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Car rental in Reykjavík is essential for an exceptional Iceland experience. Explore the Golden Circle route, witness Strokkur geyser and Gullfoss waterfall, relax at Blue Lagoon, and catch sunset at Stafnes lighthouse. Without your own vehicle, these experiences simply aren't possible.

Car rental not only enriches your Reykjavík journey but also saves money: daily rental costs equal one taxi trip from Reykjavík to Krýsuvík hot springs. Bus routes don't reach many fascinating destinations, forcing you to join tour groups and adapt to fixed itineraries and schedules.

Rent Your Car in Reykjavík with Localrent

Localrent features reliable local rental companies. Book online in advance to access complete fleet inventories and pricing rather than just remaining office stock. Compare options at home and select vehicles matching your route and budget. Why choose Localrent:

  1. Flexible payment options: Rent without credit cards. Options available with no deposit or minimal deposits up to €300.
  2. Transparent pricing: Honest rates including all fees. Final costs are visible before booking, including taxes and mandatory insurance. Additional option pricing is clearly displayed.
  3. Modern fleet: Many vehicles under 5 years old, with special filters for selecting only new cars.
  4. Minimal advance payment: Only 15-20% required for booking confirmation; remainder due upon key collection in Reykjavík.
  5. Diverse vehicle classes: Compact hatchbacks for city driving, powerful sedans for regional touring, 4WD crossovers with roof tents, or campers with kitchens and sleeping areas for Iceland exploration.

Localrent booking ensures the right vehicle without overpayment or hidden conditions.

Car Rental Requirements in Reykjavík

Essential documentation:

  • Passport
  • Valid driver's license
  • Electronic or printed booking voucher

Driver qualification guidelines:

  • Most rental companies require minimum 3 years driving experience
  • Good vehicle selection available for drivers 23+ with 3+ years experience
  • Full fleet access typically requires age 26+ with 3+ years experience

Requirements vary even for identical models. Always verify specifications in Localrent vehicle listings. Use filters to specify age and experience level for suitable vehicle display only.

Picking up and dropping off

Arrive at the meeting point on time to pick up your booked car. 

You should have: 

  • Original documents
  • Your car rental voucher (can be in electronic form)
  • Money (the available payment methods are listed on each car's booking page).

Inspect the car carefully and note any damage on the acceptance diagram. Take photos or record video of the car, just in case.

Read the rental agreement carefully before signing, check all amounts.

It usually takes 10-15 minutes to pick up your car.

You can pick up and drop off your rental car either in the city or at Keflavik Airport.

To drop off your rental car, arrive to the agreed location in time. Your rental agent will inspect the car and sign your copy of the drop-off report.

It takes about 10 minutes to drop off the car.

Driving Characteristics in Reykjavík

Iceland's traffic rules, including Reykjavík, largely align with European standards. Maintain city speeds up to 50 km/h, 80 km/h on gravel F-roads, and 90 km/h on asphalt. Keep headlights on constantly, even during sunny weather.

Reykjavík roundabout navigation tips:

  • Reykjavík features numerous roundabouts that may intimidate tourists. Essential roundabout protocols:
  • Inner lane priority: Inner lane traffic has right-of-way over outer lane vehicles
  • Lane selection strategy: First exit? Stay in outer lane. Second exit or beyond? Enter inner lane confidently
  • No lane jumping: Avoid changing lanes within roundabouts. Miss your exit? Complete another circuit
  • No stopping permitted: Never stop within roundabouts
  • Red light turns: Right turns on red signals are prohibited; wait for green

Rural road characteristics:

  • Single-lane bridges: Simple rule—closest vehicle to bridge proceeds first
  • Long tunnels: Look for right-side passing pockets to yield to oncoming traffic
  • Essential preparation: Check road conditions at road.is and weather at vedur.is before any journey, especially outside city limits or during shoulder seasons

Local traffic dynamics:

Local drivers typically follow rules, drive calmly and predictably. However, summer brings many tourists who may cut off, tailgate, or speed. Allow impatient drivers to pass safely ahead.

