Iceland Car Rentals

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Top destinations to rent a car in Iceland

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Reykjavik

Reykjavik

What you need to know for your Iceland car rental

Reasons to book a car rental in Iceland

Renting a car in Iceland offers the freedom to explore the stunning landscapes and attractions at your own pace. With a rental vehicle, you can easily manage your luggage and create flexible travel plans that suit your itinerary. This option is particularly appealing for those seeking outdoor adventures, romantic getaways, or simply a chance to connect with nature. You can visit remarkable sites such as the Reykjavik Harbour for scenic views, the Blue Lagoon for relaxation and wellness, or the Jokulsarlon Glacier Lagoon for breathtaking scenery. Additionally, you can explore vibrant destinations like Reykjavik, which features attractions such as Laugavegur and Hallgrimskirkja, or venture to Vik I Myrdal, known for its Black Sand Beach and Reynisdrangar formations. The convenience of a rental car allows you to navigate these locations without the constraints of public transportation, ensuring a more enjoyable and personalized experience during your trip in Iceland.

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 the vibrant capital city of Iceland, perfect for families and eco-conscious travelers. Enjoy outdoor activities and relax at local spas. Key attractions include the scenic Reykjavik Harbour and the cultural Hallgrimskirkja church. Laugavegur street offers excellent shopping and dining options, making it a central hub for your stay. The nearby hotspring and parks enhance the outdoor experience, making Reykjavik an ideal base for your adventures.
  • Vik I Myrdal: Vik I Myrdal is renowned for its stunning landscapes and romantic ambiance. This city is perfect for outdoor enthusiasts and adventure seekers. Explore the breathtaking Black Sand Beach and the dramatic cliffs of Reynisdrangar. With access to picturesque waterfalls and parks, Vik I Myrdal offers a unique blend of nature and relaxation. Dining options here cater to various tastes, making it an excellent spot for a memorable getaway.
  • Selfoss: Selfoss is a charming city known for its outdoor activities and scenic views. Ideal for adventure seekers, visitors can explore the stunning Urridafoss Waterfall and the picturesque Kerid Crater. The nearby national parks offer ample opportunities for hiking and enjoying nature's beauty. With various restaurants and chocolate shops, Selfoss provides a delightful culinary experience, making it a lovely stop during your Icelandic journey.

10 tips to save on your car rental in Iceland

  • Use filters to find the right car: Refine your search by selecting vehicle types and features. Whether you're looking for an SUV for extra space, a convertible for summer enjoyment, or an economy car for budget-friendliness, utilize the filters on Expedia to discover the ideal match for your journey.
  • Book in advance to help lower costs: Rental prices can vary based on demand, so it's wise to secure your vehicle well ahead of your trip. By booking early, you are more likely to find lower rates and better availability, particularly during peak seasons.
  • Consider a smaller car for savings: Compact cars typically come with lower rental costs and are easier to park in crowded areas. Mid-size rentals strike a good balance between affordability, comfort, and fuel efficiency.
  • Age guidelines: Drivers under 30 may encounter higher deposits or daily fees, and certain vehicle categories—such as SUVs or premium models—might not be available. This can also apply to renters over the age of 70. Always verify the age requirements before making your reservation.
  • Check fuel policies: Some rental agreements operate on 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 most favorable option. Other agreements may offer full-to-empty or prepaid fueling options, which can also be convenient. Just ensure the car is returned empty in that case.
  • Save on city and airport pickups: Picking up your rental car at the airport often incurs a surcharge, but the convenience may justify the extra cost.
  • Know your payment options: Most car rental companies only accept credit cards for payment.
  • Understand your insurance coverage: Car rental insurance can protect you from unexpected expenses and provide peace of mind during your travels. It's straightforward to add car rental insurance when booking through Expedia.
  • Consider unlimited mileage: If you're planning extensive road trips, seek rentals that offer unlimited mileage to avoid incurring extra charges.
  • Bring your driver's license and ID: A valid driver's license is essential for renting 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.

    Find Iceland Car Rentals

    Expedia.com makes it easy for you to book your next Iceland car rental. We work with the best car rental companies in Iceland, bringing you discount car rental rates and a wide variety of car rental classes including economy, compact, midsize, full-size, convertible, van, luxury and SUV rentals. Our partner car rental companies in Iceland offer different pick-up and drop-off options. If you are ready to book your Iceland car rental, follow the links on this page to view more information and details on your next short or long term car rental.

    Expedia.com offers a wide selection of rental cars in Iceland to meet nearly every need. If you need any special equipment, like a child seat or ski rack, let us know and we will forward your request on to the rental car company. And what's more, when you choose to rent a car from one of our Iceland airport car rental partners you'll be dealing with a rental car company that has made a special commitment to provide Expedia customers with great customer service, a wide choice of top quality cars, and competitive total pricing.

    Expedia.com offers many Iceland rental cars pick up locations

    Find the best place to get your Iceland airport rental cars by searching tons of pickup locations with Expedia.com

    Car Rental Information

    Popular car types:
    		SUV, Full Size, Economy
    From the airport to your hotel:
    		Airport Transportation