Pick-up at Keflavik

Keflavik International Airport is located 50 kilometres (31 miles) southwest of the city. Don’t confuse it with Reykjavik Airport, a much smaller aerodrome in the city centre.

Collect your Reykjavik hire car at Keflavik and a well-signposted journey into the centre awaits.

There are numerous options. Avis, Budget, Europcar and Hertz all have offices inside the main airport terminal and typically boast the largest fleets.

More contenders are on Blikavollur Street, a brisk three-minute walk away, including Sixt and domestic companies such as Blue Car Rental and Reykjavik Cars.

Use TravelSupermarket’s planning tools to compare car rental prices and find the cheapest Reykjavik car-hire deal to suit your stay.

All the main companies also boast a booth at tiny Reykjavik Airport, and most have additional premises within the harbour area, if you’d prefer a city-centre pick-up.

Driving around Reykjavik

Despite everyone driving here – the country has the world’s highest cars-per-capita rate – parking is easy to come by and costs are reasonable.

Travelling further afield

Some 115 kilometres (70 miles) northeast of Reykjavik is the Golden Circle, a 300-kilometre (180-mile) driving tour of Iceland’s best-known natural wonders. Hogging most memory cards in visitors’ cameras are the thundering Gullfoss waterfall and a geyser called, aptly, Geysir.

The earliest bus tours tend to leave Reykjavik at 7am, so you know what to do – head off at 6am, and try to stay ahead of them (or have a lie in and follow on).

The Blue Lagoon, 48 kilometres (30 miles) southwest of the city, is quietest in the early morning and late afternoon. With a rental car, you can dodge the coach crowds and enjoy a more tranquil experience in these geothermal waters.

For more adventurous drives into the Icelandic interior, be aware that conditions can often deteriorate in winter – call the Icelandic Road and Coastal Administration on +354 522 1100 (or check www.road.is) for the latest information. Some inland passes are suitable only for vehicles with four-wheel drive and are out of bounds for renters of regular cars. These roads are usually pretty remote and well sign-posted, so you are unlikely to invalidate your insurance by accident.

Cheap Reykjavik car rental

Just like flight prices, winter time is cheapest for car hire in Reykjavik, while summer is when rates are highest – and availability lowest.

Happy news: reduced rates are common, with competitors desperately trying to undercut one another and secure your signature; compare deals from the major players on TravelSupermarket before you book your cheap car rental in Reykjavik.