Car hire in Reykjavik, Iceland

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Compare car hire on price, ease of pick-up, a fair fuel policy and more

Find Reykjavik car rental deals you can amend or cancel if your plans change

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There are 22 car hire locations in Reykjavik. Choose the cheapest or easiest now.

The most popular car rental companies in Reykjavik

Hiring a car in Reykjavik: Fast facts

Here's everything you need to know to hit the road happy.
Most popular car hire companyIce Rental 4x4
Most popular carMini, 4-5 doors
Average daily priceج.م.‏ 15,926
Best time to book3 weeks before

How to book the best car rental deals in Reykjavik

We’re frequently named as the most trusted travel search site out there. We scan hundreds of trusted travel providers and put it all in one place, allowing you to instantly compare car hire rates and then book with no fees. Here's how to get the most out of your Reykjavik car rental search.

How to find a cheap car hire deal in Reykjavik

  • Need a cheap rental car in Reykjavik? With an average price of ج.م.‏ 15,926 a day, you're headed for some big savings. Whether you're after a go-anywhere compact, a spacious SUV, or something in between, we round up all the best offers to make booking easy.

  • Lock in your ride in January and accelerate your savings. It's the cheapest time of year to rent a car in Reykjavik, with average daily rates of ج.م.‏ 3,150.

  • We've cracked the code on when to book. Four weeks in advance is your sweet spot for driving off with a cheap rental car in Reykjavik.

  • Check out car hire deals in Reykjavik from popular providers like Ice Rental 4x4, FairCar and Flizzr.

  • Whether you choose Ice Rental 4x4 or a different supplier, double-check the coverage on your Reykjavik car hire. Some companies include a collision damage waiver (CDW), while others sell it as a separate extra.

  • Booking a one-way car hire is often a great hack for cheaper deals. Check 'Return car to a different location' when searching for a car for rent in Reykjavik. Providers sometimes need to move vehicles from one location to another, which means you can snag some great one-way prices.

  • Search for a vehicle with a 'Fair fuel policy.' You'll pick up and drop off your car hire in Reykjavik with a full tank, so you're only paying for what you use. No surprise refueling fees tacked on at the end either.

  • Want to explore more without stressing about the number of miles you cover? Search for rentals with 'Unlimited mileage' under the 'Policies' filter and drive as far as you like without the extra charges.

  • If you're jetting into Reykjavik, think about grabbing one of the car rentals in Keflavik International Airport and get going faster. Touching down elsewhere? You'll find car rentals in Reykjavik International Airport too.

Compare car hire types in Reykjavik

  • Small: These cheap rental cars in Reykjavik may be small in size, but they're big on what matters. Including mini and economy vehicles, they're easy to drive, great on mileage, and a match made in heaven for city driving.

  • Medium: Choose from compact and intermediate cars that combine comfort, space and fuel efficiency. Easy to manoeuvre around cities and with enough space for longer drives, they work well for most plans.

  • Large: You've got the kids, the bags, the snacks, the works. Large vehicles have got the capacity to fit it all without breaking a sweat. Great for longer journeys, this Reykjavik car hire category includes full-size cars.

  • SUV: When the urge to explore hits, an SUV's all in. It's your perfect road trip buddy, ready for backroads, highways, and everything in between. These sports utility vehicles also promise extra space and improved safety features.

  • Van: Usually featuring commercial vans and trucks, this category of car for rent in Reykjavik makes short work of heavy loads and large groups. They're roomy, hardworking, and built to take on any task.

Insurance and optional extras

  • Choosing excess insurance for your Reykjavik car hire lets you drive with confidence. It protects you from paying a hefty excess fee in case of theft or a collision. Insurance policies can vary between rental providers, so compare before you commit.

  • From navigation systems to mobile Wi-Fi hotspots, the right extras can make every mile feel easier. Weigh up which features could make your trip more comfortable when you rent a car in Reykjavik.

Good to know

  • To rent a car in Iceland, you generally have to be at least 21 years old. Some companies may allow younger drivers to rent vehicles for a surcharge, so carefully review the policies before securing your wheels.

  • If the kids are coming with you, see if you need to add a car seat to your Reykjavik car hire booking. Whether required by local laws or not, they're always the safest way for little ones to travel.

Hit the road: Where to drive from Reykjavik

  • Make time for the biggest attractions in the city once you've lined up a car hire deal in Reykjavik. The Northern Light Centre and Harpa are classics for any first-time visitor.

  • When you're ready to check in, Reykjavik Peace Centre Guesthouse and 101 Guesthouse Hotel will help you feel right at home in Reykjavik.

  • Akranes should be on your itinerary if you're eager to visit Akrafjall Mountain and Akranes Folk Museum. This city is around 21 kilometres north of central Reykjavik.

  • You'll be well taken care of at Móar Cottage and Móar Guesthouse, two accommodation options in Akranes.

  • Add Selfoss to your travels too. Pick up your cheap car hire in Reykjavik and drive about 48 kilometres south-east to discover major attractions such as Landscape Photography Iceland and Hellisskógur.

  • Hotel Selfoss and Selfoss Hostel are comfortable places to stay in Selfoss if you're hanging around for a while.

  • Want to head even further out? Saudarkrokur is a top road trip destination that's about 209 kilometres north-east of Reykjavik. Make a few pit stops at Drangey Tours and Puffin and Friends.

  • Book a room at Hótel Tindastóll or Grand-Inn Bar and Bed. They're a convenient base for exploring everything Saudarkrokur has to offer.

Frequently asked questions

On average, hiring a car in Reykjavik will set you back around ج.م.‏ 15,926 per day or ج.م.‏ 33,268 per week. 
The cheapest car to rent in Reykjavik is a compact crossover (similar to SUVs). The most popular is Mini, 4-5 doors.
The cheapest car hire companies in Reykjavik are currently Europcar and Payless.
Bagging the best car hire deal depends on when you book  – often, it pays to book your wheels as far in advance as possible. But according to our data, the cheapest month to rent a car in Reykjavik is currently January.
On average, around ج.م.‏ 33,268. But the best price we found for car hire for a week in Reykjavik is ج.م.‏ 12,881.
Based on everything we know about daily prices, the average cost to hire a car in Reykjavik for a whole month is ج.م.‏ 202,087. 

But sometimes, you'll get a discount for booking a whole month instead of 3 and a half weeks. So play with your dates to find the best deals!
If you're looking for freedom to explore Reykjavik, choose a car with unlimited mileage, or look for car hire deals with a ’full to full' fuel policy as opposed to a 'half-full to full' one.

We also clearly highlight car and van hire options in Reykjavik that have free cancellation
Yes – you can easily find car hire companies that allow you to pick up your car in one place, and then drop it off in another. Just select ‘Return car to a different location’ when you search with us.
Public transport can only get you so far, and could be tricky to navigate with children or luggage. With your own set of wheels, you can go wherever you want, whenever you want, for as long as you want. And you'll be able to discover more outside of Reykjavik.
Most places – Reykjavik included – allow under 25s to rent a car as long as they provide a valid driver's license and the correct documentation. It may cost slightly more due to a higher insurance excess for young drivers. 
The cheapest price we found for an economy car is ج.م.‏ 6,816 per day. The average price per day is around ج.م.‏ 14,054.
Of course. Most major car hire companies like Ice Rental 4x4, Goldcar and Flizzr offer baby and child seats as an add-on when you book.
Other travellers rated FairCar as the best overall in terms of experience.
We search the internet for all kinds of vehicle hire deals, including vans. But at the moment, we can't find any van hire in Reykjavik.