Lotuscarrental.is

One sentence summary: Avoid, avoid, avoid.
Second sentence: Car rentals in Iceland are a total scam so my advice: forget about going to Iceland.
Now if you want to read the details:
Lotus Car Rental is a one-man outfit like dozens and dozens of others in Iceland. With some slick advertising by IcelandAir Iceland has hit a jackpot with tourists pouring from all over the world. This has created a huge opportunity for folks with no other jobs to buy a few used SUVs, pay a couple of hundred for a slick website and they are in the car rental business. To take business away from the major car rentals like Hertz and EuropCar etc these small timers 'include' a bunch of insurances in their base rate which tourists fall for and fail to notice the fine print which says there is a 'liability' aka deductible for even the most minor issue to the car. Then with their luck these small time operators find tourists not paying attention, or not walking the car at all, at check out. So upon return they will be held responsible for the damage that is not on the checkout list. And even for the slightest 'new' scratch you will be asked to 'deposit' the US$ 1500 deductible with the 'promise' that 'anything more than the actual repair will be refunded to your credit card'.
Guess what? There will never be a refund and the way these old high mileage vehicles have previous dents and scratches these folks have collected the $1500 from each of the previous victims and never made any repairs. With their luck the same dent will snag another victim and another. Lotus told me that I had to pay the whole 'liability' for a tiny dent on the door and would not take me back to the airport until I paid. With not much extra time left before the flight I had to pay coz missing our flight would have cost us much more than $1500.
Lotus and their peers have no qualms about this scamming of money under coercion.
Then they will fill in your car's particulars in the bogus body shop invoice they have on their computer and send it to your showing that every scratch or dent, no matter how tiny will cost 200,000 ISK to repair. Lotus and their peers think that all who are coming to Iceland are not too bright.
On their websites Lotus and the like give you an impression that they are located at the Keflavik airport. To impress you that they are big business. They are not. If you Google just the street # and address you'll find that they are actually located in Reykjanesbaer or in Gardabaer which are 20-30 km from the airport. And they are all located in one-room offices in small buildings which have sprouted everywhere in these two areas with the car rental boom. Google or Bing map will show you one small building with several one-room offices, each with a different small-time outfit like Lotus, or you'll see a cluster of such buildings with dozens of such outfits. Changing the street # will show you that.
The vehicles that these small time outfits are renting out are very high mileage with just being vacuumed and washed with a pressure washer in the attached garage. The cars are badly out of alignment and in my case the brake light came on after driving 45 km to Reykjavik so I had to return to get another another vehicle which was only marginally better.
So while Iceland has a some good nature spots going there is a big gamble.
Gamble on the weather. There are only 2-3 clear days out of every ten so chances are you'll lose on the weather, esp if your trip is short. Gamble on car rentals as I've described above.
Above all it is a gamble with your own safety and that of your loved ones. The only road that goes around in Iceland and they call it a 'highway' is just a two-way -single lane in each direction- road. No better than a County Road in the US. And IcelandAir -with full knowledge and support of the Govt of Iceland- is piling on tourists on this two-way road by the hundreds of thousands, in addition to all the tour buses and the 4x4's ferrying tourists to the glaciers and whale watching (only if you're lucky).
One third of these tourists drive on the left side of the road in their home country and are driving on the right here. Another third are from a country which is the biggest junk manufacturer in the world and many of these folks have very limited experience with driving a car or have never driven before. Now half of these two categories of folks are driving recklessly and making unsafe passes in the opposite lane towards you and your loved ones at 120 km/hour. So imagine this gamble with going to Iceland.
Don't take my word for it read it here:
http://icelandreview.com/news/2016/06/20/most-accidents-among-chinese-drivers
http://english.cri.cn/*******/2016/10/27/2281s*******.htm
So if anyone's idea of a vacation is to gamble their time, their money and their life and of their loved one's, then sure Iceland is their ticket..