Reykjavik with a Rental Car: Your Ultimate Guide to Iceland's Capital

Reykjavik, Iceland's quirky and colorful capital, is a place where natural wonders meet Nordic culture. It's a city buzzing with creativity, steeped in history, and surrounded by jaw-dropping landscapes. And while you can explore parts of Reykjavik on foot, the best way to experience the city and its nearby attractions is with the freedom of a rental car.

Whether you're planning a short city break or using Reykjavik as your launchpad for a larger Icelandic road trip, this guide will show you how renting a car with a local company like Zero Car Rental can make all the difference. We'll cover what to see, where to drive, tips for avoiding common rental pitfalls, and how to maximize your time in Reykjavik and its surrounding gems.

Why Rent a Car in Reykjavik?

Reykjavik is a charming city with much to offer, but what truly makes it extraordinary is how easily it connects to Iceland's natural splendors. A rental car allows you to travel at your own pace, make spontaneous detours, and avoid rigid tour schedules. You can go from sipping coffee in a downtown Reykjavik café to soaking in a remote geothermal spring, all in the same day.

Unlike other European cities, Reykjavik lacks an extensive public transport network outside the capital area. A car gives you access to remote beaches and volcanic craters, secluded hot springs, day trips like the Golden Circle and Snæfellsnes Peninsula, and Iceland's vibrant nightlife without worrying about return transport.

Local rental companies like Zero Car Rental offer the added bonus of transparent pricing, no hidden fees, and zero-excess insurance.

Top Things to Do in Reykjavik

Before you hit the road, spend a day or two exploring Reykjavik's top attractions. Our detailed recommendations also appear in Zero Car's local guide to Reykjavik.

1. Hallgrímskirkja Church

This iconic concrete church towers over the city and offers panoramic views from its bell tower. Inspired by basalt lava flows, Hallgrímskirkja is not only a symbol of Icelandic resilience and architecture, but also a fantastic first stop to get your bearings in the city. Take the elevator to the top for a stunning 360-degree view of Reykjavik's colorful rooftops and nearby mountains. You can find Hallgrímskirkja on Google Maps here.

2. Harpa Concert Hall

Located by the old harbor, Harpa is a striking glass building that hosts concerts, cultural events, and conferences. Its shimmering geometric façade reflects the sea and sky, changing colors depending on the weather and time of day. Even if you don't attend a performance, a visit to Harpa is a must for architecture and photography enthusiasts. Stroll inside to enjoy a coffee or browse local design shops. See its location on Google Maps here.

3. The Sun Voyager

A dreamlike steel sculpture by the sea, The Sun Voyager ("Sólfar") symbolizes exploration, progress, and freedom. Designed by Jón Gunnar Árnason, it resembles a Viking ship and reflects the promise of undiscovered lands. It's a popular stop along the scenic coastal walkway, especially at sunset when the light creates magical reflections on the bay. You can view the Sun Voyager's location on Google Maps here.

4. Reykjavik's Museums and Exhibitions

Check out the official list of museums including the Settlement Exhibition, the National Gallery of Iceland, and the Reykjavik Art Museum. They're perfect for understanding Iceland's Viking roots and artistic soul.

5. Nightlife in Reykjavik

As covered in Zero Car's nightlife guide, Reykjavik transforms after dark. From cozy jazz bars to electric dance clubs, there's something for every taste. And with your own rental car, you're free to retreat to your accommodation on your schedule.

Where to Drive From Reykjavik: Top Day Trips

Having a car opens up countless unforgettable day trips. Here are the must-see destinations just a short drive from the capital:

1. The Golden Circle (1-2 hours from Reykjavik)

A classic day trip route that includes several of Iceland's most iconic natural attractions. Start with Þingvellir National Park, a UNESCO World Heritage site where Iceland's historic parliament was founded and the Eurasian and North American tectonic plates visibly drift apart. Next, visit the Geysir Geothermal Area, where the active geyser Strokkur erupts dramatically every few minutes, sending plumes of steam high into the sky. End your Golden Circle adventure at Gullfoss Waterfall, a powerful two-tiered cascade that plunges into a rugged canyon and often dazzles with rainbows on sunny days.

