Without Credit Card Iceland Car Hire

What are the Benefits of Renting a Car in Iceland Without a Credit Card?

The amount of time that can be saved by opting to hire a car without a credit card is an advantage. This is because you no longer have to wait to be subject to a credit check, or wait to apply for a credit card – you can simply pay straight away with either a debit card, cash, or a prepaid card in some instances.

What are the Common Policies for Car Hire in Iceland?

The minimum age to hire a car in Iceland varies by company. Some companies allow drivers as young as 18 years old to hire a car, while most require drivers to be at least 20.

Some companies also require drivers to be aged at least 21, or 25 if they wish to hire a luxury vehicle, such as a sports car or a 4x4.

Another legal requirement when hiring a car in Iceland is that all cars must be equipped with winter tyres between November and April, and all drivers must have Third Party Liability (TPL) – although the rental companies provide this as a general rule.

Finally, drivers are usually required to have held a fully valid, internationally recognised driving licence for at least one year before being allowed to hire a car in Iceland.

What Alternative Payment Options Are Available for Car Hire in Iceland?

For those who do not have the option to pay for a hire car in Iceland with a credit card, or do not wish to do so, there are still several alternative payment options.

The most popular option behind a credit card is using a debit card, and most providers – if they accept alternative payment methods – are likely to accept debit cards as a suitable payment option.

Some rental companies will also accept other payment methods such as prepaid cards and even cash in rare instances. The currency in Iceland is the Icelandic Króna. £1 is equivalent to 177 Icelandic Króna.

How Can You Rent a Car Without a Credit Card in Iceland?

Thankfully, this is not as complex as it may initially appear – the process is almost exactly the same as with a credit card.

However, instead of the payment being held on a credit card, the payment will instead be taken directly from your debit card, and thus the bank account that the debit card is directly connected to – your current bank account.

It is therefore imperative that you have sufficient funds to cover this transaction from your debit card to the rental provider.

Additionally, you could be charged a foreign transaction fee if using your debit card abroad, so be prepared for this.

Finally, the deposit itself can take longer to return via a debit card transaction than a credit card – up to 10-15 working days in some cases.

How Can You Rent a Car with a Prepaid Card in Iceland?

Only Lotus Car Rental and Northbound allow customers to rent a car with a prepaid credit card in Iceland.

How Do You Rent a Car Using Cash in Iceland?

Unfortunately, it is not possible to rent a car using cash in Iceland.

Can I Use a Debit Card to Pay for the Security Deposit in Iceland?

Both Lotus Car Rental and Northbound allow a debit card to be used to pay for the security deposit in Iceland.

However, the debit card must be under the name of the primary driver in the party, so it is important they have the correct funds to do so if they wish to pay for their car rental with a debit card in Iceland.

When Should You Consider Renting a Car Without a Credit Card in Iceland?

If either you or the main driver do not have a credit card or have no plan on using a credit card to pay for a car rental in Iceland, then alternative payment methods should be looked into.

Why Do Some Car Hire Companies in Iceland Require a Credit Card?

The main reason why credit cards are used is because they act as a safety net for the car rental company. For one reason, it is a guarantee on behalf of the customer that they have sufficient funds to cover the cost of the rental, whereas they may not have those funds via a debit card or in cash, for example.

Secondly, credit card transactions are much easier to trace and therefore refund than those made by debit cards, particularly cash transactions, which are notoriously difficult, if not impossible, to track.

Should a customer become involved in a car accident, or incur parking fines or speeding tickets, then the car rental company can simply deduct the costs of any of the damages from the deposit amount which was held on the credit card, which is another reason why credit cards are required by some car hire companies in Iceland.

On the other hand, if customers have paid using a debit card or cash, they will have to pay an additional fee for any damages that they have incurred during the rental agreement period, rather than the amount simply being deducted from the initial deposit.

Why Is It Important to Understand Security Deposits?

While we have already explained how security deposits protect the company, they are important because they also protect the customer.

This is because they encourage careful handling of the car and safe driving on behalf of the customer. For instance, if the customer wants their full deposit amount back, then they cannot afford to incur any penalties or damages to the car. As a result, they are more inclined to drive carefully and safely.

Why Should You Check Local Policies and Restrictions?

It is always important to check any local policies and restrictions beforehand so that you can keep up to date with any changes in the rules and regulations surrounding car hire in Iceland.