Reykjavik Car & Van Rentals - Compare Suppliers

Reykjavik Car & Van Rentals - Compare Suppliers

09/21/202509/24/2025

Why rent a car in Reykjavik

Ready to secure a great deal? Use the search form above to find your ideal car in Reykjavik. Enter “Reykjavik” as your pick-up location (we serve all major spots, from Keflavik Airport (KEF) to downtown Reykjavik and even the domestic RKV Airport), select your dates, and hit search. In seconds, AVR will compare real-time prices from multiple rental brands in Iceland. You’ll see options for every need from compact city cars perfect for Reykjavik’s streets to 4x4 SUVs ready for Iceland’s wild Highlands. Booking is a breeze: most rentals let you reserve without prepayment and pay at pick-up, with free cancellation if your plans change. At Airport Van Rental, we aggregate deals from trusted global brands, local Icelandic specialists, and more to ensure you always get the lowest price. Once you’ve locked in a car, you’ll receive a confirmation with all the details.

Introduction: Welcome to Reykjavik the vibrant capital of Iceland and your gateway to epic adventures. Renting a car here means you’re free to discover everything from colorful city streets to rugged volcanic landscapes on your own schedule. Book your Reykjavik car rental with Airport Van Rental , your trusted global OTA partner, and enjoy unmatched flexibility and value. With AVR, you can compare deals from top Icelandic suppliers in one place, ensuring you get the best rate with no hidden fees. Most rentals include free cancellation and pay-at-pickup, so you can reserve now and pay when you arrive. Whether you’re planning a Golden Circle drive or a spontaneous detour to a hot spring, having your own wheels means Iceland is yours to explore on your terms. Plus, Airport Van Rental guarantees transparent pricing and 24/7 support, so you can hit the Icelandic roads with confidence. Let’s get you on the road in Reykjavik affordably, easily, and with the freedom to roam! (Fun fact: Reykjavík’s name means “Smoky Bay,” a nod to the steam from nearby hot springs and with a rental car, you can soak in those hot springs whenever you like.)

Why Rent a Car in Reykjavik?

Reykjavik is a walkable city with good public transport, but having a rental car unlocks a whole new level of freedom. Here’s why savvy travelers choose to rent in Reykjavik:

  • Freedom to Explore Beyond Downtown: The city center is charming and compact, but Iceland’s most stunning sights lie outside the city. With a car, you can easily venture to the Golden Circle, chase waterfalls on the South Coast, or drive up to the Snæfellsnes Peninsula all on your own schedule. No tour bus timetables or crowded group tours; you decide when and where to go. Want to linger longer at Thingvellir or skip a stop that doesn’t interest you? With a car, it’s up to you.
  • Convenient for Day Trips and Errands: If your trip involves multiple stops say you plan to visit a friend in the suburbs, tour museums around town, then hit a countryside spa having a car makes it a breeze. Hop between locations quickly instead of juggling bus connections or expensive taxi rides. You can throw your shopping finds or hiking gear in the trunk and go. From Perlan Museum in Öskjuhlíð to the Sky Lagoon geothermal pool on the city’s edge, a rental car connects all the dots easily.
  • Access to Nature at Your Doorstep: Reykjavik is surrounded by natural beauty. Within a short drive, you’ve got volcanic landscapes, hiking trails, and secluded hot springs. Rent a car and you can catch the Northern Lights dancing just outside the city on a clear winter night, or drive out for a midnight sun photo shoot in summer. No need to book tours create your own mini-adventures around the capital region whenever the mood strikes.
  • Flexibility with Weather and Plans: Iceland’s weather is unpredictable a sunny morning can turn into a windy rain by afternoon. With a car, you can adapt: drive to a different area to escape a rain cloud or take shelter in a cozy café and continue later. If you’ve booked tours, you’re locked in; with a car, your itinerary is 100% flexible. Sudden plan changes? No problem with free cancellation on most AVR bookings, you’re not penalized for adjusting your schedule.
  • Smooth Airport Transfers: Flying into KEF Airport? Renting a car can actually simplify your arrival. Keflavik International Airport is about 47 km from Reykjavik. Instead of hauling bags onto a bus and stopping at multiple hotels, pick up your car at the airport and drive straight to your accommodation in ~45 minutes. (AVR shows you both airport and city pick-up options some travelers even start with a city rental after exploring town on foot, then pick up a car when they’re ready to venture further.) Either way, a car rental turns the airport-to-city trip into a quick, scenic drive along the coast, rather than an hour-long coach ride.

