All-inclusive car rental in Höfn
Höfn is the southeast Iceland base for the Vatnajökull glacier and the Jökulsárlón glacier lagoon, and an all-inclusive rental gives full insurance with zero excess - valuable on the gravel side-roads to glacier tongues. Most drivers arrive on the paved Ring Road, with Höfn a natural overnight on a full loop.
Höfn is a friendly harbour town in Iceland’s southeast, best known as the gateway to Vatnajökull - Europe’s largest ice cap - and the photogenic Jökulsárlón glacier lagoon and Diamond Beach just to the west. It is a key overnight stop on a full Ring Road circuit.
A Cardamar all-inclusive rental includes zero-excess cover, which counts on the gravel roads up to glacier viewpoints and in this exposed, weather-prone corner of the country. Most travellers reach Höfn on the paved Ring Road from Vik or the east.
Good to know before you drive in Höfn
| Pick-up | Usually Reykjavik/Keflavik or on a Ring Road loop |
|---|---|
| Drives on | Right-hand side |
| Best day trips | Jökulsárlón, Diamond Beach, Vatnajökull, Skaftafell |
| Roads | Paved Ring Road; gravel to glacier tongues |
| Known for | Langoustine (humarsúpa) and glacier views |
Exploring southeast Iceland from Höfn
Just west of Höfn, the Jökulsárlón glacier lagoon drifts with icebergs that wash up on the black sand of Diamond Beach. Behind it all rises Vatnajökull, with glacier tongues you can hike with a guide, and the Skaftafell wilderness area an easy drive on.
The Ring Road here is paved, but the tracks to glacier tongues and viewpoints are gravel, where a calm pace and the included zero-excess cover pay off.
Picking up your car for Höfn
Höfn sits about 460 km (6 hours) east of Reykjavik, so most people collect the car at Keflavik Airport (KEF) or in Reykjavik and reach Höfn while driving the Ring Road - it is a popular overnight on a multi-day loop. 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.
Glaciers, weather and why zero excess matters
Southeast Iceland mixes gravel glacier roads with fast-changing, windy weather - exactly the conditions behind stone chips, cracked windscreens and wind-related door damage. A calm pace helps, and the right cover does the rest.
Confirm the Iceland-specific terms (gravel and sand-and-ash cover) at booking. With zero excess, a stone chip on the way to Jökulsárlón costs you nothing.
All-inclusive vs. a cheap basic rate plus counter insurance
Two cars on the same lot in Höfn 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.
Höfn car rental - FAQ
Is Höfn a good base for Jökulsárlón and Vatnajökull?
Yes - the Jökulsárlón glacier lagoon and Diamond Beach are a short drive west, and Vatnajökull’s glacier tongues and Skaftafell are within reach. Höfn is a natural overnight on a full Ring Road loop.
How do I get a rental car in Höfn?
Most drivers collect the car at Keflavik Airport or in Reykjavik and reach Höfn on the paved Ring Road - it is about 6 hours east, so it usually forms part of a multi-day loop rather than a day trip.
Do I need a 4x4 around Höfn?
Not for the Ring Road or the main Jökulsárlón viewpoints, which are paved or short gravel. A 4x4 is only needed for highland F-roads, which this part of the south-east does not require.