Local Car Rental in Iceland â Cheapest Car Rental in Reykjavik
Car Rental Pioneers
Explore Iceland hand in hand with a local car rental company that has been here for over a decade!
Extensive Vehicle Catalog
Our vehicle fleet just keeps getting bigger and bigger, and we have the lowest prices in Iceland.
24/7 Customer Support
Weâre with you every step of the way to make sure your Iceland road trip is picture perfect.
Amazing Extras
Make your journey unforgettable! Add your favorite extras to your rental and let the fun begin!
Free Cancellation
Not sure youâll be able to make it to your rental? Give us 48 hoursâ notice and weâll return your deposit in full!
Most Popular
From $39 per day
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$27 per day
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$186 per day
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$85 per day
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$194 per day
Check out our Iceland travel blog!
see all postsWe've been in the car rental in Iceland industry since 2013 and have since gone on to become one of the most important car rentals in Iceland. Unlike many other rental agencies, we offer unique deals, a hassle-free experience, and 5-star customer service to ensure your trip is unforgettable.
We're always one step ahead of your needs in order to provide you with the most popular rental cars in Iceland! From economy cars and passenger vans to standard and large 4x4s, SUVs & luxury vehicles… Our rental car fleet has it all, with the possibility of unlimited mileage for those who want total freedom to explore. You name it, we've got it!
‘With a great car rental comes great commitment'. Commitment to ensuring that you have the time of your life and to swiftly help solve any problems that you may run into with your Reykjavik car rental.
Not sure about hiring your rental car in Iceland yet because you're worried that something might come up? No problem! Give us 48 hours' notice and we'll return your deposit in full!
Traveling the UK, Germany, Spain, France or Italy? Visit our dedicated homepages: UK , DE , ES , FR , IT
Our Iceland car rental process is so easy and efficient, that all you need to do is follow these 3 simple steps:
1. Complete our brief booking process and receive a confirmation email with all your details.
2. Fly to Iceland and come to our offices to pick up your rental car.
3. Explore the hidden wonders of Iceland and contact us if you need help.
4. Drop off your rental at our Reykjavik or Keflavik offices and leaveus areview if you’re up to it!
Iceland, the Land of Fire & Ice, is a place like no other on Earth. It's so unique, and so packed with natural attractions and stunning landscapes, that you won't want to miss a thing. The best way to get around the island with total flexibility, and without going broke in the process, is to hire a rental car with unlimited mileage! For the best experience, choose the best car rental company in Iceland and enjoy a hassle-free journey to every hidden gem at your own pace.
Thinking about sticking to the capital and the main roads? Check out our Economy & City Cars category , or opt for one of our new large vehicles or minivan rentals if you’re part of a big group!
If you don’t know where to go, try the Ring Road ! It’s the best ‘donut’ you’ll ever encounter, taking you all around Iceland and passing through the most breathtaking tourist attractions on the island.
Feeling adventurous? We have some of the best 4x4 vehicles in Iceland for you to choose from. Take on the challenging F-roads and discover one-of-a-kind, remote locations like Askja, Landmannalaugar and Thorsmork!
Congratulations! If you’re reading this section of our website, you’ve probably already decided to rent a car in Iceland!
Renting a car in Iceland is a unique experience that may catch you by surprise if you’ve never visited the island before. We’ve compiled a list of essential tips and driving advice to make sure that your car rental experience in Iceland is picture-perfect!
In Iceland, you'll encounter different types of roads, ranging from well-paved highways to gravel roads and rough mountain tracks, so make sure to choose the right rental insurance depending on your travel itinerary! For extra peace of mind, consider adding gravel protection to avoid unexpected costs from loose stones damaging your rental car, and theft protection to safeguard against any unforeseen incidents during your trip.
The amount of insurance policies you can take out with your rental car in Iceland can be over whelming! If you're not 100% sure about which insurance to choose… Get our all-in-one Platinum Insurance Bundle! This package includes comprehensive coverage, including gravel protection and theft protection, and you can also opt for tire insurance to cover potential damage from Iceland’s rugged roads.
Iceland is experiencing a world-wide BOOM. Hotels are overbooked and car rentals are running out of keys to hand over! Make sure you book your Iceland car rental in time, or you'll be stuck with day tours and constrained by public transport.
If you're planning to explore the more remote parts of Iceland, such as the Icelandic Highlands, you'll need to take on the famous F-roads. It's crucial to avoid driving on the F-roads unless you rent a 4x4 vehicle, the weather is favorable, and the roads are officially open. Driving off-road is illegal and punishable, so don't even think about it! Off-road driving is illegal in Iceland due to its environmental impact and can result in fines or imprisonment.
Speed limits in Iceland aren’t just suggestions, they’re strictly enforced, especially in sensitive areas like school zones where limits can be even lower. In urban areas like Reykjavik, the standard speed limit is 50 km/h (31 mph), while in rural areas you’ll typically find a limit of 90 km/h (56 mph) on paved roads and 80 km/h (50 mph) on gravel roads. It's important to stick to these limits not only to avoid hefty fines but also to stay safe on Iceland’s often unpredictable roads.
To ensure a safe and enjoyable trip, keep your lights and seatbelt on at all times and only use your phone if you have a hands-free kit. Also, be extra cautious when opening your car door in windy areas, as strong gusts can cause damage or even rip the door out of your hands unexpectedly.
If you're going to be hiring a car in Iceland during the winter, having the right equipment is crucial. Winter tires are essential for handling Iceland's icy and snowy roads, so make sure your rental car comes equipped with them (and add them if it doesn't). Also, drive slowly and carefully at all times, and be aware of the shorter daylight hours and potential sudden snowstorms that can worsen visibility.
Not sure about what places to visit on your Iceland road trip? A no-brainer option for a first glimpse of the country, and to visit some of Iceland's most breathtaking tourist destinations, is the Ring Road. This route is perfect for an unforgettable Iceland road trip, allowing you to experience everything from glaciers to volcanoes at your own pace. Additionally, the Diamond Circle is a great detour that you can add to your travel itinerary if you want to experience the rugged beauty of Iceland's north, taking you to hidden gems like Dettifoss, one of Europe's most powerful waterfalls, and Lake Mývatn, a volcanic lake surrounded by lava fields and geothermal activity.
If you are are coming from the USA, know that rental prices often include unlimited mileage and VAT so you don't have to add taxes on top of the price!
Ready for the adventure of a lifetime? Hire a car in Iceland and start exploring!
If you want to rent a car with us, you’ll need:
Please note that the minimum rental period for our vehicles may vary depending on the season and availability, so we recommend checking our booking system for specific details.
Youâll need to be at least 20 years old to be able to rent a car in Iceland. However, for large SUVs & 4x4s, youâll need to be 23 years old.
We recommend booking your rental car in Iceland at Keflavik . Our offices are right next to KEF airport (and Reykjavik is about an hour away), so you can grab the keys to your car as soon as you land and hit the road! our Keflavik International Airport offers 24/7 pick-up and drop-off services for car rentals.
If you’re staying in the capital, you also have the option to pick up your vehicle at our Reykjavik city office for added convenience. Our car rental pickup process is quick and hassle-free, ensuring you spend less time waiting and more time exploring Iceland.
That really depends on what type of vehicle you decide to rent! City cars and minivans are great for the main roads and urban areas, but if you want to explore the more remote corners of Iceland, youâll need a 4x4 SUV (compulsory if you want to take on the F-roads).
SUVs & 4x4s are the most rented rental cars in Iceland. Renting a 4x4 in Iceland is truly ideal, as you'll be able to reach all of the island's points of interest. While many rental cars are suitable for city driving and the main roads, choosing a 4x4 gives you the freedom to explore Iceland’s rugged landscapes safely and comfortably.
The Toyota Aygo and the Kia Rio are the most popular economy rental cars in Iceland. The Dacia Duster and the Suzuki Vitara take the gold when it comes to 4x4 rentals.
Essentially, it all depends on the type of trip you have planned! If you’re looking for a comfortable and fuel-efficient option for city driving or short trips, a passenger car might be the perfect choice.
However, before hitting the road, ensure you have a valid driving license that meets Icelandic regulations.
For an eco-friendly alternative, consider renting one of our electric vehicles, ideal for reducing your carbon footprint while exploring Iceland.
Economy cars are excellent for exploring urban areas or even the Ring Road during the summer.
However, if you're striving for adventure or visit Iceland during the winter, we recommend renting a 4x4 vehicle. These vehicles provide better stability on icy roads, and many come equipped with winter tires to ensure safer driving in harsh weather conditions.
Renting a city car, like the Toyota Aygo , in Icelandfor1 week will cost you around $350 ($50 per day), depending onthetime of year you plan on traveling. If you opt for a 4x4, one week behind thewheelof the Dacia Duster will cost you around $294 ($42 per day), depending on the season you choose.
