How does the payment goes?

You can easily complete your booking through our secure online system. At the time of booking, you’ll pay a 12% deposit of the total rental price, with the remaining balance due when you pick up your vehicle in Iceland. For online payments, we accept Visa, MasterCard and American Express credit and debit cards. We utilize a secure SSL payment gateway system, powered by Valitor-Rapyd, to ensure a safe and protected online booking experience.

What does the rental price cover?

Our rental car prices come with an extensive insurance package, ensuring your peace of mind: - Collision Damage Waiver (CDW) - Super Collision Damage Waiver (SCDW) - Gravel Protection (GP) - Theft Protection (TP) - Third Party Liability Insurance Additionally, every rental includes: - Unlimited Mileage : Drive as much as you want without extra charges. - Local Taxes : No hidden fees at checkout. - Road & Carbon Taxes : Included in your rental agreement. - Free Cancellation : Cancel up to 24 hours in advance. - GPS system : Available with specific rental vehicles.

When and where can I pick up and return my car?

Car rental pickup and return is available at these convenient Iceland car rental locations: - Keflavik International Airport (KEF) : 24/7 rental pickup & drop-off. - Reykjavik City Office : Open daily from 8 AM to 8 PM in summer and from 8 AM to 6 PM in winter. If your flight arrives at Keflavík International Airport, we offer a shuttle service to take you to your vehicle quickly and efficiently.

I chose airport pickup—how do I get my car?

When arriving at Keflavik Airport, simply follow these steps: 1. Take the Car Rental Shuttle to our nearby Blue Car Rental office. 2. Present your driver's license, valid passport, and a credit card. 3. Sign the rental agreement, receive your keys, and start your Icelandic adventure!

How do your reservation and free cancellation policies work?

Reservation confirmation: After booking, you'll receive a confirmation. Print it and bring it along when you pick up the vehicle. A valid credit card is required at pickup — yours or a passenger's, but the cardholder must be present. Reservation cancellation: We offer free cancellation under the following conditions: - Cancel 24+ hours before you pick up → Full refund. - Cancel within 24 hours of pickup → The booking fee will be non-refundable.

Will my driver's license be valid in Iceland?

If you hold a valid driving license from an EEA or Nordic country, you’re good to go. For licenses from outside these regions, they must be: - In English or written in the Latin alphabet. Otherwise, an International Driver’s License will be required. If you have a foreign driver’s license, we recommend checking ahead to ensure compliance with Iceland's rental regulations.

What documents do I need in order to pick up my car?

To pick up your rental car in Iceland, please bring: 1. Your passport. 2. A valid driver's license (issued at least 12 months ago). 3. A valid credit card (must belong to one of the passengers).

What are the requirements for driving in Iceland?

To legally rent a car in Iceland, you must: 1. Meet the minimum age of 20 years old (or 23 for luxury models and larger 4x4 vehicles). 2.Have held a valid driver’s license for at least 12 months. Meet the minimum age of 20 years old (or 23 for luxury models and larger 4x4 vehicles). Have held a valid driver’s license for at least 12 months

Is a deposit required for the rental?

No deposit is required! However, we do require a valid credit card ( or debit card in specific cases) for security purposes. By signing the rental agreement, your card will be registered for any additional costs such as car insurance, optional extras, or any fines incurred during your rental period.

What is the minimum rental period with Cars Iceland?

The minimum rental period is 24 hours for the cheapest rental car.

What should I be aware of when driving in Iceland?

To ensure a safe Iceland road trip, keep an eye out for: - F-roads : These rugged, unpaved roads require a 4x4 rental car. - River crossings : Some roads require you to cross rivers. Drive carefully! - Animals on the road : Especially sheep in rural areas. - Strong winds : Always hold your car door firmly when opening. - Gravel roads : Reduce speed when transitioning from paved to gravel surfaces. Remember that driving off road is forbidden. - Maximum Speed limits : 30-50 km/h in cities, 80 km/h on gravel roads, 90 km/h on highways.

What are Iceland’s F-Roads?

F-roads are rough, unpaved mountain roads that lead to Iceland’s Highlands. They are off-road driving routes that require a 4x4 vehicle by law. A sturdy Toyota Land cruiser or a Dacia Duster will do the job. There aren't any gas stations here, do plan accordingly for a safe trip and reduced fuel costs.

