To rent a car in Reykjavik, you will typically need the following documents:

• A valid driver's license from your home country.
• A valid passport or identification card.
• A credit card in the name of the main driver for the car rental deposit.
• Some rental companies may also require an International Driving Permit (IDP) if your driver's license is not in English.

It's always a good idea to check with the specific rental company for their document requirements.

Most car rental companies in Reykjavik require a credit card for renting a car. This is because the credit card is used to hold a security deposit during the rental period. However, there may be some rental companies that accept alternative forms of payment such as debit cards or cash, but these options may have additional requirements and restrictions. It's best to check with the specific rental company for their payment options.

Yes, it is mandatory to have car insurance when renting a car in Reykjavik. Most rental companies include basic insurance coverage in their rental rates. However, this coverage may have a deductible or excess, which means you will be responsible for a certain amount in case of damage or loss. It is recommended to consider additional insurance options, such as Collision Damage Waiver (CDW) or Super Collision Damage Waiver (SCDW), to reduce or eliminate your liability in case of accidents or damages. Always check the terms and conditions of the rental company regarding their insurance coverage.

Yes, most car rental companies in Reykjavik allow you to add an additional driver to the rental agreement. However, there may be an additional fee for adding extra drivers. The additional driver must usually meet the same age and document requirements as the main driver. It's important to inform the rental company in advance if you plan to add an additional driver to avoid any complications during the rental process.

There may be certain restrictions on where you can drive the rental car in Reykjavik. Some rental companies may restrict driving on certain gravel or F-roads, which are unpaved mountain roads. These restrictions are in place to protect the rental car from potential damage. It's important to check with the specific rental company for any driving restrictions before embarking on your journey.

In case of an accident or breakdown with the rental car in Reykjavik, you should immediately contact the rental company and inform them about the situation. They will provide you with the necessary guidance and assistance. It is important to follow the procedures outlined by the rental company, which may include filling out an accident report or arranging for a replacement vehicle. Additionally, make sure to document the incident by taking photos and gathering relevant information such as the details of any involved parties or witnesses. It's always a good idea to familiarize yourself with the rental company's policies and procedures regarding accidents or breakdowns before starting your rental period.