Keflavík Airport Car Rental: Pickup Process, Tips and Shuttle Guide

Keflavík Airport Is Not in Reykjavík

The first thing every visitor needs to understand: Keflavík International Airport (KEF) is 50 kilometres from Reykjavík. It sits on the Reykjanes Peninsula, surrounded by lava fields and the Atlantic Ocean. The car rental desks inside the terminal are operated by the major international chains (Hertz, Europcar, Avis, Budget). But the best value — and often the best vehicles — are from Icelandic rental companies whose lots are off-airport, 5-15 minutes away by shuttle bus.

On-Airport vs. Off-Airport Rentals

On-Airport (Terminal Building)

Hertz, Europcar, Avis, Budget, and Sixt have desks in the arrivals hall. The advantage is convenience — you walk from baggage claim to the counter and drive away. The disadvantages are price (airport surcharges add 15,000-25,000 ISK to your total) and limited availability (particularly for 4WDs in summer, which sell out weeks in advance).

Off-Airport (Shuttle Required)

Companies like Blue Car Rental, Lagoon Car Rental, Go Car Rental, Lava Car Rental, and Lotus Car Rental operate from lots within a few minutes of the airport. They provide free shuttle buses that run on a schedule or on-demand. The process: land, collect bags, walk outside to the shuttle stop (follow the signs for "car rental shuttles"), board your company's shuttle, ride 5-10 minutes to the lot, complete your paperwork there.

The savings can be significant. A 4WD SUV that costs 15,000 ISK/day from Hertz at the terminal might be 9,000-11,000 ISK/day from an off-airport company. Over a 10-day trip, that difference adds up to 40,000-60,000 ISK — enough to cover your fuel for the entire Ring Road.

The Pickup Process Step by Step

1. Before your flight: Print or save your booking confirmation. Have your driving license, passport, and a credit card (not debit — most Icelandic rental companies require a credit card for the security deposit).
2. At the counter: Present your booking, license, and credit card. The agent will explain the insurance options and try to upsell you. Know what you want before you arrive (see our insurance guide).
3. Vehicle inspection: Walk around the vehicle with the agent. Photograph every existing mark, scratch, dent, and paint chip — on all four sides, the roof, the bumpers underneath, and the wheel rims. Send these photos to yourself with a timestamp. This is your evidence if the company tries to charge you for pre-existing damage at return.
4. Check the tires: If renting between November and April, confirm winter tires (nagladekkja or M+S/3PMSF marked tires) are fitted. If they are not, refuse the vehicle.
5. Verify fuel type: Petrol (bensín) 95 octane or diesel. Misfuelling is your liability and costs 200,000-500,000 ISK to fix.
6. Save the emergency number: Get the company's 24/7 roadside assistance number and save it in your phone before leaving the lot.

Returning the Vehicle

Most companies require you to return the vehicle with the same fuel level as pickup (usually full). Failure to do so incurs a refuelling charge that is typically 50-100% more expensive than refuelling yourself. The nearest N1 and Orkan stations to Keflavík airport are in Reykjanesbær, 5 minutes from the airport — fill up there.

Allow at least 45 minutes before your flight for the return process. You need to drive to the lot (or terminal return area), wait for an agent to inspect the vehicle, resolve any damage queries, and then take the shuttle back to the terminal. In peak summer, waits of 30+ minutes at the return desk are common.