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Rent a Car in
Iceland

The Best Rental Car Prices in Iceland

Find the lowest car rental prices
Search & compare the lowest rental car prices from the very best car rentals in Iceland.
The best car rentals in iceland
No hidden or added fees. Free cancellations. CDW insurance included.
Pick up your car rental in Reykjavik or Keflavik Int. Airport!
Shuttle service between airport, hotel, and car hire office
Simple booking process
Simple booking process with instant confirmation and availability from your chosen car rental in Iceland.
4.8/5
From 202 People
4.8/5
From 171 People

The Best Car Rentals in Iceland

We are proud of our standards of quality and service and those standards are reflected in what our users have to say about us. Book your rental car with Northbound and rest assured that a strong team of travel advisors is prepared to assist with any of your questions or concerns both before or after your Adventure. #AdventureAwaits

Best Service Guaranteed

We believe in forming long-term relationships with our users, which is why we only partner with local Iceland car rentals that provide the best possible service. From beginning to end, your journey shall be spectacular.

Easy to Use

The Northbound platform is designed by us from the ground up with user experience in mind so that you may find everything you need to assemble the perfect holiday in Iceland with the simple click of a button. Your Iceland rental car is waiting.

Instant Confirmation

All bookings are reserved and confirmed immediately, leaving you with peace of mind and security in knowing that your Icelandic journey is waiting for you to arrive as you rent a car in Iceland.

Why rent a car with us?

Northbound is one of the largest marketplaces for rental cars in Iceland, with over 300 curated options for you to choose from and over 6.000 verified reviews to help your decision. Our best price guarantee will ensure you will always get the best prices from the car rental and we do not add any fees on top of that price.

What type of Car is best for Iceland?

Iceland is a bigger place than many travelers realize and the Icelandic weather is about as random as it gets. What type of car hire you need ultimately falls down to when you’re traveling to Iceland and where you need that rental car to take you.

In winter, it might be ideal to rent a 4x4 car in case that Iceland gets blanketed with snow while you’re here. Some areas around the ring road get more snowfall than others, so having a 4x4 vehicle with decent ground clearance can make a huge difference when traversing through snow-covered roads.

In summer, a 4x4 car is only needed if you intend to head to the highlands for some adventure on the Icelandic F-roads. These roads are rougher than the ones found along the ring road and often require you to cross rivers, making them accessible only to 4x4 vehicles.

If you only intend to drive the ring road around Iceland, making stops at the popular attractions found along the way, then a perfectly suitable option might be a small economy car rental or anything else a bit friendlier to your budget.

Our Icelandic
Rental Cars

You'll find these types of rental cars on Northbound

Economy Cars in Iceland

Economy Cars

Quick and agile cars for those tight Reykjavík city streets. The hatchback is perfect for those looking for cheap car rental options.

See our Economy Cars
4x4 Jeeps in Iceland

4x4 Jeeps

The ultimate road trip vehicles. Experiencing Iceland behind the wheel of a 4x4 rental car is an experience unlike any other.

See our 4x4 Jeeps
Minivans & Busses in Iceland

Minivans & Busses

Renting a car for a group of people can be tricky, but our selection of affordable minivans and passenger cars is the cheapest solution.

See our Minivans
Family Cars in Iceland

Family Cars

Comfortable to drive with spacious cabins, these larger rental cars are a great means of traveling through Iceland with plenty of bootspace for all of your luggage.

See our Family Cars
Campers & Campervans in Iceland

Campers & Campervans

The freedom and mobility that comes with traveling Iceland in your affordable camper rental car is unmatched by anything.

See our Campers
Motorhome Rentals in Iceland

Motorhome Rentals

With endless landscapes to explore, Iceland provides an extraordinary opportunity for adventure and there's no greater sense of freedom than hitting route 1 behind the wheel of a motorhome.

See our Motorhomes

Reviews from around the web

What people are saying about us. Over 6000+ Reviews from real and verified people who rented a car with us

Facebook Reviews
4.9/5 - 195 Reviews
Google Reviews
4.8/5 - 109 Reviews
Trustpilot Reviews
8.4/10 - 24 Reviews
Northbound Reviews
8.005 Reviews from verified customers

What to know before renting a car in Iceland

There are a lot of things to keep in mind before booking your rental car like; what insurances to purchase, which car rental to choose, what type of car is ideal, the pick-up procedures available, which reviews to trust and all the things you should familiarize yourself with.

Check out our Definitive Guide to Iceland Car Rental for all the answers you need.

What insurance coverage do I need in Iceland?

