Guide to Renting a Car in Reykjavik

 

Travelling to Reykjavik soon? One thing that will make your trip infinitely easier is a rental car. Compared to many other countries in Europe, Iceland has relatively little public transit, so having a car rental in Iceland will ensure you can get around with ease.

A Reykjavik car rental in particular will come in handy whether you’re just sightseeing around the city, or if you decide to leave Reykjavik and go on a short day trip or longer road trip to another part of Iceland. All the while, you’ll be able to go at your own pace, leave the crowded tours behind and see what you want, when you want, and it’ll all be thanks to your Reykjavik car hire.

Starting to see the benefits? Keep reading. We’re covering everything you need to know about car rentals in Reykjavik, from airport pick-ups to Iceland’s unique driving conditions.

   Rent your Car in Reykjavik 

 

Why Rent a Car in Reykjavik?

There are three primary reasons why you might want a Reykjavik car rental: easy access, convenience and a more immersive travel experience.

• Easy access

As mentioned, if you’re travelling to Reykjavik, avoid thinking you’ll just arrive and be able to take trains or taxis everywhere. Public transit is scarce in Reykjavik and even scarcer the further you travel from Reykjavik.

That said, Reykjavik is very close to many popular tourist sites and areas in Iceland, such as the Golden Circle, South Coast and the Snaefellsnes Peninsula. The only thing you need in order to see them? A Reykjavik car rental. Once you have your rental car in hand, you can easily travel to see some of the most amazing scenery and sites located just a short drive away.

 

• Convenience and flexibility

Since public transit is scarce, some travellers visiting Iceland may choose to rely on tour groups to get around the country and see the sites. However, this can mean that you’re relying on the tour provider’s schedule and limited to where/when they want to go.

When you get a car rental in Iceland, though, you can go where you want, when you want. You can forgot relying on someone else to explore the country. You can pretty much do whatever and go wherever you want.

 

• More immersive travel experiences

Even if you like a guided travel tour every now and then, if you really want to see Iceland’s hidden gems and off-the-beaten-path landmarks, you’ll need a rental car. The tours only stop at the main, big sites. A rental car is key to seeing the more rural areas or the areas that locals more commonly visit.

 

Where to Pick Up Your Rental Car in Reykjavik

If you reserve a Reykjavik car rental, you’ll have two options for picking up your car: at or near the airport or in downtown Reykjavik.

We advise picking up your vehicle at or near the airport, so you can avoid taking a taxi to downtown Reykjavik. The taxis from the airport can be quite expensive. Keflavik International Airport, which is Iceland’s main international air traffic hub, is where you’ll arrive, and it’s just under an hour’s drive from downtown Reykjavik.

When picking up a car rental in Iceland from Lava Car Rental, we’ll actually meet you at the airport and pick you up, for free, then take you to our rental office located just minutes away, in Keflavik. Then, you can grab your rental car and head out on the road. 

Not only will this save you money you might otherwise spend on taxi fares, but it will give you greater flexibility. For example, if your flight arrives early in the morning, you might choose to do some sightseeing around Keflavik before heading to Reykjavik, or you might not even go to Reykjavik until later on in your trip!

Additionally, while some destinations may charge more for car rentals at the airport than car rentals picked up further away from the airport, you’ll find that’s not the case in Iceland. The prices are comparable, so you won’t pay more for this added convenience.

 

Which Car Rental Company Should You Choose for Your Reykjavik Car Rental?

After you’ve decided that renting a car in Iceland is your best option for getting around, you’ll need to pick a car rental company to rent from. There are a few things to consider when choosing your Iceland car rental company, to ensure the best experience possible.

• Local expertise

While you can find Reykjavik rental cars available from international brands, we recommend opting for a local rental car company. Local companies like Lava Car Rental are going to be more familiar with Iceland’s unique driving conditions and can provide you with crucial information to make your trip both more enjoyable and safer. They’ll know which roads are open and when, and what to watch out for on the road depending on the season of your visit, and be able to offer tips and advice accordingly.

• Fleet variety

Make sure that your chosen Reykjavik rental car company offers a wide variety of vehicles from which you can choose your rental. A well-outfitted company will have a variety of vehicles suited to Iceland’s terrain. 

