18 August 2025
Summarize with AI:
Car hire Reykjavik: A clear, human guide for your first trip
Renting a car in Reykjavik is simple. It gives you freedom. You set your own pace. You choose where to stop, when to eat, and how long to stay. And you can change plans without stress.
This guide keeps things honest and down to earth. No fluff. Just what you need to know to hire a car in Reykjavik with confidence, drive it safely, and use it well. If you want a local, straightforward rental with full cover and zero excess, we’ll point out where Zero Car fits. If you’d rather compare and decide, that’s fine too.
Use this as your base. Read it once. Skim it again the day before you pick up the keys. Then enjoy the road.
Why car hire in Reykjavik makes sense
Reykjavik is compact. Buses and tours exist. Taxis work but are expensive. A rental car sits in the middle. It is flexible and often cheaper than a stack of tours, especially for two or more people.
You can explore the city easily. You can leave the city even more easily. Golden Circle. South Coast. Snaefellsnes. Reykjanes. Blue Lagoon. All of these are simple day trips. And you will not be watching the clock or a tour guide’s schedule. It is your time.
If you plan to spend most of your trip in the city, you can still use a car for day trips only. Pick up after you settle in. Return it before your last night. That often saves money on parking and keeps things calm.
Want help weighing the pickup location? Here are two practical reads from the Zero team:
- If you land and want the keys right away, see The smart traveler’s choice: car rental at Reykjavik Airport.
- If you prefer to rest first, see Why you should wait to pick up your rental car in Reykjavik.
Both options work. It depends on your plan, your energy, and your budget.
Where to collect: KEF Airport or downtown Reykjavik
Picking up at Keflavik Airport (KEF).
Good when you want to leave right away. You avoid the airport coach cost. You avoid returning later just to get the car. It is also best if your first night is outside Reykjavik. If you are driving to the South Coast or the Golden Circle on arrival day, this is the clean choice.
If you do choose the airport, this piece explains the transfer drive clearly: Ultimate guide to Keflavik Airport to Reykjavik drive.
Picking up in Reykjavik.
Best when you stay in the city first. You rest, walk, and adjust to the time zone. You do not pay for a car you will not use. Parking in 101 can add up. If you plan two or three city days at the start, take the bus or a transfer in, then collect the car downtown on the morning you leave the city. See Why you should wait to pick up your rental car in Reykjavik for a calm, step-by-step plan.
A note about Zero Car.
Zero has offices at KEF and in Reykjavik. There is 24-hour keybox pickup and drop-off at both. There is always staff at the KEF office to help, even if you use the keyboxes. You can check in online in advance. You get unlimited mileage and 24/7 roadside support. And the price is all-inclusive with zero excess. That means gravel, sand, ash and roadside assistance are covered. No deposit. The minimum rental is 48 hours.
Pick what matches your route. We will support either plan.
The right car for Reykjavik and nearby trips
Choose the car for the roads you will drive. Not for photos. Not for what looks cool. For the actual plan.
City and Golden Circle.
A compact or mid-size car is fine for Reykjavik, Blue Lagoon, and the Golden Circle in summer. These are paved roads with clear signs. You will be comfortable.
South Coast to Vík and beyond.
A compact works for Seljalandsfoss, Skógafoss, and Vík. If you plan gravel detours or want more ground clearance, a crossover helps. In winter, a 4x4 is wise for this route.
Snaefellsnes Peninsula.
Surface is mixed but mostly paved. A compact or crossover is fine in summer. A 4x4 adds confidence in shoulder seasons.
Highlands and F-roads.
You need a 4x4. Many F-roads open only in summer. Some include river crossings. Conditions change fast. If you are new to Iceland, stick to non F-roads or go with a guided super jeep to the Highlands. That is simpler and safer. F-roads are seasonal and require a capable 4x4 by rule. They are usually open in summer only. Check conditions with the Icelandic Road and Coastal Administration and plan with care.
EVs and hybrids.
Charging networks now cover most of the Ring Road and the capital area. If you like quiet driving and smooth torque, an EV is pleasant in and around Reykjavik. Plan your charging stops along with your coffee stops. If you want the fuel safety of a tank and the lower city emissions of an electric motor, go hybrid.
Zero’s fleet includes compact cars, crossovers, 4x4s, EVs, and hybrids. If your route is set, pick the smallest car that fits you and your bags. If your route has gravel, wind, or winter, step up one size.
What it actually costs to hire a car in Reykjavik
Prices move with season, demand, and car type. The baseline is the daily rate. Then there may be extras with some companies. Think second driver, child seat, GPS, and insurance packages.
