One-way car rental in Iceland: the honest answer

What the terms actually say

The reason this question comes up is simple: people picture Iceland like a road trip across a continent — pick up in one city, drop off in another. Iceland doesn’t work that way, and neither does the rental contract. With KeyCar, the car goes back where it came from. Their terms and conditions set same-location return as the default — the car is returned to their base at Blikavöllur 2, near Keflavík Airport.

A different drop-off is not impossible, but it is not a click-to-book option either. KeyCar’s own FAQ says a different drop-off point can be arranged by contacting them in advance, with additional charges “if applicable.” So the honest answer to “can I rent in Reykjavík and drop off in Akureyri?” is: not as a standard product — only by arrangement, and only if you ask first.

Why one-way is rare here in the first place

This isn’t a KeyCar quirk. One-way rental is uncommon across Iceland, and the road map is why. Route 1 — the Ring Road — is a single loop that circles the country, and it radiates from one hub: the Keflavík Airport and Reykjavík area, where nearly everyone lands and nearly every rental fleet is based. Drive out, keep going, and the road brings you back to the same corner of the island.

Because the geography loops, a return-to-base itinerary is the norm rather than a compromise. You’re not paying a penalty to avoid one-way — the trip most people are already planning ends at the airport they’re flying home from. That’s the quiet reason companies here never built one-way into a standard product: hardly anyone needs it.

What actually works instead

If one-way is on your mind, one of these three will serve you better than hunting for a drop-off deal that mostly doesn’t exist here.

• Loop back to base — the default for a reason. Plan a circular itinerary that returns to the Keflavík–Reykjavík area for your flight. It costs nothing extra, needs no special arrangement, and fits how the Ring Road is built. See how long the loop takes and some loop-and-detour road trips.
• Ask KeyCar in advance about a one-way arrangement. If you genuinely need to end somewhere else, contact them before you book and ask whether they can do it and what the fee would be. Their FAQ allows for this by arrangement — just don’t assume it’s available or free until they confirm it in writing.
• Drive one way, fly back. Icelandair runs domestic flights from Reykjavík’s in-town airport (RKV) to Akureyri (AEY) and Egilsstaðir (EGS). You can drive one direction, return the car, and fly back — often simpler than a one-way car deal. Check Icelandair’s current RKV↔AEY/EGS schedule and fares for your dates. More on car-free legs in our travelling-without-a-car guide.

One trap worth flagging on the fly-back option: Iceland has two Reykjavík-area airports. Your international flight almost certainly uses Keflavík (KEF), out on the peninsula, while the domestic flights above leave from Reykjavík Domestic (RKV) in the city. They are not the same place — don’t book a domestic hop assuming it connects at KEF.

Some non-KeyCar companies do offer true one-way for a real fee — a few, for example, allow an Egilsstaðir pickup or a Reykjavík–Keflavík–Akureyri return. It exists, but it isn’t standard, and the fee scales with distance: expect anywhere from tens of euros to over a hundred depending on the two locations. If you go this route, confirm the company offers it on your exact pick-up and drop-off, and get the fee quoted in writing before you commit.

A note on campervans

Campervans follow the same pattern: generally same-location return, and one-way is not a given. There’s no single rule across operators, so if a one-way camper trip matters to you, confirm it directly with the operator and get any drop-off fee in writing first. Start with camper rental options and ask before you book.