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Book Your Iceland Car Rental and Save

Thousands of Vehicles. Exclusive Deals and Risk-Free Booking with Flexible Cancellation. Book Today, Pay the Rest Later.

Included with each rental:

  • Free Cancellation
  • CDW & TPL Insurance
  • Unlimited Mileage
  • Free booking changes
  • Winter tyres
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"Renting through Northbound saved us hundreds!! Definitely recommend!"
- Tarrie

Search Rental Car Deals

Free Cancellation & Amendments
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Economy Rental Cars in Iceland

Vehicles for every traveler

Iceland's largest selection of rental cars

Compact and cheap rental cars in Iceland

Small

Smart choice for simple travel needs.
 Iceland 4x4 rental

4x4's

Ready for Iceland's F-roads and rough terrain
Most popular
 Iceland Camper rental

Campers

Explore Iceland without worrying about hotels
 Iceland motorhome rental

Motorhomes

Fully equipped for long journeys with full comfort
 Iceland van rental

Van's

Great for bigger groups or travelers with extra gear

👋 Welcome to Northbound

Bringing You Iceland's Best Car Rental Deals Online for Over a Decade

At Northbound, we help you find the best car rental deal with no fuss. We check prices from many trusted companies, both local ones and big names, so you don't have to do the hard work. It's like having a friend who knows all the best places to rent a car in Iceland, making sure you get a good deal every time.

Customer satisfaction rate
94%
Customers Served
240,000+
Making Car Rentals Simple
10 Years

Service comes first

Why choose Northbound?

Cheaper

We save you money

Save on your trip with exclusive local coupons and discounts. Compare prices from a large selection of suppliers to find the best deal.

Supportive

We're Here to Help

Our Iceland based support team is here to assist you. Outside of hours, our AI chatbot is available 24/7. Easily update your rental anytime with our self-service tools.

Flexible

Fee Cancellation

Change of plans? No problem. Cancel for free up to 48 hours before pickup on most rentals.

Instant Booking

Fast & Secure Booking

Enjoy instant confirmation and free booking edits. Secure payment options available with credit & debit cards and wire transfers.

Honest

No Hidden Costs

Our prices include everything upfront, no surprises. Found a better deal? We'll match it.

Your Adventure Starts Here

Rental Stations All Across Iceland

Keflavík Airport
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Keflavík Airport

Pick up your car at the terminal or via shuttle.
91% of customers rent here
Reykjavík city
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Reykjavík city

Pickup at the domestic airport, cruise port, or your hotel.
Akureyri
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Akureyri town

Pickup at the domestic airport, cruise port, or your hotel.

Find the perfect car with smart filters

Our powerful search engine helps you find the perfect car. Easily sort by location, price, model, and more. No more endless scrolling.

Here are some of our unique search features:

  • Rentals for young drivers
  • Cars allowed on F-roads
  • No credit card needed
  • License age requirements

Worldwide Trust

Trusted by Travelers Everywhere

92%
98%
92%

What Our Customers Say

We've helped people from over 160 countries with their rental car needs in Iceland

“Amazing service by FOSS, particularly from Arnold who was ready to answer any question and solve any possible issues at any time. The car was ok and clean.”

Angel
08 Apr. 2025

“Daniel and the Hertz and Northbound team were extremely helpful and informative. They helped us with a tour of the van and even in an instance of an accident that gave us a little panic. The trip was amazing, and I would definitely suggest renting a... van of sorts and seeing as many places in this beautiful country as possible!”

Travis
07 Apr. 2025

“The car was perfect for travel to the West Iceland! I would book again and highly recommend this company!”

Irena
02 Apr. 2025

“Everything went well, but I strongly recommend winter tires instead of all-season ones. Also, the remaining tread depth was at the limit, and I felt unsafe during a heavy snowfall.”

Marco
05 Apr. 2025

“The service of Northbound was good. They replayed quickly and solved my questions. Highly recommend”

YI-CHEN
03 Apr. 2025

“Wir hatten über Northbound 4 Tage lang einen Mietwagen in Island gemietet, inklusive einer All-inclusive-Vollkaskoversicherung von RentalCover, einen Dacia Duster 4x4. Buchung, Bestätigungen, Voucher und alle benötigten Unterlagen von Northbound un... d der Versicherung bekam ich sehr schnell nach der Online-Buchung (von Deutschland aus) zugemailt. Alles lief super ab, die Abholung vom Flughafen durch Icerental 4x4, bei der Rückgabe dann der Transfer sogar zu unserem Hotel für die letzte Übernachtung. Das Auto selbst lief super, es gab aber auch absolut keine Vorkommnisse und Gefahrensituationen. Das Personal von Icerental 4x4 ist sehr freundlich und hilfsbereit. Ich würde über Northbound sofort wieder einen Mietwagen buchen, meine 100&ige Empfehlung. Super, macht weiter so!”

JUERGEN
08 Apr. 2025

“We have rented vehicles in many places globally, and understand that differing places Require particular vehicle types. As to the Toyota Land Cruiser, it is in my/our estimation to be the finest of all on the globe (I am biased due to spending a deca... de of my life as an automotive technician, and know that Toyota is a great vehicle). In closing we loved the truck, and we drove 4100 km all over Iceland in ALL possible conditions and always felt safe, Thank You.”

