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Wednesday, February 15, 2012

How to rent a car in Iceland

By Randy Kalp


Renting a car in Iceland may not be the cheapest way to explore the island (it's tough to beat hitch hiking) but it doesn't have to blow your budget. With public transportation being non-existent outside of the larger cities, like Reykjavik, renting a car gives you the freedom at a fraction of the cost when compared to the sightseeing tours sold at tourist information centers. Below are six ways to save money on your Iceland car rental:

Go on-line: The best deals can be found online for Iceland car rentals. We cut our cost in half by going through Hertz.com as opposed to renting a car from the tourist center, and by about $25 from walk-in quotes from rental agencies in Reykjavik. Later, we found out about SADcars.com, which is by far the cheapest rental car company in Iceland. They even offer a 15 discount if you book online.

Rent your car from Keflavik Airport: There are two ways from the airport to Reykjavik, which is about an hour away. Either you can pay approximately $50 round trip for the shuttle bus or you can put that money towards a rental car.

Extend your rental: By renting your car for more than a few days, you will be able to cut your rental fees drastically.

Don't buy it: You don't need theft insurance for the vehicle. According to our agent at Hertz, car thefts in Iceland are rare and he actually told us not to bother with any of the additional insurance (yes, they have insurance for ash from the volcano) either, so we didn't.

Gas is pricey: One thing not to overlook is the cost of gas in Iceland. Petrol in Europe is more expensive and it is sold by the liter not the gallon. In Iceland, gas cost approximately $5 per gallon.

The low season: The off-season in Iceland, Sept. 1 to May 31, is the best time to rent a car in Iceland, because the cost of the rental car can drop by more than 50% during this time period.




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