Iceland Car Rentals

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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 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.

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 are the cheapest car rentals in Iceland?
Smaller car classes are often among the most affordable car rentals in Iceland, such as economy and mini cars, which are easy to park and efficient for getting around. You'll find these options commonly available in cities like Reykjavik, Kópavogur, and Selfoss. Nationwide suppliers such as Thrifty Car Rental and Sixt often provide these budget-friendly vehicles. Rates for car rental in Iceland vary by city, specific pickup location, and the time of year, so it's always a good idea to compare a few cities and dates on Expedia to find great value for your trip.
What are the best car rentals in Iceland?
Car rentals across Iceland come in a full range of vehicle types from providers like Europcar, Dollar Rent A Car, and Thrifty Car Rental, broadly available in major cities such as Reykjavik, Kópavogur, and Selfoss. The most common car classes include:
  • Mini 4-5 door
  • Economy 4-5 door
  • Compact SUV
  • Compact crossover
  • Midsize crossover
These options cater to various travel needs, whether you are a solo traveler, a couple, a family, or a small group. Choose based on passenger count, luggage, and whether you're driving primarily in the city or planning a car rental Iceland road trip across longer distances.

What are the best car rental companies in Iceland?
For car rental in Iceland, well-rated providers like Sixt, Thrifty Car Rental, Dollar Rent A Car, and Europcar offer a strong mix of vehicles with wide availability in major cities such as Reykjavik, Kópavogur, and Selfoss. These companies provide reliable options for exploring the region. To find the right vehicle and the best place to rent a car in Iceland for your trip, compare suppliers and pickup points on Expedia.
Can I rent a car one-way in Iceland?
Yes, one-way car rental in Iceland is a great way to see the country without having to loop back to your starting point. You can pick up your vehicle in a city like Reykjavik and drop it off in another, such as Selfoss, which is ideal for a cross-country road trip. Providers like Europcar and Dollar Rent A Car offer flexible one-way options. A one-way drop-off fee usually applies and can be higher over longer inter-city distances, so confirm this when booking on Expedia.
Are there electric or hybrid car rental companies in Iceland?
Electric and hybrid car rentals are available across Iceland, including in major cities like Reykjavik and Kópavogur. Companies such as Europcar, Dollar Rent A Car, Thrifty Car Rental, and Enterprise offer hybrid plug-in and hybrid options. EVs and hybrids can help keep fuel costs low, and charging infrastructure is becoming more widely available along major routes. It's advisable to book a few weeks ahead as demand for these vehicles can be high, and plan your charging stops for longer drives between cities.
What are the best luxury car rental companies in Iceland?
For luxury car rental in Iceland, providers like Europcar, Dollar Rent A Car, Sixt, and Enterprise offer premium categories, including high-end vehicles with extra comfort and space for touring the country in style. You'll find options such as luxury passenger vans, premium SUVs, and fullsize elite SUVs in major cities like Reykjavik and Kópavogur. Use Expedia's car-class filters to browse these premium options and compare before you book your ideal vehicle.
What are the best car rentals in Iceland for families or groups?
For families or groups exploring Iceland, SUVs and minivans give you ample room for passengers, car seats, strollers, and luggage. These larger vehicles are available across major cities from Reykjavik to Selfoss:
  • Dollar Rent A Car: midsize SUV – seats up to 5 with room for 3 large suitcases
  • Europcar: luxury passenger van – seats up to 8 with room for 6 large suitcases
  • Enterprise: standard SUV – seats up to 5 with room for 4 large suitcases
These options keep everyone comfortable for both city driving and longer trips between regions. When planning your car rental in Iceland road trip, book a few weeks ahead, as larger vehicles can have lower availability during busy periods.

Which airports in Iceland can I pick up a rental car?
Iceland's primary international gateway for car rental pickup is Keflavik International Airport (KEF), which serves the capital region including Reykjavik, Kópavogur, and Selfoss. Choosing to pick up your rental car at KEF keeps things convenient as you arrive. Compare rental rates and available vehicles at the airport on Expedia to start your journey smoothly.
What are the best road trips in Iceland by rental car?
With a rental car, Iceland opens up for multi-stop road trips between its major cities and regions. You can easily explore the diverse landscapes and urban centers:
  • Reykjavik to Selfoss (about 35 miles) – a scenic drive through the countryside, perfect for experiencing the natural beauty outside the capital.
  • Kópavogur to Selfoss (about 30 miles) – another excellent route for exploring more of the region's charming towns and landscapes.
A one-way car rental option in Iceland works well for point-to-point routes so you don't have to double back. Compare pickup cities and one-way options on Expedia to plan your ideal road trip.

Which side of the road do you drive on in Iceland?
In Iceland, you drive on the right-hand side of the road. This is important to remember for safe driving in Iceland, especially if you are accustomed to driving on the left. Keep to local speed limits and traffic laws for a safe, easy drive while exploring the country's cities like Reykjavik, Kópavogur, and Selfoss, and the roads between them. If you're used to driving on the other side, give yourself a little time to adjust – take extra care at intersections and roundabouts, which flow in the opposite direction.
Are there any hidden fees when renting a car on Expedia?
Expedia aims to show the key price and important rental details clearly during booking, so you know what to expect before you reserve. In some cases, car rental companies may apply additional charges at pick-up or during the rental, such as security deposits, tolls, fuel charges, extra driver fees, or local requirements, so it's worth checking the supplier's rental terms before you book.
Are there any long-term car rentals in Iceland?
Yes, there are several long-term car rental options available in Iceland. Whether you're planning an extended holiday with the family, relocating temporarily, or simply need a vehicle for several weeks or months, many car rental providers offer flexible long-term rental plans tailored to your needs. Click on our long-term car rental deals page, enter your trip information and then book a ride that suits.
Do you need insurance to rent a car in Iceland?
No, you don't need personal auto insurance to rent a car in most cases. You will, however, be required to purchase some insurance to cover the duration of the rental. Rental companies will offer this insurance when you rent the car. Certain personal car insurance policies can also be applied to rental cars, and travelers can even use non-owner car insurance if they rent cars often but don't have a car of their own. Additionally, some car rentals simply include rental car insurance within the price of the rental.
How much does it cost to rent a car in Iceland?
Budget car rental in Iceland can be easy to find, with prices based on rates seen within the past seven days . To find some of the cheapest options, sort your search results by price and use filters to match your budget and travel needs. For added flexibility, it's also worth exploring one-way car rentals.
What are the top car rental deals in Iceland?
No matter what kind of vehicle you're looking for, Expedia makes it easy to find a great car rental deal in Iceland. The easiest way to get a good deal on a rental car is to use our filters. At the top of the filter list, you'll find a section featuring our best car rental offers. Check the filter for "Great Deal," and your search results will be filled with specials. Compare offers from trusted rental providers, choose the option that fits your trip, and book with confidence. For even more value, bundle your Iceland car rental with a hotel or flight to unlock additional savings.
What do I need to rent a car in Iceland?
To rent a car in Iceland, a current driver's license and a credit card in the same name are essential. If you're opting out of the company's insurance plan, then you may also need proof of other coverage. Rules may differ between rental companies, so read through your policy.
What happens if I need to cancel my Iceland car rental?
If you need to cancel your Iceland car rental, read over the policy to be sure, but almost all prepaid rentals are eligible for a complete refund if you notify us at least six hours prior to the pickup time, though there may be some exclusions so check your itinerary for more information, or just click through to our Customer Service Portal.

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