As you may have seen, there are a lot of different insurance options to choose from for your car rental. Of course, we recommend sufficient coverage for your car hire as long as it’s affordable and inclusive, but that’s not always the case, which is why you should read the fine print by every insurance option carefully to make sure you’re well aware of what the inclusions are for your car hire.

Here are some great resources to help you:

  • Quick Guide to Rental Car Insurance in Iceland
  • Do I Need Gravel Protection in Iceland?
  • Do I Need Sand and ash Insurance in Iceland?
  • What to Check For When you Pick Up your Car Rental Car?

Where can I pick up my rental car?

Normally, you can pick up your car hire at your hotel in Keflavik or Reykjavik, get it directly from the car rental office or have it delivered to you right at KEF Airport when you arrive.

What options are available depends on which rental car you choose, and you will see those options available right in the search or on the vehicle page when you compare car rentals on Northbound.

What are the best car rentals in Iceland?

In 2017, we chose Lava Car Rental as our Car Rental of the Year and in 2018 the recipient was Star Car Rental. You can find vehicles from both of these rentals when you compare prices on Northbound.

For Campervans, read our Overview of the Top 6 Camper Rentals in Iceland.

Car Rental at KEF Airport

KEF Airport in Keflavik is the only international airport in Iceland with the exception of a few flights from Greenland and the Faroes arriving at RKV Airport in Reykjavik. However, KEF Airport is often referred to by airlines as Reykjavik so this may cause confusion at times. When selecting the pick-up location on Northbound, pay attention to the airport code in brackets () and make sure that matches with the code found on your flight ticket.

Picking up at KEF Airport can be a convenient way to begin your car hire in Iceland, especially since most of the car rentals in Iceland are located close to the airport terminal.

For more information about picking up at KEF Airport read our Guide to KEF Airport.

Are rental cars in Iceland expensive?

The average price for a 4x4 car hire in August 2019 was 869 EUR with no optional extras added. The average 4x4 price in December was 502 EUR.

See a full breakdown of the cheapest and most expensive times to visit Iceland in our Definitive Guide to Iceland Car Rentals.

Iceland Car Rental Reviews

The most important thing to check before booking your rental car is what other people are saying about the car rental. Make sure to read Google, Facebook and of course the Verified Reviews on Northbound.

Icelandic Traffic Rules

Depending on where in the world you’re coming from, the traffic laws in Iceland might be different to what you expect. In Iceland, we drive on the right side of the road and the speed limits are 80-90 km/h outside towns and cities while 50-70 within cities. The speed limit is marked on each road.

Read more about Icelandic Traffic Rules here.

International Driver’s License in Iceland

In Iceland, you do not need an international driver’s license unless your domestic license may be hard to understand by the rental agents in Iceland. For example, if your license is written in simplified Chinese, Arabic or any other non-roman alphabet, then you will need to procure either an English version or an International license.

Unlimited Mileage

Most, if not all, car rentals in Iceland come with unlimited mileage included in the price. That means you’re free to drive the open road wherever it may take you, to explore everything Iceland has to offer. Keep in mind though, you are not permitted to leave the country with the rental car.

Is fuel expensive in Iceland?

In Iceland, the prices for petrol and diesel are very high and can take a toll on your budget if you don’t plan accordingly. Consider the fuel consumption of the rental car you choose and do some research to find the cheapest fuel prices in Iceland.

Documents needed for car hire in Iceland

When you pick up your car rental, you will need to have your voucher with you (on your phone is fine), a valid driver’s license and a credit card that belongs to someone in your group and has enough funds on it to cover any security deposits necessary.

Do rentals cars in Iceland have A/C?

Most cars in Iceland do not have an AC in the traditional sense, simply because it’s not needed. Every car does come equipped with a heater, however, and you can adjust the temperature on that heater as suits you from the car’s dashboard.

F-roads in Iceland

The highland F-roads of Iceland have become increasingly popular throughout the years for those travelers that seek a bit of uncharted adventure and to escape the crowds of the more popular sights found along the ring road. Traveling an F-road can be demanding and even dangerous if you’re not properly prepared and behind the wheel of a suitable car.

Car rentals in Iceland will not permit you to take your regular car on F-roads but most will allow you to take a 4x4 rental there with the exception of a few of the more challenging roads like F249 to Þórsmörk.

Read our Guide to F-Roads in Iceland.

