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Iceland Car Hire - Compare and Save on Holiday Car Rental

Pre-book your Iceland car hire, with prices starting from just £17.38 per day with FREE cancellations*

Northern Lights, Iceland

The phrase 'experience of a lifetime' is used liberally when discussing Iceland, which seems quite the statement. But dig a little deeper, and it's easy to see why.

Get lost in the breathtaking, almost otherworldly landscape of the country, something that alone brings millions of visitors to Iceland every year. Climb the ice glaciers, take a dip in the natural hot springs, marvel at the geysers and stunning waterfalls that adorn the island.

When night falls however, something truly magical happens. Something that there is no better place in the world to witness; the Northern Lights. The Seltjarnares peninsula is the perfect spot to witness this, and is perhaps the pinnacle of the many 'experience of a lifetime' draws of Iceland.

Reykjavik, the world's most northern capital offers an abundance of things to do too. With galleries, museums, theatres and architecture indicative of the country, it's a city where you'll be able to drink in the Icelandic culture and its friendly people just by talking a walk around the city. There's over forty annual festivals throughout the city, where you'll be able to experience all the culinary delights and yet more Icelandic hospitality.

If you're venturing out into the country, hiring a car gives you limitless freedom to come and go as you please; to stop off at the countless amazing views, experience some of the most popular roads in the world to drive on, unhindered by the schedules of public transport. There's a saying in Iceland that goes "If you don't like the weather, wait five minutes" and this couldn't be more true. The weather is extremely changeable, but this adds to the experience and beauty of all the this you'll see on your drive around the country. Icelandic roads are roads are well maintained throughout the country, and even the gravel roads are easy to navigate.

Our three-step car hire comparison and booking process will find the perfect car hire for your trip, even at the last minute.

Car Rental Locations in Iceland

Holiday Extras provides cheap car hire across Iceland, including major airports. Some popular locations include:

Details of exact car hire pickup addresses will be listed with your booking confirmation.

3 steps to cheap car hire

  • Search - fill out your details above and click search to compare
  • Select - choose the car you want to hire
  • Book - with our secure payment system

How it Works

Once your booking has been made you will be sent a confirmation email with your booking reference number. Please keep this to hand, as you'll need it when picking up your car. We also have a checklist to make sure you have everything to hand before you depart.

If you wish to speak to an advisor, you can contact our dedicated car hire team on 0800 804 7362. Alternatively you can contact us online here with any queries you may have.

If you're looking for transportation to your resort, Holiday Extras also provides highly competitive deals on resort transfers. As well as this, you can take also out holiday insurance, giving you further peace of mind should you run into any unforeseen problems. We could also help you save up to 60% on airport parking, airport hotels and airport lounges if you're flying from a UK airport, too.

*The prices quoted are based on one driver, aged 25, with a full UK driving licence hiring a car for 3 days, picking-up and dropping-off at Reykjavik Domestic Airport (RKV), Reykjavik, Iceland. Prices correct at time of writing. Subject to availability. Free cancellation applies to most rentals up to 48 hours before pick up, however some suppliers may charge. Please check supplier terms and conditions carefully.

Driving on Iceland's roads**

Driving in a foreign country, as well as an unfamiliar vehicle can often be a daunting prospect. However, it's useful to know some of the and driving practices that Iceland adheres to. Driving laws in Iceland are failry standardised, but there is a possibility there may be localised rules such as speed limits or local fauna in the area to watch out for, so we recommend you check the driving laws for the particular areas you will be driving through.

General road safety laws

  • Left hand drive - Drive on the right, overtake on the left.
  • Minimum age for car hire - Car hire companies in Iceland require you to be at least 21 years of age to rent a vehicle and 23 years of age to rent a 4 wheel drive vehicle.
  • Seatbelt - It is a legal requirement for all occupants to wear a seatbelt.
  • Petrol stations - As with the UK, diesel pumps have a black handle and ordinary gasoline pumps have green handles.profit
  • Speed limits - Road signs are in kilometres per hour and in English.
  • Police - If pulled over by Police, remain in your vehicle, turn the ignition off and keep your hands visible at all times.
  • Tyres - At some times of the year, it's compulsory to have snow tyres on your vehicle. Please speak with your rental company to ensure they are equipped if required
  • Compulsory Equipment - It is compulsory to carry a warning triangle in your car.
  • Lights - Icelandic law requires that vehicle headlights be on at all times when driving, with no exceptions.

Speed limits

  • Populated areas: 30-50 km/h
  • Gravel roads in rural areas: 80km/h
  • Paved roads in rural areas: 90km/h

  • Although these are the standardised speed limits, there may be local variations so please be careful to check the road signs.

    Driving licence

    Important Information - Changes to the UK Driving Licence

    If you are not from the UK, most car rental companies will require you to present the driving licence that is issued by your country of residence; not an International licence, or permit. Please double check with an individual car hire company if you are unsure.

    You can hire and drive a car in Iceland using a full UK driving licence. As such, you will not need an International Drivers' Permit (IDP). Please ensure you carry your drivers licence on you at all times.

    Mobile phone use

    It is an offence to use a mobile phone while driving. If you are caught using a mobile phone whilst driving you may be issued with a substantial fine.

    Weather conditions

    Iceland is well known for it's extreme and quickly changeable weather. Ensure you check the local weather forecasts and take in local driving advice before departing, especially in Winter.

    Drinking and driving

    All provinces in Iceland enforce strict drink driving laws and police have the authority to stop drivers at any point for an on-the-spot breathalyser test. The legal limit for alcohol is 0.05%

    It is important to note that drinking alcohol and then driving may invalidate your car rental insurance and holiday insurance, irrespective of local drink driving laws. Check your policy for full details.

    **This information should be considered as a broad overview of things to remember when hiring a car. It is therefore very important that you read the rental terms and conditions and associated policies for your own specific policy as well as doing your own research into the motoring laws of the country in which you will be driving.