Plan your route with this Golden Circle guide from Zero Car.

2. Sky Lagoon (15 minutes away)

Located just a short drive from downtown Reykjavik, the Sky Lagoon offers an immersive geothermal bathing experience with stunning views over the Atlantic Ocean. This modern lagoon blends Icelandic bathing traditions with a sleek, contemporary design. The highlight is its seven-step ritual, which includes a cold plunge, sauna with ocean views, and a steam room followed by a refreshing mist. With its convenient location and soothing ambiance, it's an ideal stop before or after a day of sightseeing. You can find Sky Lagoon on Google Maps here.

3. Reykjanes Peninsula

Often overlooked, this volcanic peninsula near KEF Airport is full of dramatic coastlines, geothermal areas, and the new Fagradalsfjall eruption site.

4. Snæfellsnes Peninsula (2-3 hours away)

Dubbed "Iceland in Miniature," this peninsula offers glaciers, black sand beaches, lava fields, and iconic Kirkjufell mountain.

Family-Friendly Fun in Reykjavik

If you're traveling with kids, Reykjavik has you covered. Check out this family-focused guide for activities that appeal to all ages.

Highlights include the Whales of Iceland Museum, where life-sized whale replicas give a sense of scale and wonder, and the Reykjavik Family Park & Zoo, which combines native animals with fun rides. At the Saga Museum, kids and adults can dress up as Vikings and learn about Icelandic history through immersive exhibits. And don't miss the many indoor swimming pools and geothermal hot pots scattered throughout the city, which are an integral part of local life.

Practical Driving Tips for Reykjavik and Beyond

Iceland is a unique place to drive, and it pays to be prepared. Zero Car Rental has compiled several guides to help you get the most out of your journey:

1. Avoiding Parking & Toll Surprises

Read this essential guide to avoid unexpected fines in Reykjavik and around Iceland. It covers how to use the Parka app to pay for parking easily across Reykjavik. It's the most convenient and reliable way to avoid fines, especially in metered zones. Be mindful of restricted areas where parking is not allowed, such as loading zones, residential permit-only areas, and places marked with yellow lines. Also, keep in mind that certain tunnels in Iceland, such as the Víkurnarvegur tunnel in the north, require toll payments that are not always clearly marked. Being aware of these toll zones in advance can save you both money and hassle on your road trip.

2. Renting at KEF vs Reykjavik

Not sure whether to pick up your car in the city or at the airport? Zero Car explains both options with pros, cons, and practical tips.

3. Weather and Road Conditions

Always check Iceland's Met Office before driving, especially in winter. Wind, ice, and sudden storms can affect travel times and safety. Zero Car provides 24/7 support and a zero-excess insurance policy that covers gravel, sand, and ash damage.

Why Zero Car is the Smart Choice for Reykjavik Travelers

When renting a car in Iceland, choosing the right company matters. Zero Car stands out with a local-first philosophy that prioritizes simplicity, honesty, and support. Here’s what sets them apart:

Zero-excess insurance means complete peace of mind, even on gravel roads. There are no hidden fees—the price you see is the price you pay. With 24/7 roadside assistance, you can count on real support when and where you need it. Their self-service key pickup and drop-off system is fast, seamless, and perfect for flexible itineraries. And their diverse fleet has something for every traveler—from budget hatchbacks to 4x4s and electric vehicles.

Their offices in both Reykjavik and KEF Airport make pickup and drop-off incredibly convenient.

Final Thoughts: Reykjavik is Just the Beginning

Reykjavik is more than just Iceland's capital – it's a launchpad to explore fire, ice, and everything in between. With a rental car from a trusted local company like Zero Car, you're not just getting a vehicle; you're unlocking the full Icelandic experience.

Whether you're watching the northern lights from a coastal cliff, dining in a harbor-side restaurant, or hiking between continents in Þingvellir, the key to it all is mobility. Drive safe, explore freely, and let Reykjavik lead you into the adventure of a lifetime.

For more trip planning tools and inspiration, don’t forget to check Visit Reykjavik and Visit Iceland.