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Local Car Hire in Iceland ⭐ Cheapest Car Hire in Reykjavik
Car Hire 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
We’re 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 favourite extras to your hire car and let the fun begin!
Free Cancellation
Not sure you’ll be able to collect your hire car? Give us 48 hours’ notice and we’ll return your deposit in full!
Car rental rates in Iceland
From:
£25 per day
From:
£130 per day
From:
£35 per day
From:
£136 per day
Our reviews speak for themselves
Annabelle Sappa
Useful info Customer ServiceHelen Walker
Pick Up Customer ServiceSarah Sawall
Easy drop-off Customer Service
Ready to hire a car in Iceland?
Book NowWhy hire a car with Reykjavik Cars?
- Car hire pioneers
We've been in the car hire business in Iceland since 2013 and have become one of the most trusted companies on the island. Unlike many other hire companies, we offer unique deals, a hassle-free experience, and 5-star customer service to make sure your trip is unforgettable.
- Extensive vehicle catalogue
We're always one step ahead of your needs, so you can choose from the most popular hire cars in Iceland. From economy cars and minibuses to standard and large 4x4s, SUVs, and luxury vehicles, our hire car fleet has it all, with unlimited mileage available for those who want total freedom to explore. You name it, we've got it!
- 24/7 customer support
"With great car hire comes great commitment." Commitment to making sure you have the time of your life and to sorting out any problems you might run into with your Reykjavik car rental quickly.
- Free cancellation
Not ready to commit to your hire car in Iceland because you're worried something might come up? No problem! Give us 48 hours' notice, and we'll refund your deposit in full.
Planning your trip from the US, Germany, Spain, France, or Italy instead? Visit our dedicated sites: US, DE, ES, FR, IT
Our streamlined hire process
Hiring a car in Iceland with us is quick and easy! All you need to do is follow these 4 simple steps:
- Complete our brief booking process and receive a confirmation email with all your details.
- Fly to Iceland (around 2-3 hours from most UK airports) and come to our offices to pick up your rental car.
- Explore the hidden wonders of Iceland and contact us if you need help.
- Drop off your rental at our Reykjavik or Keflavik offices and leave us a review if you fancy it!
Iceland, the Land of Fire and Ice, is a place like no other on Earth. It's packed with natural wonders and stunning landscapes, and you won't want to miss a thing. The best way to get around the island with total flexibility, without breaking the bank, is to hire a car with unlimited mileage! Choose a trusted car hire company in Iceland and enjoy a hassle-free journey to every hidden gem at your own pace.
Planning to stick to the capital and the main roads? Take a look at our Economy & City Cars, or choose one of our spacious passenger vans and 9-seaters if you're travelling as a large group.
Not sure where to go? Try the Ring Road! It's the best "doughnut" you'll ever come across, looping all the way around Iceland and passing the most breathtaking sights on the island.
Feeling adventurous? We have some of the best 4x4 hire cars in Iceland. Take on the challenging F-roads and discover remote, one-of-a-kind places such as Askja, Landmannalaugar and Thórsmörk.
Tips for hiring a car in Iceland
Road types & Insurance
- In Iceland you'll come across all kinds of roads, from well-surfaced main roads to gravel tracks and rough mountain roads, so choose the right cover for your itinerary. For extra peace of mind, consider adding gravel protection to avoid unexpected costs from loose stones chipping your hire car and theft protection to guard against the unexpected during your trip.
- The number of insurance options available with a hire car in Iceland can feel overwhelming! If you're not 100% sure which to choose, go for our all-in-one Platinum Insurance Bundle. It includes comprehensive coverage, including gravel protection and theft protection, and you can also add tyre cover for damage from Iceland's rugged roads.
- Many UK travellers buy standalone car hire excess insurance or directly rely on their credit card’s insurance. It is essential to know that these policies often exclude damage that’s quite common in Iceland, such as those we mentioned above. If you get UK car insurance that actually covers a hire car abroad, read the small print, or avoid the hassle by choosing our all-in-one Platinum Insurance Bundle for more comprehensive cover, including gravel protection and sand and ash protection. You can also add tyre cover (on certain models) for damage from Iceland’s rugged roads.
- If you're planning to explore the more remote parts of Iceland, such as the Highlands, you'll need to tackle the famous F-roads. Only drive on F-roads in a 4x4 when the weather is favourable and when the roads are officially open. Off-road driving is illegal in Iceland because of the damage it causes to the fragile landscape, and it can lead to heavy fines or even a prison sentence, so don't even think about it!
General info
- Driving in Reykjavik is generally smooth and stress-free, thanks to well-maintained roads and light traffic compared with most capital cities. That said, Iceland has a few rules that may surprise UK drivers. The most important one: Iceland drives on the right (see our guide for UK drivers below). Dipped headlights must also be on at all times, even during the day and in the endless summer daylight.
- Speed limits in Iceland are not just suggestions; they are strictly enforced, especially near schools, where limits can be even lower. In built-up areas such as Reykjavik the standard limit is 31 mph (50 km/h). In rural areas it's usually 56 mph (90 km/h) on surfaced roads and 50 mph (80 km/h) on gravel roads. Remember that in Iceland, road signs and your hire car's speedometer show km/h, not mph. 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.
Driving & weather
- Once you leave the city and head out onto quieter roads, look out for wandering sheep. They roam freely and aren't great at checking both ways before crossing!
