Best Reykjavik Car Rentals

Renting a car in Reykjavik is the best way to explore Iceland at your own pace, giving you the freedom to experience stunning landscapes and visit top attractions beyond the capital. Whether you need a compact car for city driving, a 4x4 for Iceland’s rugged terrain, or a campervan for a road trip, we're here to help you find the best rental car deal in Reykjavik for your adventures!

Types of Rental Cars in Reykjavik

The right rental car for your trip in Iceland depends on your itinerary, budget, and the season. Consider the number of passengers, luggage space, and road conditions when selecting a vehicle. Here are the most common rental car types in Reykjavik.

Economy Cars – Affordable and fuel-efficient, ideal for city driving and short trips.

SUVs & 4x4 Cars – Essential for winter conditions and exploring Iceland's Highlands.

Campervans – Combines transport and accommodation for an adventurous trip.

Luxury Cars – Maximum comfort, style, and performance for a premium experience.

Where To Rent A Car in Reykjavik

Renting a car in Reykjavik is convenient, with several pickup locations available to suit your travel plans. Many rental offices are located in downtown Reykjavik, making it easy for travelers staying in the city before going on a road trip.

Another option is Reykjavik Domestic Airport (RKV), which is useful for those arriving on domestic flights or planning to explore other parts of Iceland before driving. If you're flying into Iceland, you can also rent a car at Keflavik International Airport (KEF).

Driver Requirements for Rental Cars in Reykjavik

To rent a car in Reykjavik, drivers must have a valid license. If the license is not in Latin characters, an International Driving Permit is required. The minimum age to rent a standard car is 20, while 4x4s and minibuses require the driver to be at least 23. Some rental companies may also require a credit card in the main driver’s name for security purposes.

Driving Rental Cars in Reykjavik: What You Need To Know

While Reykjavik is easy to navigate, there are a few things to keep in mind when driving in the city.

Speed Limits: The default speed limit in Reykjavik is 31 mph (50 km/h) but drops to 19 mph (30 km/h) in residential areas and near schools. Always check posted signs.

Traffic & Parking: Reykjavik has little congestion, but traffic can be heavier during rush hours (7:30–9:00 AM and 4:30–6:00 PM). Paid parking applies in central areas.

Parking Zones: The city has four paid parking zones (P1–P4), with P1 being the most expensive. Payment is required Monday–Friday, 9 AM–6 PM, and Saturday, 10 AM–4 PM. Sundays and holidays are free.

Roundabouts & One-Way Streets: Reykjavik has many roundabouts and narrow one-way streets, especially downtown. Always yield to cars in roundabouts and check signs carefully.

Snow & Ice in Winter: Winter driving means icy roads and reduced visibility. Drive cautiously, allow extra stopping distance, and check weather and road conditions before heading out.

For those planning to drive beyond Reykjavik, it’s important to review Iceland’s general driving regulations, including F-road restrictions, weather conditions, and speed limits outside the city.

Parking Your Rental Car in Reykjavik

Parking in Reykjavik is divided into four paid zones (P1–P4), with P1 being the most expensive and P4 the cheapest. Paid parking is required Monday to Saturday, but parking is free on Sundays and public holidays. Payments can be made at meters, via mobile apps, or by SMS, depending on the provider. Several parking garages, such as Tradarkot and Kolaportid, offer covered parking in the city center.

Free parking is available in some residential areas outside the paid zones, but restrictions may apply. Many hotels offer private parking, and some supermarkets and shopping centers provide free short-term parking for customers. Parking regulations and fees can change, so always check signage before leaving your vehicle.

Taking Your Rental Car Beyond Reykjavik: How To Drive in Iceland

Renting a car in Reykjavik means following Iceland’s driving laws to ensure a safe trip. Understanding safe driving in Iceland is essential, as weather conditions and road surfaces can change quickly, especially outside Reykjavik.

Speed limits are strictly enforced: 31 mph (50 km/h) in urban areas, 50 mph (80 km/h) on gravel roads, and 56 mph (90 km/h) on paved rural roads. Headlights must be on at all times, seatbelts are mandatory for all passengers, and using a mobile phone while driving is prohibited unless hands-free. Off-road driving is illegal, and F-roads require a 4x4 vehicle.

Before setting out, always check road conditions on road.is and weather updates on vedur.is. Driving on Iceland’s rural and highland roads requires extra caution, so learning more about how to drive in Iceland will help you prepare for your car journey from Reyjavik.

Secure the Best Car Rental Deal in Reykjavik

Guide to Iceland offers a wide selection of rental cars from over 40 trusted car rental companies, ensuring competitive prices, flexible options, and hassle-free booking. Whether you're planning a short city stay or a road trip to Iceland’s top destinations, we offer a wide selection of vehicles to suit your needs.

Use our search engine to compare prices and availability instantly, securing the best rental car deal for your trip to Reykjavik. Every booking includes CDW insurance and free cancellation up to 24 hours before pickup so that you can plan your vacation with peace of mind.