Zero’s offer is dead simple. It is all-in pricing with zero excess. Gravel, sand, and ash protection are included. Roadside assistance is included. Unlimited mileage is included. You can add child seats and roof racks if you need them. The idea is to cut surprise fees.
If you compare different companies, do this:
- Compare the same car type and dates.
- Add the insurance you actually want. Look for gravel cover and sand and ash.
- Check the excess and deposit.
- List child seats, extra drivers, and after-hours pickup.
- Read the fuel policy.
- Confirm winter tyres are included in winter.
- Check payment timing and cancellation terms.
- Once you have the full total, the choice is much easier.
Reykjavik parking made simple
Parking in Reykjavik uses four paid zones called P1, P2, P3, and P4. Prices and hours vary by zone. You can pay at meters or in apps. In the central zones P1 and P2, paid hours run until the evening on weekdays and Saturdays, and there is also a paid period on Sundays. In zone P3 weekdays apply, and P4 is usually the least expensive. The City explains the zones and hours on its parking pages.
Paying by app is easiest. EasyPark and Parka both work across the city and also in city-run garages. Start the session when you park. End it when you leave. The city lists compatible apps here. Reykjavik
If you prefer a garage, look for Kolaport, City Hall, Traðarkot, Vesturgata, Stjörnuport, or Vitatorg. The city lists opening times and short-term options for each garage. Reykjavik
Two quick rules that catch visitors:
- Park in the direction of traffic on that side of the street.
- Do not stop on yellow lines or in signed resident spots.
If you are unsure, use a garage. It is cheaper than a ticket.
City driving basics you should actually remember
These are the simple rules that matter most for first-time visitors.
Headlights on. Always.
By law, you must drive with headlights on at all times, day and night. Do not rely on daytime running lights. Switch them fully on. It helps others see you in changing weather and low sun.
Seat belts for everyone.
Seat belts are required. No exceptions. If you travel with children under 135 cm in height, they must use an approved child seat. The official Ísland.is guidance is clear on this point.
Speed limits.
Urban areas are usually 50 km per hour unless marked otherwise. Residential streets often drop to 30. Throughways in town run 60. Outside towns on paved roads, the limit is 90. On gravel roads, it is 80. Signs take priority, but these numbers will keep you aligned with most roads. The Icelandic Road and Coastal Administration confirms these general limits.
Alcohol and driving.
Iceland’s legal threshold is low at 0.2‰ blood alcohol concentration. In practice, that means do not drink if you plan to drive. The new traffic law set this lower threshold and it has been in force since 2020.
No off-road driving.
Off-road driving is illegal in Iceland. Stay on marked roads and tracks. The government’s travel advice repeats this and explains why. The damage is long lasting. The fines are heavy.
Watch the wind and the gravel.
Open car doors carefully on windy days. Slow down on gravel and when passing oncoming cars. Gravel rash and wind damage are the two most common issues.
If you need road condition updates, call 1777 or check the road administration site. The service runs daily and posts current road and weather conditions.
Reykjavik with a rental car: what to do in town
A car is handy even in the city, as long as you plan your parking. You can cover more ground in a day and see neighborhoods beyond 101.
- Start at Grandi for coffee, bakeries, and the harbor walk.
- Cross to Perlan for the view and the water museum.
- Circle to Laugardalur for pools and parks.
- Swing by the Sun Voyager and Harpa for a short shoreline drive.
- End at Grotta lighthouse for sunset when tides allow.
For a deeper city game plan, use this guide: Reykjavik with a rental car: your ultimate guide to Iceland’s capital.
The best day trips from Reykjavik by car
You can do a lot from Reykjavik in one day. Here are practical loops with honest times. These are drive times only. Add your stops, walks, and meals on top.
Golden Circle
Route: Reykjavik → Thingvellir → Geysir → Gullfoss → back via Kerið or Hveragerði.
Drive time without stops: about 3.5 to 4 hours.
Distance: roughly 230 km.
Roads are paved and well marked. You can do this year round, though winter requires more care.
Blue Lagoon and Reykjanes loop
Route: Reykjavik → Blue Lagoon → Grindavik coast → Bridge Between Continents → back to Reykjavik.
Drive time without stops: about 2 to 3 hours.
Distance: 120 to 160 km depending on your detours.
Add bathing time as needed. Book the lagoon slot in advance.
South Coast to Vík
Route: Reykjavik → Seljalandsfoss → Skógafoss → Reynisfjara → Vík → return.
Drive time without stops: about 5 to 6 hours return.
Distance: roughly 380 km.
Check the surf and obey the beach signs. Never turn your back on the waves at Reynisfjara. In winter, start early and allow for daylight.
Snaefellsnes Peninsula
Route: Reykjavik → Borgarnes → