Popular Countries
24/7 SupportCar Rental Reykjavik
Free comparison tool · 1000s of rental cars · Major brands · No booking fees
Compare 1,000s of Car Rentals
No Booking Fees
No booking fees. Free cancellation on most cars
Find Low Prices
Save by finding great deals and securing low price rentals
Finding a rental car in Reykjavik is simple with Road Genius. Compare prices of vehicles from dozens of brands across Europe with no booking fees. Pick up in the Reykjavik city center or the suburbs or book airport pick-up with a city drop-off to suit your itinerary. Browse Reykjavik car rental deals on economy, SUV and 4x4 vehicles and set out for the Golden Circle or Reykjanes Peninsula at your own pace.
Car Rental Locations & Options
Car Rental Locations and Options
| Location | Pros | Cons |
|---|---|---|
| Reykjavik City Center |
|
|
| Reykjavik Suburbs |
|
|
| Airport Pickup with City Drop-off |
|
|
Major City Center Rental Locations
Most car rental offices are within a 15-20 minute walk from central hotels. City center rental companies include Hertz, Avis, Budget, and local companies like Reykjavik Rent-A-Car, Lotus, and Go Car Rental.
Car Rental Prices
How to save?
- Compare pickup locations: suburban offices can be cheaper than the city centre, and city pickup is often 10-15% less than airport. Weigh taxi/bus costs to the office against any one-way fee if you return elsewhere.
- Book smart, not blindly early: for Reykjavik in summer and holiday weeks, lock in 2-3 months ahead. In winter or shoulder months, watch prices and book about 3-4 weeks out.
- Rent only when you need it: explore central Reykjavik on foot first, then pick up the car. Saves days of rental and parking fees.
- Pick the right car: a 2WD economy is fine in summer for Reykjavik, the Golden Circle, and main paved routes. Smaller cars are cheaper and sip less fuel.
- Check 7+ day pricing: weekly rentals can drop the daily rate 10-20%. Nudge pickup/return dates to see if a week beats 5-6 separate days.
- Cut parking costs: choose P3/P4 zones, remember Sundays are free, and use Parka or Leggja to pay. Schedule pickups/returns during office hours to avoid after-hours fees.
Car rental prices in Reykjavik 2025/2026
Parking and Local Driving
| Location | Parking System | Cost (Approx.) | Hours |
|---|---|---|---|
| City Center P1 (Red Zone) | Metered parking, pay at machine or via app | Highest rate | 9:00-18:00 weekdays, 10:00-16:00 Saturdays |
| City Center P2 (Blue Zone) | Metered parking | Medium rate | 9:00-18:00 weekdays, 10:00-16:00 Saturdays |
| City Center P3/P4 (Green/Yellow) | Metered parking | Lowest rate | P3: 9:00-16:00, P4: 9:00-18:00 weekdays |
| Shopping Centers | Free parking | Free | Time limits may apply (usually 2-4 hours) |
| Residential Areas | Some free spaces outside marked zones | Free | Unlimited where permitted |
Payment Methods
Pay at street kiosks or via apps (Parka, Leggja) by entering your license plate. No need to display a ticket in the window.
City Driving Rules
- One-way street system in parts of the city center
- Some bus lanes (marked "Strætó"). Do not drive in these during operating hours
- Many roundabouts. Yield to traffic already in the roundabout
- In two-lane roundabouts, inner lane has priority when exiting
- 50 km/h (31 mph) speed limit in city, 30 km/h (19 mph) in many residential areas
- Headlights must be on at all times, day and night
Traffic Enforcement
Violations usually result in tickets that can be quite expensive. Speed cameras are common on main roads entering and exiting the city. Speed limits are strictly enforced.
Why rent a car in Reykjavik
Rent a car to easily:
- Golden Circle – Gullfoss, Geysir
- South Coast – Jökulsárlón
- Reykjanes Peninsula
- Snaefellsnes Peninsula
- North Iceland – Akureyri
Local Rental Locations
FAQs
Is it difficult to drive in Reykjavik city center?
Driving in Reykjavik is fairly easy compared to bigger European capitals. In the city center, you just need to watch out for some one-way streets and pedestrian zones. Traffic is not too heavy, though you might find parking is limited during business hours. You can park for free anywhere in the city on Sundays.
How far in advance should I book a rental car in Reykjavik?
If you're renting in summer (June-August), you should book at least 2-3 months ahead. For winter rentals, booking 3-4 weeks in advance is usually enough, except for the Christmas and New Year period. You'll need to book earlier for those times.
Can I park overnight on city streets?
Yes, you can park on the street overnight in Reykjavik. In metered zones, you don't have to pay for parking from 18:00 to 09:00 on weekdays and it's free all day Sunday. If you're parking for multiple nights, you might find a parking garage is more convenient and secure.
Do I need a 4x4 vehicle if staying mainly in Reykjavik?
No, a standard 2WD car is fine for Reykjavik and for day trips to popular places like the Golden Circle and the south coast during summer. In winter, a 4x4 will give you better grip, but you don't really need one for city driving because the city keeps the main roads in good condition.
