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 is a fantastic choice for adventure seekers, nature lovers, and those looking for a romantic getaway. With your own vehicle, you can explore breathtaking attractions at your own pace, allowing for easy luggage management and flexible travel plans. For instance, you can visit the stunning Blue Lagoon, a hotspring perfect for wellness and relaxation, or head to Reykjavik Harbour for scenic beach experiences, both conveniently located within the area.

Additionally, a rental car enables you to explore popular destinations such as Downtown Reykjavik, where you can stroll along Laugavegur, or venture to Grundarfjörður to see the iconic Kirkjufell Mountain and its waterfall. If you are interested in culture, a trip to Vogar offers the chance to visit the Viking World Museum and enjoy the Blue Lagoon. The freedom of having a rental car allows you to create your own itinerary, making it an ideal option for those wishing to experience the diverse landscapes and attractions of Iceland without the constraints of public transport.

Most popular car rentals in Iceland

  • Midsize SUV AWD: This vehicle comfortably accommodates up to 5 travelers and can carry up to 3 large suitcases. It's an excellent choice for families, couples, or small groups looking for space and comfort during their adventure in Iceland. The all-wheel drive feature provides added stability and control, making it suitable for the varied terrain you may encounter while exploring the beautiful landscapes.
  • Economy: The economy car option is perfect for up to 5 travelers with the capacity for 2 medium suitcases. This car type is ideal for solo travelers, couples, or small families seeking a budget-friendly option. Its compact size makes it easy to navigate through Iceland's picturesque roads, allowing for efficient travel while still providing enough space for your essentials.
  • Compact SUV AWD: This versatile vehicle fits up to 5 travelers and can hold up to 3 medium suitcases, making it a great fit for solo travelers, couples, and families. The compact SUV AWD offers the benefit of all-wheel drive, which is particularly advantageous for those looking to venture off the beaten path. Its combination of space and maneuverability ensures a comfortable journey across Iceland's stunning scenery.

10 tips to save on your Iceland car hire

  1. 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 room, a convertible for summer enjoyment, or an economy car for budget-friendliness, utilize filters on Expedia to identify 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 reserve your car well ahead of your trip. By booking early, you’re likely to secure lower rates and enjoy better availability, particularly during peak seasons.
  3. Consider a smaller car for savings: Smaller cars are typically less expensive 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 luxury models—may not be available. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
  5. Check fuel policies: Some rentals operate on a full-to-full fuel policy, which means you must return the car with a full tank to avoid additional fees. This is typically the most economical choice. Others may offer full-to-empty or prepaid fueling options, which can also be convenient; just ensure you 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 the added convenience may justify the cost.
  7. Know your payment options: Many 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 events occur during your trip. It’s easy to add car 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 additional charges.
  10. Bring your driver's license and ID: A valid driver's license is necessary to rent a car.

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

Frequently asked questions

What happens if I need to cancel my Iceland car reservation?
Our Customer Service Portal contains all the specifics about this. In the majority of cases, total refunds are provided if a booking is canceled a minimum of six hours prior to collecting the car. Be sure to scan your car rental agreement to see if there are any exemptions.
How do I find the best car rental deals in Iceland with Expedia?
Getting an amazing deal on your Iceland rental car is a breeze with Expedia. Choose your preferred ride, add in a few more details and compare prices from leading suppliers. Why not add flights and hotels to your booking? You'll get access to terrific discounts when you create a vacation package.
How old do you have to be to rent a car in Iceland?
Iceland rules state drivers must be 20 and above to be able to rent a vehicle. However, young drivers can expect a surcharge and tighter rental conditions. Many companies impose a young renter fee on top of the normal car rental rate. This covers the extra risk of accident or damage. While many car classes (like mid-size and compact) are available to young motorists, restrictions usually apply to luxury and specialty vehicles.
What do you need to rent a car in Iceland?
Renting a car in Iceland is a breeze. Generally, all you'll need is your driver's license and a credit card in your name. After you've found your perfect set of wheels, check your policy to ensure there are no additional requirements prior to the pickup date.
Can I rent a car for a month or longer in Iceland?
You can. Expedia partners with quality suppliers that offer weekly and monthly rentals for all categories of cars. Pick up one of our long-term car rental deals and explore every bit of Iceland — or way beyond!
Where can I find an Iceland car rental if I am younger than 25?
Age policies are different between rental companies, so be prepared to do a bit of shopping around. Found an Iceland supplier that does rent to drivers under the age of 25? That's great! Just keep in mind that extra fees often apply to drivers between 21 and 24. The fine print of each rental car you're looking at should have all the information you need.
What insurance should I choose for my car rental in Iceland?
For a smooth, stress-free vacation, add Expedia's collision damage protection to your car rental reservation. This insurance covers your vehicle against theft, vandalism and collision damage. It also provides round-the-clock emergency help in times of need. Opt in to this plan while finalizing your Iceland vehicle with Expedia and save money and time at the rental desk.

Car Rental Information

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