
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:
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Free Cancellation
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CDW & TPL Insurance
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Unlimited Mileage
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Free booking changes
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Winter tyres
Vehicles for every traveler
Iceland's largest selection of rental cars
👋 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


Reykjavík city

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

What Our Customers Say
We've helped people from over 160 countries with their rental car needs in Iceland
“Excellent service! We got tips on what to see in Iceland too. Top notch! 👌”
“Au top. Super accueil.”
“The car was brilliant However we spend over half an hour looking for a shuttle pick up this wasn't labeled correctly and when we dropped the vehicle off we had to get a taxi which cost us 5000 krona to get to the airport as no one was made available personally if people have to get early flights home or in this is not convenient if we return I will be using one from the airport”
“Price was decent. Staff was great. I recommend that you put bar return instructions in your cars.”
“My experience was fine. Although we had a problem that the Key car rental company didn't accept to resolve or give us a proposal. We had booked a car that was with diesel fuel and the company gave me a gasoline fuel car. After I reached out to them they told me that the booking was through your site and there wasn't any details about the fuel type, although I specifically booked a diesel car. They send you an email that they added me as CC but there where no answer from your side.”
“Northbound really helps me to find the best deal and they have helped me to make amendments to my booking several times with short notice. Really customer oriented and will definitely use them to help me find my next car rental in Iceland.”
“We got a automatic Kia ceed but that worked fine anyway. Easy to pick up and easy to drop of.”
“It was a perfect choice to travel around the island with one big luggage! Smaller car, but ideal for two people.”
“The trip was awesome. Iceland is a wonderful country and i hope come back again one day. For our first road-trip experience, that was incredible. Thanks to Camping-cars rental for there kindness and disponibilty. I don't have more words to discribe my experience in Iceland.. Incredible !!”
“We had a lovely time in our camper van and the whole process was very easy and seamless”
“I loved the car! The woman who works at Korvin deserves a raise. She works so hard! She was not only the counter check in woman, she was also the shuttle driver and the also the call center lady as well! She did everything quickly and was very kind! Also, I made a mistake on the order and emailed them. They helped me fix my mistake in a matter of moments! Very pleased and would 10/10 recommend again.”
“Hello, first it wasn't a renault master but a volkswagen! Everything was good, the vehicule was perfect and easy to live with”
“We was fully satisfied with our experience to rent a car from Northern Lights Car Rental company. The staff was absolutely friendly and help us with everything and they answered for all our questions. We have met a just a bit actually used car which has some traces of not very careful driving from previous renters. And the exterior of the car was quite worn). I even slightly regretted that we paid the maximum insurance so that no damage would be taken into account. Because it would be very difficult to find new damage among dozens of old ones)). But the car was generally in good working order and there were no technical problems.”
“Prima auto, fijn bedrijf. Ophalen en terugbrengen van de auto perfect geregeld.”
“I found it a good compromise between price and performances”
“The hire car experience was very good and had no issues with it. We had to get a couple of minor issues with the car fixed when picking up but with persistence they fixed. Some explaining of the car charging would have been useful as it was a plug in hybrid which we never used. Overall I would recommend the hire company.”
Explore Over 14.000+ reviews from our customers
Visit the Reviews CenterMake the Most of Your Rental
Explore Iceland with itineraries built for your rental car, camper or motorhome.

Two Unforgettable 3-day Iceland Motorhome Rental Itineraries

Motorhome Rental in Iceland: The Ultimate 5-Day Itinerary

Top 5 Road Trips in Iceland

Northern Adventure: 5-Day Northern Iceland Road Trip

7-Day Itinerary For Iceland
For more itineraries, tips and travel guides, check out 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 |
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🔑 Popular Location: | Keflavík Int. Airport |
💰 Average Rental Price: | €66/day |
🧒 Driving Age: | 19 years old |
🛡️ CDW Insurance Included: | Yes |
⛽ Current Gas Prices in Iceland: | €2,00/L $8.5/gallon |
Average Daily Prices Per Month For compact cars and 4x4s in Iceland
Month | Price |
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Jan. 2025 | €106,00 |
Feb. 2025 | €126,00 |
Mar. 2025 | €103,00 |
Apr. 2025 | €109,00 |
May. 2025 | €94,00 |
Jun. 2025 | €114,00 |
Jul. 2025 | €150,00 |
Aug. 2025 | €152,00 |
Sep. 2025 | €103,00 |
Oct. 2025 | €93,00 |
Nov. 2025 | €88,00 |
Dec. 2025 | €99,00 |
- The cheapest available hatchback available for 2025 is €19/day
- Small cars are 40.1% 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 86.3% 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.

Car Rental FAQ for Iceland
Answers to the most common questions about renting a car in Iceland
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How much does it cost to rent a car in Iceland?
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.
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What’s the best way to rent a car at Keflavík Airport?
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
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Should I rent a car in Iceland?
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.
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How can I get the best value on a rental car in Iceland?
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
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What do I need to rent a car in Iceland?
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.
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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
- 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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Does Northbound offer unlimited mileage?
Yes, cars booked through Northbound include unlimited mileage, so you can explore the country without worrying about extra fees for distance.
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What type of vehicle should I rent in Iceland?
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.
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How old do I have to be to rent a car?
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.
For further information, click here.
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What insurance is included?
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.
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Are all fees included in the rental price?
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.
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Can I pick up my rental car outside opening hours?
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.