$118 Car Rental Reykjavik

These Reykjavik insights are based on real traveler data from Expedia, aggregated using AI to help you plan your trip. Updated: August 27, 2026.

Reasons to book a car rental in and around Reykjavik

Renting a car in Reykjavik offers travelers the freedom and flexibility to explore the city and its surrounding attractions at their own pace. This option is particularly appealing for families, outdoor enthusiasts, and those looking for eco-friendly experiences, as it allows for easy luggage management and flexible travel plans. With a rental car, you can conveniently visit key attractions like Reykjavik Harbour, perfect for enjoying scenic views, and Hallgrimskirkja, an iconic church that enriches your cultural experience.

Additionally, a car makes it simple to explore vibrant neighborhoods such as Downtown Reykjavik, which features Laugavegur and the historic Reykjavík Cathedral. You can also venture to Háaleiti and Laugardalur, where you can find the beautiful Grasagardur Botanical Garden and Hofdi House. The convenient access to these popular destinations means you can create your own itinerary without relying on public transportation. This flexibility ensures that your visit to Reykjavik is tailored to your interests, making it an ideal choice for any traveler looking to make the most of their trip.

Most popular car rentals in Reykjavik

• Economy: The Economy car is a highly popular option for travelers in Reykjavik, accommodating up to 5 passengers with room for 2 medium suitcases. This car type is ideal for solo travelers, couples, or families looking to explore the city comfortably while managing their luggage with ease. It's a budget-friendly choice that offers both convenience and flexibility for your travel plans.
• Mini: Perfect for smaller groups, the Mini car accommodates up to 4 travelers and can fit 2 small suitcases. This option is particularly well-suited for solo travelers or couples seeking a compact vehicle for their adventures in Reykjavik. Its size makes it easy to navigate through city streets and find parking, ensuring a hassle-free experience during your stay.
• Midsize SUV AWD: The Midsize SUV AWD is an excellent choice for families, couples, or small groups, providing space for up to 5 passengers and up to 3 large suitcases. This vehicle combines comfort with ample cargo capacity, making it ideal for those needing extra room for luggage or gear. Its all-wheel-drive capability is particularly beneficial for handling Iceland's diverse weather conditions, ensuring a reliable and enjoyable driving experience.

Top rated car suppliers in Reykjavik

• Europcar: With three rental locations in Reykjavik, Europcar is a popular choice among travelers seeking flexibility and convenience. They offer a range of vehicles, with the Midsize SUV AWD and Mini being the most booked options. Customers appreciate Europcar for its efficient service and well-maintained cars, making it an excellent option for exploring the attractions in and around Reykjavik at your own pace.
• Enterprise: Enterprise features one rental location in Reykjavik and is well-regarded for its friendly customer service. The Midsize SUV AWD and Economy vehicles are the most favored choices among travelers. Customers often highlight the helpful staff and smooth rental process, making Enterprise a reliable option for those looking to manage their luggage easily and adjust their itineraries as they explore.
• Hertz: With two rental locations in Reykjavik, Hertz offers a solid selection of vehicles, including the Midsize SUV and Economy models, which are popular among renters. Travelers appreciate Hertz for its competitive pricing and the convenience of accessing their cars in the city. With a focus on customer satisfaction, Hertz provides an excellent opportunity for visitors to experience the beauty of Icelandic landscapes comfortably.