Of course, if you’re only sticking strictly to Reykjavik city and not leaving the downtown, you might manage without a car. But for maximum freedom, comfort, and the full Iceland experience, a rental car is a game-changer. Even locals rent cars for weekend getaways or when extra wheels are needed it’s the best way to truly discover the land of fire and ice beyond the city limits. Keep reading, and we’ll show you how AVR makes renting in Reykjavik easy and affordable.

Our Reykjavik Car Rental Benefits (Why Book with AVR)

Why choose Airport Van Rental for your Reykjavik wheels? Simply put, AVR is a global OTA with local expertise we know Iceland’s quirks and leverage our network to secure you the best deals. Here are the top benefits of booking your Reykjavik car hire with us:

  • Best Price Comparison = Big Savings: Reykjavik (and Iceland in general) can be pricey, but your rental car doesn’t have to be. AVR’s system scours multiple rental companies in Iceland to find you the cheapest rates. Because suppliers compete for your business, you’ll often see great prices from budget economy cars to roomy SUVs, all discounted in one place. We even factor in off-airport locations vs. KEF; for example, if picking up downtown a day after arrival saves money, we’ll show that option. We’re confident you won’t find a lower price for the same car and terms. And if you do, let us know our best rate guarantee means we’ll match it. Saving you money is our priority!
  • No Hidden Fees Total Transparency: With AVR, the price you see is the price you pay. We include all mandatory taxes and fees upfront, so there are no surprise charges in Reykjavik (no random “city fee” surprises at the counter). Iceland has a few unique fees (e.g. environmental fee, airport surcharge), which our quotes clearly itemize. We also inform you of common optional costs: want to add a GPS or child seat, or opt for Sand & Ash insurance? You’ll see those options clearly. Airport Van Rental ensures transparent pricing no last-minute shenanigans. What’s more, most bookings require no prepayment and have free cancellation, so you’re never locked in or at risk of losing money if plans change. Travel with peace of mind knowing AVR has your back.
  • Wide Vehicle Selection (Including 4x4s): Thanks to our multiple partners, you’ll find every type of vehicle for Reykjavik and beyond. Need a fuel-efficient compact for two? We have plenty, perfect for zipping around the city’s narrow streets and easy parking. Planning day trips for a family of 5? Check out our midsize sedans or small SUVs for comfort. Heading into the Highlands or traveling in winter? We offer true 4x4 vehicles like Toyota Land Cruisers, Jeep Wranglers, and Dacia Dusters that are F-road approved. Even campervans appear in search if you’re combining wheels with lodging. Unlike renting direct from a single company, AVR gives you the entire market’s inventory at your fingertips so you won’t have to hop between websites to compare. Whatever your Iceland itinerary, we have a car that fits it like a glove.
  • Flexible Booking & Free Cancellation: We get it plans can change, especially in Iceland where weather might throw a curveball. That’s why most AVR rentals let you reserve without paying upfront. Lock in a great rate early (smart for peak summer season when cars sell out), but pay nothing until you pick up the car. If you need to cancel or modify your booking, it’s usually free up until 48 hours before pickup. No penalties, no stress. This flexibility sets us apart from sites that charge you immediately or slap you with cancellation fees. With AVR, you can book confidently, knowing you won’t be stuck if your itinerary shifts. Flight gets rescheduled or you decide to stay an extra day in Reykjavik? No problem we’ll adjust your rental without hassle.
  • Local Support, Global Trust: Airport Van Rental might be a global platform, but we have a local touch in Iceland. Our team is familiar with Reykjavik and Icelandic driving nuances. We provide insider info from advising which rentals include studded winter tires to tips on driving through a sudden snowstorm. We often send pre-trip emails with pointers (like parking tips in Reykjavik or how to handle Iceland’s unique fuel pumps). If you have questions, our customer support is just a call or chat away and knows the territory. And in the unlikely event you hit a snag during your rental (flat tire on the Ring Road, perhaps?), AVR is there to assist or liaise with the rental company on your behalf. You’re never alone on the road with Airport Van Rental we’re your partner in ensuring a smooth journey.

In short, our goal is to make renting a car in Reykjavik easy, affordable, and stress-free. With AVR’s competitive rates, honest policies, and responsive support, you can focus on enjoying Iceland rather than worrying about your rental. Now, let’s look at some actual car deals you can score for your Reykjavik trip!

