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A Car Rental in Iceland You Can Trust

All Insurance Included
All Insurance Included
Cars Iceland celebrating 10 years of providing reliable car rental services in Iceland, offering top-rated customer satisfaction and affordable options.

5% OFF

+

EXTRA DRIVER & PREMIUM INSURANCE INCLUDED

The Best Car Rental Deal GUARANTEED!

Premium bundle: SCDW, GP, TP.

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Why Cars Iceland?

A local car rental you can trust!

Ready to embark on the road trip of your life in Iceland? With 100% online booking, competitive rental car prices, new vehicles, free CDW, SCDW, TP, and GP insurance, plus 24/7 customer service, that's just the tip of the iceberg. Your journey starts here!

View our cars
Orange Dacia Duster SUV parked beside a modern turf-roof cabin in Icelandic countryside, promoting local car rental with 24/7 support from Cars Iceland.
Silver Suzuki Jimny SUV parked on a mountain road in Iceland, highlighting free premium insurance included with Cars Iceland rentals.
New Land Rover Defender parked in an open Icelandic landscape, promoting the newest car models available at Cars Iceland.

Passenger car rentals by category

Cars for Every Road & Every Traveler

City & Economy

City & Economy

From 6,452 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto/Manual
4  Seats
1  Bags
4x4 & SUV’s

4x4 & SUV’s

From 7,854 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto/Manual
5  Seats
4  Bags
Minivans

Minivans

From 27,865 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto/Manual
9  Seats
9  Bags
Luxury

Luxury

From 18,107 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto/Manual
5  Seats
4  Bags
Electric

Electric

From 7,516 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto
4  Seats
1  Bags
Hybrid

Hybrid

From 8,529 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto
5  Seats
3  Bags
Automatic

Automatic

From 6,671 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto
4  Seats
1  Bags
View all models

View all models

From 7,854 ISK per day
Free Insurance CDW, SCDW, TP, GP
Auto/Manual
+4  Seats
+3  Bags
Load more Hide cars
Calendar interface showing date selection from Friday 12th to Sunday 22nd for booking a 10-day car rental in Iceland.
Highlighted Suzuki Jimny among a fleet of rental cars with a green badge showing 52 more vehicles available for booking.
Add-on options for Iceland car rental including free liability waiver insurance and WiFi hotspot for a worry-free road trip.
Final booking step completed with a green checkmark confirming car rental reservation for travel in Iceland.

Easy online booking process

How to rent a car in Iceland

Kind words from happy customers

Turn your dream trip into a beautiful story!

Google badge for Cars Iceland showcasing top reviews for reliable car rentals, featuring affordable options and top customer satisfaction in Iceland.
Facebook badge for Cars Iceland highlighting top customer reviews and ratings for affordable and reliable car rental services in Iceland.
Man in bright orange winter gear standing on rocky terrain with arms outstretched.
Elderly man kissing a woman on the cheek with an outdoor background.
You made it so easy. Thank you!
Woman in red swimsuit and sunglasses enjoying a natural hot spring pool in Iceland.
Smiling man carrying two young children on his shoulders outdoors.
So many vehicles to choose from!
Traveler in a red beanie and colorful jacket walking through a field of purple lupines in Iceland.
Smiling traveler bundled in a fur-lined hooded coat, enjoying Iceland's snowy landscape.
Traveler wearing a yellow rain jacket, standing in Iceland's moody, overcast landscape.
Two young women in colorful hats smiling outdoors.
The shuttle from KEF was super fast!
Couple embracing outdoors, dressed in casual attire, ready for an Icelandic adventure.

Smart facts

Real Facts, Better Plans!

🚗 Top-Rented Car: Dacia Duster 4x4 📌 Pickup Hotspot: Keflavík Int’l Airport
💰 Average Daily Rate: $70 📝 Cancellation Policy: FREE
🛡️ CDW, SCDW, TP, GP: INCLUDED Fuel Prices: $2.02/L ($8.70/gallon)
Become an affiliate

Join the Cars Iceland family!

Join the Cars Iceland family!
TikTok logo with glowing neon colors, symbolizing partnership opportunity for influencers in the Cars Iceland affiliate program. Instagram logo with gradient colors, promoting the Cars Iceland affiliate program for influencers seeking to monetize travel content. Blue Facebook logo representing a chance for content creators to earn via the Cars Iceland affiliate marketing program.
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Whether you are an Influencer or Content Creator looking to inspire your followers, we've got a surprise for you.

Join the Cars Iceland Affiliate Program and secure an extra flow of monthly revenue by receiving up to 7% of every completed car rental booking you bring in!