Charles
06 Apr. 2025

“We’ll communicated collection from airport, swift pick up of vehicle, vehicle was in great condition and perfect for our needs, quick and easy vehicle drop off with immediate return to airport. Couldn’t be better!”

Mark
26 Mar. 2025

“Overall we had a good experience with Northbound and Motorhome.is. Few comments still: a. For some reason, it was not clear to me that you are a broker and we have actually rented from Motorhome.is, a fact which caused a confusion for us during pick... up process as we were looking for Northbound signs which confused the local driver as well b. Motorhome condition: - Wipers were in a very bad shape - we tried in few places to locate for a replacement with no success - safety issue. Motorhome.is approved us to buy and get a refund, but we couldn't find one so we used the bad once during all trip - Prevent from freezing button was pushed when we picked up the Motorhome, it took 2 days for us to realize with their technical support and issue was resolved but we lost the fresh water twice - One out of the 2 gas stove was broken up on pick up, so we used only 1 during whole trip - We were missing the electrical adaptor, so in couple of campsites we couldn't charge as they had only the regular (not the Blue) electrical outlet - so we paid the electricity fee for nothing - Bed linen set: we have ordered that with you and when checked via your chat, and asked if it includes blankets, this is the respond I got: "The Bed Linen Set in your booking does not include blankets or duvets. It typically includes sheets and pillowcases. If you'd like to add blankets or duvets, you may need to check additional options or extras for your rental.". Therefore, we carry another large baggage with blanket and pillow, still, when we picked up the Motorhome, we realized the Ben linen set does includes Blankets and pillow. It was a big waste for us paying for it with you and for the additional baggage for 2 ways - Motorhome.is has a great technical support via WhatsApp and supported us immediately when we had an issue”

Nitsan
02 Apr. 2025

“Very good car. Great services and a friendly price. I would recommend it without a second thought if you feel like driving around all Iceland.”

Christos
03 Apr. 2025

“The pickup was super smooth! Just make sure to keep your confirmation email handy since it says what sign to look for when the person/shuttle comes to pick you up. I only wish we would have understood how difficult it was getting back to Reykjavik fr... om the airport without a car (we dropped off the car a day early since we were spending the day in Reykjavik and thought it would be cheaper but then found the transport busses back to Reykjavik are super expensive). Maybe having best tips/practices or “good to know” before booking would have helped us and we would have kept the car a day longer.”

Katie
25 Mar. 2025

“Perfect.”

Mantas
24 Mar. 2025

“Everything went very well, we were very satisfied.”

Franz
24 Mar. 2025

“The van operated well in winter conditions. Equipped and comfortable kitchen, and comfortable bed. However, few things didn't work well: 1) water tank was leaking, 2) driver's window blind was torn, 3) over the bed, the wind caused noisy shaking and... we couldn't close better the windows to prevent the noise”

Dorit
04 Apr. 2025

“Lovely new car.”

Nigel
22 Mar. 2025

“Everything was excellent happy campers were great to rent from Northbound gave me the best price for renting as far as I worked out it was cheaper than renting from the company”

Chris
24 Mar. 2025

Explore Over 13.000+ reviews from our customers

Visit the Reviews Center

Make the Most of Your Rental

Explore Iceland with itineraries built for your rental car, camper or motorhome.

For more itineraries, tips and travel guides, check out our blog

Visit our blog

Plan Better With Real Rental Insights

From gas prices to the most popular car, here are some quick facts to help you plan smarter.

🚗 Most Popular Car: Dacia Duster 4x4
🔑 Popular Location: Keflavík Int. Airport
💰 Average Rental Price: €57/day
🧒 Driving Age: 19 years old
🛡️ CDW Insurance Included: Yes
⛽ Current Gas Prices in Iceland: €2,01/L
$8.7/gallon

Average Daily Prices Per Month
For compact cars and 4x4s in Iceland

€200
€100
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A
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D
Month Price
Jan. 2025 €81,00
Feb. 2025 €78,00
Mar. 2025 €75,00
Apr. 2025 €80,00
May. 2025 €96,00
Jun. 2025 €121,00
Jul. 2025 €94,00
Aug. 2025 €116,00
Sep. 2025 €122,00
Oct. 2025 €100,00
Nov. 2025 €85,00
Dec. 2025 €85,00
  • The cheapest available hatchback available for 2025 is €28/day
  • Small cars are 43.5% cheaper than 4x4's 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 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 what to see, as some of Icelands greatest treasures are only accessible through an F-Road

Car Hire Iceland Safety Tips

Gravel roads, strong winds, and sheep. Know what to expect before you go.

Read more
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Car Rental FAQ for Iceland

Answers to the most common questions about renting a car in Iceland

  • 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.

  • 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.

  • 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

  • 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.

  • 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

  • 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

  • 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.

    Use this guide to know what to see and do on the ring road.

  • 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).

  • What are the requirements for renting a car in Iceland?
    1. 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.
    2. 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.
    3. 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.
    4. Passport: A passport is not necessary to collect the vehicle; you only need a valid driver's license written in English/Roman letters.
  • 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.

  • 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.

  • 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.

  • 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.