Car rental in Reykjavik

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Renting a car is a great way to arrange a comfortable and exciting trip around Iceland. This way, you can visit all the most interesting sights of Reykjavik in a day or two and then go on a trip to see the amazing and incredible natural attractions of the island.

Iceland can offer driving routes for every taste. If you came for a short stay, you can drive around the Golden Circle. On this short trip, you can walk in the tectonic plate boundary deformation zone, visit the hot-spring valley, and enjoy the majestic sight of waterfalls. And if time allows, then you should definitely drive around the large circular route along the entire island. It passes through all the major cities and top attractions of Iceland: hot springs, large glaciers, countless waterfalls, black volcanic sand beaches, authentic villages, and much more.

Book a car in Iceland to discover this amazing country.

How to rent a car


Iceland is a very popular tourist destination, and most tourists prefer travelling by car. During the summer season, demand often exceeds supply of rental cars. So, you should take care of this in advance.

You can select and book a suitable car on our website. 

5 benefits of our website:

  1. Offers from the best car rentals in one place. You can quickly and easily compare the options and choose what works best for you.
  2. Transparent pricing policy.
  3. Small advance payment at the time of booking. 
  4. Some cars can be booked without a deposit.
  5. Prompt and professional customer care service.

Which car is suitable for travelling

For travelling around the capital, you can rent a small compact car with two-wheel drive. In summer, such car is also suitable for a longer journey but only on the main highways.

In winter or when travelling to the mountains, choose a four-wheel drive SUV.

For how long to rent a car in Reykjavik

It all depends on your preferences and capabilities. If you want to explore the island by taking a short trip, then you need to rent a car for 2-3 days. And if you have the time and inclination to fully experience this country, rent a car for a week or two. Iceland has enough wonders for any vacation.

Required documents to rent a car in Iceland

  • ID or passport.
  • Category “B” driving license with transliteration in the Latin alphabet.
  • Bank card. 

Picking up and dropping off

Arrive at the meeting point on time to pick up your booked car. 

You should have: 

  • Original documents
  • Your car rental voucher (can be in electronic form)
  • Money (the available payment methods are listed on each car's booking page).

Inspect the car carefully and note any damage on the acceptance diagram. Take photos or record video of the car, just in case.

Read the rental agreement carefully before signing, check all amounts.

It usually takes 10-15 minutes to pick up your car.

You can pick up and drop off your rental car either in the city or at Keflavik Airport.

To drop off your rental car, arrive to the agreed location in time. Your rental agent will inspect the car and sign your copy of the drop-off report.

It takes about 10 minutes to drop off the car.

Traffic regulations in Iceland

You may not see the police throughout your journey but that doesn't mean you can break the rules. There are numerous video cameras on the roads. 

Speed limits: 

  • 50 km/h in the city
  • 80 km/h on unpaved roads
  • 90 km/h on paved roads.

The cars in the inside lane have the right of way. 

The low beam headlights must always be switched on, day and night.

All car occupants must wear seat belts.

Using a phone while driving is prohibited.

Blood alcohol concentration limit is 0.5%.

Petrol stations

There are no fuel problems in the capital city of Iceland. All petrol stations offer petrol and diesel of good quality and are rather frequent. Large petrol stations accept cash during the daytime. 

But if you’re planning to rent a car for travelling around the island, make sure to learn what is special about local petrol stations. Most Icelandic petrol stations are fully automated self-service stations that do not accept cash or some bank cards. And please remember that petrol stations aren’t frequent in remote areas of the country.

What to look out for on local roads

  • Before travelling out of the city, check the condition of the wheels and checks if the tyres are well inflated. Because the condition of the roads can... vary.
  • Wind blasts can be very strong. So, be careful when opening the door not to lose grip of it. Otherwise, this can damage the car.
  • If you see blizzard in the weather forecast, it is best to postpone your trip. Aside from the risk, you may not be able to get to the place you want to visit because the road may be closed.

Parking in Reykjavik

Parking is mostly paid in the centre of the capital and in the town of Akureyri. The parking rates vary from 100 to 250 krona per hour (~€0.70-1.70), depending on the zone. You can pay at a parking meter. Each zone offers free hours, which will be stated in the parking signage.

16.09.2023 12:02

Hello. I booked the car and got the voucher. But my arrival time has changed. How and whom can I notify of the changes? Thanks.

Iryna (Localrent)
16.09.2023 16:24

To change your booking details, please send an email to [email protected] with your voucher number in the subject line. In the body of your email, please explain which details you would like to change.

04.05.2023 22:06

Good evening. Up to what age is a child safety seat required?

Iryna (Localrent)
04.05.2023 23:48

Good evening! According to the local laws, all children under the age of 12 and up to 135 cm tall must only ride in the rear seats with the special child restraint system. The seat belt should fit across the chest and should not cross or touch your child’s neck.

27.02.2023 07:29

Can I rent a car with 1 year of driving experience?

Iryna (Localrent)
27.02.2023 13:24

Good afternoon! According to the terms and conditions of car rental in Iceland: The minimum driver’s age is 23 years, the minimum driving experience is 3 years.

10.11.2022 10:00

Do I have to pay all at once?

Iryna (Localrent)
10.11.2022 16:46

Good afternoon! No. To book a car on our website, you only make an advance payment of 15-20% of the rental amount.