$3,496 Car Rental Northern Iceland

Reasons to book a car rental in and around Northern Iceland

Renting a car in Northern Iceland offers travelers the freedom to explore at their own pace, making it a popular choice for sightseeing. With a rental car, you can easily manage your luggage and create flexible travel plans. This flexibility is ideal for those seeking outdoor experiences, romantic getaways, and scenic adventures. Key attractions are within reach, such as Lake Myvatn, located 9 miles away, perfect for enjoying beach and outdoor activities. The stunning Godafoss waterfall is just 12 miles from Northern Iceland, providing a beautiful backdrop for adventure and romance. Additionally, the Pseudo Craters, located 8 miles away, offer unique scenic views. You can also visit nearby cities like Myvatn, 9 miles away, which features attractions like Dimmuborgir and Namafjall, or explore Skutustadir, 10 miles away, known for its natural beauty and Hverfjall Crater. Laugar, 12 miles away, is another great destination featuring Godafoss and Lake Myvatn. A rental car enhances your journey, allowing you to fully immerse yourself in the breathtaking landscapes and experiences Northern Iceland has to offer.

Where to stay around Northern Iceland

• Myvatn: Located 9 miles away from Northern Iceland, Myvatn is a charming city that offers travelers an outdoor and romantic experience. The area is known for its stunning scenery and is home to attractions such as Lake Myvatn, perfect for a beach getaway, and Dimmuborgir, a national park ideal for adventure seekers. Visitors can also explore Namafjall, a nearby geyser, and enjoy body treatments and spa services in the local recreational area. Dining options are available, making it a great base for exploration.
• Laugar: Situated 12 miles from Northern Iceland, Laugar is another picturesque city favored for its outdoor activities and romantic ambiance. Key points of interest include Godafoss, a breathtaking waterfall, and the serene Lake Myvatn. The area is also great for education and relaxation, offering body treatments and spa facilities. With nearby parks and waterfalls, Laugar provides a scenic backdrop for those looking to unwind while enjoying the natural beauty of Iceland.
• Ljosavatn: Ljosavatn is 16 miles away from Northern Iceland and is perfect for tourists seeking outdoor adventures and romantic settings. This city is home to the stunning Godafoss waterfall and offers various sports activities such as basketball and swimming. Nearby attractions include parks and lakes, providing ample opportunities for exploration. Ljosavatn also features local dining and bar options, making it a great location for relaxation after a day of adventure.

10 tips to save on your car rental in and around Northern Iceland

1. Use filters to find the right car: Refine your search by selecting vehicle type and specific features. Whether you're looking for an SUV to accommodate your family, a convertible for summer joyrides, or an economical car for budget-friendly travel, utilize the filters on Expedia to discover the perfect option for your journey.
2. Book in advance to help lower costs: Car rental prices can vary based on demand, so it's advisable to make your reservation well in advance of your trip. By booking early, you increase your chances of securing lower rates and a wider selection, particularly during peak travel seasons.
3. Consider a smaller car for savings: Compact cars are typically more affordable to rent and easier to maneuver and park in crowded areas. Mid-size vehicles offer a solid balance of cost, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily fees, and certain vehicle types—like SUVs or luxury models—might not be available. This policy can also apply to renters over 70. Always verify the age restrictions before finalizing your booking.
5. Check fuel policies: Some rentals operate on a full-to-full fuel policy, meaning you need to return the car with a full tank to avoid additional charges. This is generally the most convenient option. Other policies may include full-to-empty or prepaid fueling options, which are acceptable as well—just remember to return the car empty in those cases.
6. Save on city and airport pickups: Picking up your rental car at the airport often incurs a surcharge, but the convenience might justify the extra cost.
7. Know your payment options: Most car rental companies exclusively accept credit cards for payment.
8. Understand your insurance coverage: Car rental insurance can help you avoid unexpected expenses and provides peace of mind if unforeseen issues arise during your trip. It's simple to add rental insurance when booking through Expedia.
9. Consider unlimited mileage: If your plans include long road trips, seek out rentals that offer unlimited mileage to prevent incurring additional charges.
10. Bring your driver's license and ID: A valid driver's license is necessary to rent a car.

Finding the cheapest car rentals in Northern Iceland

Using our Search Wizard

If the deals that are available on our page do not suit your needs, then enter Northern Iceland into the search wizard at the top of the page. We will compare all the best deals available for your car rental in Northern Iceland and provide you with a list of the cheapest options, with no added fees.

Renting a car in Northern Iceland

Pay at pickup is available, so you don’t have to worry about spending your money until you arrive at your vehicle in Northern Iceland. We partner with reliable partners that guarantee an enjoyable experience for solo travelers, couples, and families. Package your car with a flight or hotel to unlock even more savings from Expedia.

Expected prices in Northern Iceland

Prices are subject to seasonal change depending on when you decide to arrange your car rental but right now you can book from $3,496.

Flexibility & Cancellation

Most car suppliers offer penalty-free cancellations, so you don’t have to worry about losing money if your plans change. To cancel your booking log into your account through the Trips portal. Click manage booking and cancel this car. If you needed to alter your booking, then you can create a new one once you have canceled.

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Car classes available from Expedia in 2026

The classes of vehicles available will change depending on your chosen location.

• Compact car rentals    
• Convertible car rentals    
• Economy car rentals    
• Fullsize car rentals    
• Luxury car rentals
• Midsize car rentals    
• Mini car rentals    
• Minivan rentals    
• Pickup car rentals    
• Premium car rentals
• Sportscar rentals    
• Standard car rentals    
• SUV rentals    
• Van rentals