Iceland Car Rentals

Reasons to book a car rental in Iceland

Renting a car in Iceland offers the freedom and flexibility to explore the country at your own pace. With a rental vehicle, you can conveniently manage your luggage and create flexible travel plans, making it an appealing choice for those seeking outdoor adventures, romantic getaways, or unique experiences. You can easily visit remarkable attractions such as Reykjavik Harbour, known for its scenic views, or the Blue Lagoon, where you can unwind in the soothing hot springs. The Jokulsarlon Glacier Lagoon presents stunning glacier scenery that is a must-see. Additionally, you can explore popular destinations like Reykjavik, where you can experience vibrant city life, or head to Vik I Myrdal to see the famous Black Sand Beach and Reynisdrangar rock formations. Navigating the picturesque landscapes of Iceland becomes effortless with a rental car, allowing you to discover hidden gems and enjoy spontaneous detours. Whether you are an adventure seeker, a relaxation enthusiast, or a romantic traveller, renting a car enhances your experience and allows you to fully immerse yourself in Iceland's natural beauty.

Most popular car rentals in Iceland

• Midsize SUV AWD: This vehicle type accommodates up to 5 travellers and can hold up to 3 large suitcases, making it an excellent choice for families, couples, or small groups. The all-wheel drive feature ensures that you can navigate Iceland's diverse terrains with confidence, providing both comfort and practicality for your journey.
• Economy: Ideal for solo travellers, couples, or families, the Economy car can also accommodate 5 travellers and holds up to 2 medium suitcases. This option is a great choice for those looking to explore Iceland while keeping costs manageable, offering a balance of efficiency and comfort for your travels.
• Compact: The Compact car option is perfect for solo travellers, couples, or families as well, seating 5 travellers and able to carry up to 3 medium suitcases. This vehicle is particularly useful for those who want a nimble ride, making it easier to navigate Iceland's roads while still providing ample space for your luggage.

Where to stay in Iceland

• Reykjavik: Experience the vibrant capital of Iceland, Reykjavik, where a blend of outdoor activities and eco-friendly experiences await. Nearby attractions include the scenic Reykjavik Harbour, perfect for a relaxing beach day, and the cultural landmark Hallgrimskirkja. Enjoy shopping along Laugavegur, a bustling street filled with cafes and restaurants, making it a great spot for dining. With its family-friendly environment, Reykjavik is ideal for travellers seeking adventure and relaxation alike.
• Vik I Myrdal: Nestled in a stunning landscape, Vik I Myrdal is the ultimate destination for outdoor enthusiasts and romantic getaways. Explore the famous Black Sand Beach and the breathtaking Reynisdrangar cliffs, both offering unforgettable scenery and adventure opportunities. The local campground and resort options provide various accommodations, while dining spots nearby cater to your culinary needs. A visit to Vik I Myrdal is particularly rewarding during the summer months when the weather is most pleasant.
• Selfoss: Selfoss is a charming city perfect for those looking to immerse themselves in nature and adventure. With attractions like the dramatic Urridafoss Waterfall and the picturesque Kerid Crater, this area is a haven for outdoor enthusiasts. The nearby national park offers scenic views for hiking and exploration, while local spas provide relaxation after your adventures. Enjoy delightful dining options and chocolate shops, making your stay in Selfoss a memorable escape.

10 tips to save on your car rental in Iceland

1. Use filters to find the right car: Refine your search by vehicle type and features. Whether you're in need of an SUV for additional space, a convertible for summer drives, or an economy car for budget-friendly options, utilize the filters on Expedia to discover the best fit for your journey.
2. Book in advance to help lower costs: Rental rates can vary based on demand, so it's advisable to secure your car well ahead of your trip. By booking early, you're more likely to lock in lower prices and enjoy a wider selection, particularly during peak travel seasons.
3. Consider a smaller car for savings: Smaller vehicles typically come at a lower rental cost and are easier to manoeuvre in busy areas. Mid-size rentals strike a good balance between affordability, comfort, and fuel efficiency.
4. Age guidelines: Drivers under the age of 30 may encounter higher deposits or daily surcharges, and certain types of vehicles—such as SUVs or premium models—might not be accessible. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
5. Check fuel policies: Some rental agreements stipulate a full-to-full fuel policy, meaning you must return the car with a full tank to avoid additional fees. This is generally the most advantageous option. Others may provide full-to-empty or prepaid refuelling options, which are also acceptable. Just ensure you return the vehicle empty in such cases.
6. Save on city and airport pickups: You may often incur a surcharge for collecting your rental car at airports, but the added convenience might make it worthwhile.
7. Know your payment options: Many car rental companies exclusively accept credit cards for payment.
8. Understand your insurance coverage: Car rental insurance can help you avoid unnecessary expenses and provides peace of mind in case something unexpected occurs during your trip. It's simple to add car rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you're planning on long road trips, seek out rentals that offer unlimited mileage to evade extra charges.
10. Bring your driver's license and ID: A valid driver's license is essential for renting a car.

Best time to rent a car in Iceland

The best value period to rent a car in Iceland is November, when prices are lower and demand is quiet. October and December also offer similar conditions, with average prices and demand. Mid-range value months include February and April, where prices are slightly low and demand remains manageable. In contrast, August is the most expensive month, with high demand and slightly high prices, making it a busier time for car rentals. July and June also see elevated prices and demand during the summer months.