Car Rental in Iceland

Find the lowest prices for rental cars in Iceland. Price match guaranteed with CDW insurance and free cancellation on all car rental bookings in Iceland.

  • 100% Refundable Deposit / Free Cancellation
    Cancel risk-free with a full deposit refund and no cancellation fees for car rentals in Iceland.
  • No Hidden Fees
    Transparent pricing ensures you pay what you see for Iceland car rentals.
  • Pickup at Keflavik International Airport
    Enjoy a convenient shuttle service to and from KEF Airport for your car rental.
  • Insurance Included
    All Iceland car rentals include insurance and third party liability.
  • Unlimited Mileage
    Drive across Iceland with no mileage restrictions on your rental car.
"Everything was perfect. I received all the info I needed from your company before the trip and the rental was exactly as described"
- Laurence

Search Car Rentals in Iceland

Free cancellation & booking changes
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Economy Rental Cars in Iceland
Hertz Car Rental Iceland
Thrifty Car Rental
Touring Cars Iceland
MyCar Rental
Firefly Car Rental
Lava Car Rental
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Renting A Car In Iceland || 8 Things You Should Know
Price Match Guarantee
Found a better car rental price elsewhere? Let us know and we will match it!
Free Insurance Included
A Collision Damage Waiver (CDW) & Third-Party Liability Insurance are included with every rental
Free Booking Changes
You can modify your car rental booking at no extra cost. We do this to keep our prices the lowest in the car rental business in Iceland.

Why choose Northbound?

We've got your back

Our mission is to offer the lowest prices and a straightforward, honest car rental booking experience to our customers.

Our commitment to travelers goes beyond car rentals. With our dynamic price comparison feature, we empower you to make informed decisions, ensuring your trip to Iceland remains memorable and budget-friendly.

Our quality control process is twofold, focusing on selecting our partners and addressing any issues that may arise. We pay close attention to reviews and online discussions from you, our valued visitors. By listening to what people have to say about our potential partners, we can make informed decisions about whether to establish a partnership or not.

Additionally, we use this valuable feedback to identify and resolve any concerns that emerge in each review, ensuring a consistently high level of service.

We are not aiming to be the biggest, but rather, we strive to be the best.

Not convinced? Read more about what we do for you

Price Comparison

Northbound provides you with a platform where you can easily compare car rental prices, vehicle types & insurance options in Iceland from various suppliers in one place.

More about price comparison

Transparent Pricing

Northbound addresses unclear car rental terms and fees by providing clear, upfront information about all costs and rental terms.

Our transparency page

Customer Support

Northbound offers excellent customer support, serving as a buffer between the customer and the supplier and ensuring good communication.

More about customer support

Seamless Pick-Up and Drop-Off

Our pickup and drop-off services are designed to be as seamless as possible. This year, our customers have rated these services an impressive 9.2 out of 10 stars, reflecting our commitment to providing an effortless experience.

Local Knowledge

As a local Icelandic company, Northbound has in-depth knowledge of Iceland and can provide valuable advice and recommendations to customers.

Our local knowledge explained


We pride ourselves on offering outstanding value for your money. Our customers have rated us an impressive 9 out of 10 stars for value this year, highlighting our dedication to providing high-quality service at competitive prices.

Read further on the value we provide

Supplier Testimonials

Strengthening Our Iceland Car Rental Partnerships

"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."

Alexander Haraldsson CEO Lotus Car Rental

"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."