Person in a winter jacket standing in front of a unique red geodesic structure in Iceland, symbolizing adventure and the opportunity to join the Cars Iceland Affiliate Program. Person in a winter jacket standing in front of a unique red geodesic structure in Iceland, symbolizing adventure and the opportunity to join the Cars Iceland Affiliate Program.

Your adventure, your starting point

Car rental offices all across Iceland!

Latest blog articles
How Many Days Do You Need in Iceland?

People keep asking how many days in Iceland, like, there’s some kind of magic number. Wrong question. The real one is how much you can actually see without turning your trip into a blur of gas stations and roadside snacks.  In this guide, we cut

Read More
White rental car driving along an empty paved road through golden fields and rolling hills in Iceland.

Rent a car in Iceland with Cars Iceland. A smart choice.

Taking a road trip through the land of fire and ice is a once-in-a-lifetime adventure. That’s why picking the best car rental company in Iceland really matters. At Cars Iceland, we have the know-how, passion, and experience you want when renting a car here. Why? Let us show you.

About Us
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.

Local Company Since 2013

Cars Iceland has been a trusted name in Icelandic car rental industry since 2013. As a local car rental company, we understand the unique needs of travelers exploring the stunning landscapes of Iceland. Whatever car you need or wherever you want to go, we have the perfect vehicle for you.
Being local means more than just operating in Iceland; it means living here, driving these roads ourselves, and knowing first-hand the challenges and joys of exploring this land. From navigating Reykjavík’s city streets to venturing into remote fjords and volcanic highlands, we know what kind of rental vehicle and service will make your journey safe and memorable. Our team isn’t just behind a desk; we’re fellow travelers who love to share insider tips, seasonal advice, and routes that go beyond the guidebooks. With us, you’re not just renting a car in Iceland, you’re getting local knowledge and support every step of the way.

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

No Hidden Fees & with Insurance Package Included

At Cars Iceland, transparency is key. We offer straightforward pricing with no hidden fees. Our rental packages come with insurance included (CDW, SCDW, TP, GP, unlimited mileage), so you can drive with peace of mind. Whether you're renting a car in Reykjavik or exploring the remote areas of Iceland, you can trust us to provide reliable and affordable car rental services. What you see is what you get.

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.

4.9 rating from over 3,000 travelers

Yes, you read that right, our quality service has earned us a superb reputation. Our passion and dedication for offering quality cars in Iceland have earned us an excellent reputation. Join thousands of visitors and discover why Cars Iceland is a top-rated choice for car rental in Iceland.
Aug 2025
5.0
Paulina KPaulina K
Big 5 stars from us! The reservation, collection, and drop-off all went smoothly, and the customer service was extremely friendly and supportive. They guided me on how to get to their site and even kept my camera lens safe when I accidentally left it in the car. Whenever we come back to Iceland, Cars Iceland always be our first choice for car rental. Thank you!
Sep 2025
5.0
Becky PBecky P
Pick up and drop off were very easy and I appreciated that. Instructions were very thorough on what to expect and what to do. I’d rent from your service again in a heartbeat!
Aug 2025
5.0
Jessie GarretsonJessie Garretson
Cars Iceland was easy to book with and make selections based on our individual needs (like car seats, wifi, insurance). We had no problem finding and walking the five minutes to their location from the airport with two bags, a 10-year-old, and a toddler in tow! The car was pristine, had an excellent navigation system, and was comfortable for our trip. Highly recommend.

Transparent Pricing

Understanding your car rental Iceland cost is key to a stress-free trip. That's why we're committed to transparent pricing:

  • All‑Inclusive Daily Rates (CDW + SCDW, Theft and Gravel Protection)
  • Unlimited Mileage & 24/7 Roadside Assistance
  • Free Cancellation up to 48 h
  • Free Keflavik airport pick-up
landscape_4_alt
+10 years experience
+10
years experience
+10,000 vehicles rented
+10,000
vehicles rented
+70,000 rental days
+70,000
rental days
+37 nationalities of clients
+37
nationalities of clients
Explore Iceland like never before!

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

Frequently asked questions

Still have questions after going through all the information? No worries! We’ve compiled answers to the most common queries all in one place.
Questions travelers like you 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).

Thrilling Deals

Summer Sale
Offer ends soon
Sept 2025

Summer Sale

Save 5 % on your car rental
Book now
Off-peak savings
Nov - Dec

Off-peak savings

Cheapest prices in November
Book now
Plan ahead
2026 Rentals

Plan ahead

Early booking saves money!
Book now
Pickup & return dates
Pick-Up
  • Return
  • Location
    Free airport shuttle

    We pick you up at the airport for free