Car Rental in Reykjavik, Iceland

Where to drive

• Golden Circle: A classic route covering Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall. Approximately 250 km loop, 3-4 hours driving time.
• South Coast Adventure: Drive to Seljalandsfoss and Skogafoss waterfalls, and the black sand beach of Reynisfjara near Vik. Approximately 190 km one-way, 2.5 hours driving time.
• Snaefellsnes Peninsula: Explore the diverse landscapes of Kirkjufell mountain, Snaefellsjokull glacier, and charming fishing villages. Approximately 150 km one-way to Arnarstapi, 2 hours driving time.
• Blue Lagoon: A relaxing visit to the world-famous geothermal spa, conveniently located between Reykjavik and Keflavik Airport. Approximately 50 km from Reykjavik, 45 minutes driving time.
• Reykjanes Peninsula: Discover bubbling mud pools, hot springs, and dramatic coastlines at Krýsuvík and Reykjanesviti lighthouse. Approximately 60 km loop from Reykjavik, 1.5 hours driving time.

What documents you need

To rent a car in Iceland, you generally need a valid driving license held for at least one year. For non-EU/EEA citizens, an International Driving Permit (IDP) is strongly recommended, or sometimes required, in addition to your national license. A valid passport or national ID card is also necessary. The minimum rental age is typically 20 years for smaller cars and 23-25 for SUVs or larger vehicles.

How much rental costs

Car rental prices in Reykjavik vary significantly by season and vehicle class. Economy cars can start from around 30-50 EUR per day in winter, while SUVs and premium models might range from 80 EUR to well over 200 EUR daily during peak summer. Expect prices to be highest from June to August and lowest during the winter months.

Demand by month

Traffic rules and fines

In Iceland, the 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. Children shorter than 135 cm must use an appropriate child restraint system. The legal blood alcohol limit for driving is 0.05%.

Parking

Parking in central Reykjavik is mostly paid, typically managed by zones (P1, P2, P3, P4) with varying hourly rates, P1 being the most expensive. You can pay at parking meters with coins or credit cards, or use parking apps. Free parking can often be found further from the city center, especially on weekends or evenings. Always check signs carefully.

Fuel stations

Fuel (petrol and diesel) is readily available at numerous stations across Iceland, especially along the main Ring Road and in towns. Prices are among the highest in Europe, typically fluctuating but expect around 2.50-3.00 EUR per liter. Most stations are self-service and accept credit cards (PIN required). Some remote stations may be unstaffed.

Which car to choose

For exploring Reykjavik and the main paved routes like the Golden Circle or South Coast, a standard economy or compact car is usually sufficient. If you plan to venture onto F-roads (mountain roads), a 4x4 SUV is absolutely essential and legally required. During winter, a 4x4 is highly recommended for all travel due to unpredictable weather and road conditions. Automatic transmission is common and generally preferred for ease of driving.

Frequently asked questions