Rent a Car in Iceland

Compare Prices and Book from Iceland's Top Car Rentals

Search & compare the lowest rental car prices from the very best car rentals in Iceland.
No hidden or added fees. Free cancellations. CDW insurance included.
Simple booking process with instant confirmation and availability.

My experience was very good: it was easy to communicate with NorthBound and the car was exactly the one I chose on internet. Transparent fees and no bad surprises. But I think the best about Northbound is the communication: the chat is always functioning and they're ready to help you to solve any doubt.

Federico - Italy Traveled to Iceland in June 2016
4.9 / 5

8.8 / 10

Thousands of satisfied customers

We went spontaneously for a week on a camping trip to Iceland and as we were super late with booking a rental car we chose northbound. Best decision, everything went perfect. Fast, easy and friendly. Perfect experience!

Paola Cermak - Germany Traveled to Iceland in July 2016

Why Rent Through Northbound?

Northbound is one of the largest marketplaces for rental cars in Iceland and we limit our partnerships to reliable and high rated car rentals that have enjoyed countless positive reviews from their customers.

Our prices are the lowest you’ll find and our service standards are the absolute highest you’ll experience. Compare the lowest rental car prices among the highest rated car rentals in Iceland, here on Northbound.

Our Icelandic Rental Cars

You'll find these types of rental cars on Northbound

Economy Cars

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

4x4 Jeeps

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

Campers & Campervans

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

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.

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.

GO Car Rental
Arctic Car Rental
Icerental 4x4
Orange Car Rental
Thrifty Car Rental
Lagoon Car Rental
RÁS Car Rental
Ace Car Rental
Lava Auto Car Rental
Go Campers
Grand Iceland
Route 1
Rent A Wreck
Stracta Cars
Camping Cars
Ice Rental Cars
Lotus Car Rental
Northern Lights Car Rental
Fara Touring Vehicles
Magic Car Rental
Geysir Car Rental
MK Car Rental


You can pick up and/or return your rental car to these locations
The capital and only city of Iceland, Reykjavík is a quaint little Nordic city with vibrant nightlife and rich culture. Hotels, guesthouses and rental apartments are scattered throughout the city and all of them can serve as the location for your rental pickup and dropoff.
A small domestic airport located in the middle of Reykjavík, this airport offers flights to every corner of Iceland such as Egilstaðir, Ísafjörður, Akureyri and even Greenland. Be careful not to confuse this airport with the Keflavík International Airport. The Reykjavík Airport does not serve as an arrival location for incoming flights from international locations.
You may arrange pickup or dropoff at any hotel or guesthouse in the capital area. The procedure usually involves a shuttle service from the hotel to the Reykjavík rental office and vice versa.
An ideal pick for those arriving to Iceland with a cruise ship. Many rentals offer the option of picking up or dropping off at the Cruise Terminal.
Officially known as Reykjanesbær, Keflavík is home to the Keflavík International Airport and is essentially the gateway into Iceland for an overwhelming majority of travelers. It is the largest town on the Reykjanes Peninsula and home to several iconic places such as the Museum of Rock and Roll and Viking World.
The only international airport in Iceland, the Keflavík Airport is located in the town of Reykjanesbær, also known as Keflavík. It is situated approximately 40 minutes by car from the capital city of Reykjavík. Many airlines publish plane tickets with the destination set as Reykjavík Airport, while it is in fact Keflavík Airport.
You may arrange pickup or dropoff at any hotel or guesthouse in the Keflavík area. The procedure usually involves a shuttle service from the hotel to the Keflavík rental office and vice versa.
The capital of North Iceland, Akureyri is a vibrant center of culture and arctic sports such as skiing and snowboarding. Akureyri is one of Iceland’s largest towns and has plenty to offer to travelers who make their journey north.
A small airport that offers flights to every other domestic airport in Iceland. The Akureyri Airport is situated 5 minutes outside the town of Akureyri and many rentals offer pickup and dropoff in this location.
You may arrange pickup or dropoff at any hotel or guesthouse in the Akureyri area. The procedure usually involves a shuttle service from the hotel to the Akureyri rental office and vice versa.
An ideal pick for those arriving to Iceland with a cruise ship. Many rentals offer the option of picking up or dropping off at the Akureyri Cruise Terminal.

Frequently Asked Questions

What do I need to rent a car?
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.

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.

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.

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.

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.

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.

