Rent a Car in Reykjavik

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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

The Best Car Rentals in Reykjavik

On Northbound, you'll find one of the largest selections of rental cars in Reykjavík, Iceland. From smaller economy cars to larger 4x4s or campervans.

There's so much to experience in both Reykjavík and the rest of Iceland, and the freedom that comes with driving your own rental car affords you the possibility of experiencing it all in an affordable, exciting way. Compare prices and take the first step into your Iceland journey with Northbound.

Reviews for Rental Cars in Iceland

Car rental companies in Reykjavik Iceland can be incredibly different from one another which is why reading the reviews and hearing what others have to say about them is probably the most important thing you'll do before you settle on a car. Visit our review center to compare over 7,000 testimonials from verified travelers. 


Reviews for rental cars in Iceland

How old must I be to rent a car in Iceland?

The age requirements for hiring a rental car in Iceland vary depending on which car rental is supplying the vehicle or what type of model you're renting. A Dacia Duster or a Suzuki Vitara might only require you to be 20 years old or even 19 in some cases, while a Land Rover Defender, Jeep Renegade or a Mitsubishi Pajero will normally require you to be at least 21.

The general rule of thumb would be that if you are at least 21 years old then you’ll be able to find a car that you are permitted to rent and drive in Iceland.

When you book your Iceland car hire you should see information posted by any particular vehicle that will state the age requirement. 

Is the airport in Reykjavik?

Within the city of Reykjavik, you will find a small domestic airport called Reykjavik Airport (RKV). It's important to note that this is not an international airport. The main airport in the country, Keflavik International Airport(KEF), is located 40 minutes outside the city in the town of Keflavik.

At both of these airports, you will find local big brand car rentals like Hertz, Budget or Europcar, but most of the local car rentals also offer pick-up services to both airports. 

What are the cheapest car rentals in Reykjavik?

Car rental prices are incredibly dynamic so the best way to find the cheapest options for whenever you're arriving is to use a comparison engine like Northbound. That way, you can search through over 300 options from different car rentals, compare reviews and book using an intuitive interface. 

Compare the Cheapest Car Hire Prices

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What Insurances Should I Get?

Every rental car in Iceland comes with the standard CDW and Third Party Liability insurance included. These insurances can carry a self-risk of up to 3,000 EUR which can be a lot of liability for someone to carry. In this case, you may like to upgrade the CDW insurance to a Super CDW, therefore lowering your self-risk amount significantly.

Other specialized insurances such as Gravel Protection or Sand and Ash Protection could also be great additions to protect against special circumstances such as gravel bombarding the car or even a sudden sandstorm raging through.

Read more about Gravel Protection or Sand and Ash Protection.

Which F-roads Can I Drive?

The highland F-roads in Iceland are many and varied. While some can be driven in most small 4x4 vehicles such as the F35, others will involve deep rivers or rocky terrain and may thus require a bigger, more capable vehicle such as a Land Cruiser or a Ford Expedition. The best way to get familiar with which roads are suited to your vehicle would be asking beforehand or upon pick-up

Smaller 4x4's are generally suited for roads like F35 or Kaldidalur while the F206 and F26 will require a bit more firepower.

Whichever F-road you do venture on, remember to drive carefully and don't underestimate the rivers or roads.

Please note that car rentals do not permit vehicles on F-roads unless they are 4x4 and their terms do not specifically forbid it.

Read our comprehensive F-roads Guide

Where to park a rental car in Reykjavik?

Downtown Reykjavik can be rather limited when it comes to car parking. Consult your hotel on whether they have parking for their guests, and if not then they can most likely recommend any nearby parking spaces or structures. 

Reykjavik City has several parking structures where you can park for a fee but normally these buildings close after midnight. Harpa Concert Hall also has a large offering of parking spaces and is in walking distance from most hotels in downtown Reykjavik. 

Fuel Prices & Fuel Economy

Obviously, a 4x4 vehicle will spend more petrol or diesel than a smaller hatchback but there are ways to minimize the toll that it takes on your budget by reading carefully about the vehicle's fuel consumption and keeping up to date on where you may find the cheapest fuel in Iceland. 

Read our comparison of the most popular 4x4 vehicles to see average fuel consumption.

Read our guide on where to get the cheapest fuel in Iceland for some valuable budget-friendly advice. 

Frequently Asked Questions

Do I need a 4x4 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.

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. Bear 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.

How old must I be to rent a car in Iceland?

The required age may vary depending on the car rental that you choose. The usual minimum age is 20 and sometimes higher for larger vehicles. Contact us if you’re having issues with the minimum age and we might be able to direct you to the right rental.

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 cross rivers and fords in my 4x4?

This depends on which 4x4 you have chosen, which road you are taking and what rental you have rented from. The conditions vary, but if you contact us we may able to help you find the answers you seek.

Can I drive off-road?

No. Off-road driving is illegal in Iceland and will result in a fine, issued by police, of up to 100.000 ISK.

Still have questions?

Visit our Help Center for answers to any questions you may have.