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Welcome to the largest marketplace of rental cars in Iceland
Welcome to the largest marketplace of rental cars in Iceland
Start by choosing dates, pick up & drop off
Start by choosing dates, pick up & drop off

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3610 reviews
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Cheap Car Rental Iceland
Great service! Great price, Great car!! You Can book without hesitation!
Cheap Car Rental Iceland
Iceland was a once in a lifetime trip for us, a couple from sunny San Diego, California! We survived multiple whiteout blizzards in our trusty, brand new Yaris thanks to its GPS and snow tires! Customer service was fantastic, they were helpful from dropoff in downtown Reykjavik to pickup (conveniently) at the Blue Lagoon. Thanks for the wonderful service, can't wait for nex time!
Review of: Lagoon Car Rental
Lagoon Car Rental
After being on a plane for 11 hours (when the flight was only supposed to be just over 2 hours) we were tired, hungry and annoyed to say the least. But when we got off the flight we were greeted by a woman who couldn't have been more nicer; she made the whole bad flight experience disappear. The people that dealt with us were nothing but great. The woman who greeted us off the plane had also recommended a few places to see and we fitted it into the holiday and it was amazing. The man who did the paperwork with me explained everything very well. When we got to the car he showed me 2 minor scratches on the car. He even took out a torch so I could see them. He then showed me the paperwork to show it was already marked in. The car was fantastic, clean, smelled great and had everything we needed. We got plenty boot space and seat warmers which was a god send after being outside for a long time. The only fault I could say was the GPS. If you didn't know how to spell the place in perfect Icelandic it didn't come up so used my phone for most of the trip. Could have alot more better pre-planned destinations in it. Anytime we had any questions and phoned the office (24hours) they where happy to help. Has to be the best customer service I have ever came across. Now the price was amazing, they where the cheapest and most reliable I could find and I spent days looking. The cost of the car, all insurance's and the GPS was the best I could find by far. I have already recommended Guide to Iceland and Lagoon to some friends that might go to Iceland. When I come back to Iceland I wont even look any where else for a car I'll go straight to this website. Thanks very much, you made our holiday so much easier and most likely better!
Cheap Car Rental Iceland
It was perfect. Car was good, cheap and service was very friendly and helpful. The pick-up worked well, and the guys bring me thre car just on my hostel's front door. I have nothing bad to say to this company. Greetings from Finland! -Helena

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Why rent a car with us?

Guide to Iceland hosts the largest marketplace for car rentals in Iceland. You can filter by your travel dates, preferred car type and pick up location to find the best car to suit your needs. Choose from numerous suppliers of vehicles for rent.

We operate a best price guarantee and add no fees on top, meaning you’ll find the cheapest car rentals in Iceland right here. You will only find the best car rental companies in Iceland advertised here and verified by traveller reviews. Book now to secure your car rental.

Everything you need to know

Renting a vehicle to travel in Iceland is a perfect way to experience the vastness of the country at your own pace, and chase down the attractions that excite you the most. Regardless if you choose a camper van, a small car or a big 4x4, there are certain things to keep in mind while driving in Iceland.


When you rent a car in Iceland, you give yourself the freedom of exploring this breathtaking country in your own time, and at your own pace. 

Self-drive tours are becoming increasingly popular among travellers. Book a self-drive tour with Guide to Iceland and you will be matched with a personal travel agent who will help you schedule your dream vacation in Iceland. Self-drive tours allow travellers to set out to see the incredible nature by themselves, but with full support from the Guide to Iceland customer service team should they need any advice or recommendations. 

Driving conditions in Iceland can be fairly challenging and the rugged landscape and unpredictable weather pose difficulties that many drivers may not have faced before. 

For those planning to drive while in Iceland, the following travel tips will prove useful for you.


Most car rentals in Iceland are based in the capital city, Reykjavík or by the international terminal in Keflavik International Airport (a 40-minute drive away from Reykjavik city centre). For travellers that plan on driving the whole time they are in Iceland, it's most convenient to pick up and return the rental car at the international airport.

It does not matter what time of day or night your flight arrives, you can pick up your car 24 hours a day at the airport. For travellers who booked a car for only part of their trip, there are options to pick up your car rental in Reykjavik city centre, which might suit you better. Some providers allow you to pick up the car in Keflavik and return the car in Reykjavik, or vice versa. 

 There are also high quality car rentals available around the country. Car rentals are available in most larger towns in Iceland's countryside, such as in Akureyri and Siglufjörður in the north, Egilsstaðir and Höfn in the east, Selfoss and the Westman Islands off the south coast, Patreksfjörður and Ísafjörður in the Westfjords and in Ólafsvík on the Snæfellsnes peninsula. 