Samuel Thor Traustason Revenue Manager at Thrifty car rental

Our Customer Preferred Vehicles for Car Rentals in Iceland

We got the right vehicle for every type of traveller

Family Cars

Solo Travellers

Eco-Conscious Travelers

Business Travelers

Luxury Seekers

Motorhome & Camping

Young Travelers

  • Toyota RAV4
    Reliable, spacious, all-terrain, safe, fuel-efficient, comfortable.
    From €27/day
  • Toyota Land Cruiser
    Rugged, spacious, comfortable, safe, reliable, 4x4, commanding
    From €91/day
  • Dacia Jogger
    Affordable, spacious, fuel-efficient, reliable, adventurous, all-terrain.
    From €39/day
Family 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.
  • Dacia Duster
    Rugged, affordable, spacious, reliable, comfortable, adventure-ready.
    From €15/day
  • Hyundai i10
    Compact, economical, reliable, suitable for Iceland's roads.
    From €14/day
  • Tesla Model 3
    Sustainable, advanced, all-weather, scenic, comfortable, autonomous driving.
    From €51/day
Solo 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
  • Toyota RAV4
    Reliable, spacious, all-terrain, safe, fuel-efficient, comfortable.
    From €27/day
  • Tesla Model 3
    Sustainable, advanced, all-weather, scenic, comfortable, autonomous driving.
    From €51/day
  • Tesla Model Y
    Eco-friendly, powerful, all-weather, scenic, reliable
    From €42/day
Environmentally conscious travelers prefer vehicles that minimize carbon footprint without compromising on the travel experience
  • Hyundai i30
    Comfortable, economical, ideal for Iceland's diverse landscape.
    From €40/day
  • Polestar 2
    Sustainable, comfortable, powerful, safe, all-terrain, scenic drives.
    From €47/day
Business travelers need vehicles that blend comfort with a touch of luxury, equipped with features that allow for a smooth transition between work and leisure
  • Volvo XC90
    Safe, spacious, luxurious, robust, comfortable, versatile, adventurous.
    From €74/day
  • BMW X3
    Luxurious, safe, sturdy, spacious, adventurous, versatile, comfortable
    From €103/day
For those seeking a blend of elegance and high performance, luxury vehicles offer premium comfort and advanced features for an unforgettable travel experience
  • Renault Trafic
    Robust, spacious, reliable; ideal Icelandic adventure companion.
    From €83/day
  • Dacia Dokker Camper
    Affordable, rugged, practical, cozy, versatile, scenic, adventurous
    From €40/day
  • Family Plus
    Safe, spacious, comfortable, reliable, versatile, heated
    From €287/day
Camping is the absolute best way to experience Iceland, our campers & motorhomes offer you the adventure of a lifetime.
  • Suzuki Jimny
    Compact, rugged, 4x4, economical, all-terrain, versatile, adventurous
    From €24/day
  • Toyota Yaris
    Affordable, reliable, efficient, compact, capable, adventurous, safe
    From €25/day
  • Hyundai i20
    Compact, fuel-efficient, perfect size for Iceland.
    From €16/day
Young 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)

Useful Information

Great tips when renting a car in Iceland: From Cheap Car Hire to Luxury Vehicles

🚗 Most Popular Car: Dacia Duster 4x4
🔑 Popular Location: Keflavik Int. Airport
💰 Average Rental Price: €66/day
🧒 Driving Age: 18 years old
🛡️ Insurance Included: CDW Included
Avg. Gas Price: €1,96/L

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

Month Price
Jan. 2024 €57,00
Feb. 2024 €89,00
Mar. 2024 €82,00
Apr. 2024 €82,00
May. 2024 €86,00
Jun. 2024 €141,00
Jul. 2024 €125,00
Aug. 2024 €126,00
Sep. 2024 €81,00
Oct. 2024 €71,00
Nov. 2024 €75,00
Dec. 2024 €75,00
  • The cheapest hatchback available in 2024 is only €14/day!
  • Small cars are 55.7% 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 63.6% 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

Frequently Asked Questions

About driving and renting a car in Iceland

  • 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.

  • How are cancellations handled?

    Our cancellation policy is clear and customer-friendly, with details provided during booking.

  • How does Northbound manage reviews?

    We encourage genuine feedback and display all reviews, ensuring potential renters get unbiased insights.

  • What is the cost of Northbound's services?

    Our platform is free for renters. We aim to provide the best deals without added costs.

  • 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.

  • How does Northbound vet suppliers?

    We assess each supplier for quality, reliability, and customer feedback by reading reviews before partnering with them.

  • 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.

  • How does Northbound's price comparison tool work?

    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. This allows you to find the best deal tailored to your needs with just a few clicks.

  • Show All
  • 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.


    Usually from March to May and prices are considerably lower during this season as it is considered off-season.


    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 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 or look for alternative transport in Reykjavik, 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. Whether you are staying for one night or a week or two, having your own vehicle will have many added benefits while visiting all the tourist attractions & hidden gems Iceland has to offer.

    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.

Iceland Car Rental Safety Tips

Special considerations

  • Seatbelts
    Seatbelt use is mandatory for all occupants in the vehicle, including those seated in the back.
  • Gravel Roads
    Reduce speed when entering gravel roads to maintain control of your vehicle.
  • Car Headlights
    Car lights should be active at all times, regardless of the time of year. The 'auto' light setting is insufficient.
  • Road Closures
    Heed road closures; they are for your protection. The Icelandic word for closed is "Lokað"
  • Road Conditions
    Adjust your driving speed to match the current weather and road conditions
  • Weather Changes
    Regularly check the weather and road conditions, particularly in winter when changes can occur rapidly

Real Reviews from Real Customers

Over 12.000+ reviews from our customers

  • Overall we were very happy. The camper was what we expected, pick up and drop off went very smoothly.

    Rented a vehicle in June 2023
  • Really excellent and friendly staff who were so helpful when we were delayed.

    Rented a vehicle in April 2023
  • Northbound support services were also very nice : we had to change twice the drop off date, they've done it right away (it took less than 5 hours each time) and they refunded us immediately.

    Petit Trekkeur on Google
  • Good service, good cars to good prices. We rented cars there 4 times now and will come back next time, that is maybe the best recommendation you can achieve

    Veronika Rauch on Facebook
  • Northbound's website enabled us to compare prices and find a good deal. Communication with Northbound was quick, friendly and helpful. We chose to make changes to our booking in the days before our trip. These were handled efficiently by Northboun... Read Mored and the revised booking information had clearly been communicated to the vehicle provider when we arrived. We will certainly use Northbound for our vehicle rental when we return to Iceland.

    Rob Strong on Trustpilot

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