Car Rentals in Iceland starting at $29 per day
30+ local and major trusted car rental suppliers in Iceland, all in one place.
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Search, Compare & SaveCompare prices and reviews for all vehicle types in Iceland
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100% Refundable Deposit / Free CancellationCancel your Iceland car rental risk-free with a full deposit refund and no cancellation fees.
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Keflavik International Airport (KEF Airport)Shuttle service available to and from KEF Airport from your rental supplier of choice.
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Rental car insurance includedAll Iceland car rentals through Northbound include insurance and third party liability.
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Unlimited MileageRent a car in Iceland with unlimited mileage
Why choose Northbound?
Affordable and transparent car rental booking platform in Iceland
Find all vehicle types, prices, and reviews in one place from trusted local suppliers in Iceland. Northbound gathers options from Iceland's top-rated car rental companies so that you can make an informed decision and find the best value for your trip.
Transparent pricing
Our user-friendly price comparison tool ensures there are no hidden fees—just straightforward, cost-effective car rental options tailored to your budget and preferences.
Supplier quality and service
We partner with top-rated local car rental companies in Iceland, carefully selected based on customer feedback and reviews that we monitor constantly.
Search filters for personalized choices
Customize your rental with filters for vehicle type, transmission, fuel type, seating capacity & more — making it easy to find the perfect fit for your journey.
Book a car in Iceland with Northbound today.
Not convinced? Read more about what we do for you
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All-in-one comparison
Easily compare Iceland car rental prices, vehicle types & insurance options from 30+ suppliers in one place.
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Rental Locations
We have partnerships with rental suppliers at Keflavík International Airport, Reykjavik and Reykjavik Domestic Airport— you’ll find vehicles ready for you wherever your adventure begins or ends.
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Customer Support
Dedicated customer service for a Worry-Free rental experience.
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Excellent Pick-Up and Drop-Off
Pick-Up and Drop-Off service with a customer review rating of a 9.2/10 stars.
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Iceland Fuel Cost & Mileage Calculator
We made a fuel calculator so that you can estimate you fuel usage and spending before your arrive, so you can budget more accurately.
Check out our fuel calculator here-
Discounts with Local Buddies
Unlock exclusive discounts on authentic Icelandic experiences & tours when renting a car with Northbound.
Northbound Buddie Program
Supplier Testimonials
What suppliers say about our partnership
"We at Lotus Car Rental have been using Northbounds booking service since 2018. The collaboration with Northbound has been extremely successful, both in terms of service to us and service to our customers. Our communication with Northbound has been exemplary, and they have been very receptive to ideas and changes we have suggested. Northbound makes fair demands on its resellers to provide customers with outstanding service and a good product."
"Thrifty Car Rental proudly acknowledges our thriving partnership with Northbound. Together, we excel in providing exceptional customer service and reliable rental experiences. Northbound's innovative technology and user-friendly platform enable seamless access to Thrifty's diverse fleet, ensuring customer satisfaction."
Our Most Popular Vehicles for Car Rentals in Iceland
Find the perfect rental for every type of traveler
Family Cars
Solo Travellers
Eco-Conscious Travelers
Business Travelers
Luxury Seekers
Motorhome & Camping
Young Travelers
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Toyota RAV4Safe & Reliable 4x4 SUV rental in Iceland.From €59/dayToyota Land CruiserRent a a spacious 4x4 Land Cruiser in Iceland, perfect for F-Roads.From €110/dayDacia JoggerRent a Dacia Jogger in Iceland - Family Perfect Rental CarFrom €40/dayFamily trips require vehicles that offer ample space, safety, and comfort for all ages. An ideal family car accommodates luggage, strollers, and comes with the option for child seats.
