Cheapest Iceland Car Rental ⭐ Local Car Hire in Reykjavik

Car Rental Pioneers

Car Rental Pioneers

Explore Iceland hand in hand with a local car rental company that has been here for over a decade!

About Us

Extensive Vehicle Catalog

Extensive Vehicle Catalog

Our vehicle fleet just keeps getting bigger and bigger, and we have the lowest prices in Iceland.

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24/7 Customer Support

24/7 Customer Support

We’re with you every step of the way to make sure your Iceland road trip is picture perfect.

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Amazing Extras

Amazing Extras

Make your journey unforgettable! Add your favorite extras to your rental and let the fun begin!

All Extras

Free Cancellation

Free Cancellation

Not sure you’ll be able to make it to your rental? Give us 48 hours’ notice and we’ll return your deposit in full!

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Car rental rates in Iceland

4x4s & SUVs

Most Popular


From $39 per day

5 Person
4 bags
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Economy and city cars



$27 per day

4 Person
1 bag
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Minivans and passenger



$186 per day

9 Person
8 bags
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Electric cars



$85 per day

5 Person
2 bags
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Luxury cars



$194 per day

5 Person
5 bags
View car fleet

Our reviews speak for themselves

Annabelle Sappa

12 Aug 2020

Great rental from start to finish. The staff at their Keflavik office and the customer service team are really nice and very helpful. The car was in good condition, very comfy to drive & economical (we did the whole Route 1) The rental price was really good, definitely the cheapest one around. I highly recommend this rental company.

Helen Walker

27 Jul 2019

Booking online in New Zealand, we had no idea which rental company to use in Iceland and chose Reykjavik Cars mainly on price and some good reviews. We were not disappointed. The compact car we chose was great to drive, the friendly team at the Reykjavik city office gave us all the information we needed regarding road rules and driving in Iceland, and the price was very reasonable.

Sarah Sawall

9 Jan 2023

We had a great experience with Reykjavík Cars! Our car was ready when we landed, it worked great the entire trip. The WiFi was helpful in navigating the island and worked seamlessly. Drop off was easy. I prefer to try and use local companies while traveling to keep money in the country I am going to and this fit that bill as well!

Giovanni Colombazzi

16 Feb 2023

I want to underline and thank the good service of your company. We noted the simply, fast delivery and comfort of the car. If you visit Iceland ,you need a car and for this I recommend Reykjavik Cars. Best regards.

Kunwar Singh

12 Jan 2023

The process was seamless, from booking the reservation to picking up and returning the car. The vehicle itself was in excellent condition and exceeded all of my expectations. The staff were friendly, helpful, and went above and beyond to ensure that my rental experience was pleasant and stress-free. They were quick to respond to our email queries prior to booking as well. I highly recommend this car hire company to anyone in need of a reliable and well-maintained vehicle. Their competitive prices ,and exceptional service make them a top choice in car rental. Thank you Reykjavik cars, we had a memorable trip.

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Tourism promotion board of Vatnajokull National Park
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Icelandic travel industry association
Free cancellation
Iceland Tourism Board certificate of Reykjavik Cars
Car Rentals in Reykjavik Iceland

Ready to Rent a Car in Iceland?

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Why rent a car with Reykjavik Cars?

  • Car rental pioneers

    We've been in the Iceland car rental industry since 2013 and have since gone on to become one of the most important car rentals in Iceland, with unique deals and 5-star customer service.

  • Extensive vehicle catalog

    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 cars… Our fleet has it all. You name it, we’ve got it!

  • 24/7 customer support

    ‘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.

  • Free cancelation

    Not sure about hiring your 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 from the UK, Germany, Spain or France? Visit our dedicated homepages: UK, DE, ES, FR

Our streamlined rental process

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!


Essential Iceland Car Rental Guide

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 car!

Thinking about sticking to the capital and the main roads? Check out our Economy & CityCars 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!

Tips for renting a car in Iceland

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 drivingadvice 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 highwaystogravel roads and rough mountain tracks, so make sure to choose the right rentalinsurancedepending on your travel itinerary!
  • The amount of insurance policies you can take out with your rental car in Iceland can beoverwhelming! If you’re not 100% sure about which one to choose… Get our all-in-onePlatinumInsurance Bundle!
  • Iceland is experiencing a world-wide BOOM. Hotels are overbooked and car rentals arerunningout of keys to hand over! Make sure you book your Iceland car rental in time, or you’llbestuck 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!
  • 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.
  • If you’re going to be hiring a car in Iceland during the winter, you’ll want to: make sure your rental car comes with winter tires (and add them if it doesn’t), 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. 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.

Ready for the adventure of a lifetime? Hire a car in Iceland and start exploring!


Iceland car rental FAQs

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)
  • A valid credit card of one of the passengers

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!

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 vehicles in Iceland. Renting a4x4in Iceland is truly ideal, as you’ll be able to reach all of the island’s pointsofinterest!

The Toyota Aygo and the Kia Rio are the most popular economyrentalcars in Iceland. The Dacia Duster and the Suzuki Vitara take the gold when it comes to4x4rentals.

Essentially, it all depends on the type of trip you haveplanned!Economy cars are excellent for exploring urban areas or even the Ring Roadduringthe summer. However, if you’re striving for adventure or visit Iceland duringthewinter, we recommend renting a 4x4 vehicle.

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 youaround $1,400 ($50 per day), depending on the time of year youplanon traveling. A week with the Jeep Renegade will costyouaround $2,408 ($86 per day), depending on the season.

The price for fuel inIcelandis high and tends to peak during the summer months. On the positive side, everyoneof our rental cars in Reykjavik includes a FREE FuelDiscount Key.

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.

Essential Guide to Renting a Car in Reykjavik

Tips for exploring Reykjavik in your rental car

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.
  • Want to head out of the city on a day trip? Rent any one of our new economy and city cars, 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!


Reykjavik car rental FAQs

Our Reykjavik office opens from 8 AM to 5 PM, for both rental pick-ups and drop-offs.

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.

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.

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.

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, 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 for everything weather-related, and 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!

Where to find us

  • Keflavik Office: between 5 AM and 2 AM (variable depending on the rental car you choose)
  • Reykjavik Office: between 8 AM and 6 PM (variable depending on the rental car you choose)

Ready to Rent a Car in Iceland?

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