Reykjavik car rental guide
Top 10 Car Rental Companies in Reykjavik
The best car rental companies in Reykjavik are Sixt, Hertz, Avis. Prices start from ISK 8250/day for an economy car, the minimum age is 21, and airport pickup adds about 10%.
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Ranked comparison
Top 10 rental companies in Reykjavik
Ranked by customer rating, price transparency and pickup convenience. Each opens a pre-filled search.
#1
Sixt
Editor’s pickFull-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 8700/day
all-in estimate
View Sixt deal
#2
Hertz
Full-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 9300/day
all-in estimate
View Hertz deal
#3
Avis
Top ratedFull-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 9000/day
all-in estimate
View Avis deal
#4
Europcar
Full-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 8550/day
all-in estimate
View Europcar deal
#5
Budget
Full-to-fullUnlimited mileageDeposit from ISK 52500Min age 21Free cancellationAirport
FromISK 8250/day
all-in estimate
View Budget deal
#6
Enterprise
Full-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 9450/day
all-in estimate
View Enterprise deal
#7
Alamo
Full-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirport
FromISK 8400/day
all-in estimate
View Alamo deal
#8
National
Full-to-fullUnlimited mileageDeposit from ISK 60000Min age 21Free cancellationAirportDowntown
FromISK 9750/day
all-in estimate
View National deal
#9
Blue Car Rental
Local pickFull-to-fullUnlimited mileageDeposit from ISK 45000Min age 21Free cancellationAirportDowntown
FromISK 7500/day
base rate
View Blue Car Rental deal
Prices are indicative market estimates · Last checked 2026-07-22 · 2 public sources (DiscoverCars + market data)
Price guide
Prices by car type in Reykjavik
| Car type | From / day | Example | Seats |
|---|---|---|---|
| Economy | ISK 8250 | Toyota Aygo | 4 |
| Compact | ISK 9750 | Toyota Yaris | 4 |
| SUV (2WD) | ISK 12750 | Kia Sportage | 5 |
| 4x4 (F-road capable) | ISK 16500 | Toyota RAV4 4x4 | 5 |
| Large 4x4 | ISK 21750 | Toyota Land Cruiser | 7 |
Pickup locations
Where to pick up a car in Reykjavik
Airport — Keflavík International Airport (KEF)
Most rental desks operate from off-airport lots about 5–10 minutes away by free shuttle bus, roughly 50km from downtown Reykjavik.
Downtown — Reykjavik city center
A handful of local agencies offer downtown pickup, useful for travelers who arrive by bus (Flybus) and only need a car once ready to leave the city.
Fees
Fees at a glance
| Fee | Typical amount | When it applies |
|---|---|---|
| Gravel & sand/ash protection insurance | ~2,250–3,750 ISK/day | Recommended on all unpaved and coastal roads — standard CDW rarely covers windscreen chips or paint damage from loose gravel and volcanic ash |
| Young-driver fee (21–24) | 1,500–3,000 ISK/day | Drivers under 25 |
| Additional driver | 900–1,500 ISK/day | Per extra driver |
| 4x4 surcharge for F-roads | Built into 4x4 category pricing | Any drive into the interior highlands — a 2WD or economy car is not insured on F-roads |
| Airport surcharge | ~10% of base rate | KEF pickup |
| Refundable deposit | 60,000–120,000 ISK (higher for 4x4) | Standard hold at pickup |
Local intelligence
Things to know before renting in Reykjavik
- Iceland has no road-toll vignette, but F-roads (mountain and highland tracks, marked with an "F" prefix) legally require a 4x4 vehicle — driving them in a 2WD car voids your insurance.
- Single-lane bridges ("einbreið brú") are common on the Ring Road (Route 1); the car already on the bridge always has right of way.
- Gravel protection insurance is worth adding on nearly every Icelandic rental — loose gravel on unpaved stretches is the single most common cause of rental damage claims (windscreen chips, paint).
- Weather can change within minutes; check road.is and vedur.is before any day trip, especially outside summer months.
- Keflavík Airport (KEF) sits about 50km from downtown Reykjavik, roughly a 45-minute drive along Route 41.
- The Ring Road (Route 1) circles the entire island and is the backbone for most self-drive itineraries, but many highland F-roads only open in June–September once snow clears.
- Headlights must be on at all times while driving, day or night, by law across Iceland.
FAQ
Frequently asked questions about renting a car in Reykjavik
Do I need a 4x4 to rent a car in Iceland?
Only if you plan to drive F-roads into the highlands. The Ring Road and most paved routes are fine in a 2WD car, though a 4x4 adds confidence on gravel and in winter.
Is gravel protection insurance worth it in Iceland?
Yes for most visitors — unpaved roads are common outside the capital, and standard CDW often excludes gravel-chip and windscreen damage.
How far is Keflavík Airport from Reykjavik?
About 50km, roughly a 45-minute drive. Most rental desks operate from off-airport lots reached by a short free shuttle.
Are there road tolls or a vignette in Iceland?
No — Iceland has no nationwide road-toll vignette. There is a single toll for the Hvalfjörður tunnel bypass, which most Ring Road routes avoid entirely.
Can I drive Iceland's F-roads in a rental car?
Only in a vehicle explicitly rated for F-roads (4x4). Driving them in a 2WD or economy car breaches your rental agreement and voids insurance.
What is the cheapest car type in Reykjavik?
Economy cars like a Toyota Aygo start around 8,250 ISK/day. A highland-capable 4x4 typically starts around 16,500 ISK/day.
Do I need special insurance for ash or sandstorms in Iceland?
Many companies offer a dedicated sand and ash protection add-on for driving near volcanic areas and black-sand coastal regions — worth checking if your route includes the south coast.