Parking Guidelines in Reykjavík

Paid parking zones (P1-P4):

Central Reykjavík operates four paid zones with proximity-based pricing. Look for "P" signs with zone numbers:

  • P1 (Red): Monday-Friday 09:00-18:00, Saturday 08:00-16:00. Highest rates
  • P2 (Blue): Monday-Saturday 09:00-18:00
  • P3 (Green): Monday-Friday 09:00-18:00, reduced rates after 3 hours
  • P4 (Yellow): Monday-Friday 08:00-16:00

Free parking availability:

All zones: Sundays

  • P1-P2: After 18:00 weekdays, after 16:00 Saturdays
  • P3-P4: After 18:00 weekdays and all weekends
  • Streets without "P" signage
  • Public holidays

Payment methods: Street parking accepts card or coin payments via parking meters. Tickets aren't required; enforcement uses license plate monitoring. Alternative payment through Parka or EasyPark apps.

Fuel Stations in Reykjavík

Refueling process:

  • City and highway stations are frequent, many operating 24/7. Reykjavík refueling steps:
  • Select pump: green handle for gasoline, black for diesel
  • Payment options: specify amount on terminal or select "Full Tank," or pay at cashier with card/cash
  • Complete refueling

Additional services: Gas stations offer beverages, snacks, and automotive products. Large stations typically feature full-service cafes.

Step-by-Step Reykjavík Car Booking Process

Advance online booking benefits:

  1. Planning Iceland travel requires advance Reykjavík car booking—online. This saves on-site time and provides extensive verified rental company fleet selection. Booking procedure:
  2. Set rental dates: Choose return city if different from Reykjavík
  3. Apply filters: Specify vehicle type, transmission, deposit amount, and other important criteria
  4. Select vehicle: Add necessary options like child seats or in-car Wi-Fi modems
  5. Complete booking: Enter driver information and contacts, pay 15-20% advance by card. Voucher arrives via email
  6. Vehicle collection: Inspect exterior and interior, document all defects, verify fuel level, sign contract, pay remainder

Explore Reykjavík at your pace: Keys in hand, discover Reykjavík without rushing. Ascend to Perlan observation deck on Öskjuhlíð hill, study ancient sagas at Iceland's National Museum, experience maritime spirit at "The Viking" near old harbor. The city reveals new dimensions when you decide where to linger and which cozy streets to explore for terrace coffee.

Essential Day Trips from Reykjavík

Within one hour of Reykjavík await thermal lagoons, volcanic landscapes, and saga locations. Must-visit destinations:

  1. Blue Lagoon: Immerse in milky-blue geothermal waters. Beneficial skin minerals maintain comfortable 38°C temperatures even in wind. Online ticket booking recommended; facilities include cafes and relaxation areas. En route, stop at Hellisheiði power station to observe earth steam conversion to energy.
  2. Krýsuvík Geothermal Area: Walk wooden boardwalks among bubbling mud pots and fumaroles. Bright yellow, red, and green slopes result from soil chemical reactions. Bring windbreakers for strong winds in open areas. Visit nearby Lake Kleifarvatn with its black volcanic beach where birds nest in summer.
  3. Hraunfossar and Barnafoss Waterfalls, Grábrók Crater: Depart early for Hraunfossar waterfall first. Streams flowing from beneath lava fields create illusions of rivers born from stone. Walk 300m to Barnafoss where turbulent flows crash against basalt columns. Returning toward Reykjavík, detour to Route 1 and stop after 45km at Grábrók crater. Climb trails to observation platforms overlooking three merged, moss-filled craters.
  4. Kerið Crater: Circle the turquoise lake along crater rim trails. Bright red volcanic slopes contrast dramatically with water. Lake depth varies 7-14m seasonally. For optimal photography, descend to water level using wooden platforms.
  5. Hveragerði Town: Stroll this green town among geothermal greenhouses. Reykjadalur park offers river bathing with hot springs. Visit Hellisheiði geocenter for interactive volcano exhibits. Nearby, scenic Hjálparfoss waterfall features two streams converging in a basalt canyon.

Extended exploration opportunities: After exploring nearby attractions, discover other Southwest facets: listen to seagull calls at Grótta lighthouse during low tide, touch century-old house beams at open-air Árbær museum, try Icelandic rhubarb pancakes in Reykholt town cafes—where massive earth-energy greenhouses operate.

