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Driving through Iceland’s dramatic landscapes – from waterfalls and glaciers to volcanic lava fields – is the ultimate way to explore the Land of Fire and Ice. However, harsh Icelandic weather, gravel roads, and high deductible costs mean choosing the right local rental company is crucial.
Blue Car Rental is one of Iceland’s largest and most trusted local vehicle providers. Known for its hassle-free policies, quick airport pickups, and comprehensive insurance coverage included by default, it aims to make driving in Iceland as smooth as possible.
In this review, we’ll explore Blue Car Rental’s stand-out features, vehicle fleet, who it’s best for, and our final verdict.
What is Blue Car Rental?
Blue Car Rental is a leading local car rental platform in Iceland, trusted by over 1,000,000 travelers for over 15 years. Unlike traditional rental agencies with slow counter procedures, Blue Car Rental operates as a modern digital platform that streamlines the entire renting experience – from instant online booking and full insurance customization to contactless 24/7 keybox pickup near Keflavík International Airport and Reykjavík.
By combining an extensive in-house fleet with smart self-service technology, the platform allows travelers to compare vehicle options, lock in transparent zero-deposit terms, and hit the Icelandic open road in minutes without standing in line.
Key Features & Standout Benefits
Blue Car Rental eliminates common rental counter friction points through streamlined digital services:
All Insurance Included & Zero Deposit: Basic rentals automatically include CDW, Super CDW, Gravel Protection (GP), and Theft Protection. Opting for their Liability Waiver reduces damage excess and pickup deposits down to ZERO.
Online Check-in & Key Box Pick-up: Complete your check-in online before landing. Skip the counter queue entirely by collecting your vehicle keys straight from a secure 24/7 keybox via QR code.
Blue+ Reward Club: Signing up unlocks a 5% instant discount, referral rewards, and loyalty perks.
Flexible Booking Options: Enjoy free cancellation on eligible reservations and option to pay upon arrival.
24/7 Assistance: Access round-the-clock roadside service support across Iceland.
Vehicle Fleet Categories
Whether you plan to stick to paved highways or venture onto unpaved mountain tracks (F-roads), Blue Car Rental offers diverse fleet choices:
City Cars: Compact & economy cars suitable for city commuting, Ring Road highway driving, and Golden Circle day trips.
Mid-Sized & Large SUVs: 4×4 models equipped for mountain passes, F-roads, or winter driving conditions.
Passenger Vans: Multi-passenger vans for larger family groups or gear-heavy expeditions.
Electric Vehicles (EVs): Eco-friendly options for sustainable travelers, supporting zero-emission road trips.
Who is Blue Car Rental Best For?
Blue Car Rental is designed to deliver maximum value and flexibility for a wide range of travelers:
Ring Road & F-Road Adventurers: Drivers seeking reliable 4×4 SUVs with gravel and ash/sand protection for Iceland’s unpredictable weather.
Convenience-Focused Flyers: Travelers landing late or wanting a fast, contactless airport pickup via automated keyboxes without waiting in counter lines.
Risk-Averse Drivers: Anyone who prefers transparent pricing, standard gravel insurance included, and zero-deposit options for total peace of mind.
Tech-Savvy Travelers: Road trippers who prefer managing bookings digitally, checking in online, and receiving contactless vehicle handovers.
Pros & Cons for Travelers
| Pros | Cons |
| Contactless Keybox Pickup: Skip counter queues with 24/7 keybox retrieval. | Slightly Higher Base Rates: Priced slightly higher than budget brokers, though justified by included insurance. |
| No Credit Card Deposit: Zero hold required on credit cards when selecting full liability waivers. | High Demand: Popular 4×4 vehicles sell out quickly during summer peak season. |
| Essential Insurance Included: Gravel protection comes built-in by default. | |
| 5% Member Discount: Instant savings when joining the Blue+ Reward Club. |
Final Verdict: Is Blue Car Rental Worth It?
If you want a stress-free, reliable, and modern vehicle for navigating Iceland’s unique roads, Blue Car Rental is an exceptional choice. Its combination of inclusive gravel/collision coverage, automated 24/7 keybox pickup, zero-deposit terms, and a local fleet makes it one of the most hassle-free rental experiences in the country.
Our Overall Rating: 4.8 / 5 ⭐
Best For: Self-drive Iceland road trippers, late-night airport arrivals, winter drivers needing 4×4 SUVs, and travelers wanting full zero-deductible insurance protection.
🚙 Ready to Explore Iceland?
Skip the counter lines, claim your 5% member discount, and secure your rental car in minutes.
👉 Book Your Iceland Rental Vehicle on Blue Car Rental Today!
Frequently Asked Questions
Is gravel protection included with Blue Car Rental?
Yes. Standard rental packages include Collision Damage Waiver (CDW), Super CDW, Theft Protection, and Gravel Protection (GP).
Do I need to leave a large credit card deposit?
No. If you opt for their complete Liability Waiver package, Blue Car Rental requires zero security deposit hold at pickup.
How does keybox pick-up work?
After completing your online check-in prior to arrival, you receive a QR code. Simply scan the code at the airport office keybox to collect your keys and drive away immediately.