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

They are considerably narrower than what you may be accustomed to in your own country, so please be careful and pay close attention to for road conditions and troubling weather.

The Northbound cancellation policy is stated in our terms & agreement which you will have to agree to before booking your car, and is as follows:
Bookings can be cancelled free of charge for a full refund up to 48 hours before the start of the rental period. Bookings cancelled less than 48 hours are subject to a cancellation fee equal to the cost of a 3-day rental. Cancellation fees will never be higher than the price of the actual rental.
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.

Yes, as long as they meet all of the requirements made.

If you have opted to pay 15% with Northbound then you will be charged the remaining 85% 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 85%.
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 from our Customers

A perfect experience start to finish. The Northbound booking was refreshingly easy, without all the infuriating hard-sell tactics other outfits use. The team at Geysir was impossibly friendly and efficient. And the vehicle we rented was a dream to drive. Highly recommended.

This form (and the email that the link came it) is fantastic user experience design! I'm not sure if the email was auto-generated (as these things tend to be) but I definitely didn't feel that way when I received it. So thank you for that! My trip to Iceland was fantastic. My friend and I were able to get around the ring road in about 6 days, and put close to 3000km on the car. Although we reserved a VW Polo, we were actually given a Skoda (can't remember the model). It was a much newer car with only about 10,000km on it, so the swap was not an issue at all...

Everything perfect

After been reading horror stories on the Internet about car rental firms on Iceland I must say that Autorental really delivered! I got the car I book with the GPS and child seats included as promised. The service was more than great both on the pick up and the return of the car. The car had some scratches but nothing for us to complain about and nothing that brought us any trouble!

We had a great time in Iceland and the car was excellent! We would definitely recommend Icerental 4x4 to anyone wanting a nice 4x4 for the whole ring road. The only thing to be improved would be communication about pick up and drop off but overall a great experience.

Everything was perfect with ACE car rental. They were waiting for us at the airport, the quality of the car was perfect. In a word we are satisfied after 2000 km also in the roads "F".

We enjoyed driving the Suzuki Vitara, we were satisfied. we just waited 30 minutes in our hotel before someone pick us up to the Icerental but anyway we spent good holiday . Iceland is a beautiful country. Such lovely places to visit!

Thank you. Everything was perfect. Your equip was very helpfull...we enjoyed our stay in Iceland

Our trip around ring road was perfect! Thanks for the nice car, we could also make small detours and the bumpy roads were no problem! F-roads I would not recommend though with a small car like the Vitara. Northbounds service was 5/5 and we were very happy with everything, would recommend!

The little Jimny was the perfect companion for what we wanted to do. Small 4x4, reliable and easy to drive. The booking process was great. Picking up and returning the car was made super easy.

Great experience, the car was a brand new and clean Hyundai i-10 (same class as Aygo). No problems at all, car pickup in time and easy restitution. Good car rental company.

Renting GCR was excellent experience overall. Initially when we arrived we missed the representative in the Arrivals area and we became confused between GO Car and GO Iceland .... this took a little time to straighten out, but once we'd managed this we didn't look back! The GCR representative was extremely professional and friendly and the return process worked smoothly. Through the trip (2000km) the Subaru performed well, although when we do it again (which we will for sure) I will probably trade up to something bigger - we learned that in the amazing Iceland you can never have big enough wheels!

We rented the car through Northbound. We also booked a cave tour near Reykjavik through the same company. Runar from Northbound was great. He was super responsive, and he helped me through the process via the phone and emails to pick the best car and a tour for my needs. Ultimately, we rented a Toyota Land Cruiser that could accommodate all our party of six from Arctic Car Rental and drove the ring road around the whole country. Process of getting the car in the airport was very smooth. The car was great for off-road as well...

Muy bien todo. Perfecto. Puntuales. Y el coche perfecto para nuestras necesidades. Muchas gracias.

We had a wonderfull trip to Iceland thanks to Icerental 4x4. With the 4x4 we experienced a wonderfull valley which wouldn't have been possible to visit with a normal car. The service from the company was in top, and they where easy to contact with our questions. Further more we brought our 3 kids, and to make sure of the security we rented car seats for kids also at Icerental 4x4. We would definitely use the services at Icerental for later trips to Iceland.

I had a wonderful rental car experience with Northbound! They gave me a very clean, well-maintained vehicle and I was pleased to not have a single issue during my road trip to West and South Iceland. Owners of Northbound were very communicative and made pick-up and drop-off relatively simple. Can't wait to return to Iceland--I'll be using Northbound again!

