Car hire in Reykjavik, Iceland

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There are 65 car hire providers in Reykjavik. Check out the map below to find the most convenient pick-up spot.

The most popular car rental companies in Reykjavik

Hiring a car in Reykjavik: Fast facts

Here's everything you need to know to hit the road happy.
Most popular car hire companyFairCar
Most popular carMini, 4-5 doors
Average daily priceRM577
Best time to book1 week before

How to book the best car rental deals in Reykjavik

We’re frequently named as the most trusted travel search site out there. We scan hundreds of trusted travel providers and put it all in one place, allowing you to instantly compare car hire rates and then book with no fees. Here's how to get the most out of your Reykjavik car rental search.

How to find a cheap car hire deal in Reykjavik

  • Searching for a cheap rental car in Reykjavik? You're in just the right place. With prices averaging RM577 a day, we compare the best offers so you can search less, save more, and drive away happy.

  • Daily rental prices in Reykjavik start from just RM251.

  • Planning an extended stay and want to explore beyond the main attractions? RM563 is the lowest rate for a weekly rental.

  • Consider this your cheat code for when to book. Four weeks in advance is your sweet spot for driving off with the best price on a Reykjavik car hire.

  • Ice Rental 4x4, FairCar and Flizzr are some of the most popular providers in the city. Use them as a starting point to compare offers.

  • Whether you go with Ice Rental 4x4 or a different supplier, double-check the coverage on your Reykjavik car hire. Some companies include a collision damage waiver (CDW), while others treat it as an add-on.

  • Booking one-way could score you a discount on your rental. Providers sometimes offer lower rates when vehicles need to be moved around. Simply select 'Return car to a different location' when searching the range of cars for rent in Reykjavik.

  • Avoid any unexpected charges by booking a ride with a 'Fair fuel policy.' Start your journey with a full tank and return it the same, paying only for what you use.

  • Travel without limits by booking a rental with 'Unlimited mileage.' Located under the 'Policies' filter, it means you can go as far as you want without paying more.

Best value car hire options right now

  • In the number-one spot for value is this company, with prices averaging RM683 a day.

  • Next up is this provider, offering daily rates of around RM953.

  • The third option also helps keep your travel costs low. Expect to pay roughly RM805 a day for one of their rentals.

  • If you're having trouble deciding which wheels are right for you, consider something from the Mini rental category. It's the most widely booked type of vehicle in Reykjavik.

Flying to Reykjavik? Think about an airport pick-up

Compare car hire types in Reykjavik

  • Small: These cheap rental cars in Reykjavik may be small in size, but they pack a big punch. Including mini and economy vehicles, they're easy to manoeuvre, great on mileage, and a match made in heaven for city driving.

  • Medium: Choose from compact and intermediate cars that combine fuel efficiency, comfort and space. Easy to manoeuvre around cities and with enough space for longer drives, they make sense for just about any journey.

  • Large: Long drives are effortless in this Reykjavik car hire category. Also known as full-size, they've got the engine power for lengthy trips. The extra legroom and comfort make them an excellent option for groups of friends and families.

  • SUV: SUVs are made for plans that change mid-journey. All-wheel drive and everyday versatility equip them for city streets and country routes alike.

  • Van: If you're searching for a car for rent in Reykjavik that fits a small crowd (and their luggage), a van is the practical pick. Including commercial vans and trucks, they're best suited for group travel, business use or moving.

Insurance and optional extras

  • Adding excess insurance to your Reykjavik car hire gives you peace of mind. It protects you from paying a hefty excess fee in case of theft or a collision. Insurance policies aren't the same across all rental providers, so compare before you book.

  • From navigation systems to mobile Wi-Fi hotspots, the right extras can make all the difference on the road. Think about which extras will suit your needs when you rent a car in Reykjavik.

Good to know

  • You usually have to be at least 21 years old to rent a vehicle in Iceland. Being younger doesn't always disqualify you — just be ready for a few added rules or costs. Check the companies' terms and conditions before booking.

  • Add a car seat to your Reykjavik car hire booking if you're travelling with small kids. Guidelines vary from one location to another, but using a child seat suited to their age, size and weight is always the safest approach.

  • Come prepared to make pick-up as quick as possible. You'll typically need your physical driver's licence (no screenshots) and a second photo ID. Also bring a credit card with enough available balance to cover the deposit. If extra documents are required, they'll be listed in your booking.

