Downtown Reykjavik Car Rental

Reasons to book a car rental in and around Downtown Reykjavik

Renting a car in Downtown Reykjavik offers the freedom and flexibility to explore the vibrant neighbourhood and its surroundings at your own pace. With a rental vehicle, you can conveniently manage your luggage while visiting popular attractions such as Laugavegur, a bustling street perfect for city experiences, or Hallgrimskirkja and Reykjavík Cathedral, both rich in cultural significance. A rental car also makes it easy to venture beyond Downtown Reykjavik to nearby areas like Norðurmýri, less than 1 km away, where you can find the National Museum of Iceland, or Holt, located 1 km away, which features more cultural sites. This flexibility is especially beneficial for families, as it allows ample space for strollers and luggage while keeping everyone together. Moreover, for those seeking outdoor and eco-friendly experiences, having a car allows you to explore the natural beauty surrounding Reykjavik without being tied to public transport schedules. Overall, renting a car in Downtown Reykjavik enhances your travel experience by providing the convenience to discover both the city and its nearby attractions comfortably.

Most popular car rentals in Downtown Reykjavik

• Midsize SUV AWD: This popular option accommodates up to 5 travellers and offers space for 3 large suitcases, making it ideal for families, couples, or small groups. The all-wheel drive feature provides added confidence when exploring the varied terrain around Downtown Reykjavik, ensuring a comfortable and flexible travel experience.
• Compact: With room for 5 travellers and capacity for 3 medium suitcases, this car type is perfect for solo travellers, couples, or families. The compact size allows for easy navigation through the bustling streets of Downtown Reykjavik while still providing enough space for your belongings, making it a practical choice for those looking to explore the city at their own pace.
• Economy SUV: Ideal for budget-conscious travellers, this SUV can accommodate 5 passengers and carry up to 3 large suitcases. It’s well-suited for families, couples, and adventure seekers who want a blend of comfort and affordability. The economy SUV offers the versatility needed for your journeys around Downtown Reykjavik while keeping costs manageable.

Top rated car suppliers in Downtown Reykjavik

• Enterprise: With a rental location conveniently situated in Downtown Reykjavik, Enterprise is a popular choice among travellers. Known for its excellent service, this supplier offers a diverse range of vehicles to suit your needs. The most booked options include the Midsize SUV AWD and Economy SUV, perfect for navigating Iceland's varied landscapes with ease.
• Alamo Rent A Car: Alamo also has a dedicated rental location in Downtown Reykjavik, making it a convenient option for tourists. With a focus on customer satisfaction, Alamo provides a selection of well-maintained vehicles. The most popular choices include Compact and Economy cars, ensuring you have an economical and reliable way to explore the city and beyond.
• Avis: Avis rounds out the top rental suppliers in Downtown Reykjavik, offering a location that is easy to access for travellers. This supplier is known for its quality service and a well-curated fleet. The most frequently booked vehicles include Compact SUV AWD and Economy options, allowing you to travel comfortably while enjoying the stunning Icelandic scenery.

Where to stay around Downtown Reykjavik

• Holt: Located 1 km away from Downtown Reykjavik, Holt offers a scenic and family-friendly atmosphere. Visitors can explore the nearby attractions such as the vibrant Laugavegur street, perfect for city exploration, and the culturally rich Hallgrimskirkja church. Holt also provides access to local hot springs and parks, making it an appealing choice for those seeking outdoor activities. With various restaurants in the area, dining options are readily available for a delightful culinary experience.
• Vesturbær: Situated 2 km from Downtown Reykjavik, Vesturbær is ideal for tourists looking for an eco-friendly getaway. The neighbourhood features a mix of outdoor activities and cultural experiences, including the Reykjavik Harbour, known for its stunning scenery. Visitors can also enjoy the National Museum of Iceland for a glimpse into the country's history and explore the charming Reykjavík Cathedral. With numerous dining options and bars nearby, Vesturbær combines relaxation with local flavour.

10 tips to save on your car rental in and around Downtown Reykjavik

1. Use filters to find the right car: Refine your search by selecting vehicle type and features. Whether you're looking for an SUV for extra space, a convertible for summer drives, or an economical car for cost savings, use Expedia's filters to help you discover the ideal option for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it's advisable to secure your car well ahead of your trip. By booking early, you’re likely to obtain lower rates and enjoy a wider selection, particularly during peak travel seasons.
3. Consider a smaller car for savings: Compact cars tend to be more affordable to rent and are easier to park in busy areas. Mid-size rentals offer a suitable compromise between price, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily surcharges, and certain vehicle categories—such as SUVs or premium models—might not be available. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
5. Check fuel policies: Some rentals operate on a full-to-full fuel policy, meaning you must return the vehicle with a full tank to avoid additional charges. This is generally the most advantageous choice. Others may provide full-to-empty or prepaid refuelling options, which are also acceptable. Just be sure to return the car empty in that case.
6. Save on city and airport pickups: There is often a surcharge for picking up your rental car at airports, but the convenience may make it worthwhile.
7. Know your payment options: Many car rental companies only accept credit cards for payment.
8. Understand your insurance coverage: Car rental insurance can protect you from unexpected expenses and provides peace of mind should something unforeseen occur during your trip. It’s easy to add car rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you’re planning extensive road trips, search for rentals that offer unlimited mileage to avoid incurring extra charges.
10. Bring your driver's license and ID: A valid driver's license is necessary to rent a vehicle.

Best time to rent a car in and around Downtown Reykjavik

The best value period to rent a car in and around Downtown Reykjavik is November, when prices are lower and demand is relatively calm. October also offers moderate prices with steady demand. The months of March and May can be good shoulder periods, featuring slightly lower prices and average demand. However, June through August see high demand and prices, making them the most expensive months for rentals. July and August, in particular, are the busiest times of the year.

Calendar Month	Temperature	Precipitation	Cloudiness	Demand	Pricing
January	31.6°F (-0.2°C)	Light Rain	Mostly Cloudy	Low	Average
February	32.5°F (0.3°C)	Light Rain	Mostly Cloudy	Low	Average
March	33.4°F (0.8°C)	Light Rain	Mostly Cloudy	Average	Slightly Low
April	38.5°F (3.6°C)	Light Rain	Mostly Cloudy	Low	Average
May	43.9°F (6.6°C)	Light Rain	Mostly Cloudy	Average	Slightly Low
June	49.8°F (9.9°C)	Light Rain	Mostly Cloudy	High	Slightly High
July	52.9°F (11.6°C)	Light Rain	Mostly Cloudy	High	Slightly High
August	51.8°F (11.0°C)	Light Rain	Mostly Cloudy	High	Slightly High
September	47.1°F (8.4°C)	Light Rain	Mostly Cloudy	Average	Average
October	40.8°F (4.9°C)	Light Rain	Mostly Cloudy	Average	Average
November	36.0°F (2.2°C)	Light Rain	Mostly Cloudy	Average	Slightly Low
December	30.7°F (-0.7°C)	Light Rain	Mostly Cloudy	Average	Average