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Car Rental in Iceland

Compare Cheap Car Rental Rates in Reykjavik, Iceland: Enjoy the Best Deals from Leading Suppliers with Our Car Rental Rate Comparison and Price Match Guarantee!

  • 100% Refundable Deposit / Free Cancellation
  • No Hidden Fees
  • Free Pickup at Reykjavik & (KEF) Keflavik Airport
  • Insurance & Winter Tires Included
  • Unlimited Mileage
"Great car, great experience, great price. Airport pickup was prompt, the car was in good working order, return was smooth. Whole experience was friendly."
- David rented a vehicle in June 2023

Search Car Rentals in Iceland

Free Cancellation & Amendments
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Economy Rental Cars in Iceland
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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.

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: $54/day
🧒 Driving Age: 18 years old
🛡️ Insurance Included: CDW Included
Avg. Gas Price: €1,83/L
  • How much is a car rental in Reykjavik, Iceland?

    Car rental prices in Iceland can vary depending on the season, type of car, and rental duration. Expect to pay anywhere from $29 to $300 per day.

  • 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.

  • Search Car Rentals in Iceland

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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

  • 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.

    Economy class rental cars in Iceland
  • 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.

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Real Reviews from Real Customers

Over 12.000+ reviews from our customers

My experience with northbound was great! It was a very easy check-in process. The staff was friendly and helpful. The vehicle itself was in great condition and ran wonderfully! The checkout process was easy and seemless. Thank you!

Rented a hatchback in Oct 2023

Shuttles readily available. Staff was friendly efficient and thorough. Vehicle hassle free. Highly recommend Northbound for your rental needs in Iceland.

Rented a 4x4 in Sep 2023

Amazing to have rented through Northbound! Made my reservation well in advance, had the car rental company (Go Iceland) contact me stating that they didn't have my vehicle at the price anymore, Northbound stepped it and made it all right and I receiv...ed the vehicle that I reserved. So glad that I had booked through them! The Jeep Compass that I booked did well. It was a PHEV but it did not come with the charger/cable and most charging stations I came across did not have charging cables. Not a big deal but would've been nice to really fully utilize PHEV capabilities. Take the estimated remaining range on the vehicle with a grain of salt. It constantly changed for me and I hit the low fuel symbol 4 times because of inaccurate predictions it gave me. Overall, the Jeep Compass served me well during my Iceland trip.

Rented a 4x4 in Aug 2023

We loved driving our Toyota Land Cruiser on our Iceland trip arranged by northbound/ MyCar. We were picked up at the airport just as communicated. The car was in outstanding condition and pick up and drop off was seamless. The staff at MyCar were fri...endly and they drove us back to the airport as soon as we dropped off the car. I would use this company again and recommend them to anyone.

Rented a 4x4 in Jul 2023

Easy company to communicate with, staff was very friendly and helpful. Would definitely use Northbound and Lotus again. Thanks!

Rented a 4x4 in Jul 2023

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+ 12.000 Reviews on Northbound.is

Why Rent a Car in Iceland?

Iceland beautiful scenery

Rent a Car in Iceland & Be in Awe

Iceland is a remote paradise where hidden gems are just around the corner, with wonders such as stunning waterfalls, powerful geysers, breathtaking black sand beaches and magical icy wonderlands.

Traveling Iceland by a car rental is considered the best way to enjoy Iceland and its magnificent scenery. Whether you are on a family vacation, traveling for leisure and/or adventure, or just heading to a meeting you are going to need a set of rented wheels.

Northern Lights are also in high demand during winter time and are not known to follow itineraries. With a rental car you can chase the absolute perfect weather conditions for that breathtaking Aurora Borealis sighting.

With a 4x4 car rental you can take advantage of the marked F-Roads that lead to “out this world” like environment which is perfect for those seeking the ultimate Icelandic experience.

Lets not forget that when you rent a Campervan you can combine accommodation with transportation and experience Iceland's beautiful scenery at your own pace.

