Book Your Iceland Car Rental and Save

Cost of renting a car in Iceland with Northbound will typically range from $27/day to around $150/day, depending on vehicle type, season, and availability. Early booking usually guarantees the lowest rates. Let us know if you find a lower price else where and we will match it with our price match guarantee promise.

Booking your vehicle through Northbound is a great way to compare prices from both major and local car rental companies located at KEF Airport and find the best deal. We offer to price match if you find a lower price with our competitors as well as free cancellation and no hidden fee's.

Learn more: Iceland Car Rental: Supplier vs Broker

Yes, renting a car in Iceland is highly recommended. It gives you the freedom to travel at your own pace and explore places that are hard to reach with public transport. The international airport (KEF) is about 40 km (25 miles) from Reykjavik, and getting there by bus can be quite expensive, especially for families or groups. In many cases, renting a car is actually more affordable.

The weather in Iceland can also be unpredictable, with strong winds, rain, or snow even in the summer. That's why locals often say that a car is the “Icelander's coat.” It keeps you warm, dry, and mobile when walking or waiting for buses just isn’t practical.

If you have any questions, Contact Us and we will get back to you within 24 hours.

Booking early is the easiest way to save, especially in high season. You can choose any type of vehicle, as we work with suppliers who offer fuel-efficient options across all categories.

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

You’ll need a valid driver’s license, a passport or national ID, and a credit card (or eligible debit card) in the main driver’s name. Some suppliers may require you to have held your license for at least 12 months.

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.

There is a car rental pickup & return available from the following locations:

• Keflavik International Airport
• Keflavik / Reykjanesbaer
• Reykjavik Domestic Airport
• Reykjavik Capital
• Some Guesthouses/Hotels

If you want to return your vehicle at a different location than pickup, there might be an added fee.

Yes, cars booked through Northbound include unlimited mileage, so you can explore the country without worrying about extra fees for distance.

The right rental vehicle depends on your travel plans and the time of year. For most travelers driving the Ring Road in summer, a compact or economy car is enough. If you're visiting in winter or plan to drive on F-roads (mountain roads), a 4x4 vehicle is highly recommended. For added comfort or longer trips, many travelers choose a campervan or motorhome to combine transport and accommodation.

Northbound’s search filters make it easy to find the right vehicle for your route, group size, and budget.

In most cases, you need to be at least 20 years old to rent a car in Iceland. Some suppliers allow drivers as young as 18, while others require you to be 23 or older for specific vehicle types like 4x4s, campers, or motorhomes. Always check the age requirements for the vehicle you're booking, as they can vary between suppliers.

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Mandatory insurances like Collision Damage Waiver (CDW) and Third Party Liability (TPL) are always included in your rental. Many suppliers also offer optional upgrades such as gravel protection, sand and ash coverage, and even zero-risk insurance that reduces your liability to zero in case of damage. It’s a good idea to choose coverage based on your preferences and comfort level.

Yes. All prices listed on Northbound include mandatory fees such as basic insurance, taxes, and airport charges when applicable. You’ll see the full cost before you book, no hidden fees & no surprises. Optional extras like additional insurance or GPS and more can be added during the booking process.

It depends on the supplier. Some offer after-hours pickup, often with a key box or shuttle service, while others don’t allow it at all. In some cases, there may be an extra fee. When booking through Northbound, you’ll see each supplier’s pickup options clearly listed, so you can choose what works best for your arrival time.