Top Car Rental Deals in Reykjavik (ISK & USD)

Iceland’s rental prices can fluctuate with seasons summer usually sees higher rates, while winter offers bargains but AVR consistently finds you great value. Here are some example Reykjavik car rental deals (recent estimates, including mandatory fees) to give you an idea. Prices are shown in Icelandic króna (ISK) with approximate USD for comparison:

  • Economy Car from 6,500 ISK/day (~$48)Example: Toyota Yaris, VW Polo or similar (4-door). Perfect for solo travelers or couples staying on paved roads. These small cars are easy to park in Reykjavik’s downtown and sip fuel (important when gas is around 300 ISK/L in Iceland). Despite their compact size, they can handle the Ring Road in good weather. Great for hitting city sites or doing the Golden Circle on a budget.
  • Compact Hatchback from 7,500 ISK/day (~$55) Slightly more space than a micro car, with room for 4 adults and luggage. Example: Ford Focus, Hyundai i30 or similar. A balanced choice for both city and highway driving. At around $55 a day, you get a comfortable ride with good fuel efficiency ideal if you plan to drive out to attractions like Kerið Crater or the Blue Lagoon and want a bit more room for souvenirs.
  • Midsize Sedan (Automatic) from 9,000 ISK/day (~$65)Example: Toyota Corolla (automatic) or similar. Enjoy extra legroom, a full trunk for luggage, and the ease of an automatic transmission (many international visitors prefer not to drive stick). A midsize is perfect for longer drives say a day trip to Vik on the South Coast offering comfort and stability on highways. At around $65, it’s a steal for the added space and features (many come with modern infotainment for your road trip tunes).
  • SUV (4x4) from 11,000 ISK/day (~$80)Example: Dacia Duster 4x4 or Suzuki Vitara. A true 4-wheel-drive SUV at a great value. This class is extremely popular in Iceland because it opens up more of the country you can tackle gravel roads confidently and even venture onto F-roads (mountain interior roads) if permitted by your rental contract. Seating for 5 and cargo space make SUVs perfect for families or friends with gear. At ~$80/day, it’s worth it for the freedom to explore places like Landmannalaugar or the rugged Westfjords that smaller cars can’t reach. Tip: Book 4x4s early for summer, they sell out fast!
  • Minivan or 9-Seater from 15,000 ISK/day (~$110)Example: Mercedes Vito 9-passenger van or Kia Sedona 7-seater. If you’ve got a larger group or extra luggage, a minivan is the way to go. Split between 7 or 9 people, ~$110/day is actually very economical (around $12–$15 per person). These vans are great for group day trips imagine your whole crew heading out to the Secret Lagoon together or for traveling bands, sports teams, etc. They have ample space for both people and suitcases. Driving a larger vehicle in Iceland is still easy; just be mindful of parking sizes in the city. Pro-tip: some larger vans may have manual transmission check the listing if automatic is needed.
  • Luxury & Specialty from 14,000 ISK/day (~$100)Example: BMW 3-Series, Tesla Model Y, or a convertible Ford Mustang in summer. Yes, you can ride in style in Iceland! At around $100/day and up, treat yourself to a premium car. Imagine cruising the coastal roads in a convertible on a sunny July evening, or arriving at a fine dining restaurant in a slick European sedan. These cars often include GPS, leather interiors, and the wow factor. And with Iceland’s epic scenery, a panoramic sunroof or drop-top can elevate the experience. (Insider tip: in winter, some luxury cars drop in price supply outstrips demand so you might snag a luxury SUV at a bargain for a Northern Lights hunt in comfort.)

Pricing Note: The above “from” rates are illustrative, based on recent AVR searches for 2–3 day rentals picking up in Reykjavik or KEF in the current season. Actual prices will vary by date and availability generally, June–August (peak season) have higher rates, while winter months can be cheaper. We update our deals frequently and include any promotions (e.g. winter discounts or free GPS offers). Always search for your specific dates to get the latest price. Remember, booking early can lock in lower rates, as Iceland’s rental fleet is limited and last-minute prices can surge when demand is high.