Renting a city car, like the Toyota Aygo, in Iceland for 1 month will cost you around $1,400 ($50 per day), depending on the time of year youplanon traveling. Our car rental rates vary based on the season, vehicle type, and availability, so booking in advance is the best way to secure the lowest price! If you're looking for the cheapest rental car, opting for an economy model and reserving early will help you get the best deal. To find the best car rental deals, we recommend comparing prices during different seasons and taking advantage of early booking discounts. A week with the Jeep Renegade will cost you around $2,408 ($86 per day), depending on the season.
The price for fuel in Iceland is high and tends to peak during the summer months. Fortunately, gas stations are widely available across the country, especially in urban areas and along the Ring Road. Plus, every one of our rental cars in Reykjavik includes a FREE Fuel Discount Key to help you save on fuel costs.
Driving in Iceland is very different to driving in other countries. Leaving themainroads and carving out your own path is illegal and punishable with big fines orevenjail time, so donât even think about it!
Feel free to check out our
Are you ready to explore Reykjavik and Iceland's beautiful landscapes in your rental car? Here's a list of tips and driving advice to ensure your trip to Iceland's capital city is a success.
If you're staying in Reykjavik city center, you can swing by our car rental offices in downtown Reykjavik and pick up your rental car. At the end of your trip, you can drop it off there or drive it to Keflavik (our shuttle bus service will take you from our KEF offices to the airport).
Reykjavik has plenty of street parking, but make sure to check the parking signs carefully, as some areas are reserved for residents only or have time limits.
Reykjavik has relatively light traffic compared to other major cities, but rush hour can still be busy, especially on the main roads leading in and out of the city. Also, keep in mind that roundabouts are common in Reykjavik, and you must yield to traffic already in the roundabout.
Reykjavik has a reliable public transport system, with buses running regularly throughout the day and night. If you plan on using the bus, consider purchasing a Reykjavik City Card, which includes unlimited travel on public transport as well as discounts on attractions and activities. But for maximum freedom, a rental car is your best option!
Want to head out of the city on a day trip? Rent any one of our new economy and city cars at any of our car rental locations, or pick an SUV or 4x4 if you're expecting a bumpy ride! Head on over to the Blue Lagoon for a relaxing geothermal spa experience, stand with one foot in Europe and one foot in North America at the Bridge Between Continents or marvel at the hot springs, geysers and volcanic craters of the Reykjanes Geopark.
The decision is yours, but whatever you do... Relax, have fun and enjoy it!
Yes, you can. However, the only way to secure your car rental is by paying a small deposit via our website. The remaining amount can be paid at our offices using a valid credit card or other accepted payment methods.
If you plan on sticking to Reykjavik and the main roads, then a city car like the Toyota Aygo is a great choice! If you want to take on the F-roads or venture further from the city, we recommend renting a 4x4 vehicle.
During the summer months, Iceland’s roads are generally clear and accessible, meaning small cars can handle most routes without any trouble — perfect for budget-conscious travelers chasing waterfalls and midnight sun. However, once winter rolls in, road conditions can get tricky with snow, ice, and strong winds. That’s when midsize cars really shine. Renting a 4WD vehicle is best for navigating unpredictable weather conditions in winter. With better stability and handling in adverse weather, they’re a safer and more comfortable choice for tackling Iceland’s wintry roads.
Yes, absolutely. Our most popular rental car in Reykjavik just happens to be the automatic Toyota Aygo!
Yes, insurance is compulsory for driving a car in Iceland. Every one of our car rentals in Reykjavik includes Third Party Liability insurance (CDW), which should be enough for cruising around Reykjavik. However, if you plan on exploring more remote locations on the island, you should consider purchasing our Platinum or Premium insurance packages.
If you have a foreign driver's license, make sure it complies with Icelandic driving regulations and consider purchasing additional coverage for extra peace of mind.
These comprehensive car insurance options include additional coverage like gravel protection, theft protection, and the Super Collision Damage Waiver (SCDW) for extra peace of mind in case of major incidents.
Reykjavik Airport (RKV) is the closest airport to the island's capital; however, it's exclusively used for national flights, so the vast majority of travelers arriving in Iceland will land at Keflavik International Airport (KEF).
We have offices in Reykjavik and Keflavik. Most travelers rent a car at Keflavik International Airport but not all of our vehicles can be picked up and dropped off at both of our offices. Feel free to contact us if you would like more information about your selected rental car.
