Best Car Rental in Iceland — Biggest Selection & Lowest Prices Guaranteed

Discover the ideal rental car for your Iceland adventure with ease on the Guide to Iceland car rental marketplace. Boasting an extensive selection from over 40 leading car rental companies, we offer you the most competitive rates and wide-ranging choices to suit your needs. Our user-friendly search engine simplifies the process, enabling you to effortlessly compare prices and availability to secure the best deal. Enjoy peace of mind with each booking, as all cars come with CDW insurance, and benefit from our flexible policy that allows free cancellation and a full refund up to 24 hours before pickup. Start planning your journey today and find the perfect vehicle to explore Iceland.

Why you should rent a car in Iceland

When renting a car in Iceland, you give yourself the freedom to explore this breathtaking country on your own time and at your own pace. Self-drive tours and Road trips in Iceland have become increasingly popular, where travelers choose their itineraries and set out to see the incredible nature of Iceland by themselves. The following are some of the main benefits of renting a car in Iceland:

1. Flexibility: Renting a car gives you the freedom to explore Iceland at your own pace and visit locations that may not be accessible by other means of transportation.

2. Convenience: Renting a car eliminates the need to rely on public transportation or tour buses, which can be time-consuming and restrictive.

3. Cost-effectiveness: If you're traveling in a group, renting a car can be more cost-effective than other transportation options, especially if you plan to visit several remote locations.

4. Independence: Renting a car allows you to have the independence to make your own itinerary and change plans on the fly.

5. Scenic Routes: Iceland is famous for its breathtaking scenery, and renting a car allows you to take in the views at your own pace. You can stop and take photos, or simply enjoy the scenery from the comfort of your car.

6. Convenient Access to Remote Areas: Renting a car gives you the ability to reach remote areas of Iceland that are not accessible by other means of transportation.

7. Avoid Crowds: If you're looking to avoid crowded tourist areas, renting a car allows you to venture off the beaten path and explore the more remote areas of Iceland.

In conclusion, renting a car in Iceland can provide you with a convenient and flexible way to explore the country, allowing you to make the most of your time and see all that Iceland has to offer. If you're planning to drive around Iceland during your stay, it is important to know the following information.

Where to Rent a Car in Iceland

When using our search engine you can decide where to pick up your rental car. Most car rentals in Iceland are based in Keflavik airport, or in the capital city of Reykjavik. Keflavik airport is about 40 minute drive from Reykjavik.

For travelers that want to hire a car as soon as they land in Iceland, it's most convenient to hire a car from Keflavik international airport and then return it at the airport before flying home. It does not matter what time of day or night your flight arrives, you can pick up your car 24 hours a day at Keflavik airport. It's also possible to rent cars from Reykjavik, which most people tend to use as a base when exploring the country. It is also possible to pick your rental car up in Keflavik and drop it off in Reykjavik, or vice versa, sometimes for an additional fee.

Car rentals are also available around the country, such as in Akureyri and Siglufjordur in the north, Egilsstadir and Hofn in the east, Selfoss and the Westman Islands in the south, as well as on the Westfjords and the Snaefellsnes peninsula. Car rentals are available in most larger towns in Iceland's countryside.

Note that in those locations, there may only be one or perhaps two car rental agencies, so you will have limited choices of cars. It is also possible to rent your car in one location in Iceland and drop it off at another for an additional fee.

Car rental types

In Iceland, there are several types of car rentals available to suit different needs and budgets. Some of the most common types of car rentals in Iceland are:

1. Economy cars: These are the smallest and most affordable cars available, suitable for city driving and short trips.

2. SUVs & 4x4 vehicles: These are four-wheel-drive vehicles that offer extra space and comfort for passengers and are ideal for driving on rough terrain and in winter conditions

3. Campervans: These are vehicles that are equipped with a bed, kitchenette, and storage space, allowing travelers to camp and explore the country at their own pace.

4. Luxury cars: These are high-end vehicles that offer maximum comfort, style, and performance, suitable for special occasions and luxury travel.

When renting a car in Iceland, it's important to consider factors such as the number of passengers, the length of the trip, the type of roads you'll be driving on, the season and weather conditions. Make sure to choose a car that meets your needs and budget.

Good to Know about Driving in Iceland

Driving in Iceland can be a unique and exciting experience, but it also requires careful preparation and attention to safety. Iceland's roads are often narrow and winding, with steep inclines and unpredictable weather conditions. It is important to be aware of the hazards that can arise while driving in Iceland and take necessary precautions to ensure a safe and enjoyable journey.

One of the most important things to keep in mind while driving in Iceland is to respect the country's speed limits. These limits are generally lower than in other countries and are designed to ensure the safety of drivers and passengers. Additionally, drivers should pay close attention to road signs and signals, as well as any instructions provided by their GPS or other navigation systems.

It is also important to note that Iceland's weather can be highly unpredictable, with sudden changes in temperature, visibility, and precipitation. Drivers should be prepared for conditions such as snow, ice, and heavy rain, and should always have appropriate equipment on hand, such as tire chains, a shovel, and extra warm clothing.

Another unique aspect of driving in Iceland is the country's road system. Iceland has a limited number of paved roads, with many routes being unpaved or only partially paved. This means that drivers must be prepared for bumpy rides and potential hazards such as loose gravel, potholes, and sharp rocks.