  • Get familiar with your rental. Set up your seat and mirrors, test the brakes and turn signals, and get used to how it handles before you set off. And remember to stick to the right side of the road in Iceland.

  • Local speed limits may vary, but it's typically around 45kph in urban areas and 85kph or so on highways. Always obey the road signs.

  • In Iceland, the legal blood alcohol concentration (BAC) limit is 0.05%. If you expect to drink, pass the keys to someone else or arrange a taxi or ride-share instead.

  • Around 8am is one of the busiest times for traffic around this destination. Try to avoid peak times generally for a smoother trip.

  • You'll be using the Icelandic króna (ISK) here. As well as your bank cards, consider bringing some cash for smaller purchases.

  • Icelandic is the language you'll most often encounter in this country.

Best hotels in Reykjavik for drivers

  • Spend less time hunting for a parking spot and more time enjoying your stay at 101 Hotel, a Member of Design Hotels. Around 0.64 kilometres from central Reykjavik, it comes with parking, massage services and a laundry.

  • Hotel Lotus also works well if you've got a few road trips in mind. It features parking, along with room service and luggage storage. Base yourself here and you'll be roughly 2 kilometres from the city centre.

  • Need more ideas before you book? Browse the full list of hotels in Reykjavik. You can refine your search with the filters — try 'Parking,' 'Outdoor parking,' or 'Valet parking.' If your car's electric, there's also an 'Electric vehicle (EV) charging station' filter.

  • Once you've found a car hire deal in Reykjavik and the right hotel, the only thing left to decide is where to head to first. Begin your sightseeing at leading attractions such as The Northern Light Centre, Harpa and Sun Voyager.

Hit the road: Where to drive to from Reykjavik

  • Around 21 kilometres north of central Reykjavik, Akranes deserves a spot on your itinerary. Steer straight toward must-see sights like Akrafjall Mountain and Akranes Folk Museum.

  • Alternatively, collect your cheap car hire in Reykjavik and then set out for Selfoss. About 48 kilometres southeast of Reykjavik, Landscape Photography Iceland and Hellisskógur are standout attractions that make the drive worthwhile.

  • Hotel Selfoss and Hotel South Coast are comfy places to stay in Selfoss if you've got more than a quick stop in mind. Go for one of these and take the hassle out of finding a spot for your ride.

  • Keep the momentum going and road-trip it to Saudarkrokur, around 209 kilometres northeast of Reykjavik. Make your first stop Drangey Tours, then spend some time at Puffin and Friends.

Frequently asked questions

On average, hiring a car in Reykjavik will set you back around RM577 per day or RM885 per week. 
The cheapest car to rent in Reykjavik is a compact estate (sometimes known as a station wagon). The most popular is Mini, 4-5 doors.
The cheapest car hire companies in Reykjavik are currently Alamo and Hertz.
Bagging the best car hire deal depends on when you book  – often, it pays to book your wheels as far in advance as possible. But according to our data, the cheapest month to rent a car in Reykjavik is currently November.
On average, around RM885. But the best price we found for car hire for a week in Reykjavik is RM563.
Based on everything we know about daily prices, the average cost to hire a car in Reykjavik for a whole month is RM7,295. 

But sometimes, you'll get a discount for booking a whole month instead of 3 and a half weeks. So play with your dates to find the best deals!
If you're looking for freedom to explore Reykjavik, choose a car with unlimited mileage, or look for car hire deals with a ’full to full' fuel policy as opposed to a 'half-full to full' one.

We also clearly highlight car and van hire options in Reykjavik that have free cancellation
Yes – you can easily find car hire companies that allow you to pick up your car in one place, and then drop it off in another. Just select ‘Return car to a different location’ when you search with us.
Public transport can only get you so far, and could be tricky to navigate with children or luggage. With your own set of wheels, you can go wherever you want, whenever you want, for as long as you want. And you'll be able to discover more outside of Reykjavik.
Most places – Reykjavik included – allow under 25s to rent a car as long as they provide a valid driver's license and the correct documentation. It may cost slightly more due to a higher insurance excess for young drivers. 
The cheapest price we found for an economy car is RM252 per day. The average price per day is around RM627.
Of course. Most major car hire companies like FairCar, Ice Rental 4x4 and City Car Rental offer baby and child seats as an add-on when you book.
Other travellers rated FairCar as the best overall in terms of experience.
We search the internet for all kinds of vehicle hire deals, including vans. But at the moment, we can't find any van hire in Reykjavik.