Why Iceland Cars?

We offer the BEST PRICES in the capital and the MOST RELIABLE car fleet in Reykjavik! Grab the keys in the city and let the adventure begin!

Insurance and extra cover options for your Reykjavik rental car

We’ve spent over a decade helping travelers find their perfect ride in Iceland’s capital. From nimble compacts for city streets to roomy SUVs for the whole crew, our Reykjavik team knows exactly what your trip needs. Rent with us once and you’ll see the difference!

Modern rental cars from trusted brands in Reykjavik

Our fleet is made up of the latest models from the most trusted manufacturers, all kept in top condition for Reykjavik’s streets and the open road beyond. Choose the car that fits your plans, collect it right in the city and set off on your own schedule!

24/7 customer support for your car rental

A question before you book? A flat tire on the way back from the Golden Circle? Whatever comes up, our support team is on hand around the clock, every day of the year — so when you rent with us in Reykjavik, you’re never on your own.

Testimonials & Reviews

Still deciding who to rent with in Reykjavik?
Take it from the travelers who have already explored the capital and beyond with us!

Explore Reykjavik with us

Reykjavik is where your Icelandic adventure begins.
Rent a car in the capital and start exploring today!

Why Renting a Car in Reykjavik is the Smartest Move

We could go on about how Reykjavik was made to be explored on four wheels — from the colorful streets of the old town to the wild coastline waiting just minutes outside the city. But rather than taking our word for it, let’s look at the real reasons why picking up a rental car in the capital will be the best decision of your trip!

  • The city is only the beginning. Reykjavik is the perfect base camp: the Golden Circle’s geysers and waterfalls, the black-sand beaches of the south coast and the steaming lava fields of the Reykjanes Peninsula are all within easy driving distance. With your own car, every single day can end somewhere completely different.

  • Your budget goes further. Guided day tours from Reykjavik add up fast, especially for couples and families. A rental car lets you reach the same sights for a fraction of the price — and leaves you with more to spend on the city’s restaurants, museums and geothermal pools. The choice is yours!

  • No timetables, no waiting around. Buses and tour groups run on their schedule, not yours. With a car rental in Reykjavik you set off whenever you feel like it, linger at the places you love and skip the ones you don’t. That’s what a holiday should feel like!

Tips for Driving Around Reykjavik

Driving in Iceland’s capital is easy once you know the local rules — and a few of them might surprise you. Read on and get ready before you turn the key!

Getting behind the wheel of an unfamiliar car in a city you don’t know yet can feel a little daunting at first. Add Iceland’s famously changeable weather to the mix, and it’s easy to see why a bit of local knowledge goes a very long way.

So before you pull out of our Reykjavik office, run through these essentials and enjoy the drive with total peace of mind!

The rules of the road. In Reykjavik you drive on the right and overtake on the left, which will feel familiar to most visitors. Speed limits around the city range from 30 to 50 km/h and are strictly enforced, seatbelts are compulsory for everyone, and headlights must stay on at all times — yes, even under the midnight sun. Keep these basics in mind and cruising around the capital in your rental car will be a breeze.

Match the car to your plans. Staying in the capital and its surroundings, or sticking to the Ring Road? A compact, cheap car rental in Reykjavik is nimble, easy to park downtown and kind to your wallet. Tempted by the mountains and the F-roads instead? Then it’s worth upgrading to a sturdy 4x4 that can handle whatever the island throws at it.

Cover yourself properly. Even a short hop out of Reykjavik can surprise you: sudden gusts of wind, loose gravel or sheep casually crossing the road. A solid insurance package for your Reykjavik rental car means you can enjoy every day trip without worrying about the ‘what ifs’ — especially if your plans include the Highlands or the F-roads, where conditions get demanding fast.

Parking in Reykjavik. Downtown parking is split into color-coded zones with different hourly rates — the closer to the main shopping streets, the higher the price. Pay at the street meters or with a parking app, and always double-check the signs, as parking rules are strictly enforced. If you don’t mind a short walk, free spaces can usually be found just outside the city center, so plan accordingly.

Fuel station awareness. Petrol stations are easy to find all over the capital area, and most are self-service pumps that accept credit cards. It’s a good habit to top up your rental car in Reykjavik before any longer day trip, as stations get sparse once you leave the southwest. And at pick-up, double-check whether your car runs on petrol or diesel to avoid any mishaps at the pump.

Frequently Asked Questions

Got questions? We have answers! Read on to find everything you need to know about renting a car in Reykjavik.

Collecting your rental car in Reykjavik is easy — just make sure you have:
  • A minimum age of 20 (23 if you’ve got your eye on a large SUV)
  • Your passport or a valid ID
  • An original driver’s license you’ve held for at least a year
  • A valid credit card belonging to one of the passengers

* On certain models, the credit card must be in the main driver’s name.

In most cases, yes! Licenses from the USA, Canada and the European Economic Area (EEA) are accepted in Iceland as long as you’ve held them for at least 12 months. A license issued anywhere else will also do the trick, provided it shows:
  • A license number
  • A photograph of the license holder
  • Issue and expiry dates
  • Text printed in Latin characters
Every Iceland Cars booking in Reykjavik comes with:
  • Unlimited Mileage
  • Fuel Discount Card
  • Silver Insurance Plan (CDW)
  • 24/7 Road Assistance
  • Winter tires (Seasonal)
  • Free Cancellation
*Free cancellation applies as long as you cancel at least 48 hours before the actual pick-up day.
For city driving, an automatic rental car is the relaxed choice: no clutch and no gear changes, just smooth sailing through downtown streets and roundabouts. Prefer a manual? If you’re happy shifting gears yourself, you’ll usually pay a little less and get slightly better fuel consumption out of your rental.
Rentals start at a minimum of 24 hours — and from there, you can keep the car for as long as your Icelandic adventure lasts.
No stress! Cancel more than 2 days before your rental’s start date and you’ll get a full refund. Cancellations made less than 2 days before the start date aren’t eligible for a refund, and the same goes if you don’t show up to collect your vehicle (No Show).
Both options work great. Picking up at Keflavik Airport means you can hit the road the moment you land, while our Reykjavik city locations are ideal if you’re spending a day or two in the capital first — the compact center is best explored on foot, so you won’t miss having a car (or having to park one) right away.
Easier than you might think! The city center uses color-coded paid zones where you can pay at street meters or with a parking app, and rates drop the further you get from the main shopping streets. You’ll also find free parking on the edges of downtown if you don’t mind a short stroll.
That’s the best part of renting in the capital! The Golden Circle, the waterfalls and black-sand beaches of the south coast, and the geothermal wonders of the Reykjanes Peninsula all make perfect day trips from Reykjavik — and you’ll be back in the city in time for dinner.