Driving in Reykjavik & Beyond: Tips for a Safe Journey

Driving in Iceland is part of the adventure! In Reykjavik, you’ll find modern roads and signage, but once you head out into the countryside, conditions and rules can be a bit different from what you might be used to. Here are essential driving tips for Reykjavik and Iceland to help you stay safe and confident:

  • Navigating the City: Reykjavik’s downtown streets are a mix of Scandinavian and European style not a strict grid, and some narrow one-ways in the old town. Pay attention to street signs (which will be in Icelandic; “gata” means street). A GPS or map app is very handy in the city. Traffic in Reykjavik is generally light compared to big cities, but during rush hour (around 8–9 AM and 4–6 PM) the main roads into/out of downtown can get busy. Locals are courteous drivers, though the occasional “Icelandic impatience” might show with a quick horn tap if you hesitate too long at a green light. Stay calm and go with the flow. Notably, headlights must be on at all times, day or night, by law most rental cars will have DRL or automatic lights for this.
  • Parking in Reykjavik: Parking can be the trickiest part of having a car in the city. Street parking downtown is metered in zones the closer to the city center, the higher the rate. For example, the central “P1” red zone costs around 370 ISK/hour, while outer zones like “P3” green are about 170 ISK/hour. Meters are enforced 9 AM–6 PM on weekdays (and Saturdays in some areas) but evenings and Sundays are free. You can pay at kiosks or via the EasyPark/Parka smartphone apps (super convenient). There are also several parking garages (covered lots) which often have daily max rates a good option if you’ll be leaving the car while sightseeing on foot. Tip: Never park in spots marked “Reserved” or “ með leyfi” (permit required) many residential streets require a permit, and illegally parked cars can get ticketed or towed. Generally, read signs carefully (most have an English translation). If unsure, opt for a paid lot. Parking fines in Reykjavik are about 4,500 ISK (~$33) if you overstay a meter, so set a timer on your phone or use the app to extend remotely. With a bit of planning, you’ll find parking manageable and many hotels offer parking or lots nearby.
  • Roads & Signage Outside the City: Iceland’s main roads are well-maintained and widely paved. The famous Route 1 (Ring Road) is paved and encircles the country. Off the Ring Road, many secondary roads are gravel perfectly drivable, just slower going. Speed limits are 50 km/h in urban areas, 90 km/h on paved rural highways, and 80 km/h on gravel road. Pay attention to the signs as you leave Reykjavik; speeds will be posted (“90” or “80” on a white circular sign with red border). Iceland uses international road signs (graphics). Notable ones: a blue sign with a tent = campground, a red triangle with a bump = upcoming rough road or speed bump, and one-lane bridge (white sign with an hourglass shape) slow down, the car closest has right of way. You’ll encounter one-lane bridges on some routes (like on the way to Golden Circle or South Coast) approach slowly and yield if another car is already coming. Iceland’s countryside roads can also have sheep wandering across in summer keep an eye out for livestock signs (a sheep silhouette) and be ready to brake; hitting an animal can be both tragic and costly.
  • Fueling Up: Gasoline (bensín) and diesel are available at stations in the city and along all main routes. Fuel is more expensive than in the US roughly 300 ISK per liter (~$2.50/L, which is about $9.5 per gallon) so factor that into your budget. Stations like N1, Orkan, Olís, and Costco (membership required) are common. Most are self-service pumps where you pay by credit/debit card (need a PIN code!)or purchase a prepaid fuel card inside. Don’t let your tank go too low in rural areas; it can be 100 km between stations in parts of Iceland. In and around Reykjavik, you’ll find stations easily (some even have hot dog stands an Icelandic road trip must-try!). One more tip: all rentals are gasoline or diesel no need to worry about any other fuel types (EV rentals exist but charging infrastructure outside the city is still developing, so conventional fuel is easiest for travelers).
