Car Hire in Iceland

Iceland Locations

Rent a car in Iceland

Iceland is one of the smallest countries in Scandinavia but it packs a punch as a popular and unique tourism destination. Tourism is one of the country’s leading business areas but it is also home to a thriving fishing and marine sector as well as presence in heavy industry for its aluminium.

Iceland is divided into eight regions offering visitors a diverse range of sights and landscapes to explore. It’s a country rich in history and stunning natural beauty as well as being loved by foodies for the high quality of its fresh fish, think langoustine, cod and haddock and popular ingredients like Skyr. If you’ve a sweet tooth, you’ll want to pair a Kleinur - Icelandic fried donut – with your morning coffee.

As well as being famed for its pop up Christmas markets in Reykjavik, Iceland is renowned for the range of the magical outdoor experiences it can offer tourists from caving to whale-watching, white water rafting and snow-boarding. Iceland also has a busy annual calendar of events from winter light festivals to film and music festivals and of course no visit to Iceland would be complete without experiencing a hot spring geothermal spa or to taking a drive to the best vantage point to witness the Northern Lights.

Embarking on a one-way trip across Iceland in your hire car? Let us know your destination in advance and our teams will ensure that your journey is seamless, wherever you decide to pick up or drop off your rental vehicle.

Where to find Avis in Iceland

There's no better way to see Iceland than by car. Our car rental offices in Iceland are located across the country offering a fast, efficient check-in and drop off to make your onward journey as smooth as possible.

You can rent a car in Iceland with Avis from the main towns, regional and international airports, plus our office in the centre of the capital, Reykjavik

Whether arriving by air or sea, you’ll be within easy reach of one of our car hire offices with our friendly Avis team ready to help you.

Your top rental locations in Iceland

Popular airport locations in Iceland

Is it worth hiring a car in Iceland?

With so much to see and do, a visit to Iceland will never disappoint. And with a single, 1,332km road passing through some of the island’s most spectacular sights, it’s very easy to get around. The island lies just south of the Arctic Circle, and due to its low population density and abundance of things to see and do, driving is a must. Hire a car with Avis in Iceland to get the most out of this extraordinary country, starting with the capital, Reykjavík.

Reykjavík and beyond: Destination Features

Tips for driving in Iceland

Hiring a car is a popular and easy way to explore Iceland. The country has a good, well-maintained road network focussed around the Ring Road which encircles the island and will get you to most of the main attractions. If you are planning on driving in Iceland in winter or wanting to tackel highland routes, consider hiring a 4WD to enable you to make the most of your trip.

Country driving laws

Be aware that in Iceland as in mainland Europe, you’ll be driving on the right-hand side of the road and overtake on the left. Vehicles from the right, buses and emergency vehicles have priority

Use dipped headlights day and night, all year round

Horns may be used when overtaking or in cases of immediate danger

If you meet another car on a rural road, cut your speed to reduce the risk of windscreen breakage from loose chippings.

If you have not driven in this part of the world before, we’d advise familiarising yourself with the road rules for driving in Iceland.

Why choose Avis for your Iceland car hire?

Fully flexible
Enjoy fee-free flexible booking with full cash refunds and no vouchers.
Savings on coverage
When you choose Avis Inclusive you can experience total peace of mind with no extras or surprises. Pay one upfront price for free Roadside Assistance Plus and 25% discount on comprehensive zero-excess cover.
Loyalty benefits
Join our free loyalty programme Avis Preferred, and benefit from priority service, discounts and more.
Safety first
From our well-maintained fleet to protecting your data, we take safety seriously. That means before each rental our vehicles are safety checked and cleaned in line with hygiene protocols.
Faster collection
Save time at the counter by registering your details in advance with our simple and free QuickPass. You could be on the road sooner than you think.
VIP treatment
Get priority counter service on collection with Avis Preferred. At our larger locations you can use our Avis app to go straight to your car where the keys will be waiting for you.

Things to do in Iceland

Iceland’s geography is world-renowned, and renewable sources of energy—in particular, geothermal and hydropower—provide almost all of the island’s electricity. But the country is known too for its high standard of living, rich culture and productive populace, making its towns and cities rewarding destinations. Iceland’s people are among the world’s healthiest and most community-focused, while the island’s literature, which has its roots in North Germanic traditions, is richly developed. Icelanders love to read, and the country has the highest number of bookstores per capita, as well as the highest per capita publication of books and magazines. The capital, Reykjavík, is a UNESCO City of Literature.

The island lies just south of the Arctic Circle, and due to its low population density and abundance of things to see and do, driving is a must. In Reykjavík, a walk through the old town is highly recommended, as is a visit to the iconic Hallgrímskirkja, a church devoted to the Icelandic clergyman and poet Hallgrímur Pétursson. Pétursson’s collection of religious poetry, Passion Hymns, is one of Iceland’s most celebrated cultural works.

Road trips around Iceland

From Reykjavik, join the famous Route 1, or Ring Road, which encircles the island almost in its entirety. Or head eastward on the smaller roads, along the route known as the Golden Circle. This will take you Geysir, where you can watch erupting hot springs, and the mighty Gullfoss waterfall, which is consistently named one of the top waterfalls in the world. From here it isn’t far to Thingvellir, a vast and beautiful volcanic national park containing giant lakes and serpentine rivers with snow-capped mountains looming in the distance.

Follow Iceland’s Ring Road as it curves to the east, and you’ll come across Svartifoss, a waterfall that runs down giant hexagonal black columns of basalt. East of Svartifoss is Jökusárlon, a stunning glacial lake. Each year, the lake grows in size as the glaciers around it melt. Since the 1970s, it has increased fourfold in size. It is also believed, at 248m in depth, to be the deepest lake in all of Iceland.

Wherever the road takes you, explore Iceland with your Avis hire car.