With the intent to drive the ring road, and airport distance to Reykjavik, renting a car from the airport seemed to make sense. So much so, the checkin at all the car rental counters would have been an hour wait; unless you have pre-registered as a “preferred renter” or Fastbreak, or whichever program your rental company offers. That gives you a much shorter queue access, and a significantly quicker checkout. So what is usually a free membership, with a little planning, saves time, and occasionally benefits with an upgrade 🙂
I chose Budget as they had less carry-on about things like Gravel insurance, yes, your read that right, a protection from gravel chips and damage to paintwork and Under the car ?. After the volcanic eruption, they all offer Sand & Ash insurance, and if you read around enough, you will see that is a roll of the dice. Frankly, all insurance is, but, if you want peace of mind, it’s a cost of consequence.
I did not experience and sand or ash issues, but some have before, and the point of insurance is a peace of mind, so its your call what you engage. What I had not read in research, was being offered roadside assistance for an extra $5 a day ? Really, they don’t help you with a breakdown of their car, unless you pay this extra ?? The car rental rates are already 2 to 3 times the cost of renting on mainland Europe or the UK.
After that, get your keys, and thoroughly check the car for dents, scratches and paint chips, taking photos with your phone for potential later reference. Also check the interior for cleanliness, stains, marks, or anything the rental company could claim as “damage” upon return. Again, there is a peace of mind having these photos for reference.
So a VW Polo was my choice, a good size, well appointed small and comfortable car. As this was September, a 4wd did not seem necessary. I had also invested in, and brought a GPS with lifetime world maps, which allowed me to do some advance planning, saving waypoints for easy daily itinerary. The rental companies offer these of course, at a fee which can easily rival ownership if you drive enough days, so may as well have one you are familiar with.
BTW, the rented VW Polo, had about 24k on the clock, and I was pleasantly surprised how comfortable and zippy this car was. Budget upgraded me to an automatic, which frankly made the drive easier, but I would have been happy with a manual to keep that cost in check.
Car rental costs are horendous in Iceland compared with most everywhere else, even with competition from locals and big name car rental companies. I have to guess the harsher conditions have a shorter life expectancy for the cars, so rent something you can justify for cost and will suit your purpose, and accept that this is just the norm in Iceland.