Where to stay in Reykjavik

• Downtown Reykjavik: A vibrant neighborhood, Downtown Reykjavik offers an outdoor, family, and eco-friendly experience. It is home to popular activities such as spa treatments and shopping. Key attractions include the iconic Hallgrimskirkja church, the Reykjavík Cathedral, and the bustling Laugavegur street, all within a short distance. You’ll also find nearby hotsprings, parks, and the marina, providing plenty of options for relaxation and exploration. Restaurants and cafes abound, making it a great base for your stay.
• Laugardalur: Known for its outdoor and family-friendly atmosphere, Laugardalur is perfect for those seeking a city-themed experience. Attractions like the Grasagardur Botanical Garden and Hofdi House highlight the area's cultural offerings. Laugavegur street is also accessible, providing ample shopping opportunities. With hotsprings and parks nearby, it’s a wonderful place for outdoor activities. Restaurants and dining options are plentiful, making it convenient for meals after a day of exploring.
• Vesturbær: This neighborhood offers an outdoor and eco-friendly experience, ideal for families. Vesturbær features local attractions such as the Reykjavik Harbour, where you can enjoy beautiful scenery, and the National Museum of Iceland for a dive into the local history. The area is also known for its nearby hotsprings and parks. Dining options, including bars and restaurants, are available, ensuring you have plenty of choices to unwind after a day of sightseeing.

10 tips to save on your car rental in and around Reykjavik

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 for extra space, a convertible for summer fun, or an economy car for budget-friendly travel, utilize the filters on Expedia to discover the best option for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it’s advisable to secure your car well ahead of your trip. By booking in advance, you're likely to lock in lower rates and enjoy greater availability, particularly during peak seasons.
3. Consider a smaller car for savings: Smaller vehicles are typically more affordable to rent and easier to maneuver in crowded areas. Mid-size rentals strike a good balance between cost, comfort, and fuel efficiency.
4. 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 70. Always check age restrictions before making a reservation.
5. Check fuel policies: Some rentals may 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. Others might offer full-to-empty or prepaid fueling choices, which are acceptable as well; just ensure you return the car empty in that case.
6. Save on city and airport pickups: Picking up your rental car at the airport often incurs a surcharge, but the convenience might make it worthwhile.
7. Know your payment options: Many car rental companies primarily accept credit cards for payment.
8. Understand your insurance coverage: Car rental insurance can help you avoid unexpected expenses and provides peace of mind in case of unforeseen events during your trip. It’s easy to add rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you're planning lengthy road trips, look for rental options that offer unlimited mileage to prevent additional 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 and around Reykjavik

The best time to rent a car in and around Reykjavik is January, when prices are slightly low and demand is at its lowest. February and November can also offer good value, with moderate prices and low demand. As spring approaches, March and April see average prices and demand, making them decent options as well. However, July and August are the most expensive months, with high demand and slightly high prices, making them less favorable for budget-conscious travelers.

Calendar Month	Temperature	Precipitation	Cloudiness	Demand	Pricing
January	31.6°F (-0.2°C)	Light Rain	Mostly Cloudy	Low	Slightly Low
February	32.5°F (0.3°C)	Light Rain	Mostly Cloudy	Low	Average
March	33.4°F (0.8°C)	Light Rain	Mostly Cloudy	Average	Average
April	38.5°F (3.6°C)	Light Rain	Mostly Cloudy	Average	Slightly Low
May	43.9°F (6.6°C)	Light Rain	Mostly Cloudy	Average	Average
June	49.8°F (9.9°C)	Light Rain	Mostly Cloudy	Average	Slightly High
July	52.9°F (11.6°C)	Light Rain	Mostly Cloudy	High	Slightly High
August	51.8°F (11.0°C)	Light Rain	Mostly Cloudy	High	Slightly High
September	47.1°F (8.4°C)	Light Rain	Mostly Cloudy	High	Average
October	40.8°F (4.9°C)	Light Rain	Mostly Cloudy	Average	Average
November	36.0°F (2.2°C)	Light Rain	Mostly Cloudy	Average	Slightly Low
December	30.7°F (-0.7°C)	Light Rain	Mostly Cloudy	Low	Average

Finding the cheapest car rentals in Reykjavik

Using our Search Wizard

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

Renting a car in Reykjavik

Pay at pickup is available, so you don’t have to worry about spending your money until you arrive at your vehicle in Reykjavik. 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 Reykjavik

Prices are subject to seasonal change depending on when you decide to arrange your car rental but right now you can book from $118.

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