Despite these challenges, driving in Iceland is also an incredibly rewarding experience. The country's natural beauty is on full display from the road, with stunning views of glaciers, waterfalls, and geothermal hot springs. And with careful planning and attention to safety, drivers can safely explore all that Iceland has to offer.

The Road Network in Iceland

Iceland's most iconic highway is the Ring Road, which encircles the entire island and is your best bet for traveling around quickly and safely. As Iceland's most important road, it is well-maintained and open throughout the year. However, extreme weather conditions can sometimes lead to temporary and partial closures, especially during the winter.

Ring Road, or Route 1, is just two lanes wide, but you will seldom see much traffic in rural Iceland. It is, however, dotted with many one-lane bridges. The rule when crossing these is that the right of way goes to the driver who is closest, so always approach slowly to make the correct judgment, even if you don't see anyone ahead. 

Most other roads, such as those leading to popular destinations such as the Golden Circle and the Blue Lagoon, are tarmac. However, if you stray into the countryside, you will likely encounter gravel tracks. These can be narrow and very bumpy and should be traversed with caution, especially by those who are not used to such conditions. However, all vehicles can drive on them.

F roads in Iceland are only accessible if you rent a jeep or four-wheel drive. They can be quite daunting, crossing rivers and winding along narrow mountain passes, so only confident drivers should take these routes. 

Although they come with a unique set of risks, the roads in Iceland are perfectly safe to drive if you have good judgment and know your limits.

Rules & Regulations for Driving in Iceland

It is important that travelers who rent a car in Iceland are aware of laws here that are different from those of their home country, so be sure to take the following notes.

To rent a car, you must have had a valid driver's license for one year. To rent a minibus or a four-wheel drive, you must be at least 23. Your license must be in Latin alphabet characters or accompanied by an International Driving Permit.

The speed limits are generally lower than in other European countries due to the hazards associated with driving in Iceland. The maximum speed limit on paved highways in the countryside is 90 km/h. On gravel roads, the limit is 80 km/h, and in towns and cities, generally 50 km/h.

If you are unsure or if the area is not signposted, it is best to assume the limit is 50 km/h. In some areas, signs encourage you to reduce speed, but it is generally expected that drivers will use common sense and choose a safe speed according to the conditions. More common are signs indicating specific hazards ahead, such as sharp bends or exposure to high winds.

For safety reasons, motorists are obliged by law to keep headlights at all times, even during summer when the sun does not set. Blind corners are common, and, of course, the deep winters are notoriously dark. Even at midday, it is barely brighter than during the twilight hours.

As in most countries, all passengers are required by law to wear a seatbelt. Driving under the influence of alcohol, or using a mobile phone while driving, is strictly forbidden. Speeding fines are high, and there are many traffic cameras throughout the country.

Driving on F-roads is legal if you rent a jeep or a four-wheel-drive, and only if they have been opened for the summer. It is against the law, and foolish, to travel on any roads that are cordoned off for safety reasons.

The fragile, delicate nature of Iceland's wildlife means that driving off-road is strictly forbidden. Doing so is punishable by hefty fines and even a jail sentence of up to four years. Much of the country's volcanic landscape has been formed over millions of years, and the beautiful moss that creeps across it takes centuries to grow. Driving carelessly through vegetation will cause damage that can take decades to recover.

If you have an accident or need urgent help, call 112 for emergency services.

Driving Off the Beaten Track in Iceland

Most roads within Iceland's interior have a loose gravel surface, many are narrow, and some are raised from ground level to prevent weather-related closures. Although they are safe to drive, they present a unique set of hazards you should beware of when you plan to rent a car in Iceland. Leaving a tarmac road for a gravel one is a common accident site for visitors to Iceland. The driver approaches too fast and loses control of the vehicle. Drivers should always slow down and stay focused when the road's surface changes, and if the car begins to slide on the gravel, release the gas and steer gently in the direction it is pulling.

Slow down when you see oncoming traffic and move as close to the right-hand side as is safe. Beware that the loose road surface means it's easy to kick up rocks and stones, so practice this even if the roads are wide. Also, take notice of any sheep on the side of the road and make sure to come to a complete stop if sheep are crossing the road, as they roam free during the summer in Iceland.

If you decide to rent a jeep in Iceland, you can access the country's most remote places. The best time to do this is in summer, as before June, snow blocks and muddy conditions make many mountain and interior roads completely impassable. These roads can be very challenging to traverse, so it is always recommended that two or more 4x4 vehicles travel together. It is also advised that you leave your travel plan at Safetravel.is.

You should always know what the road conditions will be before you set out, and you can check this on the website of the Icelandic Road and Coastal Administration.

Don't Forget the Icelandic Weather

The unpredictable weather in Iceland can sometimes make driving the Ring Road a challenging experience. During the winter months, snowstorms, high winds, dense fog, icy roads, and perpetual darkness can complicate the simplest of journeys, and you must prepare for such conditions.

Before setting out anywhere, check the weather in Iceland on the website of the Icelandic Meteorological Office. Heed bad weather warnings and always err on the side of caution, especially if you do not have experience driving in these conditions. Throughout summer, the weather in the west and south is usually a lot less rough, but it is always wise to check out the forecast before starting your day.

Overall, drivers who are aware of the weather, the road conditions, and their own driving skills will have a safe and enjoyable time driving through the incredible beauty of Iceland. Make sure you know the rules and take all necessary precautions, and the whole of the country will be at your fingertips. 

If you seek more information, please check out our ultimate guide to driving in Iceland.