Reykjavik car hires from £34/day

Weather and time of year are two of the main factors to take into consideration when choosing a car for your time in Reykjavik. In summer, for instance, small cars will be able to handle the roads with no issues. However, come winter, small cars can struggle with the weather, so it may be better to go with a midsize car instead.

The standard speed limit on urban roads in Reykjavik is 50 km/h (31 mph), while on rural gravel roads it is 80 km/h (50 mph) and 90 km/h (56 mph) on rural paved roads. In residential areas, typically, the speed limit is 30 km/h (18 mph). There are also lower advisory speed limits posted along many of the roads.

Drivers will be happy to hear that parking in Reykjavik is always free after 6:00 p.m. and all day on Sundays. Aside from that, parking rates go by the area (P1 - P4), with P1 being the most expensive and P3 being the cheapest; P4 is a separate weekend only designation. The general rule of thumb is that, as you get closer to Laugavegur High Street, parking becomes more expensive. Also, there are plenty of parking garages to be found in Reykjavik.

On average a car hire in Reykjavik costs £59 per day.

Car hire companies onsite at Keflavik Intl airport include Sixt, Fair Car and GREEN MOTION.

Car hire companies onsite at Reykjavik Domestic airport include Europcar, Fair Car, FLIZZR, Budget, Avis, Hertz, RAS Car Rental, Enterprise Rent-A-Car, SURPRICE CAR RENTAL and Geysir Car Rental.

Car hire companies that offer shuttle or pick-up services from Keflavik Intl airport to off-airport locations include Europcar, Sixt, Alamo, Fair Car, FLIZZR, Budget, Firefly, GREEN MOTION, Avis and Ace.

Car hire companies that offer shuttle or pick-up services from Reykjavik Domestic airport to off-airport locations include Europcar, Sixt, Budget, Avis, Hertz, Geysir Car Rental and Thrifty.

Take a look at our extensive car hire location map to find the best car hire deals near you.

A Compact car hire in Reykjavik costs £54 per day, on average.

An Intermediate car hire in Reykjavik costs £64 per day, on average.

A Mini car hire in Reykjavik costs £54 per day, on average.

In Reykjavik, cars are most frequently hired at Ice Rental 4x4 International Airport (23 miles from city centre).

Most car hire providers in Reykjavik offer insurance but the level of protection can differ substantially. If you're unsure whether to get extra protection for your car hire in Reykjavik, check out KAYAK's car hire insurance guide.

To hire a car in this country you must be at least 20 years of age. However, there are likely to be some vehicle category restrictions for drivers that are younger than 25. It is also likely that you must have held your licence for a minimum of one year without accruing any points. Don’t forget to bring a valid passport, driver’s licence and credit card in your name to hire the vehicle.

You must follow the rules of the road when driving with children in your car. For instance, any kid up to the age of 10 years of age, or less than 135 cm, must be in a child seat with a seat belt. More specifically, those younger than 25 months, or who weigh less than 29 lbs, should be in a rear-facing child seat, whilst children up to 4 must be in a forward-facing seat. Between 4 and 10 years of age, kids are required to be in a booster seat.