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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:
$27 per day
From:
$186 per day
From:
$85 per day
From:
$194 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 rent a car with Reykjavik Cars?
- Car hire pioneers
We've been in the car hire industry in Iceland since 2013 and have since become one of the most trusted companies here. Unlike many other hire agencies, we offer unique deals, a hassle-free experience, and 5-star customer service to make sure your trip is unforgettable.
- 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 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!
- 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 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 streamlined hire process
Our Iceland car hire process is so easy and efficient that all you need to do is follow these 4 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 Hire Guide
Iceland, the Land of Fire & Ice, is a place like no other on Earth. It's so unique and 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 breaking the bank, is to hire a car with unlimited mileage! For the best experience, choose the best car hire 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 for your rental car, or opt for one of our large new vehicles or MPVs if you're part of a big group!
If you don't know where to go, try the Ring Road! It's the best ‘doughnut' 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 hiring a car in Iceland
Road types & Insurance
- 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 number of insurance policies you can take out with your hire car in Iceland can be overwhelming! If you're not 100% sure which insurance to choose… get our all-in-one Platinum Insurance Bundle! This package includes comprehensive cover, including gravel protection and theft protection, and you can also opt for tyre insurance to cover potential damage from Iceland's rugged roads.
- 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 favourable, 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.
General info
- Driving in Reykjavik is generally smooth and stress-free, thanks to well-maintained roads and relatively light traffic compared to other capital cities. That said, Iceland has a few unique driving rules to keep in mind. For example, headlights must be turned on at all times — yes, even during the day and in summer’s endless daylight! It’s all about visibility and safety, which is a top priority on Icelandic roads.
- 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 31 mph (50 km/h), while in rural areas you’ll typically find a limit of 56 mph (90 km/h) on paved roads and 50 mph (80 km/h) 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.
Driving & weather
- Once you leave the city and hit the more remote routes, keep an eye out for wandering sheep — they roam freely, and they’re not great at checking both ways before crossing.
- Iceland’s weather can shift dramatically in a matter of minutes, especially in mountainous or coastal areas. It’s always a good idea to check the weather forecast and road conditions before heading out, just to make sure your journey is as safe (and scenic) as possible.
- 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 tyres are essential for handling Iceland's icy and snowy roads, so make sure your hire 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.
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!
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Essential Guide to Renting a Car in Reykjavik
Tips for exploring Reykjavik in your car hire
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.
- 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)
- 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.
- Reykjavik has a reliable public transport system, with buses running regularly throughout the day and night. If you intend to use 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 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 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 hire 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'll need to be at least 20 years old to hire a car in Iceland. However, for large SUVs & 4x4s, you'll need to be 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?
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!
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...
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.
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.
Next, check that you have a valid driving licence and a credit card in your name — both are essential for the booking. Your licence 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 licences are accepted — just double-check in advance to avoid surprises at the counter.
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