Vehicle Collection Locations in Reykjavík

Pickup options: Choose convenient collection points during booking. Two options available: rental company city offices or vehicle delivery to specified addresses.

Not all vehicles are available at every location. Some models require office collection, others delivery only. Specific pickup points for individual vehicles appear in booking listings. To view suitable options only, specify required location in the "Pickup" field on Localrent's main page.

Essential Reykjavík Rental Recommendations

Practical tips for positive Reykjavík car rental experiences:

  1. Weather monitoring protocols: Check vedur.is before coastal departures. Avoid open road sections when wind speeds exceed 15 m/s. Gusts rock vehicles, especially campers or crossovers with roof tents due to shifted center of gravity.
  2. Strategic parking techniques: Always park perpendicular to ocean winds. Position vehicles sideways to water. This prevents door hinge damage from gusts—a common problem on Reykjanes peninsula.
  3. Coastal safety awareness: Never approach shorelines closer than 50m. Sneaker waves—sudden giant waves—occur without warning. Reynisfjara and Dyrhólaey beaches are particularly dangerous. Leave vehicles at parking areas; never drive on beaches.
  4. Connectivity solutions: Rent Wi-Fi routers. SIM card coverage outside Reykjavík is unstable. Routers ensure highway and national park connectivity.
  5. Emergency weather protocols: Red alert declarations legally prohibit all Iceland road travel. Storm winds exceeding 35 m/s overturn vehicles, while snow squalls make highways invisible within 5 minutes.
  6. F-road regulations: F-category dirt road travel requires 4WD vehicles and written rental company permission. Submit coordination requests to Localrent support before booking completion. Unauthorized F-road access violates rental agreements.
  7. Environmental protection laws: Leaving marked roads violates Iceland laws. Off-road fines reach 500,000 ISK, with potential imprisonment for environmental damage. This protects fragile moss cover requiring 100+ years recovery after single vehicle passage.

These regulations ensure necessary safety, not mere formality.

Frequently Asked Questions About Reykjavík Car Rental

Will debit cards be accepted for deposits?

Most vehicles accept debit card deposits. Verify payment methods in vehicle listings. Use filters to display suitable vehicles only.

Can I rent without a credit card?

Yes, virtually all Localrent vehicles are available without credit cards. Use the special filter below vehicle classes to display suitable options only.

Are budget options available? What's the minimum price?

Cheapest vehicles include compact and mid-size cars. Pricing starts from €80 daily during peak season. Book 2-3 months ahead; budget vehicles are reserved quickly.

Can I collect in Reykjavík and return in Keflavík?

Specify required cities in pickup and return fields during searches. Localrent automatically displays vehicles available for your preferred pickup and return locations.

Are deposits mandatory?

Most rental companies offer vehicles without deposits. Activate no-deposit filters to view relevant vehicles only.

Rate this article
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based on 380 reviews
8 Comment
like
Maria
16.09.2023 12:02

Hello. I booked the car and got the voucher. But my arrival time has changed. How and whom can I notify of the changes? Thanks.

like
Iryna (Localrent)
16.09.2023 16:24

To change your booking details, please send an email to [email protected] with your voucher number in the subject line. In the body of your email, please explain which details you would like to change.

like
Deborah
04.05.2023 22:06

Good evening. Up to what age is a child safety seat required?

like
Iryna (Localrent)
04.05.2023 23:48

Good evening! According to the local laws, all children under the age of 12 and up to 135 cm tall must only ride in the rear seats with the special child restraint system. The seat belt should fit across the chest and should not cross or touch your child’s neck.

like
Gina
27.02.2023 07:29

Can I rent a car with 1 year of driving experience?

like
Iryna (Localrent)
27.02.2023 13:24

Good afternoon! According to the terms and conditions of car rental in Iceland: The minimum driver’s age is 23 years, the minimum driving experience is 3 years.

like
Ann
10.11.2022 10:00

Do I have to pay all at once?

like
Iryna (Localrent)
10.11.2022 16:46

Good afternoon! No. To book a car on our website, you only make an advance payment of 15-20% of the rental amount.

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