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Dacia DusterMost popular car rental in Iceland. Perfect for Icelandic road trips.From €33/dayHyundai i10One of the most popular affordable car rentals in Iceland for solo travelers or couples.From €27/dayTesla Model 3100% EV rental with impressive range and safety as a priority.From €55/daySolo adventurers value flexibility and ease of navigation. Compact and efficient vehicles are ideal for those looking to explore both the urban landscapes of Reykjavik and the rugged terrains of the countryside
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Toyota RAV4Safe & Reliable 4x4 SUV rental in Iceland.From €59/dayTesla Model 3100% EV rental with impressive range and safety as a priority.From €55/dayTesla Model YGreat value for an EV rental in Iceland. Spacious, All-wheel drive and great safety features.From €67/dayEnvironmentally conscious travelers prefer vehicles that minimize carbon footprint without compromising on the travel experience
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Hyundai i30Rental car with a combination of fuel efficiency, comfort & safety.From €43/dayPolestar 2Spacious & comfortable EV rental in Iceland.From €46/dayBusiness travelers need vehicles that blend comfort with a touch of luxury, equipped with features that allow for a smooth transition between work and leisure
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Volvo XC90Luxurious and comfortable rental in Iceland, perfect for F-Roads.From €98/dayBMW X3F-Road ready rental in Iceland that provides both luxury and comfort.From €155/dayFor those seeking a blend of elegance and high performance, luxury vehicles offer premium comfort and advanced features for an unforgettable travel experience
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Renault TraficRental car that is suitable for both city tours and countryside explorations in Iceland.From €143/dayDacia Dokker CamperComfortable camper that sleeps two.From €61/dayFamily PlusComfortably sleeps 6, very reliable, and perfect for family adventures.From €308/dayCamping is the absolute best way to experience Iceland, our campers & motorhomes offer you the adventure of a lifetime.
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Suzuki JimnyF-Road ready rental that has excellent fuel economy.From €49/dayToyota YarisAn affordable and compact Iceland rental car.From €29/dayHyundai i20Economical & Reliable car rental in Iceland.From €33/dayYoung travelers often seek cost-effective options that are reliable and fun for group travel. Vehicles with good fuel efficiency and sufficient space for friends and equipment are ideal
(Psst.. try our Gas Price Calculator if you want to plan your fuel costs)
Car Rental Information
Vital rental information for renters
🚗 Most Popular Car: Dacia Duster 4x4 🔑 Popular Location: Keflavik Int. Airport 💰 Average Rental Price: €57/day 🧒 Driving Age: 18 years old 🛡️ Insurance Included: CDW Included ⛽ Avg. Gas Price: €1,99/L $7.9/gallonAverage Daily Rental Prices Per Month
For compact cars and 4x4s in Iceland€200€1000JFMAMJJASONDMonth Price Jan. 2025 €81,00 Feb. 2025 €77,00 Mar. 2025 €74,00 Apr. 2025 €79,00 May. 2025 €95,00 Jun. 2025 €120,00 Jul. 2025 €93,00 Aug. 2025 €115,00 Sep. 2025 €121,00 Oct. 2025 €100,00 Nov. 2025 €85,00 Dec. 2025 €84,00 - The cheapest hatchback available for rent in 2025 is only €27/day!
- Small cars are 43.5% cheaper than 4x4 rentals on average, however the 4x4's provide a much more comfortable experience while driving in Iceland
- Renting a car in Iceland in the high seasons (May - September) is 65% more expensive on average than in the low seasons.
- Some things can only be experienced in Iceland during the high season (midnight sun, 24 hour daylight etc.), while the northern lights are much more visible during the winter seasons.
- 60.1% of our customers choose to rent a 4x4/SUV for driving in Iceland, while only 11.3% choose a hatchback.
- Roads marked as F-Roads are highland roads and hatchbacks and non-4x4 vehicles are not allowed to drive on these. Keep this in mind when deciding which car rental you need, as some of Icelands greatest treasures are only accessible through an F-Road
Frequently Asked Questions
About driving and renting a car in Iceland
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Should I book directly from the supplier or via Northbound?
Booking via Northbound ensures competitive pricing, 30+ trusted suppliers based on genuine reviews, dedicated support throughout your rental experience, and assistance in mediating any disputes for a fair resolution. We are there for you every step.
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Does Northbound have free cancellation?
Yes, we offer free cancellation on all of our rentals. Check details during booking as cancellation policy regarding hours/days before arrival can differ.
