- Driving in Iceland is not for the faint-hearted. Iceland’s weather is notoriously changeable – it might be gloriously summery in Reykjavík, but be snowing just a couple of hours further north. Check the weather forecast and road conditions before undertaking any significant journeys (the best way to get information is to call 1778). Route 1 is paved, and most cars should cope with this, but in winter, make sure your Iceland car rental is equipped for bad weather.
- It’s illegal to go off road in Iceland, so make sure you stick to the rules. Tyre tracks can cause irreparable damage to the country’s flora and fauna, and one of the most common causes of accidents in the country is people trying to drive through sand or traverse rivers.
- Keeping a trip to Iceland cheap can be difficult, especially if you’re there during peak time, but parking throughout most of the country is free of charge. It’s fine to stop on the side of the road if there are no markings to indicate otherwise. You’ll have to pay for parking in central Reykjavík or Akureyri, though.
Top travel deals direct to your inbox
We compare what's there to find the best deals for you.
Please enter a valid email address
We won't pass your details on to anyone else. By clicking the sign-up button, you agree to our
Terms of Use and
Privacy Policy
Thanks!
You're now signed up. Great deals will soon be delivered to your inbox.
Search for the best car hire deals in Iceland
If you want to get away from the crowds and explore beyond the usual tourist trails in Iceland, car hire is the only way to go.
Why TravelSupermarket?
We compare prices from leading car hire companies so you can find the best deal for you.
Run rings around Iceland
Doing a self-drive tour around Iceland is a great way to see the country, and it’s a simple route. Iceland has just one main road, called Route 1, which rings the whole country.
It takes you close to all of the main sights, from the Golden Circle attractions to the Snæfellsnes peninsula in the west, Akureyri and Lake Mývatn in the north, the eastern glacial lagoon of Jökulsárlón and the black beaches of Vík to the south.
Picking up and dropping off your car at Keflavík Airport (KEF) may be the most convenient option, but there are pick-up points in downtown Reykjavík, too, meaning you can do your self-drive tour on your own schedule. Avoiding an airport pick-up is also likely to result in slightly cheaper rates.
Independents vs the big firms
Iceland’s car rental scene can be a mixed bag. As well as the usual international operators, such as Avis, Europcar and Hertz, there are a number of independent firms. These tend to be cheaper than the larger companies, but may let you down when it comes to the standard of vehicle on offer – a problem given the sparsity of Iceland’s population.
Iceland car hire gives you access to long stretches of open road. But journeys can be fraught as the gravel terrain can cause flat tyres and chipped windscreens. Most car rental companies will offer extra insurance options such as gravel protection to cover this additional risk.
Whichever firm you choose, booking as far in advance as possible is the best way to bag a cheap Iceland car hire deal.