Car Rentals in Reykjavik, ISL

Reasons to book a car hire in and around Reykjavik

Renting a car in Reykjavik offers the freedom and flexibility to explore the city and its surroundings at your own pace. With a rental vehicle, you can easily manage your luggage and create flexible travel plans tailored to your interests. This is particularly appealing for families and those seeking outdoor or eco-friendly experiences. Key attractions such as Reykjavik Harbour, known for its beautiful scenery, and Hallgrimskirkja, a cultural landmark, are conveniently accessible. You can also explore the vibrant Laugavegur street, which is bustling with shops and eateries. Additionally, neighbourhoods like Downtown Reykjavik, Háaleiti, and Laugardalur feature a variety of attractions including the Grasagardur Botanical Garden and Hofdi House. With a car, you can effortlessly navigate to these destinations, ensuring a comfortable experience while visiting the city’s highlights. Whether you're travelling alone, with family, or as part of an eco-conscious group, having a car allows you to enjoy your Reykjavik adventure without the constraints of public transport, making your journey more enjoyable and stress-free.

Most popular car hires in Reykjavik

• Mini: The Mini car is a popular choice for those travelling in pairs or solo, accommodating up to 4 travellers and up to 2 small suitcases. This compact option is perfect for navigating Reykjavik's city streets with ease, allowing for effortless parking and manoeuvring in urban areas. If you're looking for a budget-friendly and efficient way to explore the city and surrounding attractions, the Mini is an ideal selection.
• Economy: The Economy car type is well-suited for solo travellers, couples, and families, accommodating up to 5 travellers along with 2 medium suitcases. This versatile option provides a balance of comfort and economy, making it a great choice for those who wish to explore Reykjavik at a relaxed pace. With ample space for passengers and their luggage, the Economy car allows for a comfortable journey as you embark on your Icelandic adventure.
• Midsize SUV AWD: The Midsize SUV AWD is perfect for families, couples, or small groups, accommodating up to 5 travellers and up to 3 large suitcases. This option offers extra space and versatility, ideal for those who may have more gear or simply prefer a larger vehicle. With all-wheel drive capabilities, it is well-equipped to handle a variety of road conditions, providing peace of mind while exploring both the city and the breathtaking landscapes around Reykjavik.

Top rated car suppliers in Reykjavik

• Europcar: Europcar is a popular choice among travellers, boasting 3 rental locations in Reykjavik. This supplier is particularly known for its range of vehicles, with the Compact SUV AWD and Economy being the most booked options. Customers appreciate the flexibility and ease of managing their rental experience, making Europcar a reliable choice for exploring the city and its surroundings at your own pace.
• Budget: With 3 rental locations in Reykjavik, Budget is another top supplier that caters to the needs of many visitors. The Mini and Compact SUV AWD models are the most frequently booked cars, providing great options for both city driving and outdoor adventures. Travellers often commend Budget for its competitive pricing and convenient service, ensuring a smooth start to your Icelandic journey.
• Alamo Rent A Car: Alamo Rent A Car operates 1 rental location in Reykjavik, offering a focused selection of vehicles. The Economy SUV and Standard SUV AWD are the most popular choices among customers, known for their comfort and versatility. Alamo is appreciated for its straightforward rental process, making it a dependable option for those looking to explore Reykjavik and beyond without hassle.

Where to stay in Reykjavik

• Downtown Reykjavik: This vibrant neighbourhood is ideal for those seeking an outdoor, family, or eco-friendly experience. Downtown Reykjavik is home to key attractions such as the iconic Hallgrimskirkja, perfect for culture enthusiasts, and the bustling shopping street Laugavegur. Visitors can also relax at local spas or enjoy the nearby hotsprings and parks, making it a well-rounded area for all types of travellers.
• Laugardalur: Known for its outdoor and family-friendly atmosphere, Laugardalur offers a variety of activities, including access to spas and shopping areas. Nature lovers can explore the Grasagardur Botanical Garden, while those interested in history may wish to visit Hofdi House. The street Laugavegur is also nearby, providing additional shopping and dining options, making Laugardalur a great choice for a city-themed getaway.
• Vesturbær: This eco-friendly neighbourhood is perfect for families and outdoor enthusiasts. Vesturbær features attractions such as Reykjavik Harbour, ideal for those who appreciate scenic views, and the National Museum of Iceland for a taste of local history. Visitors can enjoy various dining options, including bars and restaurants, while also indulging in spa treatments, ensuring a relaxing stay in this charming area.

10 tips to save on your car hire in and around Reykjavik

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 the summer sun, or an economical car for budget-friendliness, utilise filters on Expedia to assist you in finding the ideal option for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it’s advisable to secure your car well ahead of your trip. By booking in advance, you are likely to obtain lower rates and enjoy better availability, particularly during peak seasons.
3. Consider a smaller car for savings: Compact cars are typically more affordable to rent and easier to manoeuvre in crowded areas. Mid-size rentals offer a good compromise between cost, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily surcharges, and some vehicle types—such as SUVs or premium models—might be restricted. This may also apply to renters over the age of 70. Always verify the age requirements before making a reservation.
5. Check fuel policies: Some rentals operate on a full-to-full fuel policy, meaning you must return the car with a full tank to avoid additional fees. This is generally the most advantageous option. Others may provide full-to-empty or prepaid refuelling options, which are also acceptable. Just make sure to return the car empty in that case.
6. Save on city and airport pickups: There is often a surcharge for collecting your rental car at airports, but this might be justified by the added convenience.
7. Know your payment options: Many car hire companies only accept credit cards for payment.
8. Understand your insurance coverage: Car hire insurance can help you avoid unnecessary expenses and provides you with peace of mind should anything unexpected occur during your trip. Adding car hire insurance while booking with Expedia is a straightforward process.
9. Consider unlimited mileage: If you plan to embark on long road trips, seek rentals that offer unlimited mileage to prevent incurring additional costs.
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 and around Reykjavik

The best value period to rent a car in and around Reykjavik is November, when prices are slightly low and demand is moderately high. April and May also offer reasonable rates with moderately low demand, making them good shoulder months. In contrast, August tends to be the most expensive month, as demand peaks and prices rise. June through August see particularly high demand, making them busier times for car hires, while October and November show moderately high prices with steady demand.