Should I rent an automatic or manual car in Iceland?

That depends on the type of trip you have planned! Automatic cars → Easier to drive, especially in tough conditions. Manual cars → More fuel-efficient, often cheaper, and preferred by some experienced drivers.

Do you provide studded tires for winter rentals?

Yes! From November to April, all our car options come equipped with studded winter tires for extra grip on gravel roads and icy conditions.

If I return the car early, am I eligible for a refund?

Unfortunately, refunds are not available for early returns unless arranged before pickup at our car rental locations.

How does emergency roadside assistance work?

We provide 24/7 emergency breakdown assistance . Take your mobile phone and simply call our emergency line at +354 773 7070 . Want extra peace of mind? Add Road Assistance Waiver when you pick up for just 900 ISK per day , covering you anywhere in Iceland.

Do you offer 'total protection' insurance, and does it cover off-road driving?

When you rent a car in Iceland, you can choose the Liability Waiver at any of our car rental locations. It is our most complete insurance package to protect you for any possible damage to your rental car. It reduces the liability amount for damages to zero. However, it does not cover off-roading as it is strictly prohibited in Iceland! Driving off marked roads is illegal and heavily fined due to environmental damage. Stick to designated routes and respect the speed limits to protect Iceland’s fragile ecosystem

Will I receive the exact rental car I selected?

We guarantee that you’ll receive a rental car from the same category as the one you booked. However, we cannot promise the exact make or model when you pick up the rental.

What should I check before returning my rental vehicle?

Before returning your rental car in Iceland, please: - Remove all personal belongings. - Fill up the fuel tank at one of Iceland’s gas stations before returning the car at any of our car rental locations. - Give it a quick rinse if excessively dirty (so we can inspect for damages).

Car Rental in Iceland ▷ Free Insurance ✈ Near the Airport

Discover Iceland

Useful travel information

Want to know more about Iceland renting and traveling? Read on and become an Iceland guru thanks to the travel tips, itinerary ideas and FAQs that we've prepared for you!

Renting a car in Iceland. A smart choice.

When planning a dream vacation to the Land of Fire and Ice, it’s essential to find an Iceland rental car that is affordable, fits your needs and itinerary, and is fun to drive. Deciding to rent a car in Iceland and drive around the country’s Ring Road is an adventure you won’t forget.

A rental that fits your needs

Rental cars in Iceland encompass a wide variety of makes and models such as 4x4s, SUVs, luxury models, electric vehicles and many more. Cars Iceland has been doing this for a long time, and we have become industry leaders and local experts for your Iceland car rental needs. We got the best cars and the best deals!

The right choice

The right vehicle for your journey depends on where you plan to go, what you want to do and how you want to experience Iceland at your own pace.

An adventurous trip

Thinking of taking F-roads? You’ll want to opt for a 4x4 rental like a Jeep, Land Rover, Toyota Land Cruiser or another 4WD car.

Taking it easy?

Simply planning on circumnavigating the Ring Road and not driving on F-Roads (mountain roads)? A 2WD model like the Kia Picanto or Toyota Yaris will suit you just fine.

The right company

We can give you personalized attention to help you pick the right rental car in Iceland at the best price, just share your planned itinerary with us and we’ll assist you!

Aerial view of a winding river and rugged Icelandic highlands with a car crossing a bridge, symbolizing the adventure and freedom of exploring Iceland with a rental car.

Explore to your heart's content with trusted rental car

If you're only visiting Iceland for a short time, rent a car and spend five days traveling along the incredible South Coast. Got more time? why not consider a ten-day Iceland Ring Road itinerary?

Top best attractions

Looking at Iceland’s attractions on a map, the most popular sights are all along Route 1. Renting a car is the best way to experience the full Icelandic adventure, giving you the freedom to explore and discover hidden gems along the way.

Explore Vatnajökull National Park

A must-visit destination, Vatnajökull National Park is home to Europe's largest glacier. Drive through stunning landscapes, hike on glaciers, or marvel at the breathtaking ice caves.

Discover Vik's Black Sand Beaches

Head south to the town of Vik, where volcanic black sand beaches like Reynisfjara offer dramatic scenery. The nearby basalt sea stacks and crashing waves make this one of Iceland's most iconic sights.