  • Tolls: Good news there are essentially no toll roads in the Reykjavik area or on the Ring Road. Historically, there was one toll tunnel north of Reykjavik (Hvalfjörður Tunnel), but it’s now toll-free since 2018. The only toll in Iceland currently is the Vaðlaheiðargöng tunnel near Akureyri in the far north, which you likely won’t encounter unless you drive that region (it’s about 1,500 ISK, paid online). Around Reykjavik and all popular tourist routes (Golden Circle, South Coast), you can drive without any toll costs. However, many bridges and tunnels are only one lane each way (not tolled, just narrow), so always follow speed reduction signs and be prepared to yield or stop as indicated.
  • Winter Driving Caution: If you’re visiting in winter (roughly November through March), Iceland driving requires extra care. All rental cars in winter come equipped with winter tires, often studded for extra grip. This is required by law from Nov 1 to Apr 14 so rest assured your AVR rental will be prepared. Even so, you must adjust driving habits: keep speeds lower on icy or snowy roads, allow at least double the normal braking distance, and avoid sudden turns on ice. Main roads are plowed and gritted quickly after snowfall, but side roads can remain slick. Check road conditions on road.is (the Icelandic Road Authority) each morning they have maps showing which roads are impassable or if there’s ice/snow cover. Never attempt a closed road closures are for safety, and fines or rescue costs can apply if you bypass them. If you’re not used to winter driving, consider limiting driving to daylight hours (which are short in deep winter only ~5 hours of light in December). On the flip side, a winter road trip can be magical just plan carefully, rent an appropriate vehicle (4x4 recommended), and be flexible with your schedule in case of weather delays. Always carry warm clothes, some snacks, and a charged phone in case you get stuck and need to wait for help.
  • F-Roads (Mountain Roads): “F-Roads” are the rugged interior tracks that lead to Iceland’s highland wilderness. These are marked with an “F” before the route number (e.g. F35, F26) and are for 4x4 vehicles only. Rental contracts forbid 2WD cars on F-roads it’s actually illegal and extremely dangerous to take a regular car on these routes. So if your adventure includes places like the Landmannalaugar highlands or Askja volcano, be sure to rent a suitable 4x4 and check that the rental company permits it on F-roads (AVR listings will indicate if a vehicle is 4x4; usually standard SUVs are fine, but always double-check). F-roads are typically gravel or dirt, with potholes, rocks, and often unbridged river crossings. They are closed in winter and usually open only summer mid-June to mid-September (depending on snowmelt). Before heading out, check the daily F-road conditions (the Road Administration’s site or safetravel.is posts updates). If a sign says a road is closed or impassable, do not attempt it. When driving these remote roads, it’s wise to travel with another vehicle if possible (convoy), carry a paper map and emergency supplies, and drive slowly. Also note: off-road driving (driving off marked tracks) is strictly illegal throughout Icelanddue to the fragile moss and soil fines are huge if caught, and tire tracks can scar the landscape for years. So even on F-roads, stay on the path. With the right vehicle and precautions, F-roads can lead you to unbelievable places far from the crowds just respect Iceland’s nature and your own limits.
  • General Etiquette & Laws: In Iceland, seat belts are mandatory for all passengers. It’s illegal to use a mobile phone while driving (unless completely hands-free). Drink-driving laws are very strict essentially a zero-tolerance (the blood alcohol limit is 0.02%, so it’s safest not to drink at all before driving). Always drive with headlights on (day or night). You may notice Icelandic drivers tend to be calm but efficient they won’t honk or tailgate aggressively, but they expect you to maintain speed and not hold up traffic unnecessarily. If you find cars piling up behind you on a narrow rural road, use the next pull-out to let them pass. Conversely, don’t be alarmed if someone overtakes you on the highway it’s common on the Ring Road where people might want to go faster. Just stay within speed limits and drive at a pace comfortable for you. Lastly, yield to pedestrians at crosswalks in Reykjavik, drivers are pretty good about stopping when someone is waiting to cross.