We traveled arround the Ring Road and it was so Great! The Arctic car was Perfect and it Never dissapointed us

Great company to deal with & very helpful. We did a lot of research before booking with northbound as we had heard some horror stories about car rental in Iceland. All our emails were answered promptly before we left home & this put us at ease, our car was delivered to the hotel at the time specified & service was friendly & efficient. Big thumbs up!

Friendly and convenient, Northbound made it easy for us to rent a car in Iceland. It's not only easy but a good deal cheaper than using familiar US brands (e.g., Hertz or Alamo). Plus, it was fun to drive a stick shift after all these years. --Russ, Madison, Wisconsin

The Suzuki was great, and the staff at Icerental4x4 are first class. Much better experience than I've had at many major rental companies - which I attribute to their more start-up, entrepreneurial hustle to do the right thing. They picked up my family at KEF, drove us to their small but convenient space nearby, processed some paperwork and we were on our way. Friendly, clean and knowledgeable - and very hard working guys as well, ensuring everyone got to and from quickly. The car was virtually brand new, and worked perfectly holding all 5 members of my family (yes, in a Suzuki)...

Our travel in Iceland was really wonderful. Northbound help us with an excellent service to rent a 4x4 Pajero with Go Campers, a superb way to visit the country. Many thanks to Northbound and Go Campers ... we will contact you with many pleasure for our next time in Iceland !!

We were happy with the service provided. We were originally surprised we didn’t get a VW as per my order, but it turned out well in the end as the car we got was very economical and had GPS, which was very helpful.

Great service as before. Will use again next time we are in Iceland! Thanks!

Quick, easy and staff was very friendly.

We had a wonderful experience with Arctic Car Rental. A representative met us at the airport, making the pick-up process very easy. The car itself was the perfect companion for our road trip across Iceland.

The experience with GO Car Rental was great. For personal reasons I delayed the pickup time for 4 hours and when asked, they gave me a couple of extra hours for de return time. This flexibility and good will is something I really appreciated. Concerning the car, it was great… spacious, clean, comfortable. It even had GPS which I did not ask (nor payed) for. During my visit all mountain (4x4) roads were closed so in the end I did not make a good use of the four-wheel drive. That is my main advice if you are renting a car in Iceland: "Think twice if you really want to rent a 4x4 car… most probably you won't need it!" The return of the car was painless...

Only had five days in Iceland in June for photography. So decided to go with a camper for convenience. Go Camper made it very smooth and relaxing. Their vehicle was great. I had a stick shift, but I drive one at home anyway so it was no problem. This option made my trip possible sleeping at different camp sites every night. Great option for freedom and convenience.

We booked the car with Lagoon Car Rental through, which is a great website with amazing customer service. We decided to go with the Hyundai i20 since it is cheap and because we wanted to travel a lot on the road, so we needed a car that we wouldn't have to refuel too often (gas is really expensive in Iceland!). The people at Lagoon Car Rental were nice and friendly. The car we had was super clean and fun to drive. We're sure that our experience in Iceland was ten times better because we decided to rent a car!

The car rental with Arctic Car was easy and comfortable. The Rav4 was perfect for gravel road driving, the price was reasonable, we got the car easily and left it at the airport as easy like a simple parking.

Travel in Iceland as always was perfect. The staff with which we met in the Lagoon Car Renthal were impeccably professional and courteous. The girl who gave us the car was extremely accommodating. We were only surprised by the fact that the car we booked a Toyota Land Kryuyser 2016 in result looked much older and had a damage arount all the car. As a result, imagining how much time and effort will take clarify this situation, we have decided to leave this issue not been solved, and picked up the car in the condition that we were ofered.

Our holiday was fabulous, and we hope to return to Iceland to do further hiking/travel, and so forth. So much to see!

Great car, timely and accurate. The machines are in excellent condition. For those who have to make many kilometers, however, I recommend getting a disel car because otherwise the gasoline consumption is really high.

We went spontaneously for a week on a camping trip to Iceland and as we were super late with booking a rental car we chose northbound. Best decision, everything went perfect. Fast, easy and friendly. Perfect experience!

We did a tour around the island for 15 days. Spectacular. Beautiful. The car had no problem. We had difficulty finding the offices of Arctic Rental at Keflavik airport, both on arrival and departure.

