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Car rental in Reykjavík - Search, Compare, and Save

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No Hidden Fees

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4.67/5

Based on 1,300+ reviews

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Cheapest Car Hire Rates in Reykjavík

Reykjavík

Mini

Fiat 500 or similar

4

1

3

A/C

Auto

GreenMotion

24

per day

Reykjavík

Economy

Toyota Yaris or similar

5

2

5

A/C

Auto

GreenMotion

29

per day

Reykjavík

Compact

Volkswagen Golf or similar

5

3

5

A/C

Auto

GreenMotion

33

per day

Reykjavík

Intermediate

Skoda Octavia or similar

5

4

5

A/C

Auto

GreenMotion

39

per day

The average cost of car hire is €34 per day, with 1,878 vehicles available and an average hire duration of 6 days.

Why Rent a Car in Reykjavík?

Reykjavík, the vibrant capital of Iceland, is a city brimming with cultural experiences and stunning natural beauty just a short drive away. While Reykjavík offers public transport, a rental car provides unparalleled freedom to explore at your own pace.

Unrestricted Exploration. Iceland's most iconic sights, like the Golden Circle and the Blue Lagoon, are easily accessible by car, allowing you to venture beyond the city limits without constraints.

Flexibility and Convenience. Travelling with family, camera equipment, or outdoor gear is significantly easier with your own vehicle, bypassing the limitations of public transport schedules.

Cost-Effective Travel for Groups. For families or groups, renting a car often proves more economical than purchasing multiple tour tickets or relying on taxis, especially for longer excursions.

Tailored Itineraries. A rental car allows you to customise your schedule, enabling spontaneous stops at hidden gems and scenic viewpoints along the way.

Rental Terms and Conditions in Reykjavík

Before booking a rental car in Reykjavík, ensure you understand the rental terms and conditions. Familiarise yourself with age requirements, licence stipulations, insurance details, and any potential extra fees to ensure a smooth rental experience.

Area

Approximately 273 square kilometres (105 square miles)

Population

Approximately 130,000 residents

Time Zone

GMT (UTC+0)

Ideal for

Exploring Iceland's natural landscapes

Rush Hours

Expect heavier traffic during morning and late afternoon commutes

Rating

4.8/5

1. Age RequirementsMost rental companies in Reykjavík require drivers to be at least 20 years old. However, some vehicle categories may have a higher minimum age, and young driver surcharges might apply for renters under 25.

2. Driver’s License & DocumentationA valid driver’s licence is required. Licences from EU/EEA countries are generally accepted. Non-EU/EEA residents typically need an International Driving Permit (IDP) in conjunction with their national licence.

3. Insurance & DepositsStandard rentals include basic insurance, but options like Collision Damage Waiver (CDW) and Super Collision Damage Waiver (SCDW) are available for enhanced coverage. A security deposit is usually held on a credit card.

4. Mileage & Fuel PolicyUnlimited mileage is common, but verify this in the rental agreement. Fuel policies vary; often, you’re required to return the car with the same fuel level as when picked up.

5. Additional FeesPotential additional fees include charges for extra drivers, one-way rentals, optional GPS systems, and child safety seats.

Car Rental Prices in Reykjavík – How Much Does It Cost?

Car rental prices in Reykjavík vary depending on the season and type of vehicle. Booking in advance and comparing offers can help secure the best deals.

Business:

from £40 / $50 / €45

Electric:

from £20 / $25 / €22

Classic:

from £10 / $12 / €11

Executive:

from £30 / $38 / €34

7 Seater:

from £35 / $44 / €40

Automatic:

from £20 / $25 / €22

SUV:

from £12 / $15 / €14

Seasonal Trends

Peak season (June to August): Expect prices to increase by 20-30% due to higher demand.

Low season (November to February): Often comes with discounts and better availability.

Booking early and comparing offers can help secure the best deal, especially when travelling during peak season.

How to Book a Car in Reykjavík?

Booking a car in Reykjavík involves comparing prices, selecting the right car, reviewing terms, booking early, and having the required documents at pick-up. Following these steps ensures a smooth experience.

1. Compare Prices - Use comparison sites to find the best deals based on travel dates and vehicle preferences.

2. Choose the Right Car - Select a vehicle suited to your needs, whether it's a compact car for city driving or an SUV for exploring Iceland's terrain.

3. Check Rental Terms - Review mileage limits, insurance coverage, and deposit requirements to avoid surprises.

4. Book in Advance - Secure lower prices and better vehicle availability by booking early, especially during peak seasons.

5. Pick Up Your Car - Bring your driver’s licence, credit card, and identification when collecting your rental.

General Information About Reykjavík

Reykjavík, Iceland’s capital, combines vibrant city life with easy access to stunning landscapes. Familiarise yourself with local traffic rules, parking regulations, and fuel availability for a seamless driving experience.