Frequently Asked
Questions

For quick answers to your queries

What do I need to rent a car in Iceland?
To book your rental car, all you need is a credit card. When you arrive to claim the car you'll need:
  • Your Northbound voucher / eVoucher, as proof of the chosen payment.
  • The main driver's full, valid driving license which they've held for at least 6 months.
  • Your passport and any other ID the car rental company needs to see.
  • Any valid credit card in the driver’s name for excess/deposit purposes. Pre-paid credit cards are generally not accepted.
Conditions vary from individual car rental agencies so please make sure to read the car's terms and conditions.
Can I collect the rental car if I don’t have a credit card?
In most cases, no. The rental agency requires a valid credit card in the main driver’s name for excess/deposit purposes. This deposit ensures that the customer can cover any damage to the vehicle and / or equipment. Some rentals offer the alternative of placing up a deposit fee. Contact us and we’ll direct you to the right cars. Please note that companies do not accept pre-paid credit cards on arrival for insurance purposes.
Do I need a 4x4 rental car in Iceland?
That depends entirely on what you intend to do while you’re in Iceland. If you’re coming during winter then a 4x4 is the safest and most comfortable choice for handling the snow. It’s also a comfortable choice as you roam through the Icelandic roads, some of which are not paved and may prove a challenge for smaller vehicles.
Are all fees and taxes included in the rental price?
Yes. Mandatory insurances such as Collision Damage Waiver and Third Party Liability are always included in the rental price. All airport fees, road fees or local taxes are also included in the rental price. Some car rentals may even choose to include additional insurances or extras.
What insurances do I need?
The insurances are there for a reason. They provide security and peace of mind so that you can enjoy your Icelandic adventure happy and without worry. Each optional insurance targets different scenarios in which the standard CDW does not cover.
  • Gravel Protection - Most of the roads in Iceland, outside of towns, are not paved. Even Route 1, Iceland’s longest and most driven road, isn’t fully paved. The Gravel Protection usually covers damages from gravel roads to the body of the car, the headlights and the front windscreen.
  • Sand and Ash Protection - We all remember the Eyjafjallajökull eruption. The fact is, loose ash and fine sand still cover much of the terrain in certain areas of Iceland. As the wind blows, the ash and sand may whirl up and blow towards anything and anyone unlucky enough to be in its path. This may cause serious damages to the car and gives it an undesired, matte finish. Icelandic insurance companies do not cover damages such as this in the regular CDW policies, which is why this protection is offered as an optional damage waiver, covering sand and ash damage to your rental car.
  • Theft Protection - Iceland may be one of the safest countries in the world but, believe it or not, crime still happens here. The theft protection lowers the lessee’s self-risk down to 0 EUR in the case of vehicle theft. It may be worth it for the added peace of mind. Bare in mind though, in the case of gross negligence this protection may be void.
  • Super Collision Damage Waiver - An upgrade to the standard Collision Damage Waiver, lowering the self-risk of the lessee considerably. Note: amounts may vary depending on which car rental you choose.
Can I drive highland roads with my rental car?
If your vehicle is a 4x4 then in all likelihood it is Highland Capable, but some smaller 4x4’s are forbidden on F-roads. Certain roads, such as F249 in Þórsmörk, are usually forbidden to drive no matter what rental car you have chosen.
Can I drive off-road in my rental car?
No. Off-road driving is illegal in Iceland and will result in a fine, issued by police, of up to 100.000 ISK.
How are the roads in Iceland?
They are considerably narrower than what you may be accustomed to in your own country, so please be careful and pay close attention to www.road.is/ for road conditions and troubling weather.
What is the cancellation policy?
Bookings can be cancelled free of charge for a full refund up to 48 hours before the start of the rental period. Bookings cancelled with less than 48 hours advance are subject to a cancellation fee equal to 15 - 20% of the total price, depending on the minimum required deposit for the rental. For motorhome bookings, the following cancellation policy applies: Filling out our cancellation form and submitting a notice of cancellation with 30 days or more until your booking begins, will make you eligible for a full refund of your booking. Cancelling with less than 30 days until your booking begins will render your deposit nonrefundable. NO-SHOWS If the vehicle cannot be picked up due to any of the following:
  • Insufficient documentation
  • Failure to provide a valid credit card containing sufficient funds to cover the deposit amount.
  • Failure to collect the car at the specified time/date.
Refunds are not available for no-show cases.
Can I book a rental car for someone else?
Yes, as long as they meet all of the requirements made.
Are there any additional charges that I must pay when I pick up my rental car?
If you have opted to pay the minimum deposit with Northbound then you will be charged the remaining amount when you arrive to pick up your car. Any extra items or insurances you add to the booking after you have arrived will then be charged along with the remaining amount. If you have opted to pay the total price of the rental (100%) through the Northbound booking site then you will not have to pay for anything when you arrive to pick up your car, with the exception of anything you decide to add to your booking upon arrival. There will not be any hidden fees waiting for you when you arrive.

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Reviews

Real Reviews from Real Customers

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