Iceland 4x4 picked us up at our hotel and took us to their office for a quick paperwork and we were on our way. We drove on various paved and unpaved roads around Reikjavik to find places to go hiking. Good experience.

We rented Suzuki Grand Vitara from northbound for 10 days. The idea was to travel complete circle around Iceland and to see as many places as we could. The Suzuki grand vitara 4X4 that we got was almost new car(2016 model). On the day we took the car from Runar, everything went smooth with payment. He gave us some tricks and tips. Throughout the journey the car had no issues at all and it was very comfortable journey ( Thanks to 4X4). Unfortunately on our way in the middle of somewhere we had flat tyre on our car...

We choosed the option to get our Dacia Duster delivered (and returned) to our hotel, it was very convenient. The car was perfect for me and my wife since we aimed to go around Iceland on road 1 with some detours. Since we had a 4WD we werent afraid to meet the steep gravelroads at some of our detours. The only "problem" we got with the car was that we almost went out of diesel where it was longer distances between the gas stations. When we found a gas station (on the fumes we belived) we still had about 5 litres left...

I think Lagoon Car rental service is good though the pick-up have a little delay in the firs day. The car of 2016 Hyundai Tucson(4x4) is new, good performance and spend 12 days with us in Iceland without any problem. I would recommend Lagoon Car rental for everyone who wants to self-driving at Iceland.

A fantastic experience, well worth the trip. The driver (Magnus) was very friendly and a great tour guide who explained Iceland very well. Can 100% recommend a tour from Your Day Tours

I'm trying desperately to figure out the right words to say but the one thing that pops to mind is that this tour is an unreal experience within an aldready unreal country. Booked the tour through Northbound and everything went perfectly from A to Z.

My experience renting a car with Icerental4x4 through Northbound was absolutely perfect!! Northbound is a ver useful page where you can compare all the rental cars and prices! I finally decided Icerental 4x4 for their price but my surprise was that not only the price was the best, also the service and car!!! They gave me a brand new Suzuki Vitara (only 2 months old, with 23,000km) whihc was just perfect: big, nice, comfortable, with incorporated GPS, bluetooth, 2 USB to charge the cellphones...

We started and ended in Keflavik and went the road Nr. 1 nearly completely around Iceland. It was good to know we have a lot of space in our car and we have enough reserve for all roads in iceland. Anytime my decision would be the same. With icerental4x4 everything worked good and fast. My heartfelt thanks to the friendly people in iceland, who made our holidays to an extraordinary experience!

I liked very much my experience in Iceland. GO Car Rental gave me a Subaru Forrester instead a Dacia Duster. The Subaru is a very good, new end very confortable car but in isn't a disel car like I'd asked in my reservation. But it doesn't matter much.

It was a great car for traveling around Iceland. We mainly stayed on the main road, but took advantage of the vehicle to get off the beaten path side roads. We had 5 adults and luggage.

We had a tour of of the Iceland and your service was super super good! Thanks a lot for all

Company next to the airport keflavic. Delivery of the car in good condition and full tank according to the agreed time and place. The rental price a bit more compared to other companies in the pit area. The only thing is that the day we had to return the car to leave the keys in a mailbox as it was Sunday and had office closed (would be good if there was a responsibility to check that the car was in the same state as delivered ). Still recommend the company.

Hi, we really enjoyed our trip. Everything with Go Carrental was really good, from the first meeting, when they picked up us at downtown. The guy was very kind and interested in giving us the necessary advices about driving and car care. Also when we give the car back (it was white, and comes brown :-)), they were very busy because it was Aug 6th, but all of them perfect all the time. Great experience, great country, great driving... We'll repeat for sure. Sincere thanks to all of you, guys...

My partner and I recently rented a camper from NorthBound in July for a week. We were absolutely delighted with the service and the camper. Gummi, the owner was kind enough to offer to collect us from the airport which was fantastic! He then brought us to our brand new camper which we were very happy with. It was perfectly designed so we had all we need from the free wifi (incredibly useful!) to the sink. small fridge, cutlery, crockery, warm and clean bedding to the confortable bed. The camper had blue tooth and heating during the night as well as black out blinds for the midnight sun...

We drove 3000 km without any problems. Great, reliable car, really good, friendly and helpful staff. I would definately recommend Northbound.

we had a toyota rav instead of the announced dacia duster, this change was absolutely no problem, it worked well the whole three weeks, we were very happy with this car. at home we have a smaller car for us five people, so it was a really good feeling to have enough space.