Drive the Diamond Circle Route

This route offers an unforgettable journey. Explore the powerful Dettifoss waterfall and Myvatn Nature Baths.

Whale Watching in Húsavík

Húsavík is Iceland’s whale watching capital, with regular boat tours where you can spot humpback whales, minke whales, and even blue whales. Renting a car makes it easy to reach this charming town and enjoy the adventure at your own pace.

Unlock More Adventures

So much more is possible when you rent a car in Iceland, the journey is yours to create!

A happy but safe trip

Always check the weather forecast before getting behind the wheel to keep Iceland's unpredictable weather under control. Buckle up, and stay safe while driving in Iceland.

We're here for you!

Our car rental company's fleet of new, well-maintained quality vehicles means you don’t have to worry about your car breaking down and can focus on enjoying your journey. We offer the best selection of Reykjavik car rental options, so even if you're just looking to rent a car in Iceland for a day, we’ve got you covered.

Ready, set, go!

Once you fly into Keflavík International Airport (KEF), picking up your rental car in Iceland is a breeze with our airport transfer service. Remember, Keflavik is the main entrance to Iceland, while Reykjavik Domestic airport is only for national flights.

Once you fly into Keflavik International Airport (KEF), picking up your car rental at Iceland’s airport is easy. Remember to always check the weather forecast before getting behind the wheel, buckle up, and stay safe while driving in Iceland.

Aerial view of Iceland’s scenic coastline and winding roads, showcasing the vast landscapes accessible with a rental car along the Ring Road.

Reykjavik, a city to remember

You don’t need to drive around the whole island just to hire a rental car company in Iceland. When talking about Iceland’s many natural wonders.

Driving within the city limits

Start your adventure in the capital! Rent a car and explore iconic landmarks like Hallgrímskirkja, Harpa, and the old harbor. When you rent a car, Reykjavik is the perfect launchpad for your unforgettable journey.

Expand your limits

Let’s not forget about Reykjavik’s surroundings’ spectacular tourist attractions.

Rent a car in Iceland and explore Mt. Kirkjufell, Kirkjufellsfoss, or the Blue Lagoon! With your Iceland car rental, you can also drive the famous Golden Circle, visit Silfra Fissure, the Strokkur geyser, and the stunning Gullfoss waterfall.

Reykjavik with a car rental in Iceland road trip

As leaders in the Iceland car rental market, Cars Iceland offers competitive prices and outstanding customer service for those who wish to rent a car. If you’re a budget conscious traveler looking for cheap car rental in Iceland coupled with high-quality care, compare price and you'll see you’ve come to the right place.

Aerial view of a road cutting through dark lava fields with vibrant blue geothermal water nearby, showcasing the unique landscapes accessible from Reykjavik with a rental car.

Frequently asked questions

Still have questions after going through all the information? No worries! We’ve compiled answers to the most common queries travelers have when booking an Iceland car rental for their trip.

You can easily complete your booking through our secure online system. At the time of booking, you’ll pay a 12% deposit of the total rental price, with the remaining balance due when you pick up your vehicle in Iceland.

For online payments, we accept Visa, MasterCard and American Express credit and debit cards. We utilize a secure SSL payment gateway system, powered by Valitor-Rapyd, to ensure a safe and protected online booking experience.
Our rental car prices come with an extensive insurance package, ensuring your peace of mind:
- Collision Damage Waiver (CDW)
- Super Collision Damage Waiver (SCDW)
- Gravel Protection (GP)
- Theft Protection (TP)
-Third Party Liability Insurance

Additionally, every rental includes:
- Unlimited Mileage: Drive as much as you want without extra charges.
- Local Taxes: No hidden fees at checkout.
- Road & Carbon Taxes: Included in your rental agreement.
- Free Cancellation: Cancel up to 24 hours in advance.
- GPS system: Available with specific rental vehicles.
Car rental pickup and return is available at these convenient Iceland car rental locations:

- Keflavik International Airport (KEF): 24/7 rental pickup & drop-off.
- Reykjavik City Office: Open daily from 8 AM to 8 PM in summer and from 8 AM to 6 PM in winter.

