choice to opt for the GO-ON Package his excess amount is zero and therefore nothing is charged for the damage. Single Protections: Super Collision Waiver (SCDW) SCDW reduces the excess amount of the CDW protection down to ISK 90.000 for small cars and down to ISK 120.000 for medium and large cars. The coverage covers the body of the car.   Example: Peter booked his rental car with the added SCDW Protection. On his trip someone opens up a door and hits his car without notifying him, leaving a dent on the door. He returns the car with the dent. As he opted for the SCDW the excess amount reduces from ISK 350.000 to ISK 120.000.   Gravel Protection (GP) Gravel roads are common in Iceland. When you are travelling outside the capital you will most likely drive on a gravel at some point. While driving on gravel road the small stones from opposite vehicles tend to hit the car. This can result in small damages to the paint of the vehicle, headlights or front windshield. Damages to the front windshield is the most common damage of rental cars in Iceland. The Gravel Protection covers the windshield, headlights, mirrors, and the front bumper. With the Gravel Protection the excess amount for damages on the bumper, headlights, and mirrors is zero. The windshield excess amount is ISK 20.000. Without the GP the excess amount may vary from ISK 100.000 to ISK 350.000 depending on the type of damage. If the windshield is damaged, either broken or cracked, the excess amount will for example be between ISK 75.000 – ISK 150.000.   Example: Peter returns the car with a crack in the windshield. When Peter rented the car, he opted for the GP. The excess amount he must pay for the broken windshield is only ISK 20.000. If Peter had not opted for the GP he would be charged the amount a new windshield would cost, between ISK 75.000 – ISK 150.000.   Theft Protection (TP) The theft of the vehicle is protected with the TP. The TP has no excess amount if the car gets stolen while in your possession. Keep in mind that TP does not cover items stolen from the vehicle – just the vehicle itself!   Sand- and Ash Protection (SAAP) You might not have heard of sand and ash damages before. However, they are real and are quite common, especially while driving on the south coast. Large part of the south coast is covered in sand and ashes. Sandstorms occur when it has been dry, and the wind is blowing. Sandstorms can damage the car paint heavily as it makes the paint look matte and without a shine, like sandblasted glass  Cost of sand and ash damages can range between ISK 500.000 and ISK 1.500.000. The SAAP reduces the excess amount to ISK 90.000.   Note that SAAP is included in the GO-ON Package. So if you opt for the GO-On Package the excess amount in case of sand- or ash damage is Zero.   Roadside Assistance Waiver (RAW) At Lagoon Car Rental breakdown and roadside assistance is available 24/7. In case of a breakdown, we assist customers to get back on the road as soon as possible.   We also offer a Roadside Assistance Waiver (RAW) which reduces the cost for any assistance to ZERO. Protecting you from unexpected service costs resulting from problems that may occur while on the road in Iceland.   The fee for such as service can vary from 35.000 ISK up to 450.000 ISK, depending on distance and work required.   With the RAW, customers are fully covered for that roadside assistance cost.   NOTE - RAW does not cover damage to the rental vehicle.   We recommend getting both our GO-ON Package (Zero Excess) and RAW for a fully carefree experience in Iceland.
  • expand_moreIs Roadside Assistance Available?
    Roadside assistance is available 24/7. We offer a Roadside Assistance Waiver (RAW) which reduces the cost for any assistance to ZERO. Protecting you from unexpected service costs resulting from problems that may occur while on the road in Iceland.

Pickups and Returns

  • expand_moreWhen I get to Keflavik international airport, how will I collect my car?
    When you clear customs and enter the arrival hall you will see a sign for Car Rental Service and our logo. The shuttle will take you to the rental car area where you will find our rental car provider which is Blue Car Rental. The office is within walking distance from the airport and takes only about 5 minutes to walk for those who want to take a quick walk.
  • expand_moreDo you have your car rental outlet in Reykjavik?
    If you are picking up your rental vehicle in Reykjavik, then you can always come directly to our office at Fiskislóð 22, 101 Reykjavík. It is open from 8 am - 6 pm
  • expand_moreDo you offer a shuttle service?
    There is a shuttle bus that goes from Keflavík Airport to our office in Keflavík every 20 minutes from 6am to 6pm. Our airport office is located at the car rental area which is 400m across the street (from the departure site).
  • expand_moreOne of the drivers will not be present at the pickup of the vehicle – can they still be registered as a driver on the rental agreement?
    No, the driver needs to be on-site with a valid driver license.
  • expand_moreCan I modify my booking when I receive my rental car in Iceland?
    Any changes to dates during the rental are possible at any time after you have received your rental car, in accordance with our acceptance terms and conditions. However, adding insurance during the car rental is not allowed. All extensions and vehicle changes are subject to availability and additional charge. To change the booking, you must contact us via email, telephone or come in person to our nearest rental location. Please note that we do not issue any refund if the rental period is shortened within 24 hours of the scheduled pickup.
  • expand_moreDo I need to return the rental car with a full tank?
    Vehicles are supplied with a full tank of fuel and you should return the vehicle with a full tank. Otherwise, you will be charged for missing fuel at the end of the rental. Our rates do not include fuel. Refueling charge applies.


  • expand_moreWhen I get to Reykjavík, how will I collect my car?
    Our rental car provider, Blue Car Rental, is located at Fiskislóð 22 in downtown Reykjavík. It is very centrally located and easy to reach on foot for those staying in downtown Reykjavik. Picking up from our downtown office is free of charge and the office is open from 08:00-18:00.