Iceland Car Rentals

Reasons to book a car rental in Iceland

Renting a car in Iceland offers travelers the freedom to explore the stunning landscapes and attractions at their own pace. With a rental car, you can conveniently manage your luggage and create flexible travel plans, making it an ideal choice for outdoor enthusiasts, adventure seekers, and couples looking for a romantic getaway. You can easily visit notable sites such as Reykjavik Harbour, where you can enjoy beautiful scenery, or the famous Blue Lagoon, perfect for relaxation and wellness. The Jokulsarlon Glacier Lagoon is another must-see, offering breathtaking views of glacial beauty. Additionally, a rental car allows you to explore popular destinations like Reykjavik, which boasts attractions such as Laugavegur and Hallgrimskirkja, or Vik I Myrdal, home to the striking Black Sand Beach and Reynisdrangar. Traveling through Downtown Reykjavik offers a chance to experience local culture and cuisine. Overall, renting a car provides the convenience and flexibility needed to make the most of your Icelandic adventure, ensuring you can visit the places that interest you most.

Most popular car rentals in Iceland

• Midsize SUV AWD: This vehicle accommodates 5 travelers and can hold up to 3 large suitcases, making it an excellent choice for families, couples, or small groups. The All-Wheel Drive (AWD) feature provides enhanced traction, which is particularly beneficial for navigating Iceland's diverse terrains and weather conditions. With its spacious interior, you can enjoy comfort during your travels as you explore the stunning landscapes of Iceland.
• Economy: Ideal for solo travelers, couples, or families, the Economy car option accommodates 5 travelers with space for up to 2 medium suitcases. This option is perfect for those looking for a budget-friendly vehicle while still having the flexibility to explore Iceland at their own pace. The Economy car is easy to maneuver, making it suitable for various driving conditions, ensuring a convenient travel experience.
• Compact: The Compact car option is designed for 5 travelers and can carry up to 3 medium suitcases, making it a versatile choice for solo travelers, couples, or families. With its efficient fuel consumption and manageable size, it is perfect for navigating both urban areas and rural landscapes in Iceland. The Compact car provides sufficient interior space while maintaining ease of handling, allowing you to enjoy your journey without complications.

Where to stay in Iceland

• Reykjavik: Reykjavik is a vibrant city known for its outdoor, family, and eco-friendly experiences. Popular activities include visiting local spas and shopping areas. Key attractions nearby are the Reykjavik Harbour, perfect for enjoying beach scenery, Laugavegur, a bustling street ideal for city exploration, and Hallgrimskirkja, an iconic church that showcases Icelandic culture. The area also offers a variety of dining options, making it an excellent base for travelers.
• Vik I Myrdal: Vik I Myrdal offers an adventurous and romantic atmosphere, attracting visitors seeking outdoor experiences. The stunning Black Sand Beach and Black Beach are must-visit destinations for beach lovers. For a touch of adventure, the Reynisdrangar cliffs provide breathtaking scenery. Travelers can also enjoy local resorts and campgrounds, as well as dining options that cater to various tastes, making it a great spot for exploration.
• Selfoss: Selfoss is ideal for those looking for outdoor adventures and scenic beauty. The area features captivating landmarks like the Kerid Crater, a picturesque lake perfect for romantic outings, and the Urridafoss Waterfall, which is great for outdoor enthusiasts. Nearby national parks enhance the natural charm of Selfoss, while food options, including delightful restaurants and local chocolate shops, offer a taste of Icelandic cuisine, making it an enriching area for travelers.

10 tips to save on your car rental in Iceland

1. Use filters to find the right car: Refine your search by selecting vehicle types and desired features. Whether you need an SUV for extra space, a convertible for summer fun, or an economy car for budget-friendly travel, utilize the filters on Expedia to discover the ideal match for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it's wise to reserve your car well ahead of your trip. By booking in advance, you're more likely to secure lower rates and enjoy a wider selection, particularly during peak seasons.
3. Consider a smaller car for savings: Smaller cars typically come at a lower rental cost and are easier to maneuver and park in crowded areas. Mid-size rentals strike a good balance between affordability, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily fees, and certain vehicle types—such as SUVs or luxury models—might not be available. Renters over 70 may also face similar restrictions. Always verify the age requirements prior to booking.
5. Check fuel policies: Some rental agreements require a full-to-full fuel policy, which means you must return the car with a full tank to avoid additional charges. This is typically the best option. Other policies may offer full-to-empty or prepaid fueling options, which are acceptable as well—just remember to return the car empty in that case.
6. Save on city and airport pickups: Picking up your rental car at airports often incurs a surcharge, but it may be worth the extra cost for the convenience it provides.
7. Know your payment options: Many car rental companies only 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 something goes wrong during your trip. It’s easy to add car rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you plan on taking long road trips, look for rental options that offer unlimited mileage to steer clear of extra charges.
10. Bring your driver's license and ID: A valid driver's license is necessary to rent a car.

Best time to rent a car in Iceland

The best value period to rent a car in Iceland is November, when prices are slightly low and demand is average. January and February also offer lower prices and are typically quieter, making them great options for budget-conscious travelers. From March through May, prices and demand are average, providing a balanced choice. However, August stands out as the most expensive month due to high demand, with June and July also seeing increased prices and busy conditions.