Lava Car Rental: From Local Startup to Global Recognition

In a travel industry often dominated by global brands and familiar logos, it’s easy to assume that bigger always means better. Larger fleets, longer histories, and international reach can feel reassuring — especially when planning a road trip in a country as unique as Iceland.

But sometimes, it’s the smaller, local companies that make the biggest difference.

Lava Car Rental began as one of those small companies. Built in Iceland, shaped by local knowledge, and focused entirely on the traveller experience, we chose a different path — one rooted in transparency, flexibility, and doing the basics properly.

This is the story of how that approach led to recognition by the World Travel Awards, and how a small, independent Icelandic car rental company came to stand alongside some of the world’s biggest names.

Executive summary

Lava Car Rental began as an independent Iceland car rental company with a basic aim in mind. We wanted to make it easy for travellers to enjoy Iceland safely and conveniently, through a simple car rental process. Rather than trying to grow as quickly as possible, we put the customer experience first and foremost.

That approach has led to three consecutive years of recognition by the World Travel Awards — winning Iceland’s Leading Car Rental Company in 2023 and 2024, and placing runner-up in 2025.

And while such an industry honour is certainly appreciated, we’d be remiss if we went without mentioning another amazing honour: the thousands upon thousands of happy reviews from customers that you can find on Trustpilot and Google. More than anything else, these reviews confirm that we’ve been successful in meeting our goal of giving travellers the best Icelandic car rental experience possible. They prove that a local car rental company in Iceland can compete against, or even excel past, international brands.

Starting small — and staying focused

Lava Car Rental was founded on the idea that renting a car in Iceland needed to be easier and more convenient. Making that a reality for our customers was our entire goal from Day 1. 

We had little plans to become Iceland’s largest independent and highest-rated car rental company, even if that’s how it happily worked out. We just wanted to ensure that first-time visitors to Iceland could get their trips off on the right foot, from the moment they left the rental counter and headed out on the road.

As such, we decided early on to focus on a few key priorities:

• Give travellers well-maintained vehicles suitable for Iceland’s unique driving conditions, from the F-roads of the Highlands to snow-covered winter roadways 
• Make the entire process easy and simple, from the initial online booking process to picking up and dropping off the rental car near Keflavik Airport 
• Offer transparent pricing, so what travellers saw was what they received, both at pick up or drop off
• Provide essential insurance as a rule, rather than a bonus or perk, to give every traveller greater peace of mind
• Make the Iceland self-driving experience accessible and fair to all travellers, which is why we accept debit cards and forgo young driver fees
• Approach every day of work with warm and friendly Iceland hospitality

Throughout the years, we’ve been able to stick to these values while also listening to our customers and adapting and improving based on their feedback. As such, every change we ever made was based on their needs, versus how an international car rental company might base all their decisions on things like shareholder dollars.

Competing in a market built for big players

When we first got into business, we knew that the Iceland car rental market was competitive. Long-established, global companies have been operating here with their large fleets of vehicles and ample international resources for years.

However, again, we wanted to focus on what we knew that we could do well as a small, local car rental company in Iceland.

So, rather than keeping one eye on the big guys, we kept our attention on ourselves. What could we actively do to make travellers’ lives better? 

For one, we could be exceptionally reliable. We could be consistent and clear communicators. We could make the previously frustrating rental car process easy and even enjoyable.

Over the years, this commitment allowed us to build up a customer base that helped us compete against those big players, as travellers spread the news that Lava Car Rental was where you should go for a straightforward, easy and reliable car rental experience.

What the recognition represents

When we were first recognised by the World Travel Awards in 2023, we were extremely honoured. These awards are based on votes from travellers and industry professionals — the very people who’ve experienced Lava Car Rental for themselves. Getting the award in 2023, and also in 2024, as well as a nod in 2025, just verified how much our hard work has paid off.

Additionally, while we were named Iceland’s Leading Car Rental Company, we were also the only Icelandic car rental company in the past decade to win the award while in competition with international car rental companies.

And, while we know that the World Travel Awards are a big deal, we can also look past the prestige and honour to understand what they really mean, beyond the pageantry: Travellers and the industry have made it clear that Lava Car Rental can provide a level of quality, transparency and customer care that goes far beyond what the international car rental companies offer.

Growing without losing what matters

Of course, even though we prioritized other values over just trying to grow quickly, we’ve still grown organically over time. However, with that growth, we keep our sights on what truly matters.

Every day, we’re still prioritizing:

• Providing travellers with modern, reliable vehicles that are ideal for Iceland’s unique road conditions
• Continual improvement, listening to our customers and adjusting our services accordingly 
• Communicating with customers throughout every step of the booking process
• Basing our business decisions around what will make travellers’ experience better, as we continuously gather data via surveys and feedback

Again, ultimately our goal is to be the most reliable local car rental company in Iceland, rather than the biggest or most profitable.

Why staying local still matters

Even now, we know that our dedication to our local identity is crucial to Lava Car Rental’s success. 

We recognize that renting a car in Iceland and Iceland’s driving conditions are often exceptionally different from the experiences our travellers may have had in their own home countries. As such, they need a local guide to ensure they’re equipped with everything they need to be safe and comfortable.

Because we understand Iceland, we can be that guide for our customers. We know how to navigate Iceland’s weather, seasonal changes, differing road conditions and more, and we keep an eye on all of these so we can provide the services our travellers need, right in the moment.

As a result, our customers are safe and they know that they can trust us to have their best interests in mind, and they’re happy to spread the word regarding their positive experience and book us for their next Iceland trip.  

Looking ahead

We’re so thankful that the industry and our customers have confirmed our success in achieving our goals. As a small, independent Icelandic car rental company competing against international providers, being recognised by the World Travel Awards was hardly a small feat.

So, thank you, everyone who has ever booked their vehicle with Lava Car Rental, left a review, shared your feedback or referred us to other travellers.

We hope we can welcome you back to Iceland soon.