All-inclusive car rental in Keflavik Airport

Keflavik (KEF) is Iceland’s international gateway, about 45 minutes west of Reykjavik. The rental desks sit just outside arrivals, so you can collect the keys and be on the Ring Road within the hour.

Booking all-inclusive with Cardamar means your insurance and zero excess are settled before you land - which, on Iceland’s gravel and ash-prone roads, is worth far more than at a typical sun-coast airport.

Picking up your car at Keflavik Airport

The Keflavik Airport (KEF) car-rental area is easy to reach from arrivals. With an all-inclusive Cardamar booking your insurance and excess are settled before you land, so you can collect the keys and go.

Driving from Keflavik Airport

From KEF, the paved Route 41 (Reykjanesbraut) runs about 45 minutes east to Reykjavik, passing the turn-off for the Blue Lagoon roughly halfway. From the city the Golden Circle, the south coast and the full Ring Road all open up.

Headlights must be on day and night, and the wind here can be fierce - hold the car doors firmly when you open them, a classic (and usually uninsured) Keflavik mishap.

Insurance, fuel and what to bring

Iceland is the destination where rental insurance matters most: loose gravel and volcanic ash make minor damage common, which is why desks sell separate gravel (GP) and sand-and-ash (SAAP) cover on top of a high excess. An all-inclusive Cardamar booking folds full insurance and zero excess into one price.

Bring your driving licence, passport or ID and the lead driver’s card; there is no deposit to block at most desks. Fuel is pricey in Iceland, so fill up before longer legs.

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

Two cars on the same lot in Reykjavik 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.