As Iceland's capital, Reykjavík is a mix of culture and modern life. Renting a car is ideal for exploring the Golden Circle, the South Coast, and beyond. Driving within Reykjavík is straightforward, but awareness of speed limits and parking regulations is crucial. Before heading out, understanding local traffic laws and fuel station locations ensures a smooth and stress-free visit.

Top Attractions to Discover

  • Hallgrímskirkja Church

    An iconic church offering panoramic views of Reykjavík.

  • Harpa Concert Hall

    A stunning architectural masterpiece and cultural centre.

  • Sun Voyager Sculpture

    A striking sculpture along the waterfront with views of the bay.

Where to Find Parking

  • Public Parking Garages

    Numerous garages offer secure parking options, often in central locations.

  • On-Street Parking

    Pay-and-display bays are available, but be mindful of time limits and restrictions.

  • Parking Apps

    Apps like Parka can help you find and pay for parking spots.

Gas Stations in Reykjavík

  • Major Brands Available

    Look for brands like N1, Olís, and Orkan throughout Reykjavík and surrounding areas.

  • Fuel Availability

    Gas stations are generally easy to find, but plan ahead when venturing into remote areas.

  • Payment Options

    Most stations accept credit cards and debit cards.

Useful Tips for Visiting Reykjavík

  • Check Weather Conditions

    Icelandic weather can change rapidly, so stay informed.

  • Drive Carefully

    Be aware of speed limits and road conditions, especially in winter.

  • Respect Nature

    Stay on marked paths to protect the fragile environment.

  • Plan Your Route

    Use navigation apps to plan your route and locate gas stations.

Key Transportation Hubs in Reykjavík

Major Bus Stations

BSÍ Bus Terminal

The main bus terminal for long-distance routes and airport transfers.

Airports

Keflavík International Airport (KEF)

Iceland's primary international airport, located approximately 50 kilometres (31 miles) from Reykjavík.

Reykjavík Domestic Airport (RKV)

Primarily serves domestic flights and flights to Greenland and the Faroe Islands, located close to the city centre.

What Do You Need to Rent a Car in Reykjavík?

Renting a car in Reykjavík is generally straightforward, but you’ll need to meet certain requirements before getting behind the wheel.

  • A valid driver's licence from your country of residence is required. If your licence is not in Latin script, an International Driving Permit (IDP) is recommended.

  • Most rental companies require drivers to be at least 20 years old, but this can vary based on the vehicle type.

  • A valid credit or debit card in the main driver’s name is necessary for the security deposit.

  • A passport or other form of official identification may be required.

Our Content Quality

This content was written

This content was written, fact-checked, and/or translated by our expert team of content creators.

Every piece of information on this page has gone through our Content Quality Assurance (CQA) process — a multi-step review that includes human editing, localisation accuracy checks, and expert travel validation.

Learn more about our Content Quality Standards

This page was edited by experts

This page was edited, fact-checked, and/or translated by our experts who are passionate about helping travellers experience the world by car. Our team of seasoned travel writers and editors has driven across more than 50 countries, hired cars on six continents, and explored countless scenic routes — from Icelandic fjords to Moroccan deserts.

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Our Customer Reviews

Our clients rate such place as Reykjavík as

4.7

To ensure every review is from a real customer, we do not allow reviews to be posted directly on this page. Instead, we invite every customer to leave a review after they have returned their hire car. This way, you can be sure that all reviews are authentic.

Pretty chill, eh?

MS

Mike Smith

Reviewed: 24.05.2025

Iceland was breathtaking! A last-minute weekend trip, exploring the Reykjanes Peninsula with our rental car, made it unforgettable.

SJ

Sarah Jones

Reviewed: 20.12.2024

Reykjavik exceeded expectations! My quick business trip turned into a mini-adventure thanks to easy exploration by car. Stunning scenery everywhere.

DL

David Lee

Reviewed: 09.02.2025

Fantastic weekend in Reykjavík! Having a car made exploring so easy. Highly recommend.

EC

Emily Carter

Reviewed: 22.01.2025

Reykjavik was magical! Exploring the coast with a rental car was so relaxing and easy. Highly recommend.

JM

Jessica Miller

Reviewed: 26.01.2025

Reykjavik's beauty surprised me! Meeting friends there, and exploring with our rental car, made for an unforgettable trip.

CB

Chloe Brown

Reviewed: 11.06.2025

Pretty relaxed vibe.

OD

Olivia Davis

Reviewed: 10.10.2024

Pretty cool place

AG

Amelia Garcia

Reviewed: 13.09.2024

Reykjavik was wonderful! So much freedom exploring with our rental car. Highly recommend.

AW

Ava Wilson

Reviewed: 31.07.2025

Okay, but kinda pricey. Car rental easy, though.

BH

Benjamin Harris

Reviewed: 15.02.2025

Reykjavik was a fantastic stop on our road trip! Exploring the city and beyond with a car was so convenient.

EH

Ethan Hunter

Reviewed: 25.03.2025

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