If your flight arrives at Keflavík International Airport, we offer a shuttle service to take you to your vehicle quickly and efficiently.
When arriving at Keflavik Airport, simply follow these steps:

1. Take the Car Rental Shuttle to our nearby Blue Car Rental office.
2. Present your driver's license, valid passport, and a credit card.
3. Sign the rental agreement, receive your keys, and start your Icelandic adventure!
Reservation confirmation:
After booking, you'll receive a confirmation. Print it and bring it along when you pick up the vehicle. A valid credit card is required at pickup — yours or a passenger's, but the cardholder must be present.

Reservation cancellation:
We offer free cancellation under the following conditions:

- Cancel 24+ hours before you pick up → Full refund.
- Cancel within 24 hours of pickup → The booking fee will be non-refundable.
If you hold a valid driving license from an EEA or Nordic country, you’re good to go. For licenses from outside these regions, they must be:

- In English or written in the Latin alphabet.

Otherwise, an International Driver’s License will be required. If you have a foreign driver’s license, we recommend checking ahead to ensure compliance with Iceland's rental regulations.
To pick up your rental car in Iceland, please bring:

1. Your passport.
2. A valid driver's license (issued at least 12 months ago).
3. A valid credit card (must belong to one of the passengers).
To legally rent a car in Iceland, you must:

1. Meet the minimum age of 20 years old (or 23 for luxury models and larger 4x4 vehicles).
2.Have held a valid driver’s license for at least 12 months. Meet the minimum age of 20 years old (or 23 for luxury models and larger 4x4 vehicles). Have held a valid driver’s license for at least 12 months
No deposit is required! However, we do require a valid credit card ( or debit card in specific cases) for security purposes. By signing the rental agreement, your card will be registered for any additional costs such as car insurance, optional extras, or any fines incurred during your rental period.
The minimum rental period is 24 hours for the cheapest rental car.
To ensure a safe Iceland road trip, keep an eye out for:

- F-roads: These rugged, unpaved roads require a 4x4 rental car.
- River crossings: Some roads require you to cross rivers. Drive carefully!
- Animals on the road: Especially sheep in rural areas.
- Strong winds: Always hold your car door firmly when opening.
- Gravel roads: Reduce speed when transitioning from paved to gravel surfaces. Remember that driving off road is forbidden.
- Maximum Speed limits: 30-50 km/h in cities, 80 km/h on gravel roads, 90 km/h on highways.
F-roads are rough, unpaved mountain roads that lead to Iceland’s Highlands. They are off-road driving routes that require a 4x4 vehicle by law. A sturdy Toyota Land cruiser or a Dacia Duster will do the job. There aren't any gas stations here, do plan accordingly for a safe trip and reduced fuel costs.
That depends on the type of trip you have planned!

Automatic cars → Easier to drive, especially in tough conditions.
Manual cars → More fuel-efficient, often cheaper, and preferred by some experienced drivers.
Yes! From November to April, all our car options come equipped with studded winter tires for extra grip on gravel roads and icy conditions.
Unfortunately, refunds are not available for early returns unless arranged before pickup at our car rental locations.
We provide 24/7 emergency breakdown assistance. Take your mobile phone and simply call our emergency line at +354 773 7070.

Want extra peace of mind? Add Road Assistance Waiver when you pick up for just 900 ISK per day, covering you anywhere in Iceland.
When you rent a car in Iceland, you can choose the Liability Waiver at any of our car rental locations. It is our most complete insurance package to protect you for any possible damage to your rental car. It reduces the liability amount for damages to zero.

However, it does not cover off-roading as it is strictly prohibited in Iceland! Driving off marked roads is illegal and heavily fined due to environmental damage. Stick to designated routes and respect the speed limits to protect Iceland’s fragile ecosystem
We guarantee that you’ll receive a rental car from the same category as the one you booked. However, we cannot promise the exact make or model when you pick up the rental.
Before returning your rental car in Iceland, please:

- Remove all personal belongings.
- Fill up the fuel tank at one of Iceland’s gas stations before returning the car at any of our car rental locations.
- Give it a quick rinse if excessively dirty (so we can inspect for damages).

Explore Iceland like never before!

Choose your dream ride from our state-of-the-art vehicle fleet and don’t let anything stop you!

Select Your Car

The Ultimate Car Rental in Iceland

A local car rental you can trust!

How to rent a car in iceland

The best car rental company, ahead of the competition!

24/7 customer service

Free airport shuttle bus

Next-level roadside assistance

Car rental deals from heaven to explore the Land of Fire & Ice

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