There may be fewer options available in these towns outside of Reykjavik and Keflavik, but if you’re struggling to find car rentals to suit your itinerary, please contact us directly at info@guidetoiceland.is.

Please note, that even though you pay for the rental car using a debit card, most companies do require you to provide a valid credit card on the day of pick up.


Each car rental has their own unique insurance policies. These can be checked during the booking process. Your level of insurance will also be confirmed with you when you collect your car. 

Most car rental companies will offer you sand and ash protection and gravel protection insurance. This generally is advised by the companies due to the unpredictability of terrain in Iceland. However it is at your discretion whether or not you choose to accept these additional insurances.


The most travelled road in Iceland is its Ring Road (Route 1), which is a well-established road that runs around the island. If you plan on taking a road trip around Iceland, this is likely to be the road that you spend most of your time driving around. Being Iceland's most important road, it is well-maintained and open throughout the year, although extreme weather conditions can sometimes lead to temporary and partial closures, especially during the winter months. 

Route 1 is a single carriageway road, but traffic is rare 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 allow yourself time to make the correct judgement, 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. If you stray into the wilderness, however, you are more likely to encounter gravel tracks. These can be narrow and very bumpy, thus should be approached with caution, especially by those who are not used to driving in such conditions. They can, however, be driven on by all vehicles. 

F-Roads in Iceland are different and are only accessible if you rent a jeep or four-wheel drive car. However, they can be quite daunting and can involve crossing rivers and winding along narrow mountain passes. 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 provided you take care while driving and know your limits.


It is imperative that travellers who rent a car in Iceland are aware of laws here. Some rules may be different to those of their home country, so it’s important to take note.

To rent a car, you must be at least 20 years old and have had a valid driver's license for at least one year. To rent a minibus or a four-wheel-drive car, you must be at least 23 years old. Your license must be in characters of the modern Latin alphabet, or accompanied by an official translation.

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 lowered to 80 km/h, and in towns and cities it’s usually set at 50 km/h. If you are unsure or if the area is not signposted, it is best to assume that the speed limit is 50 km/h. 

Signs signaling speed are rare in Iceland, compared to places like the United Kingdom. More common are signs indicating specific hazards ahead, such as sharp bends or exposure to high winds, which should be taken extremely seriously. 

For safety reasons, motorists are obliged by law to keep their headlights turned on at all times, even during the summer months when the sun does not set. Blind corners are common, and the deep winters are notoriously dark; even at midday, it is barely brighter than during the twilight hours. So headlights will keep you safe all-year-round when travelling in Iceland. 

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 expensive and there are many traffic cameras throughout the country.

It is only legal to travel F-roads if you rent a jeep or a four-wheel-drive car (4x4) and only if they have been opened for the summer season. 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, outside of official tracks, is strictly forbidden and punishable by fines of at least 350,000 ISK 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 haunting moss that has settled across the rocks has taken centuries to grow. Driving carelessly through vegetation will cause catastrophic damages. Please respect our nature during your stay.

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


The majority of roads in Iceland 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 if you plan to rent a car in Iceland. This is why it’s also worthwhile to choose from a range of good cars that are suitable for the terrain in Iceland.

Many accidents that visitors to Iceland have are when leaving a tarmac road for a gravel one; they approach too fast and lose control of their vehicle. Drivers should always slow down and stay focused when the surface of the road is changing, and if the car does begin to slide on the gravel, the driver should release the gas and steer gently in the direction the car 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 moving aside to create space between you is good practice, even if the roads are wide. 

Should you decide to rent a jeep in Iceland, you will be able to access the country's most remote areas; the best time to do this is in summer. Before June, snow blocks and muddy conditions make many of the mountain and interior roads completely impassable. These roads can be very challenging to traverse, so it is always recommended that two or more four-wheel-drive 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.


The unpredictable, extreme weather in Iceland can make driving even the most built up road (the Ring Road) a challenging experience. In winter snowstorms, high winds, dense fog, icy roads and perpetual darkness can complicate the simplest of journeys and such conditions need to be prepared for. Before setting out on a journey, check out Iceland’s weather forecast. Heed bad weather warnings, and always err on the side of caution, especially if you do not have experience driving in these conditions. 

Overall, drivers who heed the advice provided here and by the rental companies at pick up 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 this ultimate guide of driving in Iceland

Guide to Iceland

Gets you there

Frequently Asked Questions

About Cars and Car Types

What sort of car do I need? Can the car I rented visit the highlands? Should I rent a 4x4 in winter? Is it safe to drive in Iceland in the winter? What do the different categories mean? 

