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Car Hire in Iceland

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.

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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.

Pick your car collection option

Wherever you’re heading, you can choose how you start your car hire journey with Avis. For Avis Preferred members, this means bypassing the counter with our self-service key kiosks. There’s always the option of choosing QuickPass for faster pickup with minimal paperwork or you can simply check-in at the desk, where a friendly welcome and best local advice on your trip is waiting.

  • Self service collection
    Want to skip the queue without the extra cost? At certain destinations we operate a self-service key collection service option for members of Avis Preferred, our free loyalty scheme. Just sign up to join and benefit from our key kiosk collection service as well as 10% discounts on your booking plus a range of partner offers.

  • Cut the queues with QuickPass
    To cut the wait to collect your car, get the booking admin done before you travel with QuickPass our free pre-registration service. Just add your driving licence and payment details via our secure portal on the Avis website or app ahead of your trip. You’ll then be able to pick up your keys with minimal paperwork.

  • Check-in at the desk
    You can always choose to simply check in at the desk when you arrive at your destination. Perfect if you’re looking for a friendly welcome and best local advice on your trip, ideal for anyone who’d rather have their questions answered in person before hitting the road.

Your top rental locations in Iceland

Popular airport locations in Iceland

Northern lights car rental in Iceland

While you can’t book clear skies, a hire car provides you with the flexibility to go and look for them. Northern lights season in Iceland runs from around September to mid-April, and the best views are usually far from town lights. You can set off when the sky clears, choose your own viewing spot and stay out for as long as conditions allow, rather than fitting around someone else’s schedule.

Pick up your hire car at Keflavik Airport or in Reykjavik city centre, or head to Akureyri if you’re based in the north. Check the weather and road conditions before you go and take it slowly on winter roads.

Do you need a car to see the northern lights in Iceland?

Not strictly, but a car gives you the freedom to explore when conditions allow. Town lights tend to wash out the aurora, and it won’t follow a schedule. With a hire car you can drive to darker ground when the cloud breaks and head back when you’re ready.

Winter car hire in Iceland: what to know before you drive

Winter driving in Iceland needs a bit of planning. Daylight hours range from about 4-5 hours in December, rising to 7-8 hours by February, so set off mid-morning and save longer drives for the brightest part of the day. The mountain F-roads in the highlands close for winter, keeping most routes to the Ring Road and the main roads around Reykjavik.

Before each drive, check road conditions at road.is and the forecast at vedur.is. Strong winds can be just as tricky to drive in as snow, so wait a few hours if a warning is in place. Pick up your car at Keflavik Airport and allow extra time for every journey.

Iceland car rental FAQs

Can I cancel or amend my booking?

Yes, you can cancel, amend or extend your Iceland car hire with us via the manage your booking section online or on our Avis app. Avis offers free cancellations up to 48h before pick-up.

What are the age requirements for hiring a rental car in Iceland?

Drivers aged 18–19 may rent all standard vehicle groups, provided they have held a valid driver's licence for at least one year (a Young Driver Fee applies).

For Luxury Cars and other Specialty Vehicle categories, the minimum rental age is 20 years. Drivers aged 20–22 may rent these vehicles but are also subject to the Young Driver Fee. Drivers aged 23 and over may rent these vehicles without the surcharge.

There is currently no maximum age for hiring a rental car but you’ll be told if there are any age restrictions for the vehicle you request on booking.

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.

Do I need to rent a 4x4 in Iceland?

It is not necessary to hire a 4x4 in Iceland, especially if you're just planning to stay in Reykjavik. However, a 4x4 might be helpful if you want to go to places like the West Fjords or the northern regions.

When’s the best time to go to Iceland?

Iceland is truly a year-round destination offering different highlights through each season. In summer, you can make the most of outdoor activities, hiking and wildlife spotting as well as the midnight sun. In spring and autumn, enjoy emptier spaces and the changing seasons while winter offers sports like skiing, snowboarding, ice climbing, and snowmobiling as well as the magical northern lights.

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.

Winter activities to do in Iceland

Despite the freezing temperatures, Iceland is an ideal winter destination for exploring. Here are five activities that you must do in Iceland during the winter months.

See the northern lights

The northern lights are one of the world's most famous natural light displays, with peak viewing conditions typically running from September through March, when nights are longest and darkest. Pick a clear night and move far away from city streetlights and heavy light pollution. The Reykjavík area is a great spot for a potential sighting, and the Northern Lights are also visible across South and North Iceland.

Go on an ice adventure

For those who want to explore the ice, plenty of options are available. Why not ride a snowmobile across the Langjökull glacier? You can also go ice caving and glacier hiking by joining a guided walk or tour on glaciers such as Vatnajökull, Mýrdalsjökull or Sólheimajökull (however, you should never step onto a glacier without a certified guide).

Warm up with a hearty Icelandic meal

What better way to warm up after an outdoor excursion than with a traditional Icelandic dish? Winter meals include kjötsúpa, a chunky, traditional Icelandic lamb soup, and plokkfiskur, a comforting, creamy fish stew. These warm, high-protein dishes help you beat the cold.

Tour the Golden Circle

The Golden Circle is a well-known 150- to 190-mile scenic driving route in southwest Iceland. Highlights include the Gullfoss waterfall and the active Strokkur geyser, which shoots boiling water up to 20 to 40 metres into the air every 5 to 10 minutes.

Take a dip in a geothermal pool

Another way to stay warm in the cold climate is to visit one of Iceland's many geothermal pools. The Blue Lagoon is the most popular, known for its milky-blue, silica-rich mineral waters set inside a black lava field. With an average temperature of 37°C to 40°C (98°F to 104°F) year-round, the lagoon is perfect in any weather.

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.

PICK YOUR PERFECT RIDE

Big trips, quick errands or long weekends - choose the best option from our curated vehicle lineup.

Minivan

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Chrysler Pacifica or Similar

7
5 carry-ons

Premium Elite SUV

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Lincoln Navigator or Similar

7
5 carry-ons

Luxury Elite EV Long Range

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Genesis G80E or Similar

5
4 carry-ons

Minivan

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Chrysler Pacifica or Similar

7
5 carry-ons

Premium Elite SUV

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Lincoln Navigator or Similar

7
5 carry-ons

Luxury Elite EV Long Range

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Genesis G80E or Similar

5
4 carry-ons