Car Rental in Keflavik

Where to drive

• Blue Lagoon: A short 20-minute drive (approx. 23 km) from Keflavik, this world-famous geothermal spa is a must-visit for relaxation and rejuvenation.
• Reykjanes Peninsula: Explore the dramatic volcanic landscapes, geothermal areas like Gunnuhver, and the Bridge Between Continents, all within an hour's drive (approx. 50-70 km) from Keflavik.
• Golden Circle: This classic route, starting about an hour's drive (approx. 80 km) from Keflavik, includes Thingvellir National Park, Gullfoss waterfall, and the Geysir geothermal area, a full day's adventure (approx. 250 km loop).
• Reykjavik: Iceland's vibrant capital is just a 45-minute drive (approx. 50 km) from Keflavik, perfect for day trips to explore its culture, dining, and nightlife.
• South Coast Highlights: Venture further to see Seljalandsfoss and Skogafoss waterfalls, and the black sand beach of Reynisfjara, a longer day trip (approx. 180-200 km one way, 2.5-3 hours driving) but highly rewarding.

What documents you need

To rent a car in Iceland, you generally need a valid driver's license held for at least one year. For non-EU/EEA licenses, an International Driving Permit (IDP) is often required in conjunction with your national license. You will also need your passport and a credit card in the main driver's name. The minimum age for car rental is typically 20 years for smaller cars and 23-25 for 4x4s and larger vehicles, though this can vary by rental company.

How much rental costs

Car rental prices in Keflavik fluctuate significantly with the seasons. Expect economy cars to start from around 30-50 EUR per day in the low season, while SUVs and premium vehicles can range from 80 EUR to over 200 EUR daily. Summer months see prices rise considerably due to high demand, often doubling or tripling compared to winter rates. Booking well in advance, especially for summer travel, is highly recommended to secure better prices and availability.

Demand by month

Traffic rules and fines

In Iceland, speed limits are generally 50 km/h in urban areas, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Headlights must be on at all times, day or night. Seatbelts are mandatory for all occupants. The legal blood alcohol limit for driving is very strict, effectively zero (0.05%), so it's safest to avoid alcohol entirely if you plan to drive. Child seats are legally required for children under 135 cm in height.

Parking

In Keflavik, parking is generally straightforward. Most areas offer free parking, especially outside the immediate town center. In busier areas, you might find designated parking zones that require payment via parking meters or apps. Always check signage carefully. Parking at major attractions like the Blue Lagoon usually has dedicated, often free, parking lots.

Fuel stations

Fuel (petrol and diesel) is readily available at petrol stations across Iceland, though they can be sparser in remote regions, so plan accordingly on longer drives. Prices are relatively high, typically ranging from 2.50 to 3.00 EUR per liter, and payment is usually by credit or debit card, often at the pump. Many stations are automated and require a PIN for card transactions.

Which car to choose

For exploring the Ring Road and major attractions, a compact or mid-size car is usually sufficient during summer. However, if you plan to venture onto F-roads (mountain roads) or travel during winter, a 4x4 SUV is essential due to challenging terrain and weather conditions. Automatic transmission cars are widely available and often preferred for ease of driving on unfamiliar roads.

Frequently asked questions