Reykjavik Cheap Car Rentals & Car Hire Deals

Reasons to book a car rental in and around Reykjavik

Renting a car in Reykjavik offers the freedom and flexibility to explore the city and its surroundings at your own pace. With a rental vehicle, you can easily manage your luggage and adapt your travel plans as you see fit. This is particularly beneficial for families, eco-conscious travellers, and those seeking outdoor experiences. You can visit key attractions such as Reykjavik Harbour, known for its beautiful scenery, and the iconic Hallgrimskirkja church, both located conveniently within the city. A drive down Laugavegur street allows you to experience the vibrant city life while enjoying the convenience of your own transport.

Additionally, a rental car enables you to explore various neighbourhoods such as Háaleiti, where you can find Laugavegur, Hallgrimskirkja, and Oskjuhlid Hill, or venture to Laugardalur, home to Grasagardur Botanical Garden and Hofdi House. The Vesturbær neighbourhood, featuring Reykjavik Harbour and the National Museum of Iceland, is also easily accessible. With a rental car, you can uncover the beauty of Reykjavik and its surroundings, making it an excellent choice for your travel plans.

Most popular car rentals in Reykjavik

• Economy: The Economy car type is a popular choice for travellers in Reykjavik, comfortably accommodating up to 5 passengers along with 2 medium suitcases. This option is ideal for solo adventurers, couples, or families looking for an efficient and economical way to explore the city. With its compact design, the Economy vehicle makes navigating the streets of Reykjavik a breeze while providing the freedom to travel at your own pace.
• Mini: If you are travelling solo or with a partner, the Mini car type is a fantastic option. It accommodates up to 4 travellers and offers space for 2 small suitcases. This smaller vehicle is perfect for those who prioritise easy parking and manoeuvrability in the urban environment of Reykjavik. With the Mini, you can enjoy a hassle-free driving experience while effortlessly exploring the local attractions.
• Compact: The Compact car type is a versatile choice that caters to both solo travellers and families, accommodating up to 5 passengers with space for 3 medium suitcases. This option strikes a balance between size and comfort, making it a practical choice for those who need a bit more room without sacrificing ease of driving. The Compact vehicle allows you to enjoy the scenic drives around Reykjavik while managing your luggage with ease.

Top rated car suppliers in Reykjavik

• Europcar: With 4 rental locations situated throughout Reykjavik, Europcar provides excellent access for travellers looking to explore the city and its surroundings. This supplier is particularly popular for its Mini and Economy vehicles, making it a great choice for those seeking a compact and economical option for their adventures.
• Alamo Rent A Car: Alamo features 1 rental location in Reykjavik, offering a convenient option for travellers. Known for its Midsize and Economy SUVs, Alamo is an ideal choice for those who require a bit more space and comfort while navigating the stunning landscapes of Iceland.
• Budget: With 3 rental locations available in Reykjavik, Budget ensures that customers have easy access to their vehicles. This supplier is particularly well-regarded for its Midsize SUV AWD and Economy options, providing a blend of versatility and affordability for those looking to explore the great outdoors.

Where to stay in Reykjavik

• Laugardalur: This neighbourhood is ideal for those seeking an outdoor, family, or city-themed experience. Located close to the Grasagardur Botanical Garden, perfect for family outings, and the historic Hofdi House, Laugardalur also features the vibrant Laugavegur street, known for its shopping. Visitors can enjoy local hot springs, parks, and a variety of dining options, making it a well-rounded choice for travellers wishing to explore Reykjavik.
• Vesturbær: Known for its eco-friendly and family-friendly atmosphere, Vesturbær is a charming neighbourhood that offers easy access to Reykjavik Harbour, where scenic views abound. The National Museum of Iceland and the stunning Reykjavík Cathedral provide cultural insights just a short distance away. With numerous parks and dining options nearby, Vesturbær is a delightful spot for those looking to experience both nature and culture.
• Háaleiti: A perfect choice for outdoor enthusiasts and families, Háaleiti boasts stunning scenery and easy access to attractions like Hallgrimskirkja church and Oskjuhlid Hill. The lively Laugavegur street offers an array of shops and restaurants, while the proximity to national parks enhances the outdoor experience. Whether you're interested in theatre or simply enjoying the beautiful landscape, Háaleiti presents a wonderful base for exploring Reykjavik.

