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Car rental in Iceland

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I am planning a European trip with my fiancé in June and using Iceland air. We have an option to take a couple day layover in Iceland and explore the southern coast. After reading reviews on the rental car agencies it appears that every single one is defrauding people based on made up damages. Are there any trustworthy car rental agencies in Iceland? Are these reviews for real? If so, save for not exploring Iceland … Is there any way to protect ourselves from this fraudulent behavior?

Thanks
-Steve

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