BookYourTrip.is
Iceland’s Route 1 curving through green meadows toward mountains in Mýrdalshreppur

Photo: Jakub Hałun / Wikimedia Commons, CC BY 4.0

Keflavík Airport · Reykjavík

Hire a car in Iceland

Compare Iceland car hire from Keflavík Airport and Reykjavík. 2WD and 4x4, free cancellation on most bookings, live prices from local and international suppliers.

Compare car hire deals

You’ll book and pay DiscoverCars.com directly. We earn a commission at no extra cost to you.

A car is how Iceland opens up. The Golden Circle, the South Coast waterfalls, Reynisfjara, and a night hunting the lights outside Reykjavík are all straightforward with your own wheels — and painful on day-tour timetables if you try to stack them. Most visitors pick up at Keflavík Airport (KEF) on arrival and drop the car back there on departure.

Prices move with season, and the cheapest rate on one site is rarely the whole story: excess, gravel protection, and whether winter tyres are included matter more here than in most of Europe. Compare local Icelandic suppliers next to the big brands in one search, then read the excess before you pay.

Why book this

  • Airport pickup

    Keflavík has a row of rental desks and shuttle lots a few minutes from arrivals. Book the car before you land — walk-up rates in July are not a bargain.

  • 2WD vs 4x4

    A small 2WD is enough for Route 1 and the Golden Circle in summer. Take a 4x4 if you want F-roads (highland tracks, summer only, explicitly allowed in the contract) or extra clearance in winter wind.

  • Free cancellation on most bookings

    Hold a car against your flights, then change dates if the itinerary moves. Always check the cancellation window on the offer you pick.

What’s included

  • Side-by-side quotes from local and international suppliers
  • Keflavík Airport and Reykjavík city pickup options
  • Filter by automatic, 4x4, extra drivers and winter tyres
  • Most offers include free cancellation up to 48 hours before pickup

Before you go

Insurance that actually matters

Third-party is included. The decisions are collision damage waiver, gravel protection (windscreens and paint take chips on Route 1), and sand-and-ash where it is offered. Read the excess. A cheap daily rate with a €2,000 excess is not cheap.

F-roads are not the Ring Road

Highland F-roads are closed most of the year and forbidden to 2WD. Driving one in a car that is not contracted for it voids cover. If your plan is Landmannalaugar or Askja, you want a 4x4 and a summer date.

Winter driving

October to April means wind, ice and sudden white-outs. Studded or winter tyres should be on the car — confirm it in the booking. Check road.is and vedur.is every morning. If a road is closed, it is closed.

Frequently asked questions

Should I pick up at Keflavík or in Reykjavík?

Airport pickup is simpler for most trips: you land, collect the car, and you can hit the Blue Lagoon or drive into town on your own clock. City pickup makes sense if you are spending the first days car-free in 101 and only need wheels later.

Do I need a 4x4?

Not for a classic summer Ring Road or Golden Circle + South Coast itinerary on paved roads. Yes if you plan F-roads, or if you are travelling in winter and want the extra clearance and four-wheel drive in snow. Do not take a 2WD onto a highland track.

Is an international driving permit required?

A full national licence in Roman letters is usually enough. An International Driving Permit is cheap insurance if your licence is not in the Latin alphabet, or if a supplier asks for one at the desk. Check the offer’s conditions.

Can I take a rental on the Ring Road in winter?

Yes, with winter tyres and a realistic plan. Some mountain passes close. Daylight is short. Book a car you are comfortable driving in wind, and do not schedule every night in a different town with no slack.

Keep planning