- Iceland's weather can change dramatically within minutes, especially in the mountains and along the coast. Always check the forecast and road conditions before setting off so your journey is as safe (and scenic) as possible.
- Keep your lights on and seatbelt fastened at all times, and only use your phone with a hands-free kit. Also, be extra cautious when opening your car door in windy areas, as strong gusts can damage the door or rip it out of your hands.
- If you're hiring a car in Iceland in winter, the right equipment is essential. Winter tyres are a must on Iceland's icy, snowy roads, so make sure your hire car has them (and add them if it doesn't). Likewise, drive slowly and carefully, and plan around the short daylight hours and sudden snowstorms that can reduce visibility.
Booking your rental
- 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 hire in time, or you'll be stuck with day tours and constrained by public transport.
- Not sure about what places to visit on your Iceland road trip? A straightforward 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.
- Just like in the UK, car hire 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!
Book Now
Essential Guide to Hiring a Car in Reykjavik
Tips for exploring Reykjavik in your car hire - Guide for UK drivers
Are you ready to explore Reykjavik and Iceland’s beautiful landscapes in your car hire? Here’s a list of tips and driving advice to ensure your trip to Iceland's capital city is a success.
- Which side of the road do they drive on in Iceland? The answer is the right, just like mainland Europe. Your hire car will be left-hand drive, with the steering wheel on the left and the gear stick (on manual cars) operated with your right hand. Remember to watch your position, as UK drivers tend to drift too close to the right-hand verge. Be extra careful pulling away. The most common mistake happens after a break, such as leaving a petrol station, a car park, or a viewpoint, when habit kicks in on an empty road. A simple "KEEP RIGHT" reminder on the dashboard works wonders.
- If you're staying in Reykjavik city centre, you can pop into our car rental offices in Reykjavik city centre 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). Take it slowly on the first few miles. Use the first drive around the office to get comfortable before you hit busier streets or narrower country roads.
- 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 give way to traffic already in the roundabout. Go round anticlockwise and give way to traffic coming from your left. Read our guide to roundabouts in Iceland before you set off.
- 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 Hire FAQs
What do I need to hire a car?
If you want to rent a car with us, you’ll need:
- To be at least 20 years of age (+23 for large SUV and minivan models)
- A valid ID or passport
- An original driver's license (held for at least 12 months)
- A valid credit card under the name of the reservation holder
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.
What's the minimum age to hire a car in Iceland?
You must be at least 20 years old to rent a car in Iceland. However, for large SUVs/4x4s or passenger vans, you must be at least 23 years old.
Where should I pick up my Iceland car hire?
We recommend booking your car hire 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.
Can I go anywhere with my Iceland car hire?
That really depends on what type of vehicle you decide to rent! City cars and People Carriers 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).
Which rental vehicle category is the most popular in Iceland?
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.
Car Hire Locations - wherever you need us!
When planning your trip, knowing your car hire locations in Iceland can make a world of difference. Whether you're landing at Keflavik International Airport, exploring Reykjavík city centre, or starting your journey from another part of the country, finding a convenient hire car is key to a smooth adventure.
Most travellers choose to hire 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 domestic flights only.
There are other less-used offices and hire locations 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 hire 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 car in Iceland and start exploring!
Reykjavik car rental FAQs
What are the opening times of your downtown Reykjavik car rental offices?
Our Reykjavik office opens from 8 AM to 6 PM , for both rental pick-ups and drop-offs.
Can I book now and pay later for my Reykjavik car hire?
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.
What kind of car do you recommend for driving around Reykjavik?
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.
Can I rent an automatic car in Reykjavik?
Yes, absolutely. Our most popular rental car in Reykjavik just happens to be the automatic Toyota Aygo!
These are also great for UK drivers; you can forget about the right-hand gear stick, and with one less thing to think about, you can focus on your road position.
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!
Car hire booking process
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.
The most popular hire options to find the right fit...
Hiring a car in Iceland is really straightforward. First, browse and choose the vehicle that best suits your itinerary and hire period, whether you're heading into the Highlands or sticking to the Ring Road. There's a wide range to choose from, from eco-friendly electric cars that help minimise your carbon footprint to stylish luxury models for travellers who want to explore in comfort.
Whether you're after a compact car or something roomier, we have vehicles suited to Iceland's unique terrain and every season.
Where can I rent a car in Reykjavik?
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!
What documents do I need to hire a car in Iceland?
Before you hit the Icelandic roads, make sure you're eligible to rent in the first place. The minimum age requirement is 20 years old for small cars and 23 years old if you're looking to hire a larger SUV or 4x4 vehicle.
You'll also need a full, valid driving licence and a credit card in the lead driver's name, as both are essential for your booking. Your licence must be written in English or use the Latin alphabet, so a UK photocard driving licence is accepted and you won't normally need an International Driving Permit. Just remember to bring the physical card, as a photo or digital copy won't do.
If your licence is in Cyrillic, Greek, Chinese or Arabic script, you'll need an International Driving Permit, sorry! Most other international licences are accepted, but it's worth checking before you travel to avoid any surprises at the desk.
How do I check rental car rates and conditions?
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!
Why is renting a car the best way to explore Iceland?
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 hire 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.
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)
Your Icelandic road trip begins here
Book Now