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How does Northbound manage reviews?
We encourage genuine feedback and display all reviews, ensuring potential renters get unbiased insights.
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Is Northbound a free rental service?
Yes, our platform is free for renters. Northbound provides the best deals without added costs.
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Why do prices vary for similar cars?
Prices always reflect supplier rates, vehicle availability, and seasonal demand without any added costs from our end. It is our goal to ensure you get the best price.
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Does Northbound vet each supplier?
Yes, we assess each supplier for quality, reliability, and customer feedback by reading reviews before partnering with them.
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How can I reach you?
Glad you asked. There are few ways you can reach us:
By phone:
- Phone number: +354 539 3022
- Open Monday through Friday 8:30am - 3:30pm.
By E-mail:
Contact us:
There is a contact us in bottom right corner where it says "Any Questions? Click here", don't hesitate to use it for any questions or concerns.
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Does Northbound have a price comparison tool?
Yes, Northbound's price comparison tool aggregates offers from various trusted car rental agencies in Iceland. By inputting your preferences and travel dates, our system will provide a list of available options sorted by price, features, and supplier ratings.
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How much is a car rental in Reykjavik, Iceland 2024?
Car rental prices in 2024 in Iceland can vary depending on the season, type of car, and rental duration. Expect to pay anywhere from $19 per day.
Spring
Usually from March to May and prices are considerably lower during this season as it is considered off-season.
Summer
Summer is from May to late August and is considered a high season for Iceland. Prices are higher during this season due to availability.
Autumn / Fall
Iceland autumn months are usually from late August until November and prices mostly vary depending on availability during these months. You will be able to find reasonably priced vehicles during these months.
Winter
Winter is considered off season but is a beautiful time of year to visit Iceland as Northern Lights are easily spotted due to days being darker & longer. It starts late November until March and is always considered a season where you can receive the best prices for renting a vehicle.
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How long should I stay in Iceland?
The ideal length of stay in Iceland depends on your interests and budget, but a minimum of 5-7 days is recommended to explore the country's main attractions.
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What is the best way and where to rent a car in Reykjavik, Iceland?
Booking your vehicle through Northbound is a great way to compare prices from over 30+ major and local car rental companies in Iceland and find the best deal. Northbound has a price match guarantee while also taking on disputes for customers and hold ourselves to a high standard regarding all our partners and our customer service.
Learn more: Iceland Car Rental: Supplier vs Broker
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Should I rent a car in Iceland?
Yes, renting a car in Iceland is highly recommended by most travelers. You have the added freedom of choosing your own self-drive route and be at your own pace.
If you have any questions, Contact Us and we will get back to you within 24 hours.
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How to find a cheap car hire deal in Iceland?
Booking in advance is the best option to get the best prices. Northbound offers you the chance to use your advanced search engine with many search filters so that you are capable of comparing prices and choosing the right vehicle for your trip.
Also, as an added tip, always make sure you have the correct insurance for your needs, reduce the likely hood of getting fines by driving responsibly and return the vehicle on time and full of fuel.
Read further for visiting Iceland on a budget
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How do I avoid an expensive car rental?
To avoid an expensive car rental in Iceland, it's important to book in advance, decline unnecessary add-ons, be mindful of fuel costs, and return the car on time and in good condition.
Dive deeper into maximizing your car rental experience here
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What is the Ring Road in Iceland?
The ring road is also known as Route 1, which is a national highway that runs around the whole island of Iceland. It is the most popular road trip route as it is a loop around the whole Island which you are able to drive in approx. 12-13 hours without stopping. It is 1332 km (828 miles) long and it's generally recommended to allow 7-10 days to fully enjoy this popular scenic road.
If you plan to travel the Ring Road, especially during harsh weather conditions, ensure you rent a suitable vehicle, such as a 4x4, to handle any difficult driving conditions.
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What should I know about roadside assistance in Iceland?
In case of a breakdown or accident, road assistance is available 24/7 in Iceland. Contact details for road assistance will be provided as well as being listed on your voucher.
