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Iceland by Car: Car Hire in Reykjavik

Located on the western coast, Reykjavik is Iceland’s capital. It has the distinction of being the northernmost national capital city. Despite its relatively small size (Reykjavik has fewer than 200,000 inhabitants), there’s an astounding number of sights to see and things to do. The city is known for the many festivals held throughout the year. There are galleries and museums, outstanding restaurants and a vibrant nightlife.

Iceland itself offers breathtaking experiences for nature lovers. Waterfalls, volcanic craters, hot water springs, glaciers and whale-watching are just a few of the highlights of an Icelandic holiday.

A hire car is the best way to experience the sprawling natural beauty that Iceland has to offer. It will provide you with the flexibility and freedom to enjoy Reykjavik and Iceland on your own terms.

Book Your Reykjavik Car Hire at Keflavik International Airport

Keflavik International Airport is located 30 miles southwest of Reykjavik and is an approximately 40-minute drive along the southern shore of Faxa Bay. Avis, Budget, Europcar and Hertz all have pick-up locations in the terminal, while several other car hire companies offer a shuttle service from the terminal to the pick-up location. Most car hire company rates in Reykjavik include unlimited mileage.

Most of Iceland’s major attractions and sights are accessible via paved roads. Some secondary roads are unpaved, and their condition can vary greatly. Therefore, these require greater caution. Some roads found in the Highlands, known as F-roads, are restricted to 4-wheel-drive vehicles when they are not closed due to snow. If your travel plans include travelling through the Highlands on an F-road, be sure your hire vehicle will have the proper high clearance to navigate these rough roads. It’s illegal to drive off-road in Iceland to help protect the delicate landscape.

Take a Road Trip from Reykjavik in a Hire Car

The route known as the Golden Circle runs approximately 190 miles from Reykjavik to the southern uplands passing by Thingvellir National Park, the Gullfoss waterfall and the Strokkur geyser. You can also make additional stops at Kerid volcanic crater and other points of interest along the way.

For a more adventurous road trip, consider the 828-mile journey along the Ring Road. Along the way, you can tour the natural ice caves at Jokulsarlon, take a dip in the Myvatn Nature Baths and marvel at the Godafoss waterfall. You will also have the opportunity to discover the Icelandic Westfjords, where you will find the Raudasandur red beach, the Latrabjard cliffs–Europe’s westernmost point and home to countless birds–not to mention the dozens of fjords.

Make sure to book the right kind of vehicle for your road trip and compare offers by using Expedia’s filter options.

What Drivers Need to Know Before Renting a Car in Reykjavik

Cars are driven on the right side of the road in Iceland and speed limits are expressed in km/h. It’s important to remember that vehicles in the inside or left lane of a 2-lane roundabout have priority over those in the outside or right lane. Headlights are required by law to be turned on while driving, day or night.

Although major roads are well-maintained year-round, drivers should be aware that road conditions can occasionally be more difficult in the wintertime. There are no toll roads in Iceland, save for a single tunnel on Route 1 that travels beneath the Hvalfjörður fjord.

Reykjavik Car Hire FAQ

What types of vehicles can I hire in Reykjavik?

You can hire compact cars, full-sized vehicles, SUVs, box trucks, vans, luxury vehicles and more.

What type of driving licence do I need?

European, Canadian or American driving licences are sufficient to hire a car in Reykjavik, and an international driving licence isn’t necessary.

What is the minimum age to hire a car in Reykjavik?

Typically, you need to be 21 to hire a standard vehicle in Iceland and 23 if you want to hire a 4WD.

FAQs for car hire in Reykjavik

What’s the best price car rental in Reykjavik?

In the past 7 days the lowest priced car rental is in Reykjavik.

What’s the average car rental price in Reykjavik?

On average, car rentals in Reykjavik are .

Why should I book a car rental with Expedia?

When booking a rental car via Expedia you can easily compare a wide range of the most popular car hire companies and select the best option for you. There are no extra costs and no cancellation fees involved in booking a rental car with Expedia.

How do I book a car rental with Expedia?

You can book a car rental on Expedia either online or over the phone. You may have the option to reserve now and pay now, or to reserve now and pay later. The payment option will be indicated at time of booking. To collect Expedia+ rewards points for your car rental, sign in to your account before you book or create an account on the Payment page.

Are there any additional costs when cancelling a rental car?

Most rental car bookings are eligible for a full refund regardless of when you cancel with Expedia. Not all prepaid bookings qualify for a refund. Review your itinerary for details. If your prepaid booking qualifies for a refund, your booking must be cancelled at least 6 hours prior to pick-up for the refund. If you return your prepaid car rental early, you will not be refunded for any unused time.

How can I cancel my car booking through Expedia?

To cancel your car booking, sign in or enter your email address and itinerary number. Then select Find itinerary. Under Manage Booking, select Cancel Reservation, then CANCEL THIS RESERVATION. Most prepaid car rental bookings are non-refundable. Pre-paid bookings must be cancelled at least 6 hours prior to pick-up to be eligible for a full refund. To change or cancel a car hire that you booked as part of a holiday, please contact us.

Should I book a rental car online before arriving or directly in Reykjavik?

Booking your car from home with Expedia ensures thay you can choose the type of car. You can also compare the different offers and additional services in advance to get the best offer for you. Upon arrival you only need to collect the keys before beginning your trip. In addition, you do not have to start searching for a suitable provider after arriving or reading the terms and conditions at the counter. This will save you a lot of stress.

What insurance should I choose for my rental car?

A comprehensive insurance is a good choice to avoid unpleasant surprises. That way you can enjoy your stay carefree and explore the area with your rental car.

Do I have to pay my rental car in advance?

We have a couple different options when it comes to paying for your car rental. Read on and see which is best for you. Reserve now, pay now: This option allows you to reserve your car rental and prepay at the time of booking. You’ll need a credit card to prepay, and can apply Expedia Rewards points to cover all or some of the booking cost. While some car rental companies may let you pay with a debit card, the driver still needs to present a valid credit card to cover the deposit upon pick-up. Reserve now, pay later: This option lets you reserve your rental car without paying in advance. When you get to the pick-up spot, just have whoever's driving present a valid credit card to pay the cost in full. The car rental company will also place a hold on your credit card in the amount of the car rental deposit.

What do I have to pay attention to when hiring a car?

When picking up your rental car, check for scratches or dents on the vehicle. Inspect the car carefully, make sure to take notes of potential damage and let the vendor know before driving off.

Where can I find car rentals in Reykjavik?

Rental car companies can usually be found at airports and various locations in the city centre.