Unfortunately, no. All you need to do is swing by our offices in Reykjavik and weâll get you behind the wheel in a flash!
Yes, but it depends on the car you choose. Please contact us for more detailed information about the rental you have chosen.
The best way to secure the lowest price on your Reykjavik car rental is by booking ahead and traveling during low season (between October and January).
It really depends on what part of Reykjavik you want to park in : the more centric, the higher the price. For detailed information about parking in Reykjavik you can take a look at our guide to parking in Reykjavik.
You can visit www.vedur.is for everything weather-related, and www.road.is for the latest in terms of road conditions.
And that’s all folks! For more questions and answers about hiring a car in Iceland and exploring Reykjavik, please visit our FAQs page . Happy travels!
When planning your trip, knowing your car rental locations in Iceland can make a world of difference. Whether you're landing at Keflavik International Airport, exploring downtown Reykjavík, or starting your journey from another part of the country, finding a convenient rental car or car rental company is key to a smooth adventure.
Most travelers choose to rent a car at Keflavik International Airport, just a short drive from Reykjavík. This major hub offers a wide range of car rental options, from compact vehicles to larger 4x4s, perfect for any terrain you'll encounter in Iceland. It's important not to confuse KEF Airport with Reykjavik Domestic Airport, as the latter is located within the city limits and as its name states "Reykjavik Domestic Airport" operates dosmestic flights only.
There are other less used offices and car rental locations scattered across the island, including Akureyri in the north and Egilsstaðir in the east.
No matter your travel route, there's likely a Reykjavik Cars office nearby ready to get you on the road. Just remember to confirm your rental agreement and check whether your chosen vehicle offers pick-up and drop-off flexibility across multiple rental car company branches.
Looking for the best car rental company in Iceland? We’ve got you covered. From Reykjavík to remote fjords, your car rental needs are never far away — and your rental vehicle will be ready when you are.
Ready for the adventure of a lifetime? Hire a rental car in Iceland and start exploring!
Getting ready for your epic Icelandic road trip? Whether you're here to chase the Northern Lights, cruise the Golden Circle, or take a dip in the Blue Lagoon, choosing the right car rental in Iceland is your first step toward an unforgettable journey.
Renting a car in Iceland is super straightforward. First, browse and select the vehicle that best suits your itinerary and rental period— whether you're heading to the Highlands or sticking to the Ring Road. There’s a wide range of car rental options available, from eco-friendly electric cars perfect for minimizing your carbon footprint, to sleek luxury models for travelers looking to explore in style.
Whether you’re after a compact car or something roomier, each car rental company offers a variety of vehicles tailored for Iceland’s unique terrain and seasons.
With plenty of car rental locations across the country — including Keflavik International Airport and Reykjavík, finding a rental car company that fits your needs and itinerary is easier than ever with Reykjavik Cars!
Before you hit the Icelandic roads, make sure you're eligible to rent in the first place. The minimum age requirement is 21 years old for small cars, and 23 years old if you're looking to rent a larger SUV or 4x4 vehicle.
Next, check that you have a valid driver’s license and a credit card in your name — both are essential for the booking. Your license must be written in English or use the Latin alphabet. (So, if it’s in Cyrillic, Greek, Chinese, or Arabic, you’re going to need an international driving permit, sorry!) The good news? Most international licenses are accepted — just double-check in advance to avoid surprises at the counter.
Once that’s set, just head to the website, scan through our top deals and book online with a small deposit. Keep an eye on the rental period, rental price, and any available extras like GPS, baby seats, or additional insurance. At Reykjavik Cars we also offer free cancellation, giving you the flexibility to adapt your plans as needed.
Before you rent a car, make sure you understand your rental agreement, including what's covered and what's not. You’re pretty much good to go. That’s it!
So, if you're planning to explore Iceland at your own pace, there's no better way than to rent a car and take the wheel. With the right car rental company, like Reykjavik Cars, you're not just getting transportation — you're unlocking the freedom to discover every glacier, volcano, and waterfall this country has to offer. Your Icelandic adventure is just a few clicks away.
From chasing the magical Northern Lights to winding through epic fjords and volcanic landscapes, your Icelandic road trip starts with finding the perfect rental car. Whether you're after a fuel-efficient compact or a rugged 4x4, the right wheels make all the difference. Book your ride, pack your sense of adventure, and get ready to explore Iceland at your own pace, the open road is calling!