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The Ultimate Car Rental in Iceland

Local & All Insurance Included
Local & All Insurance Included
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Flash Sale

Now with 5% Off on Your Car Rental!

Our prices have everything you need:

CDW, SCDW, TP, GP, unlimited Mileage, VAT and winter tires.

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Our prices have everything you need:

CDW, SCDW, TP, GP, unlimited Mileage, VAT and winter tires.

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 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

Ready to embark on the road trip of your life in Iceland? With 100% online booking, competitive 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
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Easy online booking process

You're seconds away from securing your Iceland car rental.

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Select your travel days

Want to relax in the Blue Lagoon during the summer or hunt the Northern Lights during the winter? Pick your travel days and hit 'Search'.

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Choose your favorite ride

Take a good look at our new vehicle fleet. From 4x4s & SUVs to electric and luxury vehicles, the choice is yours!

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Add your extras & insurances

Feel at home on the road and don't worry about a thing thanks to our comprehensive insurances and top extras.

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Complete your booking and fly to Iceland!

All you need to do now is fill in your personal details and complete the online payment process. See you in Iceland!

Our cars by category

Rides from heaven to explore the Land of Fire & Ice

No matter what you're looking for, we have a car just right for you!

Budget lovers
Intrepid adventurers
Group travelers
Eco-conscious travelers
Luxury seekers
Nissan Xtrail
Nissan Xtrail
View availability
Renault Trafic
Renault Trafic
View availability
Tesla Model 3
Tesla Model 3
View availability
Toyota Yaris
Toyota Yaris
View availability
Land Rover Defender
Land Rover Defender
View availability
Toyota Land Cruiser
Toyota Land Cruiser
View availability
Kind words from happy customers

Turn your dream trip into a beautiful story!

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You made it so easy. Thank you!
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So many vehicles to choose from!
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The shuttle from KEF was super fast!
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Join the Cars Iceland family!

Join the Cars Iceland family!
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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 booking you bring in!

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 booking you bring in!

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Latest blog articles
Vestrahorn Mountain in Iceland: A Unique Stop on Your Road Trip

With all the tectonic activity taking place directly below, it’s no wonder Iceland’s landscape is diverse and epic in proportion. Our mountains, while not the largest in the world, certainly rival any other country’s in beauty. In every area of

Read More
Vestrahorn Mountain in Iceland: A Unique Stop on Your Road Trip
Discover Iceland

Useful travel information

Want to know more about Iceland? 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. Not only is it the ultimate road trip, but you’ll experience the natural wonders of the country’s waterfalls, glaciers, volcanoes, geothermal hot springs, and other highlights of Iceland. Rental cars in Iceland encompass a wide variety of makes and models of automobiles such as 4x4s, SUVs, luxury cars, 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.

The right vehicle for your journey depends on where you plan to go and what you want to do. Thinking of heading to Iceland’s Highlands for an awe-inspiring excursion to our backcountry? You’ll want to opt for a 4x4 rental like a Jeep, Land Rover or another 4WD automobile. Or 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. We can give you personalized attention to help you pick the right car rental in Iceland, just share your planned itinerary with us and we’ll assist you!

Renting a car in Iceland. A smart choice.

Explore to your heart's content

If you’re only visiting Iceland for a short time, you could just spend five days traveling along the country’s incredible South Coast. If you’re lucky enough to have extended holidays, what about a ten-day Iceland Ring Road itinerary? Looking at Iceland’s attractions on a map, the most popular sights all lay along Route 1. Renting a car in Iceland allows you to explore exciting destinations like Vatnajökull National Park, the volcanic black sand beaches of Vik, unforgettable glacier hikes in Skaftafell, and even the dozens of natural attractions along the Diamond Circle Route, like the horseshoe-shaped Ásbyrgi canyon, Iceland’s mighty waterfalls, the gorgeous turquoise volcanic Lake Mývatn, the stunning Goðafoss waterfall, the otherworldly bubbling geothermal mud in Hverir’s lava fields, the whale watching town of Husavik, and so many more.

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.

Explore to your heart's content

Reykjavik, a city to remember

You don’t need to drive around the whole island just to hire a rental car in Iceland. When talking about Iceland’s many natural wonders, let’s not forget about Reykjavik’s surroundings’ spectacular tourist attractions. From Mt. Kirkjufell and Kirkjufellsfoss on Snaefellsnes peninsula, to driving to the Blue Lagoon for a spa day, everything is possible with your Iceland car rental. And what about the most popular Reykjavik day trip? Iceland’s famous Golden Circle route! The massive Silfra Fissure at Thingvellir National Park, the impressive Strokkur and Geysir geysers in Haukadalur valley’s geothermal area, and the sublime Gullfoss waterfall are just some of the highlights of this 190-mile (300 km) circuit. It’s the perfect way to spend a morning and afternoon daytripping from Reykjavik. There's also Iceland’s most beautiful waterfall, Seljalandsfoss, nearby wonder Skógafoss, and the Sólheimasandur plane wreck site.

As leaders in the Iceland car rental market, Cars Iceland offers extremely competitive prices and outstanding customer service. If you’re looking for cheap car rental in Iceland coupled with high-quality care and attention, you’ve come to the right place. Our fleet of new, well-maintained 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.