Jeep driving on road in Iceland

Rent a Car in Iceland & Be in Charge

Most of our visitors don’t have the luxury of time so the added freedom and flexibility to roam around the island in your rental car, on your own accord, is priceless. The feeling of driving and escaping the regular routes and finding that magical “bucket list” spot gives you that feeling of overwhelming wonder. We know that as soon as you walk from the aircraft into Keflavik International Airport and drive into the Icelandic wilderness, you won't be disappointed.

Iceland has so much to offer and it can be challenging to pinpoint exactly where and when to visit each place as weather can heavily influence plans. Traveling in a rental car allows you to change your plans on the day and seek an adventure elsewhere.

You can choose the correct vehicle type for your journey and be in charge of the cost. Renting a car is more affordable than traveling by public transportation, especially when you book your rental car in advance. We pride ourselves on having the lowest Iceland Rental Car prices and we make sure to match the price you find elsewhere.

Check out our Car Rental Tips: Pick-up, Driving and Returns so that you can be ready to take charge of your own rental process.

Icelandic road

Rent a Car in Iceland & Be In Total Comfort

We all know that feeling of just going for a drive with not a care in the world. You have all your belongings at your fingertips, your best friends or spouse riding next to you and you are now only thinking about the next destination knowing that something incredible is waiting to be discovered.

Hiring a car also allows you to take charge of the pace and be as comfortable as you like. Traveling by bus or a public transport with strangers limits the amount of time spent exploring due to the strict itineraries of travel agencies. Also, if the weather cancels your trip North, then just head South on your own rented vehicle.

Traveling Iceland in a rental car also allows for more secluded sightings and exploring as the itinerary is all completely in the power of the driver's adventurous feeling. Car rental benefits also include; singing loudly with the radio on high, fixing the seat to your liking and shouting out loud when you see that bucket list view through the window!

That’s the comfort of renting a car in Iceland.

Check out our blog about what to look for in a rental agreement for added extra comfort.

Aurora Borealis in Iceland

Rent a Car in Iceland & Be on Vacation

When you step into that car rental in Iceland it instantly promotes the feeling of vacation as now you know the journey is about to begin. Transportation is a large part of being on vacation and when you have your own car you don’t have to worry about waiting for a taxi, standing in line at the bus station and putting your trust in on-time public transportation. Just as you don’t have to spend time working, putting clothes in the washer or cutting the grass. You truly are on vacation.

Being on vacation also means independence. You are now away from your usual life and you want to have an extraordinary time. Sitting comfortably in your own rental car, putting the foot on the pedal while driving through some of the most unusual and mystifying landscapes is a feeling unlike any other. In Iceland you can feel like the only person in the world to have ever visited and that is truly how a vacation should feel like.

Your car rental can also be the vehicle you have always wanted to own. You can rent a sweet sports car, a Tesla, or a large SUV / 4x4 that can overcome any obstacle. Drive the famous F-Roads, over rivers and along mountain ridges or just take the paved highway in a car rental that makes sure you forget your day to day routine.

Check out our best tips for a road trip in Iceland to make your adventure unforgettable.

Rent a Car in Iceland & Be Adventurous

With the perfect rental car and that adventurous mindset, you can easily quench your thirst for adventure.

When traveling to Iceland you have the opportunity to go;
Glacier Hiking,
• Diving and Snorkeling
Whale Watching
• Mountain biking
Visit Volcanoes
• Ride an ATV ( All-Terrain Vehicle )
• White Water Rafting
• Horseback Riding
• Ice Cave Exploration and more…

That list alone should excite any adventure enthusiasts.

To be able to seek out the absolute best, iconic and mind boggling adventures then you need the best rental car for the job. Northbound provides you with any type of vehicle that can go the distance so you won’t miss out any of the bragging rights. Renting a 4x4 Campervan brings you closer to the adventure as you are now able to both drive on otherwise forbidden routes as well as park your accommodation nearby.

Check out our guide to renting a car in Iceland: Step by step guide.