Illustration of Akureyri with the twin-towered Akureyrarkirkja church between snow-capped fjord mountains

All-inclusive car rental in Akureyri

In short

Akureyri is the gateway to North Iceland, and an all-inclusive rental gives full insurance with zero excess - valuable on the region’s gravel roads to Mývatn, Goðafoss and Dettifoss. There is one local toll: the Vaðlaheiði tunnel just east of town.

Akureyri, the lively capital of the north, is the base for some of Iceland’s best-known sights: the waterfalls Goðafoss and Dettifoss, the geothermal wonders around Lake Mývatn and the whale-watching town of Húsavík. It is also a natural overnight on a full Ring Road loop.

A Cardamar all-inclusive rental includes zero-excess cover, which counts on the gravel side-roads up here. Note the one local toll - the Vaðlaheiði tunnel just east of town, paid online.

Good to know before you drive in Akureyri

Pick-upAkureyri (town or AEY airport)
Drives onRight-hand side
Best day tripsGoðafoss, Lake Mývatn, Dettifoss, Húsavík
Toll roadsVaðlaheiði tunnel (east of town), pay online
RoadsPaved Ring Road; gravel beyond

Exploring North Iceland from Akureyri

Within an easy drive lie Goðafoss (the "waterfall of the gods"), the geothermal landscapes, craters and lava fields around Lake Mývatn, and - a little further - the thundering Dettifoss. Húsavík, Iceland’s whale-watching capital, is about an hour north.

Most main roads are paved, but the side-roads to viewpoints and hot springs are gravel, where a calm pace and zero-excess cover pay off.

Picking up your car in Akureyri

Rentals are collected in Akureyri itself or at the small Akureyri Airport (AEY), a short hop from the centre; many north-bound travellers also drive up from Keflavik. Completing online check-in beforehand keeps collection quick.

Bring your driving licence, passport or ID and the lead driver’s card. An all-inclusive Cardamar booking includes full insurance and zero excess, with no deposit to block at most desks.

The Vaðlaheiði tunnel and gravel roads

Just east of Akureyri, the 7.5 km Vaðlaheiði tunnel shortcuts the route toward Mývatn; it is Iceland’s only toll, paid online within 24 hours of passing (the older mountain road over the pass is toll-free if you prefer).

Beyond the Ring Road, expect gravel - exactly where stone chips and the odd cracked windscreen happen, and exactly where the included zero-excess cover earns its keep.

All-inclusive vs. a cheap basic rate plus counter insurance

Two cars on the same lot in Akureyri can advertise very different prices. The gap is almost always insurance: an all-inclusive rate settles it up front, while a "basic" rate leaves you to buy excess cover at the desk. Here is what each really means.

All-inclusive (Cardamar) Basic rate + counter insurance
Damage & theft excess €0 – fully covered High excess (often €800–2,000) blocked on your card
When you insure Before you travel, at a fixed price At the desk, under time pressure, price varies
Tyres, glass & undercarriage Included Usually excluded or charged extra
Deposit / card hold None or low at most stations Large hold blocked for the whole trip
Cancellation Free cancellation Often non-refundable
What you pay in total Known the moment you book Can climb sharply at the counter

A basic rate can look cheaper online, but once you add proper excess cover at the desk it usually costs more than an all-inclusive booking - with none of the certainty.

Akureyri car rental - FAQ

Is Akureyri a good base for North Iceland?

Yes - Goðafoss, Lake Mývatn, Dettifoss and Húsavík are all within an easy drive, and the town has the north’s main services. It is also a natural overnight on a full Ring Road loop.

Do I pay a toll near Akureyri?

Only the Vaðlaheiði tunnel just east of town - Iceland’s single toll, paid online within 24 hours. The older mountain road over the pass remains toll-free.

What documents do I need to rent a car in Akureyri?

Your driving licence, a passport or national ID, and where required a card in the lead driver’s name. An International Driving Permit is recommended alongside a non-EU/EEA licence; online check-in speeds up collection.