Iceland Car Hire

Featured car rental suppliers

Compare from agencies

car supplier logos

  • protection illustration

    Change your mind

    Penalty-free cancellation on many/select car hire
  • trophy illustration

    Treat yourself

    One Key members save 10% or more on over 1 million car hire
  • package illustration

    Shop smart

    Compare car suppliers and package your flight, hotel, and car to save

Top destinations to hire a car in Iceland

What you need to know for your Iceland car rental

Reasons to book a car hire in Iceland

Renting a car in Iceland is an excellent choice for tourists who wish to explore the country's stunning landscapes and attractions at their own pace. With a rental car, you have the freedom to manage your luggage easily and create flexible travel plans that suit your itinerary. This is particularly appealing for those seeking outdoor adventures, romantic getaways, or simply a unique travel experience.

Many key attractions are easily accessible by car, including Reykjavik Harbour, known for its scenic beauty, and the famous Blue Lagoon, a perfect spot for relaxation and wellness. You can also visit the breathtaking Jokulsarlon Glacier Lagoon, ideal for enjoying Iceland's natural scenery. Furthermore, cities like Reykjavik and Vik I Myrdal offer distinct sights, such as Hallgrimskirkja and the Black Sand Beach, respectively. Renting a car allows you to explore these popular destinations conveniently, ensuring you do not miss out on the diverse experiences Iceland has to offer. Whether travelling solo, as a couple, or with friends, a rental car provides the flexibility to create your own adventure in this remarkable country.

Most popular car hires in Iceland

  • Midsize SUV AWD: This vehicle type is perfect for accommodating up to 5 travellers and can hold up to 3 large suitcases, making it an excellent choice for families, couples, or small groups. The all-wheel drive feature enhances stability and control, especially on Iceland’s diverse terrain, allowing you to explore the country’s stunning landscapes with ease and comfort.
  • Economy: The economy car option is suitable for 5 travellers and can carry up to 2 medium suitcases. This makes it an ideal choice for solo travellers, couples, or small families looking for an economical solution. Its compact size allows for easy maneuverability while navigating through Iceland’s scenic routes, ensuring you can enjoy your trip without worrying about excessive fuel costs.
  • Compact: Compact cars accommodate up to 5 travellers and can fit up to 3 medium suitcases. This option is versatile, making it a great fit for solo adventurers, couples, or small families. With a compact footprint, these cars are easy to park and drive around, providing the perfect balance of space and efficiency as you traverse Iceland’s breathtaking landscapes.

Where to stay in Iceland

  • Reykjavik: The vibrant capital city of Iceland, Reykjavik offers a unique blend of outdoor and eco-friendly experiences. Here, you can explore the stunning Reykjavik Harbour, perfect for enjoying scenic views. Laugavegur, a bustling street, is ideal for shopping and dining, while the iconic Hallgrimskirkja church adds a cultural touch to your visit. The city is surrounded by beautiful parks and hotsprings, making it a great base for families and adventurers alike. Food options are plentiful, from cosy cafes to fine dining restaurants.
  • Vik I Myrdal: Known for its breathtaking landscapes, Vik I Myrdal is a haven for outdoor enthusiasts and couples seeking romance. The famous Black Sand Beach offers a unique shoreline experience, while the nearby Reynisdrangar cliffs provide stunning views. This charming town is surrounded by beautiful waterfalls and parks, making it perfect for those wanting to immerse themselves in nature. Dining options in Vik I Myrdal cater to a variety of tastes, ensuring you have delightful meals after a day of adventure.
  • Selfoss: A gateway to Iceland’s natural wonders, Selfoss is an ideal spot for those looking for adventure and scenic beauty. Visit the impressive Urridafoss Waterfall or explore the stunning Kerid Crater lake, both offering breathtaking views. The nearby national park provides ample opportunities for outdoor activities. Selfoss is also known for its spa services and delightful chocolatiers, making it a great choice for relaxation after exploring the great outdoors. With a variety of restaurants, you'll find plenty of dining options to satisfy your cravings.