Remember to drive safely, especially in winter conditions or on unpaved roads. In case of a serious accident or injury call 112 (Icelandic emergency number).
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What are the requirements for renting a car in Iceland?
- Age requirement: The minimum age for hiring a car in Iceland is 18 years old but this can vary depending on the type and size of the rental vehicle.
- Driving license: You need to have held a driver's license for at least 12 months before renting a car in Iceland. This requirement may vary between vehicle types, such as motorhomes. If your domestic license is written in English/Roman letters, it is valid. If it is written in another alphabet (like Slavic, Chinese, Arabic, etc.), then you must bring an international driver's license.
- Additional drivers: The requirements for any additional drivers are the same as for the main driver. The additional driver needs to be present when you pick up the vehicle and must have their driver's license with them.
- Passport: A passport is not necessary to collect the vehicle; you only need a valid driver's license written in English/Roman letters.
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What is the Golden Circle route and how can I explore it with my car rental in Iceland?
The Golden Circle is a popular tourist route in southern Iceland, covering about 300 kilometers looping from Reykjavik into central Iceland and back. The three primary stops are the Þingvellir National Park, the Gullfoss waterfall, and the geothermal area in Haukadalur, which contains the geysers Geysir and Strokkur.
In summer, any car, including economy cars, can handle the Golden Circle route. During winter or harsh weather, a 4x4 vehicle may be better for icy or snowy conditions. Consider factors like luggage space, passenger number, fuel efficiency, and your comfort with the vehicle when choosing a rental car.
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Do I need a credit card to rent a car in Iceland?
You can book your vehicle on Northbound using a credit-card or some 16-digit debit cards.
The card holder does not need to be the same person as the driver. However, a credit card might need to be presented at the time of vehicle pickup where there is a security deposit or imprinting required.
You can go to our Debit Card Car Rentals website for further information about renting a vehicle with a debit card in Iceland.
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What are the available rental pick up & return locations in Iceland?
There is a car rental pickup & return available from the following locations:
- Keflavik International Airport
- Keflavik / Reykjanesbaer
- Reykjavik Domestic Airport
- Reykjavik Capital
- Akureyri Airport.
- Some Guesthouses/Hotels
If you want to return your vehicle at a different location than pickup, there might be an added fee.
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What are some examples of car rental suppliers that partner with Northbound?
We are proud to be partnered with over 30+ car rentals in Iceland, both local and major car rental suppliers. Our goal is to provide you with access to a diverse fleet of vehicles with a price match guarantee to ensure a worry free car hire experience.
Hertz A globally recognized brand, Hertz offers a comprehensive range of vehicles, from economy cars to luxury models, known for their high quality and reliability.
McRent Specializing in motorhome rentals, McRent provides modern, fully-equipped motorhomes, ideal for a comfortable and adventurous journey across Iceland.
MYCAR A local Icelandic supplier, MYCAR is known for its fleet of new and meticulously maintained vehicles, ensuring a safe and enjoyable driving experience.
Thrifty Car Rental Offering cost-effective rental options, Thrifty is a great choice for travelers seeking quality vehicles at budget-friendly prices.
FireFly Car Rental Firefly is a global car rental brand that offers you to rent a car in Iceland at low prices. They pride themselves on being affordable and having a stellar fleet variety.
Touring Cars Motorhome Rental Renowned for their top-notch campervans and motorhomes, Touring Cars offer vehicles that combine comfort and convenience, perfect for exploring Iceland on your own terms.
Car Hire Iceland Safety Tips
Special considerations when renting a car in Iceland
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SeatbeltsSeatbelts are mandatory for everyone, including backseat passengers.
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Gravel RoadsSlow down on gravel roads to maintain control of your rental vehicle.
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Car HeadlightsKeep headlights on at all times while driving; the ‘auto’ setting isn’t enough.
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Road ClosuresHeed road closures; they are for your protection. The Icelandic word for closed is "Lokað"
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Road ConditionsAdjust your speed to current weather and road conditions.
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Weather ChangesCheck weather and road updates frequently, especially in winter.
Real Reviews from Real Customers
Over 13.000+ reviews from our customers