By following these tips and using common sense, you’ll find driving around Reykjavik and Iceland to be incredibly rewarding. Thousands of visitors successfully (and safely) self-drive Iceland every year. You’ll quickly get the hang of it and likely join the chorus of those who say it’s the best way to experience Iceland’s magic. Now, let’s explore some awesome road trip ideas you can take from Reykjavik with your rental car!

3 Amazing Road Trips from Reykjavik

One of the biggest perks of renting a car is the ability to embark on spontaneous road trips. Reykjavik is a perfect launch point for exploring different corners of Iceland. Here are three popular road trip itineraries, each offering a unique taste of the country’s beauty all doable with your rental car:

  • Golden Circle AdventureRoute: Reykjavik ➔ Þingvellir National Park ➔ Geysir & Strokkur ➔ Gullfoss Waterfall ➔ Reykjavik (round-trip, ~237 km)
    Highlights: This classic loop packs in three of Iceland’s top attractions in a single day. Start early from Reykjavik and drive ~45 minutes to Thingvellir National Park, a UNESCO site where you can walk between tectonic plates and see the historical Viking-age parliament site. From Þingvellir, continue ~60 km through scenic countryside to Geysir geothermal area watch the Strokkur geyser erupt boiling water skyward every 5-10 minutes! Just 10 minutes up the road is Gullfoss, one of Iceland’s most famous waterfalls, where the Hvítá river crashes into a canyon in two tiers (rainbows often appear in the mist on sunny days). Along the route, you’ll find farm stands, the Friðheimar tomato farm (stop for tomato soup served in a greenhouse!), and plenty of photo ops with Icelandic horses. Drive back to Reykjavik (about 1.5 hours from Gullfoss) in the afternoon or evening. Road Tip: All roads on this route are paved and well-marked any vehicle can handle it. In winter, check road conditions for ice. This trip is about the journey as much as the destinations enjoy the rolling hills, volcanic landscapes, and maybe end your day with a dip in the Secret Lagoon in Flúðir village as a bonus stop.
  • South Coast to Vík & BackRoute: Reykjavik ➔ Seljalandsfoss ➔ Skógafoss ➔ Reynisfjara Black Beach ➔ Vík village (turnaround) ➔ Reykjavik (round-trip, ~380 km)
    Highlights: This road trip heads along Route 1 (the Ring Road) southeast from Reykjavik, tracing Iceland’s stunning South Coast. It’s a longer day (or you can split into two days), but oh-so-worth it. First stop, about 120 km out (1h40m drive), is Seljalandsfoss, the waterfall you can walk behind! Wear a rain jacket and tread carefully on the path behind the curtain of water. Just 25 minutes further is Skógafoss, a towering 60m waterfall right off the road climb the stairs to the top for a breathtaking view of the plains and coast. Continue east, optionally stopping at the Sólheimajökull glacier tongue (accessible via a short detour road) for a glimpse of blue ice. As you approach Vík, turn right towards the coast to visit Reynisfjara Black Sand Beach, famous for its jet-black volcanic sand and the Reynisdrangar basalt sea stacks looming just offshore. Be extremely careful of the waves here “sneaker waves” are dangerous, never turn your back on the ocean. Finally, reach the charming village of Vík, Iceland’s southernmost town. There’s a picturesque church on the hill and a few cafes (try some Icelandic pancakes or Arctic char fish and chips). After Vík, you’ll retrace the route back to Reykjavik (about 2.5-hour drive straight). Expect to be pleasantly exhausted you’ll have seen glaciers, volcanoes (you drive between the famous Eyjafjallajökull and Katla volcanoes), endless mossy lava fields, and ocean vistas. Road Tip: The Ring Road is paved and easy; just watch out for one-lane bridges. If you have a 4x4 and extra time, you could detour to Dyrhólaey (a promontory with a lighthouse and arch, near Reynisfjara) or even to Fjaðrárgljúfur canyon a bit past Vík. But those add time as a day trip from Reykjavik, it’s wise to turn around at Vík so you’re not driving too late.
  • Snæfellsnes Peninsula ExplorerRoute: Reykjavik ➔ Borgarnes ➔ Arnarstapi ➔ Ólafsvík ➔ Kirkjufell (Grundarfjörður) ➔ Reykjavik (loop, ~450 km)
    Highlights: Often called “Iceland in Miniature,” the Snæfellsnes Peninsula northwest of Reykjavik offers a bit of everything lava fields, fishing villages, a glacier-capped volcano, black beaches, and iconic mountains all in a (long) day’s drive. Head north on Route 1 for about 1 hour to Borgarnes, a convenient pit stop town (fuel up, grab snacks). Then branch onto Route 54 into Snæfellsnes. First, you might detour to Ytri-Tunga beach (near Búdir) to see a seal colony lounging on rocks. Continue to Arnarstapi, a tiny village with stunning coastal cliffs; take a short walk to see Gatklettur arch rock and basalt formations. Nearby is Hellnar with a cozy café nestled in an old house a great lunch spot. At the peninsula’s tip looms Snæfellsjökull, a glacier-topped volcano made famous by Jules Verne’s Journey to the Center of the Earth. If the road up to Saxhóll crater is open (summer), you can drive up and hike stairs to the crater for views. As you round the north side of the peninsula, you’ll see Kirkjufell, arguably Iceland’s most photographed mountain a cone-shaped peak near Grundarfjörður town. Stop at Kirkjufellsfoss waterfall across from it to capture that postcard shot of falls + mountain together. If time permits, stroll around the harbor in Stykkishólmur (a quaint town used as a film location in The Secret Life of Walter Mitty). Then head back to Reykjavik via Route 54/56/1 (about 2–2.5 hours drive from Stykkishólmur). It’s a full day, but you’ll have experienced a diverse slice of Iceland. Road Tip: Much of this route is paved, but some sections on Snæfellsnes (especially if taking shortcuts like Route 56) can be gravel regular cars handle it fine, just slow down on loose surfaces. Keep an eye on the fuel fill up in Borgarnes and maybe again in Ólafsvík, as stations are sparse on the far end. Weather can change quickly here (coastal fog or wind near the glacier), so be flexible if a viewpoint is socked in it might clear in 15 minutes.