10 tips to save on your car hire in Iceland

  1. Use filters to find the right car: Refine your search by vehicle type and features. Whether you require an SUV for additional space, a convertible for summer drives, or an economy car for cost-effectiveness, utilise the filters on Expedia to assist you in finding the ideal match for your journey.
  2. Book in advance to help lower costs: Rental prices can vary depending on demand, so it is advisable to secure your car well ahead of your trip. By booking early, you are likely to obtain lower rates and greater availability, particularly during peak seasons.
  3. Consider a smaller car for savings: Smaller vehicles are typically more affordable to rent and easier to park in busy areas. Mid-size rentals offer a good compromise between cost, comfort, and fuel efficiency.
  4. Age guidelines: Drivers under the age of 30 may encounter higher deposits or daily surcharges, and certain vehicle types—such as SUVs or premium models—might not be available. This can also apply to renters over the age of 70. Always verify the age requirements prior to booking.
  5. Check fuel policies: Some rentals operate under a full-to-full fuel policy, meaning you must return the vehicle with a full tank to avoid additional charges. This is generally the most advantageous option. Others may provide full-to-empty or prepaid refuelling choices, which are also acceptable. Just ensure you return the car empty in such cases.
  6. Save on city and airport pickups: There is often a surcharge for collecting your rental car at airports, but the convenience may justify the extra cost.
  7. Know your payment options: Most car hire companies exclusively accept credit cards for payment.
  8. Understand your insurance coverage: Car hire insurance can help you avoid unexpected expenses and provides peace of mind should anything unforeseen occur during your trip. Adding car hire insurance when booking through Expedia is straightforward.
  9. Consider unlimited mileage: If you intend to embark on long road trips, seek rentals that include unlimited mileage to steer clear of extra charges.
  10. Bring your driver's license and ID: A valid driver's license is essential for renting a car.

Best time to rent a car in Iceland

The best value period to rent a car in Iceland is November, when prices are slightly low despite higher demand. Mid-range value months include April and May, which offer average pricing and slightly low demand. However, July tends to be the most expensive month, featuring high demand and slightly high prices. August also sees elevated demand and pricing, making those summer months busier for rentals.

Car Hire in Iceland

This Nordic island simply has to be seen to be believed. And if you are going to see the best it has to offer, you are going to need to hire a car in Iceland.

It’s the Icelandic nature that never fails to take your breath away – although its hedonistic capital, Reykjavik can still leave many reeling, too!

Driving through Iceland is like passing through one cinematic landscape after another. Geysers gush, mud bubbles, glaciers creak, rivers rush, cliffs loom, waves crash and snow-capped mountains frame every view.

Yet Iceland is far more than a collection of stunning views. When you rent a car in Iceland you can reach fantastic ski slopes, trek across glittering glaciers, rejuvenate in geothermal lagoons and gaze awestruck as the lights of aurora borealis set the night sky on fire.

Let’s hit the road!


Arranging to Rent a Car in Iceland

Expedia partners with a number of car hire specialists to offer you car hire throughout Iceland. You can arrange your car hire in advance by booking online with us. Simply let us know when you want to arrange your car hire for and choose where you want to pick up and drop off your car.

We’ll show you the best car hire deals in Iceland out there – we do all the hard work for you, making sure that cheap car hire in Iceland is simple to arrange.

With a wide range of cars available throughout the country, finding the perfect car for your trip is simple. And you can even arrange any extras, like booster or child seats, directly with your provider when you make your booking.

The only real thing you need to worry about is where you will visit!


Where to Hire a Car in Iceland

Car hire is available from all of Iceland’s major airports and cities. It is completely up to you where you wish to hire your car from to explore this beautiful country.

Whether you are flying in to Keflavik International Airport, or taking a transfer to domestic airports such as Reykjavik, Akureyri or Egilsstadir, you can arrange for your hire car to be waiting for you as you stroll through the arrivals hall.

It may be that you only require car hire for a part of your trip and have arranged alternative transport for the rest. Once again, this is no problem. We offer car hire from many destinations in Iceland, so you are always close to a location that can provide the car you need to take in all that Icelandic splendour. And, if you need to drop your car off in a different location to the one you picked it up from, that is simple to arrange.


Where Will You Go When You Arrange Cheap Car Hire in Iceland?

Many road trips in Iceland start in Reykjavik – and it’s certainly the place to ensure your journey starts with a bang and not with a whimper!

The most northerly capital in the world is certainly a vibrant place. Colourful buildings, a creative atmosphere, eye-catching design and ear-throbbing nightlife come together to make it a fascinating place.

You’ll find the best museums in the country here, so take some time out to explore Iceland’s history and Viking heritage. If you hanker for something more contemporary you will not be short-changed by the city’s lively arts scene and its contemporary exhibition spaces.