Calendar Month	Temperature	Precipitation	Cloudiness	Demand	Pricing
January	31.6°F (-0.2°C)	Light Rain	Mostly Cloudy	Moderately Low	Average
February	32.5°F (0.3°C)	Light Rain	Mostly Cloudy	Average	Average
March	33.4°F (0.8°C)	Light Rain	Mostly Cloudy	Average	Average
April	38.5°F (3.6°C)	Light Rain	Mostly Cloudy	Moderately Low	Slightly Low
May	43.9°F (6.6°C)	Light Rain	Mostly Cloudy	Moderately Low	Slightly Low
June	49.8°F (9.9°C)	Light Rain	Mostly Cloudy	Moderately High	Slightly High
July	52.9°F (11.6°C)	Light Rain	Mostly Cloudy	Average	Slightly High
August	51.8°F (11.0°C)	Light Rain	Mostly Cloudy	Average	Slightly High
September	47.1°F (8.4°C)	Light Rain	Mostly Cloudy	Moderately High	Average
October	40.8°F (4.9°C)	Light Rain	Mostly Cloudy	Average	Average
November	36.0°F (2.2°C)	Light Rain	Mostly Cloudy	Moderately High	Slightly Low
December	30.7°F (-0.7°C)	Light Rain	Mostly Cloudy	Average	Average

Reykjavik car hire prices

It can be expensive to hire a car in Reykjavik, but having your own vehicle is the ultimate way to explore Iceland. You'll be able to travel at your own pace and visit places not easily accessible using public transport. On Expedia, you'll find some of the best car rental deals in Reykjavik from £88* for 2026. Rates for car hire in Reykjavik do fluctuate throughout the year, so if cost is important, consider travelling outside the peak summer season.

Finding some of the best deals for cheap car hire in Reykjavik

If you want to find cheap rental cars in Reykjavik, make sure you book as early as possible. Prices tend to rise nearer to the time of travel, so reserving in advance can save you money. Use the "Great Deal" filter to display some of the best rates for real-time car hire in Reykjavik. You can often find cheaper deals if you're prepared to pay in advance rather than waiting until collection. Fewer people visit Iceland in winter, so this can be a great time to bag budget car hire in Reykjavik if you don't mind shorter days and snowy road conditions.

Where to rent a car in Reykjavik

For a seamless transport transition, search for car hire and car rental at Keflavik Intl. Airport, which is Reykjavik's airport. That way you can be on the road soon after your plane lands. Car hire in Teigar is also available if you'd prefer to wait until you get into the city. It can be easier to find a low-cost car hire in Reykjavik away from the airport, so it's worth comparing prices for different collection locations. If you only need to rent a vehicle for part of your trip, car rentals in Hafnarfjordur and car rentals in Selfoss are also available.

Some of the best companies for rental cars in Reykjavik

Expedia works with a variety of vehicle providers to pull together some of the best car rental deals in Reykjavik. These include Alamo, Payless, and Europcar car hire at Keflavik Intl. Airport. You can use the search filter to find the companies that come highly recommended to ensure you book the vehicle that is right for you.

Types of car rentals in Reykjavik

For travel around the Golden Circle to places like Gullfoss and the Geysir Hot Springs, having a two-wheel drive is sufficient. Yet if you plan on heading into the rugged interior, a 4x4 SUV is often required as the roads are unsealed and mountainous. For exploring Iceland's capital, booking through mini car hire companies in Reykjavik is ideal. For something bigger, van hire companies in Reykjavik offer vehicle hire with extra space for larger groups. Meanwhile, luxury car hire in Reykjavik is perfect for romantic holidays and business trips.

Tips for vehicle hire in Reykjavik for British travellers

British visitors can rent a car in Reykjavik using a valid UK driving licence. The minimum age for drivers is 20, although you may come across vehicle class restrictions if you're under 25. Don't forget to drive on the right-hand side of the road. You might wish to consider purchasing protection insurance to cover damage by gravel, sand, and ash. Some hire agreements have restrictions on the type of roads that you are permitted to travel on, so check the rental details carefully before setting off.

One-way and long-term car hire in Reykjavik

One-way rentals are available between the main cities in Iceland – expect to pay an additional fee for this. Long-term car rental in Reykjavik is possible too if you plan on circumnavigating the country via places like Akureyri. On the other hand, if you're only in the city for a short period, 24-hour car hire in Reykjavik is also available. This is popular with business travellers and those who fancy taking a day trip out of town.

Benefits of booking Reykjavik rental cars with Expedia

Whether you're looking for car hire in Golden Circle or need a vehicle big enough for the whole family, there are lots of options to choose from on Expedia. You can use Expedia to search for 2026 Reykjavik car rental deals from £88*. Use filters like location, date, and hire length to compare rates from a range of Reykjavik car hire companies. There are also options for rentals with free cancellation if you think your plans could change. Optional extras such as navigation systems, child seats, and other drivers can be added using the filter options on the results page.

*Prices and availability are subject to change. Additional terms may apply.