These are just a few of the many road trips you can enjoy from Reykjavik. With a car, Iceland becomes your playground: one day you can be hiking a glacier, the next soaking in a hot spring, all at your own pace. Whether it’s a quick half-day jaunt to a nearby volcanic crater or a multi-day odyssey around the whole island, your rental car unlocks the freedom to make it happen. Remember: always check the weather and road conditions, especially in winter, and let someone know your travel plans if heading off the beaten path. Most importantly, take your time and savor the journey every road in Iceland has its own surprises and splendors.

Popular Reykjavik destinations

Frequently Asked Questions

Keflavik International Airport (KEF) is about 47–50 km (30 miles) west of Reykjavik, roughly a 45-minute drive by car. The fastest way to reach the city is by driving Route 41 (a well-maintained highway) straight from the airport into Reykjavik. With a rental car, you can be at your hotel in about 45 minutes after leaving KEF. Alternatively, there are shuttle buses (Flybus, etc.) which take around 50–60 minutes with stops, or taxis (quite expensive for this distance). Renting a car at KEF gives you immediate freedom you can even detour to sights like the Blue Lagoon on your way (since it’s en route on the Reykjanes Peninsula). In short, KEF is within an hour’s easy drive of Reykjavik, making a rental car a convenient option to start your trip on your own schedule.

Yes in fact, stopping at the Blue Lagoon on the way from KEF to Reykjavik is a popular plan! The Blue Lagoon is located in Grindavík on the Reykjanes Peninsula, roughly 21 km (20 minutes) from Keflavik Airport. It’s a short detour off the main airport road. From the Blue Lagoon to Reykjavik is about 47 km (a 45–50 minute drive). Many travelers with early arrivals pick up a rental car, drive to the Blue Lagoon for a relaxing geothermal soak when it opens in the morning, and then continue into Reykjavik refreshed. The route is simple: from KEF, follow signs towards Grindavík/Blue Lagoon (Route 41 to 43), then after your visit, continue on Route 41 towards Reykjavik. There’s ample parking at the Blue Lagoon, and it’s well signposted. Just be sure to pre-book your Blue Lagoon tickets, as it can sell out. In summary, driving to Blue Lagoon from KEF is easy (20 min drive), and then on to Reykjavik (~45 min) a great way to start or end your trip.

Parking in Reykjavik is manageable with a little planning. In downtown areas, street parking is metered by zone. Rates range from about 230 ISK/hour up to 630 ISK/hour (approximately $1.70–$4.50/hour) depending on how central you are. For example, the busiest core (Zone P1) is the highest, while outer zones (P3, P4) are cheaper. Parking fees are typically enforced Monday–Saturday, 9:00 AM to 6:00 PM (some zones until 8 PM or 9 PM), and Sundays are free. Many streets allow free parking overnight as well (after the enforcement times). If you’re staying at a hotel, check if they have parking or can recommend a nearby garage. Parking garages are available downtown (e.g., at Harpa Concert Hall, City Hall, etc.) with rates around 150–300 ISK per hour and daily caps around 1,500–2,000 ISK. These can be convenient for longer stays as you don’t have to worry about feeding a meter. Overall, while parking in the absolute center (like around Laugavegur shopping street) can be tight in peak hours, you can usually find a spot a few blocks away. Use the parking apps (EasyPark or Parka) to pay easily and top up time if needed. And remember to read signage illegally parked cars (in resident-only zones, bus stops, etc.) can get fines ~10,000 ISK ($70) or towing. But if you stick to legal parking spots and mind the time, parking in Reykjavik is fairly straightforward and not prohibitively expensive compared to major U.S. cities.