For example, if you’re going to more rugged areas of Iceland, you’ll need a 4x4 rental car. In some areas of the country, a 4x4 vehicle is even required by law. If you’re not travelling to these areas and are just sticking around Reykjavik or on well-maintained roadways, you may be able to simply rent a smaller economy car. If you want to camp your way around Iceland or bundle the costs of your accommodations with the cost of your car rental, you might even prefer to rent a campervan. 

A rental car company with a large, varied fleet — like Lava Car Rental — can offer all this and more.

 

• Great value for your money

You don’t want to spend your entire travel budget all on your rental car. Look for rental car companies that give you the most value for the cost of the rental. Beyond competitive pricing, also look for inclusions like insurance, something Lava Car Rental offers if you book directly via the Lava Car Rental website.

 

• Good reviews and ratings

Be sure to look at a company’s reviews and ratings across a handful of travel review sites, to be sure that other travellers have enjoyed their experience with the company. Look for mentions of customer service, car quality and more. Lava Car Rental boasts a 4.7/5 rating on Trustpilot and has more than 3,000 reviews, with past customers appreciating our reliability and reporting a high level of overall satisfaction.

 

• Convenience

The entire reason that you’re renting a car in Iceland is for the convenience, so make sure that your chosen rental car company puts convenience first as well. Lava Car Rental offers pick-up directly at Keflavik International Airport, for a high level of convenience as soon as your trip begins. Lava Car Rental’s office is only five minutes away from the airport, so there are no long waits to get your rental car and get on the road. Additionally, Lava Car Rental even offers a self-service option — something you won’t automatically find with most other car rental companies in Iceland — so you can pick up or drop off your car anytime, even the middle of the night. 

 

Types of Rental Cars Available in Reykjavik

There are three main types of car rentals in Reykjavik. Which you choose will all depend on your travel itinerary, as well as the season of your visit.

A 4x4 car is a popular option for many travellers in Iceland, particularly if they want to travel to some of the more remote, rugged areas of the country, as well as if they’re travelling in the winter. In the winter months, a 4x4 vehicle ensures extra stability and greater peace of mind on the roadways, as you encounter Iceland’s unpredictable winter weather. In remote regions of Iceland, 4x4 vehicles likewise provide greater traction and stability, as well as clearance, which can make navigating rough and unpaved roads easier. Particularly for those planning to visit the Iceland Highlands, a 4x4 is a necessity, as Icelandic law requires 4x4 vehicles on all Highland roads in the summertime, when the roads are open.

A 2WD economy car, though, is also an option. These are best suited to driving around Iceland’s main roadways, like the Ring Road or around Reykjavik. They’re also best suited to summer driving.

Lastly, a campervan is another option for summer travel. Campervans are a great pick for those who want to camp, obviously, but also those who want greater flexibility during their trip and lower overall costs. Lava Car Rental uniquely offers two-person campervans already outfitted with all the camping gear you need. 

 

Driving and Road Rules in Reykjavik

Driving in Reykjavik is relatively easy. Just remember:

• Icelanders drive on the right side of the road
• Seatbelts are mandatory in Iceland
• Reykjavik speed limits are 50 kilometres per hour, or 30 miles per hour
• You must always drive with the car’s headlights on

There are two things you’ll particularly notice about driving in Reykjavik. 

One, there are lots of roundabouts. Iceland is filled with them. If you’re not familiar with driving in roundabouts, just know that the cars inside the roundabout have the right of way, and you should only enter the roundabout when the road is clear of oncoming traffic. Go slow in the roundabout if you’re new to this road feature. 

Second, you’ll notice there’s no snow on the grounds in Reykjavik’s downtown, even while there might be snow in the sky! This is because hot water pipes run beneath Reykjavik’s roadways, keeping snow off the streets.

For greater details regarding driving in Iceland and what to expect, be sure to check out our full guide to Iceland driving. We also have a full guide to parking in Reykjavik, so you can park your Reykjavik car hire with ease, whether you’re just trying to avoid parking fines or you’re looking for free parking.

 

Cost of Renting a Car in Reykjavik

Depending on when you’re renting a car in Reykjavik, you can expect to pay as low as 37€ or $40 per day, or as much as 185€ or $200 per day. Certain vehicles, such as 4x4 vehicles, are more expensive. Additionally, rental vehicles are more expensive in the summer in Iceland, than in the winter, as demand is higher in the summer months.