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Frequently asked questions

Been through all of the above information but still have questions? You're in luck! We've already answered most of the essential questions that pop up when traveling to Iceland for the first time.

  • You can book your rental car via our online booking system. You'll be asked to pay a small amount (12%) of the total cost of your rental online, while the remaining balance will be paid in person when you pick up your car in Iceland. We accept Visa, MasterCard, JCB, Diners Club, CUP and American Express credit cards for the online payment. We use a secure SSL online payment gateway system powered by www.borgun.com to ensure a safe and secure online booking experience.
  • Every one of our rentals includes a comprehensive insurance package:

    - Collision Damage Waiver (CDW)
    - Super Collision Damage Waiver (SCDW)
    - Gravel Protection (GP)
    - Theft Protection (TP)

    On top of that, you'll get:

    - Unlimited Mileage
    - Local Taxes
    - Road & Carbon Taxes
    - Free Cancellation
    - GPS (with specific models)
  • You can pick up your rental car at:

    a) KEF Airport Office
    b) Reykjavik City Office.

    We offer a 24/7 pick-up and drop-off service to and from Keflavik Airport. The rest of our locations are open every day from 8 AM to 8 PM during the summer and from 8 AM to 6 PM in the winter.
  • When entering the Arrival Hall at Keflavik International Airport, please look for the Car Rental Shuttle service and the Blue Car Rental logo. Our provider's office will be your second stop on its route. In case you do not see us, please call our pick-up phone service, open 24/7, by contacting us at +354 773 7070. They will escort you to your vehicle and complete the paperwork on site.
  • Booking confirmation:
    As soon as you make your booking, you will receive a booking confirmation. So please print it out and bring it with you to pick up your car. Please note: you will always need to show a valid credit card when you pick up your vehicle. It can be your card or any of the passengers' cards. However, the card owner must always be present.

    Booking cancellation:
    - If you cancel more than 24 hours prior to the beginning of the rental period, you will get a full refund.
    - If you cancel less than 24 hours before the beginning of the rental period or fail to pick up the vehicle, then the cancellation fee will be equal to the booking fee.
  • Driver's licenses from any EEA or Nordic country (including Faroe Islands) are valid in Iceland (all categories). Driver's licenses (B-category only) from other countries outside the EEA and Nordic countries are also valid as long as they come in English or are written in the Latin Alphabet; otherwise you'll need an International Driver's License.
  • A) Valid passport of the renter.
    B) Valid driver's license of the driver (issued at least 12 months ago).
    C) Valid credit card of one of the passengers.
  • To drive a car in Iceland, you'll need a valid passport, be at least 20 years of age (23 to rent a large or luxury car), and have held a valid driver's license for at least 12 months.
  • Not at all. The only thing we need from you is a valid credit card. By signing the rental contract upon arrival, we will register your credit card information. This credit card authorization can be used to pay for other additional extras such as supplemental insurance, parking & traffic fines, damages, or any other costs that you accrue during your stay.
  • The minimum rental period is 24 hours.
  • - Fording rivers.
    - Leaving paved roads due to harsh conditions or distractions.
    - Animals on the road.
    - Strong wind damage when opening doors.
    - Losing traction on gravel roads, especially when asphalt meets gravel.
    - Damage to wheels and tires by undetected flats.
  • The F-Roads are the toughest, unpaved roads in Iceland, leading to the Highlands and many of the most amazing locations on the island. If you plan on taking on the challenge, don't forget you'll need a 4x4 rental vehicle!
  • That depends on the type of trip you have planned! Automatic rental cars are the easiest to use, reduce fatigue due to their comfort, and are better for difficult driving conditions; while manual rental cars offer greater control, are cheaper and consume less fuel.
  • Yes, we do. Our goal is to make our customers feel secure while driving around Iceland in wintertime, so from November to April, all of our cars come equipped with studded winter tires.
  • Unfortunately, that is not possible, unless you let us know prior to pickup.
  • We offer 24/7 emergency breakdown assistance, which means you can call our emergency line at any time, 24 hours a day. +354 773 7070. If you have an accident or your car breaks down, we will, of course, replace the car with a new one of the same class. We offer a special Road Assistance waiver that you can add as an extra for 900 ISK per day that will have you covered no matter where your car breaks down, free of charge!
  • Our Liability Waiver is our most complete insurance package. It reduces the liability amount for damages to zero. This includes damages covered by CDW/SCDW, GP, TP, Tire Protection and SAAP but also includes damages such as damage to the underside, wind blowing up the doors and water damages. Driving off-road in Iceland is illegal and can lead to heavy fines and even jail time. Our insurances do not cover intentional damages, damages caused by negligence or damages resulting from driving where prohibited.
  • We guarantee that you will receive a vehicle within the same or higher class as the type of car you selected. However, we cannot promise that the vehicle will be the same make or model which you initially picked.
  • When you drop off your vehicle, you'll need to:

    - Make sure it's clean inside
    - Fill up the gas tank and ensure the battery is fully charged
    - Spray down the outside with water if necessary, so that we can check for damage
    - Collect all of your personal belongings
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
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    Free airport shuttle

    We pick you up at the airport for free