Just beyond this vibrant capital, however, there are plenty of reasons to jump in that car and get out there. The crashing ocean, snow-capped mountains, gushing waterfalls and the clearest air you are ever likely to breathe all await you.

It’s a four or five-hour drive northwest from Reykjavik to Iceland’s second city of Akureyri, yet they feel a world apart. Stunning waterfalls and evocative volcanic landscapes are just a short drive from the grass roof houses that fringe the fjord on which Akureyri rests.

Akureyri’s scenic location is enhanced by its situation at the base of snow-capped peaks crowning the skies just a short distance from the Arctic Circle. In summer its gardens are bedecked with flowers and in winter some of Iceland’s best skiing can be found just a short drive away.

Just over an hour’s drive east from Akureyri you will find Husavik, Iceland’s whale-watching capital. There couldn’t be a finer spot to keep an eye out for these majestic beasts: colourful houses, unique museums and a backdrop of snow-capped peaks make this, by far, the northeast's prettiest fishing town.

Head south from Reykjavik and in little more than two hours you will have passed several stunning waterfalls and arrived at Vik i Myrdal, Iceland’s southernmost town. Offering easy access to the puffin colonies and the evocatively shaped rocks on the black basalt beaches of Reynisfjara, this is a place to stay awhile if you can. There’s the rocky plateau of Dyrholaey to explore and the line of volcanoes that run from Skogar to the Jokulsarlon glacier lagoon.

Wherever you head when you hire a car in Iceland, one thing is guaranteed: the scenery will be spectacular and the views will be unparalleled.


Frequently asked questions

What happens if I need to cancel my Iceland car reservation?
We understand that flexibility on the road is important. That's why the majority of rentals offer a complete refund if cancelled at least six hours before collecting the car. It's still good to check the cancellation policy though as there are some exclusions. If the info isn't there, make your way to our Customer Service Portal.
What types of cars can I rent in Iceland?
Small in size but big on benefits, economy vehicles are the top pick in Iceland. They're easy to park and handle, which is handy if you'll be doing lots of city driving. And with fantastic mileage, this dependable hire type will have you dashing around on the cheap. Want a larger car? Check out our range of standard, full-size or premium vehicles.
How do I find the best car hire deals in Iceland with Expedia?
It's easy to score the best deal with Expedia. All you have to do is choose your wheels, select your dates and pick-up and drop-off points, and browse offers from all the big-name hire brands. Make even bigger savings when you combine your Iceland car rental with hotel or flight bookings.
How old do you have to be to rent a car in Iceland?
Anyone with a valid driver's license aged 20 and above can rent a car in Iceland. While some providers may be willing to rent to drivers younger than 20, expect an extra fee. Find out what age range the young renter fee applies to, and associated costs, before booking your wheels. Outlets also restrict the types of cars young drivers can rent. Higher age limits apply for large vehicles like premium SUVs and luxury models.
What do you need to rent a car in Iceland?
A current driver's license and a credit card in the same name. Opting out of the company's insurance plan? Then you may also need proof of your own coverage. Rules can differ between rental companies, so be sure to read through your policy.
Can I hire a car for a month or longer in Iceland?
Yes, and the wonderful news is companies often offer lower prices the longer your hire term. Browse our long-term car rental deals in Iceland and drive off with an amazing bargain.
Where can I find an Iceland hire car if I am younger than 25?
If you're a younger driver hoping to hire a vehicle in Iceland, you'll need to check the policies of the rental companies you're interested in. Some may hire to drivers under the age of 25, some may not. Surcharges may apply if you're between 21 and 24 years of age. To escape any surprise fees and charges at the rental counter, make sure you know what those charges are if they apply to you.
Why should I rent an Iceland car with Expedia?
Expedia is the perfect place to book your hire car. With multiple suppliers in Iceland to choose from, we search high and low to get you amazing deals. Score savings with our member prices and exclusive offers, and earn rewards with every booking. Save more when you bundle bookings into an Iceland holiday package. Hire cars, hotels, holiday rentals, tours, flights — Expedia has everything you need in one handy place. Plus, when you join our free One Key™ rewards programme, you can earn OneKeyCash™* and spend it on eligible flights, activities, hotels and more. *OneKeyCash disclaimer - OneKeyCash is not redeemable for cash and can only be used on Expedia.

Car Hire Information

Popular car types:
SUV, Full Size, Economy
From the airport to your hotel:
Airport Transportation