Car Rental in Reykjavik

Iceland

Having a car in Reykjavík, Iceland lets you reach remote natural sights and explore at your own pace. Note Icelandic roads include occasional tolls, F-roads/mountain tracks closed in winter and driving is on the right. Tip: street parking in central Reykjavík is limited; fill up outside town where gas stations are more frequent.
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AnyRentCars is an information partner of Localrent. The entire process of searching, booking, and prepaying is handled via the secure Localrent system. This guarantees you direct prices from local car rental companies and official service support throughout your rental period.

Discover the landscapes surrounding Reykjavík

A car allows you to reach Iceland's most iconic sites easily. Drive to the Golden Circle to see Geysir and Gullfoss. Explore the dramatic coastline of the South Coast. Visit the black sand beaches of Reynisfjara. The Blue Lagoon is just a short drive away. Having your own vehicle provides total independence. You can explore remote fjords at your own pace. Public buses rarely reach the hidden gems. A rental car makes every detour possible. You can visit the Snæfellsnes Peninsula without time limits. The landscapes change every few kilometers. See the Skógafoss waterfall without rushing. Explore the volcanic fields of Reykjanes.

Selecting the ideal vehicle for your Reykjavík adventure

Your choice depends on your planned itinerary. Consider your passenger count and luggage needs. Different terrains in Iceland require specific features. Choose a model that matches your comfort level.

  • Compact cars and hatchbacks: These models offer excellent fuel efficiency. They are easy to maneuver through narrow city streets. They suit solo travelers or couples perfectly.
  • Sedans and family cars: These are best for long highway trips. They provide extra comfort and ample luggage space. They are ideal for groups traveling between towns.
  • Crossovers and SUVs: These are essential for unpaved roads. They perform well on hilly or rugged terrain. They offer higher ground clearance for safety.

Benefits of booking a car in Reykjavík through our service

We prioritize your convenience and peace of mind. Our rental terms are straightforward and easy to understand.

  • Transparent pricing with no hidden extra charges.
  • Low or no deposit options and cash availability.
  • Free cancellation within a specific timeframe.
  • Fast local car delivery to the city or nearby.

Rental Requirements & General Terms

Driver's License

Valid national license required. An International Driving Permit (IDP) is highly recommended or mandatory for non-residents in most countries.

Minimum Age

Usually 21+ years old. Drivers under 25 may be subject to a "young driver fee" depending on the local rental policy and car category.

Security Deposit

A valid credit card (Visa/Mastercard) in the main driver's name is required for a refundable security deposit upon car collection.

Insurance (CDW)

Basic Collision Damage Waiver (CDW) and Theft Protection are typically included in the price with a standard deductible (excess).

Car Availability

60 days before trip:
95%

Maximum availability, standard baseline prices.

30 days before trip:
70%

Rare vehicle classes (convertibles, minivans) are running low.

14 days before trip:
30%

Economy class is almost completely sold out.

2 days before trip:
5%

Only luxury SUVs or premium segment vehicles remain.

Booking Service Recommendation:
To lock in the best rate and guarantee the availability of your preferred vehicle class, we highly recommend booking in advance. Free cancellation is available for most offers.

Weather and driving conditions in Reykjavík

0918-0.5°+0.5°+1°+3.5°+7°+10.5°+13.5°+12°+8.5°+4°+0.5°-0.5°Jan18dFeb17dMar16dApr15dMay13dJun11dJul10dAug12dSep14dOct16dNov17dDec18d
Days with precipitation
Avg Temperature

Car selection recommendation:

Driving in Iceland can be unpredictable due to sudden wind, rain, or snow. To ensure your safety and comfort on various terrains, we recommend renting a SUV / 4x4.

Best periods to book a car in Reykjavík

The chart shows how rental prices in Reykjavík change throughout the year relative to the base rate (100%). Book early to lock in the best prices.

150%100%50%Jan65% · $16.3/dayFeb65% · $16.3/dayMar95% · $23.8/dayApr100% · $25.0/dayMay110% · $27.5/dayJun140% · $35.0/dayJul155% · $38.8/dayAug150% · $37.5/daySep105% · $26.3/dayOct90% · $22.5/dayNov75% · $18.8/dayDec70% · $17.5/day
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July and August are the peak months. January and February are the cheapest months. Early booking guarantees the base price.

Driving Rules and Specifics in Reykjavík (Iceland)

Speed limitsUrban — 50 km/h, Open roads — 90 km/h.
Alcohol limit0.2‰ (extremely strict limit).
Driving sideRight-hand traffic
HeadlightsRequired at all times
Mobile phone useHands-free only.
Seat beltsMandatory for all passengers.
Child seatsRequired for children under 135 cm.
Toll roadsNo toll roads in Iceland.

What tourists need to know before driving in Reykjavík

  • Driving under the influence — Zero tolerance policy; extremely high fines and potential jail time.
  • Speeding — Strict enforcement by cameras and police.
  • Off-road driving — Strictly prohibited and carries massive fines.
  • Off-road driving is strictly forbidden to protect the fragile ecosystem.
  • Wind can be extremely strong; hold car doors firmly when opening them.
  • Be cautious of gravel roads; they are common and require slower speeds.

Emergency services in Reykjavík (Iceland)

Police
112
Ambulance
112
Tourist Hotline
1778

Answers to your questions about Reykjavik

Did not find the answer? Contact our 24/7 support team.

Car rental in Reykjavik allows you to select a vehicle, choose rental dates, and define pickup and drop-off locations. After booking online, the car is collected from the selected location under the rental provider’s terms and conditions. The rental agreement outlines usage rules, mileage limits, and responsibilities during the rental period.

To rent a car, drivers usually need a valid driving license, a passport or government-issued ID, and a payment card. Some rental providers may require an international driving permit or apply minimum age and driving experience rules.

Yes, airport pickup is available in many locations in Reykjavik. Rental desks may be located inside the terminal or nearby, with shuttle service provided by the rental company if needed.

Car rental services typically offer economy cars, compact models, sedans, SUVs, vans, and premium vehicles. The available car categories depend on location, demand, and the rental provider’s fleet at the time of booking.

Basic insurance coverage is usually included with car rental bookings, depending on the provider and location. Insurance terms, coverage limits, and optional protection packages are displayed before confirming the reservation.

Most car rental bookings allow cancellation or modification before pickup, subject to the provider’s policy. The exact conditions, deadlines, and possible restrictions are shown during the booking process.

In most cases, a credit or debit card is required to complete a car rental booking and collect the vehicle.

Additional drivers may be allowed if they meet the rental requirements and are added to the booking agreement.

Mileage policies depend on the rental provider. Some rentals include unlimited mileage, while others apply distance limits.