Beyond thinking about the daily cost of renting a car in Reykjavik, though, also consider other related costs as you put together your travel budget. You’ll also need to buy fuel for your rental car. You may likewise need to pay for extras from the car rental company, such as extra insurance to cover things like ash or tire protection, as well as fees for additional drivers, etc.

If you want to save a little on your Iceland car rental, consider visiting in the fall, winter or spring, when rates are lower than in the summer. Book your car rental as soon as you can, so you’re not booking last-minute. Additionally, look for discount codes, often offered by car rental companies online or via social media.

Tips for Driving in Reykjavik in Different Seasons

Your driving experience in Reykjavik will differ depending on what season you choose to visit Iceland.

In the summer months, the roadways are very clear and easy to navigate. Additionally, you can expect the extended daylight hours, particularly in mid-summer, to aid your driving later in the evening. In some instances, you can drive as late as 10 or 11 p.m. and not run out of sunlight.

In the winter, driving is a little trickier, as snow and ice can make roadways difficult to drive on, outside of Reykjavik. If you stay in Reykjavik, though, you can expect the roads to remain clear. Still, falling snow, ice or rain can impact visibility, even in the city, so caution is necessary and a 4x4 vehicle is still recommended.

Overall, the weather in Iceland can be unpredictable regardless of what month you visit, so it’s important to keep an eye on Iceland’s weather conditions, both ahead of your trip and then every day while you’re in Iceland. You can use websites like www.road.is and www.vedur.is to get up-to-the-minute updates on both the weather and road conditions, including possible road closures.

For more information and to decide which season is best for your visit to Iceland, check out our full guide to Iceland weather.

 

Popular Day Trips from Reykjavik by Car

Planning on taking a day trip from Reykjavik? You’ll have several great options.

• The Golden Circle

The Golden Circle is likely Iceland’s most popular driving route and it can be experienced all in just a few hours. Plus, it’s only a short drive from Reykjavik, so you can go there, enjoy it and come back to Reykjavik all in a day. There are three main sites along the circle, including Thingvellir National Park, Gullfoss waterfall and the Geysir geothermal area.

 

• The South Coast

While not as close to Reykjavik as the Golden Circle, the South Coast is still nearby, so you can easily get there and see some of the top sites, which include Skogafoss waterfall and Reynisfjara black sand beach. The roads to the South Coast often stay pretty clear, too, in the winter, making this a good pick for a winter day trip from Reykjavik.

 

• Snaefellsnes Peninsula

This popular peninsula packs a lot of fun into one space. It features so many iconic Iceland landscapes that it’s actually known as “Iceland in miniature.” You can come here to see the ocean, mountains, coastal cliffs, geysers, waterfalls and more.

 

Frequently Asked Questions About Reykjavik Car Hires

• Can I rent a car with a debit card in Iceland?

Yes, you can rent a car with a debit card in Iceland if you choose the correct car rental company. Not all companies accept debit cards. Lava Car Rental accepts debit cards if you purchase the Full Protection insurance package at the time of booking your car rental.

 

• Is it easy to drive to Reykjavik?

Yes, most travellers find it very easy to drive in Reykjavik. The streets are well-maintained and easy to get around. Just be prepared for typical city driving and road features like one-way roads and roundabouts.

 

• What’s the best type of car for exploring Reykjavik and nearby areas?

If you stay in Reykjavik, a compact economy car is enough to get you around. Even if you travel to nearby areas on well-maintained, paved roadways, like the South Coast or Golden Circle, a compact economy car will be perfectly safe in the summer months. However, if you visit in the winter or plan to drive on any gravel roads, a 4x4 vehicle is advised.

 

• Where can I pick up and drop off the rental car in Reykjavik?

You can pick up and drop off your rental car at the Keflavik International Airport. This is the most convenient option. Otherwise, you can pick up and drop off your car in downtown Reykjavik.

 

Ready to Visit Reykjavik?

Renting a car in Reykjavik can make your trip to Iceland all the more convenient and enjoyable. You’ll be able to get around with ease, and see the sites you want to see, on your schedule.

Book your car rental as soon as you’ve booked your airfare to Iceland, for the best deals possible. Check out Lava Car Rental’s wide variety of options and reach out with any questions. Our local team is here to help!

   Rent your Car in Reykjavik