Car Rental in Reykjavik, Iceland
How to Book a Car in Reykjavik, Iceland with Drivelity: Only 5 Simple Steps
You need to fulfil 5 simple steps to book a car in Reykjavik, Iceland:
- Select the city: Reykjavik (pick-up, drop-off locations) and rental dates in the search field;
- Press Filters and select the vehicle type, car brand, gear box, deposit/no deposit, payment method, etc.
- Choose the best deal from the listing;
- Click View and fill in the details including additional services (if needed);
- Pay an advance 15-20% of the rental cost and confirm your booking.
The voucher will be sent to your email after successful prepayment. It confirms the rental and includes the final price in EUR and terms. Pay the rest of amount when you pick up the car.
Cheap Car Rental in Reykjavik Without Deposit and Credit Card
Reykjavik is the perfect starting point for an unforgettable Icelandic road trip. While the capital city itself is compact and easy to explore on foot, renting a car gives travelers the freedom to discover Iceland’s breathtaking waterfalls, volcanic landscapes, black-sand beaches and geothermal attractions at their own tempo.
Public transportation in Iceland is limited outside major urban areas. A rental car allows visitors to create their own itinerary, stop at scenic viewpoints and access destinations that are difficult or impossible to reach by bus. Whether you’re planning a short weekend getaway or a complete Ring Road adventure, your vehicle offers unmatched flexibility and convenience.
Drivelity is an international booking platform which connects you with licensed local car rental companies in Reykjavik, Iceland. We offer cheap car rental in Reykjavik, Iceland at the best prices. Our service has a huge selection of vehicles in our fleet ranging from economy class cars to 4×4 SUVs, vans and camper vans. You can rent cars in Reykjavik, Iceland with low or without deposit for short term (daily, weekly) or long term! No credit card is also required for most offers.
Car Rental in Reykjavik, Iceland: No Deposit
- No blocking money on the card
- Quick and hassle-free pickup process
- More budget-friendly travel
Car Rental in Reykjavik, Iceland: No Credit Card
- No credit card is required
- Fewer transactions mean lower fees
- Full control over spending with no risk of spontaneous overpayments
You can find all the information about “No deposit” and “No Credit Card” options in each car’s description.
Rent a Cheap Car in Reykjavik City and KEF Airport
You can choose pickup and return locations during booking a car in Iceland. For example, select car delivery to airport, hotel, etc. You need to specify exact delivery address of preferred location. For example, Keflavik Airport or Kringlan Mall (Reykjavik).
Select a Vehicle Type for Rental in Reykjavik, Iceland
- Economy Cars. Perfect for travelers staying on paved roads during the summer months. They offer excellent fuel efficiency and are ideal for driving between Reykjavik, Keflavik, Golden Circle and other popular attractions accessible via main roads.
- Standard Cars. Comfortable choice for couples, small families and travelers planning longer road trips around Iceland. They provide more luggage space and driving comfort while remaining economical for Ring Road adventures during favorable weather conditions.
- SUVs and 4×4 Vehicles. Recommended for winter travel, gravel roads and exploring remote regions. A 4×4 vehicle provides better traction and stability in changing weather conditions and is essential for accessing many Highland routes during the summer season.
- Minivans. Ideal for larger families, groups of friends or travelers who carry substantial luggage and outdoor equipment. Renting one larger vehicle is often more convenient and cost-effective than coordinating multiple rental cars.
- Camper Vans. Favorite option for travelers who seek flexibility and adventure. Camper vans combine transportation and accommodation and allow visitors to explore Iceland at their own tempo while reducing lodging costs. They are especially popular during the summer months.
Hire a Car in Reykjavik: Why Choose Drivelity?
- We work with the best verified local car rental companies in Reykjavik, Iceland and provide a huge selection of vehicles for any request;
- Convenient search filter by types of cars: economy, standard, vans (including camper vans), SUVs; brand, model, engine size, gearbox (manual, automatic), etc.
- Payment methods accepted by Drivelity: cash, debit/credit cards (Visa, Mastercard), Apple Pay, Google Pay, etc.
- Unlimited mileage; additional options: second driver, child safety seat, booster seat, WiFi hotspot on board, etc.
- Insurance: Basic Coverage, Full Coverage, Full Coverage Plus;
- Car delivery to hotel, airport, etc.
- You avoid hidden fees. The final rental price is indicated in voucher;
- Low deposit/no deposit. There are many offers with deposit under 300€. Sometimes it is absent at all;
- No credit card is required. You don’t need to have a credit card to hire a car in Reykjavik, Iceland;
- Free cancellation. Full refund if cancellation is made more than 24-48 hours before receiving the vehicle;
- 24/7 support. We monitor all the stages of car rental and assist if you have any questions.
What You Need to Rent a Car in Reykjavik, Iceland?
You need the following documents to rent a car in Reykjavik, Iceland:
- Passport.
- Valid Driver’s License.
- Booking Voucher. Presented either in printed form or electronically. The voucher will be sent to the email address provided during booking immediately after the advance payment is completed.
