Car Rental in Reykjavik

Why rent a car in Reykjavik?

By far the largest city in Iceland (it is home to two-thirds of its population), Reykjavik can be a fascinating city to visit. Home to a surprisingly diverse and active cultural life, it also boasts a rich history, interesting architecture, and plenty of quirky hidden gems for a curious traveler to explore. Better yet, Reykjavik can also serve as the hub to explore most of the majestic nature of Iceland.

Top ways to enter Reykjavik

• Keflavik Airport: The busiest airport in Iceland is not actually in Reykjavik, but in the much smaller town of Keflavik about a 50-minute drive southwest of the capital. Served by the national carrier Icelandair, as well as some two dozen other airlines including low-cost carriers like easyJet and Wizz Air, the airport is the primary port of entry for most foreign visitors.
• Reykjavik Airport: Much closer to the capital, but also much smaller, Reykjavik Airport serves only domestic destinations and flights to the relatively nearby island of Greenland which belongs to Denmark.
• By ship: If you’re arriving in Reykjavik by cruise ship, you can also pick up the rental car right at the city harbor. Known as Viðey, the ferry terminal is about a ten-minute drive east of the city center.
• By bus: If you’re arriving in Reykjavik by bus from another town in Iceland, you can pick up the rental at the Reykjavik Central Bus Terminal which is just south of the city center.

Top sights and activities

• National Museum of Iceland. More than 150 years old (and therefore significantly older than the Republic of Iceland), the National Museum is mainly dedicated to the settlement and history of Iceland and covers everything from the arrival of Viking settlers to the art they created, becoming independent from Denmark, and the present day. In addition to the permanent collection, the museum also frequently hosts a number of temporary exhibitions.
• Culture House. Foreign visitors might want to avoid trying to pronounce its full Icelandic name, Þjóðmenningarhúsið, but they should not ignore the Culture House itself, as it is another important place in the exploration of Iceland’s history. Located in the building that used to house the national library, the Culture House has everything from the original manuscripts of ancient sagas to exhibitions on volcanic islands and research on the visual history of Reykjavik.
• Icelandic Punk Museum. The majestic, austere landscapes of Iceland might not immediately suggest it, but the country —  and specifically its capital — has always been a hotbed of counterculture and creativity, including punk music; even the city’s former mayor, comedian Jón Gnarr used to be in a punk band in his teenage years. Perhaps aptly located in a former underground restroom, the small, but innovative Punk Museum explores this surprising connection, even letting visitors put on a leather jacket and get their hands on a guitar. Punk’s not dead, at least not in Reykjavik.
• Hallgrimskirka. This Lutheran cathedral in the capital city is an eye-catching building with its 73 m-high tower. Inspired by Icelandic traditions, it has a unique architectural style. There is also an observation deck in the tower you can go up and take in the vistas of the city and surrounding countryside.
• Árbæjarsafn. Another fascinating place with a very challenging name to pronounce, this open-air museum is definitely not the worst place visitors to the Icelandic capital could spend time. Located a relatively short drive to the southeast of the city center, its historical buildings provide an insight into the traditional lifestyle and culture of the Icelandic people. Visitors can take a peek at granaries, smithies, and stables, and even step into a reconstructed gold mine.

Ideas for day trips

• Reykjanes. Iceland’s southwestern peninsula is not only where the country’s main airport is located, but it’s also a fascinating destination in its own right. Whether you visit the idyllic hot springs of Blue Lagoon, cross the pedestrian bridge between Europe and North America or marvel at lava formations, you’re bound to have an interesting time. 
• Þingvellir. Not only a national park but also a heritage destination, Þingvellir (or Thingvellir) is where the Althing, the Parliament of Iceland, was originally located. About to celebrate its 1,100th anniversary in 2030, Althing is known as the oldest parliamentary building in the world. In addition to the Parliament, you can visit the interactive visitors center, walk along the nature trails, or even dive and take a Silfra snorkeling tour, as this is one of the best places in Iceland for these activities. Located only 45 km (28 miles) northeast of Reykjavik, the area can be reached in 40 minutes by car.
• Snæfellsjökull National Park. A wild and stunning place, this national park is dominated by an ancient volcano that’s covered with a glacier. Other attractions include stunning, empty beaches, Vatnshellir Cave, and the opportunities to see the northern lights (the best odds to catch them are during the autumn and winter months of the year). The national park is about a 2 hour and 40-minute drive from the capital, so the best course of action would be to give at least two or three days to visit (there are accommodations around the park). Do keep in mind that you need a 4x4 vehicle to safely move around the park on your own - otherwise, driving to the area and then joining a tour can be a good idea.

Most popular cars

Most visitors of Reykjavik go for mini, economy, or compact rental cars. The most popular models are the Hyundai i20, Hyundai i10, and Volkswagen Golf.

Further destinations

Akureyri. Sitting on the Greenland Sea, the capital of North Iceland might only be home to about 20,000 people, but visiting it can still be a thrilling experience. Most people make the five-hour drive from the capital, an adventure in its own right, for the volcanic craters and glaciers of the surrounding area, but Akureyri itself is worth your attention, too, not least for Listagilið or the art canyon, an area of the town known for its museums and galleries.

Car rental prices in Reykjavik

• Small cars - from $95 per day
• SUVs - from $117 per day
• Medium cars - from $114 per day
• Station wagons - from $127 per day
• Large cars - from $143 per day
• Vans - from $279 per day

Money-saving and other tips

These are some good methods to save money on your rental car:

• Compare the rates of different rental car providers
• Book your rental car well in advance
• Plan your route before you go
• Know your fuel and mileage requirements
• Visit during the month when the rental prices are the cheapest. According to our data, visiting Reykjavik is the cheapest in June when renting a car is about 38% cheaper than the yearly average.