10 tips to save on your car rental in and around Reykjavik

1. Use filters to find the right car: Refine your search by vehicle type and features. Whether you're looking for an SUV for added space, a convertible for summer outings, or an economy car for budget-friendliness, utilise filters on Expedia to help you discover the ideal option for your journey.
2. Book in advance to help lower costs: Rental prices can vary based on demand, so it’s advisable to reserve your car well ahead of your trip. By booking in advance, you’re likely to secure lower rates and enjoy improved availability, particularly during peak seasons.
3. Consider a smaller car for savings: Smaller vehicles are typically more affordable to rent and easier to park in crowded areas. Mid-size rentals strike a good balance between cost, comfort, and fuel efficiency.
4. Age guidelines: Drivers under 30 may encounter higher deposits or daily surcharges, and certain vehicle types—such as SUVs or premium models—might not be available. This can also apply to renters over the age of 70. Always verify the age requirements prior to booking.
5. Check fuel policies: Some rentals implement a full-to-full fuel policy, meaning you must return the car with a full tank to avoid additional charges. This is generally the most advantageous option. Others may offer full-to-empty or prepaid refuelling options, which are acceptable as well. Just ensure you return the car empty in such cases.
6. Save on city and airport pickups: You will often incur a surcharge for collecting your rental car at airports, but the added convenience may justify the cost.
7. Know your payment options: Many car rental companies exclusively accept credit cards for payments.
8. Understand your insurance coverage: Car rental insurance can help you avoid unnecessary expenses and provide peace of mind should something unexpected arise during your trip. It’s straightforward to add car rental insurance when booking through Expedia.
9. Consider unlimited mileage: If you’re planning long road trips, seek rentals that offer unlimited mileage to prevent incurring extra charges.
10. Bring your driver's license and ID: A valid driver's license is required to hire a car.

Best time to rent a car in and around Reykjavik

The best value period to rent a car in and around Reykjavik is March, when prices are moderately low and demand is average. This month offers a quieter experience compared to the busier summer months. February is also a good option, as it has low demand and average prices. However, October tends to be the most expensive month, along with August, when demand peaks. November follows with moderately low prices and average demand, making it a more balanced choice after the busy summer.

Calendar Month	Temperature	Precipitation	Cloudiness	Demand	Pricing
January	31.6°F (-0.2°C)	Light Rain	Mostly Cloudy	Low	Moderately High
February	32.5°F (0.3°C)	Light Rain	Mostly Cloudy	Low	Average
March	33.4°F (0.8°C)	Light Rain	Mostly Cloudy	Average	Moderately Low
April	38.5°F (3.6°C)	Light Rain	Mostly Cloudy	Average	Average
May	43.9°F (6.6°C)	Light Rain	Mostly Cloudy	Average	Average
June	49.8°F (9.9°C)	Light Rain	Mostly Cloudy	Average	Average
July	52.9°F (11.6°C)	Light Rain	Mostly Cloudy	High	Average
August	51.8°F (11.0°C)	Light Rain	Mostly Cloudy	High	Moderately High
September	47.1°F (8.4°C)	Light Rain	Mostly Cloudy	High	Average
October	40.8°F (4.9°C)	Light Rain	Mostly Cloudy	Average	Moderately High
November	36.0°F (2.2°C)	Light Rain	Mostly Cloudy	Average	Moderately Low
December	30.7°F (-0.7°C)	Light Rain	Mostly Cloudy	Low	Moderately Low