Most car rentals in Iceland require at least 3 years of driving experience. Drivers aged 23+ with 3+ years of experience can access a wide range of vehicles while full fleet availability is typically reserved for drivers aged 26+ with 3+ years of experience. You can find age and driving experience requirements in each car’s description.
Driving Rules in Iceland
- Carry your driving license, passport/ID and rental/insurance documents while driving. An International Driving Permit (IDP) is recommended or may be required depending on your country of origin and rental company.
- Drive on the right-hand side of the road.
- Speed limits are strictly enforced. Urban areas: typically 30–50 km/h; gravel rural roads: around 80 km/h; paved rural roads: up to 90 km/h (maximum standard limit);
- Headlights must be on at all times, day and night.
- Seat belts are mandatory for all passengers in both front and rear seats.
- Mobile phone use is only allowed with hands-free system while driving.
- The legal blood alcohol limit is 0.05% (strict enforcement; penalties are severe).
- Road conditions can change quickly especially in winter; adjust speed to weather, wind, ice or gravel conditions.
- Off-road driving is illegal and heavily fined due to environmental protection laws.
- Many mountain and highland roads (F-roads) require 4×4 vehicle and are only open in summer.
- One-lane bridges are common – vehicles closest to the bridge or arriving first generally have priority unless signs indicate otherwise.
- Always yield to emergency vehicles with flashing lights or sirens.
- Roundabouts: vehicles already inside the roundabout generally have right of way unless signageindicates otherwise.
- Parking is only allowed in designated areas; cities like Reykjavík enforce paid parking zones and time limits.
- Use headlights in tunnels and low visibility conditions.
- Strong winds are common – take care when opening car doors especially in open areas.
Best Places to Visit in Reykjavik by Rental Car
Here are some top sights to visit in Reykjavik, Iceland:
- Hallgrímskirkja. Reykjavík’s most famous landmark. You can go up the tower for a 360° view over the city, mountains and sea.
- Harpa Concert Hall. Striking glass building on the waterfront. Even if you don’t attend a concert, it’s worth walking inside and along the harbor for views.
- Sun Voyager. Steel “viking ship” sculpture right by the sea. One of the best photo spots especially at sunrise or sunset with Mount Esja in the background.
- Old Harbour. Area with restaurants, cafes, whale-watching tours and mountain views across the bay.
- Laugavegur. Main street for food, bars and shopping. Good for walking in the evening when the city gets lively.
- Þingvellir National Park. UNESCO site where you can literally walk between two tectonic plates. It also has lakes, cliffs and Icelandic history (first parliament site).
- Geysir Geothermal Area. Home of the Strokkur geyser which erupts every few minutes. Lots of steaming ground and bubbling hot springs.
- Gullfoss Waterfall. Powerful two-tier waterfall that’s part of the classic Golden Circle route. Very easy drive and very high impact.
- Blue Lagoon. Famous geothermal spa with milky blue water. About 45 minutes from Reykjavík and often visited on arrival or departure day.
You can also travel by rental car to Keflavik, Selfoss, Hella, Hveragerdi, Kopavogur, Akureyri, Vík í Mýrdal, Hvolsvöllur, Egilsstaðir, Höfn, Ísafjörður, Borgarnes, etc.
Practical Tips for Renting a Car in Reykjavik, Iceland
- Learn the traffic rules. Familiarize yourself with Icelandic driving regulations beforehand to avoid fines. Always keep your driver’s license and vehicle documents with you in case the traffic police request them.
- 4×4 vehicle. Due to Iceland’s harsh weather and road conditions, driving on F-category dirt roads requires 4WD vehicle and prior coordination with the rental company is mandatory
- Inspect the car. Check the vehicle thoroughly inside and out when you pick it up. Take photos or videos and make sure any scratches or damage are recorded in the handover report.
- Monitor weather and road conditions. Start each day by reviewing the latest weather and road conditions. Iceland’s weather can change rapidly, creating unexpected hazards. Strong winds are especially dangerous for vehicles with roof tents or camper conversions while winter blizzards can make travel extremely risky. During Red Alert conditions, all vehicle travel is prohibited due to life-threatening weather and road hazards.
- Wind management. Strong winds are a constant feature of Iceland’s environment and require extra caution when parking. Whenever possible, position your vehicle so the wind strikes the windshield rather than the side doors. Opening a door against a strong gust can cause it to be forcefully pulled from your grip, potentially damaging the door, hinges or surrounding vehicles. Wind-related door damage is one of the most common issues involving rental vehicles in Iceland.
- Monitor fuel level. Keep track on your fuel level especially on rural roads in Iceland where gas stations can be scarce. If you’re driving in mountainous regions it’s safer to rent a car with a larger fuel tank.
- Choose the right insurance. Make sure your rental includes sufficient coverage especially for collision and theft.
- Pick the right vehicle. Consider the size and type of car for your itinerary especially if you plan long highway drives. Economy or standard car is usually sufficient for exploring cities and major attractions. It is better to choose more powerful vehicle with at least 1.6-liter engine if you plan to drive in mountainous areas.