1. What sort of car should I rent for travelling in Iceland?

When deciding upon what sort of car you should rent for your travels in Iceland, there are mainly two factors that you should consider. The first is the group you will be travelling with. How many are in it and how much luggage will they have? You will have to take into account that when choosing a car, it does not only need to have enough seats, but also the luggage space for whatever your companions and yourself will take with you. If you are planning to use your car as accommodation, a camping van is recommended.

Secondly, you should pay attention to the season. If you are travelling in Iceland in the period between October and April, it’s highly recommended that you rent a 4x4 vehicle, an SUV or a jeep, in case of ice and snow, as those cars are higher than the regular vehicles, making it easier for them to pass over snow. In summer, if you are planning to travel around the country, due to ever-changing road conditions, a jeep or an SUV is also recommended. In summer, if your itinerary will take out off the beaten track, or outside the south coast area, an SUV is also recommended, but not as vital as in winter.

2. Is the car I have chosen suited for driving around Iceland in all seasons?

Cars that belong to the 4x4 Jeep/SUV category and the Luxury category are suited for all regular travel in Iceland, regardless of the season. Cars belonging to the Camper Van category are also suited for all seasons, but please keep in mind that Iceland, in general, it is not recommended to camp during the winter months and all services to campers are usually closed form the end of September each year. Cars in the Small & Cheap category are labelled by the manufacturer as city cars, meaning they are well suited for driving in the city and in settlements. Depending on the weather, they might be unsuitable for rural winter driving and it is not recommended to choose a car from this category if you are planning to travel around Iceland during the winter months. In summer, these cars are sufficient for all asphalt travel in Iceland.

3. Is the car I chose suitable for Highlands travel?

Cars marked as Small & Cheap cars are not suited for the highlands or gravel roads. These cars are made exclusively for asphalt travel and are not suitable for any F-roads, gravel paths, or dirt roads. Some cars belonging to the Luxury, 4x4 Jeep/SUV and Camper Van categories are suitable for travelling off asphalt. Each car is marked specifically if suitable for highland travel. In some cases, cars will have a specific listing if there are certain highland roads that they are not suited for. Please note that driving a car not marked for highland travel or a Small & Cheap car on any F-roads will void any insurance you might have purchased. You will then be liable for any undercarriage or suspension damage that might occur.

4. What sort of tires do rental cars have?

In summer, all cars will be fitted with typical summer tires. In winter (After November 1st), they will have studded winter tires suited for winter travelling.  

5. What is included in the rental?

It varies from rental to rental what is included with the car. Some rentals offer GPS devices, other additional insurance, but please read the description carefully and go over the ‘included’ section before you finalise the booking. Included in all rentals are unlimited mileage and CDW insurance. The CDW insurance covers all damage that you might cause with the car, e.g. other vehicles or items hit with the car, and compensation for individuals that might be harmed. For Camper Vans, many rentals also offer free camping equipment alongside the main purchase, but as it varies what a camping box includes, please read the vehicle description carefully.

6. What sort of cars are considered Small & Cheap cars?

The Small & Cheap Cars section contains vehicles that are in the smallest size category, or alternatively, those that are three years old or older. These cars are often priced lower than larger or newer rental models. Vehicles such as Toyota Aygo and Citroen C1 go into this category, as well as slightly larger cars such as Volkswagen Golf and Toyota Yaris. These cars do not have 4WD or AWD.

7. What sort of cars are considered 4x4/SUV's?

Cars in this category are larger vehicles, often suitable for five to seven passengers and their luggage. Most options have 4WD or AWD, though some are regularly-geared vehicles. All of them are slightly elevated to better suit snow and gravel conditions. In this category, models include the likes of Toyota Rav4 and Suzuki Vitara.

8. What sort of cars are considered luxury vehicles?

Cars in this category are larger vehicles, often suited for five to seven passengers and their luggage, brand new and offering high-end comfort. Most of them have 4WD or AWD, though some are regular vehicles. Most of them are elevated to better suit snow and gravel conditions, though this category also houses sports cars and high-end hatchbacks. In this category are models such as Toyota Land Cruiser and Range Rovers.

9. What sort of cars are considered campers and camper vans?

This category contains all vehicles that can double as accommodation, be they motorhomes, smaller camping cars or cars equipped with attached camping gear or rooftop tents. The models range from small, converted campers, such as Volkswagen Caddy, to rooftop tent jeeps for highlands travel, such as Suzuki Jimny and Mitsubishi Pajero.

10. What is the difference between a camping van and a car with a rooftop tent?

A camping van is a converted moving van that has been made so that there is space for sleeping comfortably inside it. The rooftop tent vehicles have a foldable tent on the top of the car, accessible by a ladder. The rooftop tent is closer to regular camping, while the vans are more in the line of a very small motorhome. 


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