Local Car Rental in Iceland ⭐ Cheapest Car Rental in Reykjavik

If you want to rent a car with us, you’ll need:

• To be at least 20 years of age (+23 for Large SUV models).
• A valid ID or passport.
• An original driver’s license (valid for at least 12 months). If your license is not in Latin script, you may also need an International Driving Permit.
• A valid credit card of one of the passengers.

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.

You’ll need to be at least 20 years old to be able to rent a car in Iceland. However, for large SUVs & 4x4s, you’ll 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, you’ll 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 don’t even think about it!

Feel free to check out our ‘UltimateGuide to Driving Around Iceland’ for more detailed information.

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 we’ll 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.