FAQ
Can I rent a car in Reykyavik, Iceland without credit card?
It depends on local rental company’s policy. You can find rental options that allow payment in cash or with debit card on our website.
Can I rent a car in Reykjavik, Iceland without security deposit?
Some car rental companies in Reykjavik, Iceland may offer zero deposit options. Availability depends on factors such as the vehicle type, rental period, insurance coverage and the supplier’s terms and conditions. Be sure to review the deposit policy in the booking details before finalizing your reservation.
Why are prices on Drivelity website lower than on other aggregators?
Drivelity car booking service works with local rental companies which offer low car rental prices.
What is a minimum age and driving experience to rent a car in Reykjavik, Iceland?
Most car rental companies in Iceland require drivers to have at least 3 years of driving experience. Drivers aged 23 and older with minimum of 3 years experience can typically choose from a broad selection of vehicles. Access to the full rental fleet is generally available to drivers aged 26 and older who also meet the 3 years driving experience requirement. Specific age and experience requirements are listed in the description of each vehicle.
Do you offer child seat when booking through Drivelity?
Yes, we offer different types of seats for children (for additional fee): child safety seat (up to 1 year old), child safety seat, child booster seat.
What options do you offer when renting a car in Reykjavik?
You will find the following options among the car rental offers in Keflavik available through the Drivelity comparison platform (for additional fee):
- the second driver in contract;
- theft protection;
- WiFi hotspot on board;
- unlimited mileage;
- child safety seat (up to 1 year old), child safety seat, child booster seat;
- city delivery;
- free cancellation (up to 24–48 hours before vehicle pickup).
What is the cheapest car rental price in Reykjavik?
The cheapest car rental price in Keflavik, Iceland is 80-100€ per day. If you’re looking for a budget-friendly rental vehicle, it’s better to book as early as possible. Affordable options tend to sell out quickly especially during peak travel seasons and last-minute availability may be limited.
Is basic insurance included in car rental price?
Yes. Basic Coverage is usually included. You can also order Full Coverage or Full Coverage Plus additionally.
May I pickup a car in Reykjavik and return in Keflavik?
Yes. When starting your vehicle search, simply select your preferred pickup and return cities on the main booking page. The available rental options will then be filtered based on your chosen locations.
Do I have to return the car with full tank?
The rental car must be returned with the same fuel level when it was handed over to you. If the vehicle is returned with less fuel than required, you will be charged for the difference based on the company’s fuel rates.
Useful Information
Parking
Reykjavik offers wide range of parking options but compared to Keflavík, parking in the capital is more structured and paid parking is more common – especially in central areas.
Parking Types
- Paid parking is standard in central Reykjavík. Most of the city centre and popular districts operate on a zoned paid parking system (with different price levels depending on proximity to downtown). Payment is usually required on weekdays and during business hours with some free periods in the evenings and on Sundays;
- Free parking is more available in outer districts. Outside the downtown core, free street parking can still be found in residential neighbourhoods and less central areas. However, time limits may apply in some locations so signage should always be checked carefully.
- Many museums, shopping centres and tourist attractions offer dedicated parking but these are often paid or time-limited. Availability can be tighter in peak travel seasons.
It’s generally best to choose accommodation with on-site parking or confirmed guest parking, especially if you plan to stay in central Reykjavík.
Fueling
Reykjavík is the main fuel hub in Iceland, and while prices are generally consistent with the national average, it remains one of the more expensive places in Europe for petrol. Gasoline typically costs around €1.80–€2.00 per litre, though this can fluctuate depending on global oil prices and local market conditions
Fuel supply in Reykjavík is very reliable, with a dense network of modern petrol stations located throughout the city and surrounding suburbs. Major brands such as N1, Olís, and Orkan are widely available, offering both full-service and self-service options, along with conveniences like shops, car washes, and basic travel supplies.
For travellers planning day trips from Reykjavík or longer drives around Iceland, it is usually easy to refuel before leaving the capital. This is especially important if heading toward less populated regions such as the Westfjords or the Highlands, where stations become much more sparse. Most stations in and around Reykjavík accept international credit and debit cards, and many operate on a self-service basis outside of peak hours. Keeping a payment card available is essential, as some rural-style pumps in Iceland may not accept cash at all.
Toll Roads
In Iceland, there is effectively only one toll road section: the Vaðlaheiðargöng tunnel in the north, near Akureyri. Drivers pay fee electronically based on their vehicle’s license plate usually within a set time after passing through the tunnel including rental car users.
Elsewhere in Iceland, roads are free to use. This includes the main routes connecting Keflavík International Airport with Reykjavík and the rest of the country. The road network around Keflavík and the capital area is modern and well maintained. However, many interior mountain roads (known as F-roads) are unpaved and require 4×4 vehicle. Rental cars are generally not allowed on these routes and driving there can void insurance coverage. These roads can be challenging due to gravel surfaces, potholes, river crossings, steep gradients and rapidly changing weather conditions so checking road conditions before travel is essential.