For most popular destinations and main roads, a normal 2WD car is perfectly fine you do not need a 4x4 just to drive around the Ring Road or do the Golden Circle in summer. All the major tourist sites (Blue Lagoon, Golden Circle, South Coast waterfalls, Snæfellsnes, etc.) are accessible via paved or well-graded roads that a standard car can handle. However, if you plan to venture into the Highlands or any roads marked “F” (F-roads), you must have a 4x4 it’s legally required and for good reason. F-roads are rough mountain tracks with rivers to ford; rental companies forbid 2WD cars on them. Additionally, in winter months, while a 2WD with winter tires can manage the Ring Road on good days, many travelers feel safer in a 4x4 SUV for handling snow and ice. A 4x4 can provide extra stability in adverse conditions and open up more flexibility (like if a side road is snowy, you’ll be glad for AWD). In summary: If your itinerary sticks to paved routes (spring, summer, or fall), a 2WD will suffice and is the budget-friendly choice. If you’re traveling in winter or want to explore off-beat highland areas, opt for a 4x4. Either way, drive to conditions even a 4x4 won’t help on ice if you drive recklessly. For standard travel, choose what fits your comfort; for adventurous routes, go with the 4-wheel drive.

Yes, one-way rentals between Reykjavik city and KEF Airport are commonly available with most suppliers. Many visitors do this for example, you might pick up a car in the city after a few car-free days, then drop it at the airport for your flight home. When booking on Airport Van Rental, simply select “Different return location” and choose Keflavik (KEF) as the drop-off. The system will show you any applicable one-way fee. Often, the fee is reasonable (in the range of $30–$50), and sometimes promotions waive it it depends on the rental company and season. AVR’s search results include any one-way fee in the price breakdown so you won’t be surprised later. The process itself is easy: you’ll drive to the airport rental return (follow signs for Car Rental Return at KEF), and either a shuttle will take you to the terminal or, if it’s a company with on-site presence, you’re already at the terminal. In reverse, you can pick up at KEF and drop downtown likewise straightforward. Just make sure the rental office hours match your drop-off time (though KEF airport locations are often 24/7 or accommodate early/late flights). In summary, renting in one location and returning in the other is hassle-free and a great way to save time (no need to backtrack to the city on departure day). Many travelers take advantage of this to maximize their Iceland itinerary.

The minimum driving age in Iceland is 17, but **to rent a car, most rental companies require drivers to be at least 20 years old for small car categories. For larger vehicles (like full-size SUVs, luxury cars, or minibuses), the minimum is often 23 years. Some specialty 4x4s or campers may even require age 25. These age requirements can vary by supplier, but a common policy is: 20+ for economy/compact cars, 23+ for standard 4x4 SUVs, 25+ for vans and luxury models. Additionally, if you are under 25, many companies charge a “young driver fee” (usually a daily surcharge). On the flip side, there is no official maximum age to rent as long as you have a valid license, you can rent (though drivers over 75 might want to double-check individual company policies, but Iceland is generally fine with senior drivers). When booking with AVR, enter your age accurately our system will filter results to show what’s available for your age and include any young driver fee in the quote so you’re aware. Bottom line: 18-19 year olds cannot rent, 20-24 year olds can rent most cars with possibly a fee, and 25+ year olds have full selection. Always bring a valid driver’s license (held for at least one year is another typical requirement) and a credit card for the rental deposit, regardless of age.

If your home driver’s license is in English (or another Latin alphabet) and has your photo, you do not need an International Driving Permit for Iceland. Visitors from the US, Canada, UK, EU, Australia, etc. can use their standard license. Just be sure it’s not expired and bring the physical license (digital copies are not accepted). If your license is in a non-Latin script (say, Chinese, Arabic, Russian, etc.), or it doesn’t have a photo, then you should obtain an IDP or official translation. Technically, Iceland law requires an English-readable license so an IDP is basically a translation document. The car rental desks in Reykjavik/KEF will ask for your license and passport; they rarely ask for an IDP if the license is understandable. So a good rule: U.S. drivers no IDP needed, just your state license. EU drivers no IDP needed, just your EU license. For others, if your license has your name, photo, valid dates, and is in Roman letters, it’s accepted. If not, get an IDP to avoid any issues. An IDP is easy to get (issued by auto clubs like AAA) and essentially translates your license into multiple languages including English. It’s valid only with your original license (so carry both). To summarize: Most travelers from Western countries do not require an IDP in Iceland. When in doubt, it doesn’t hurt to have one, but for English-speaking license holders, your regular driving licence is sufficient to rent and drive in Reykjavik and all of Iceland.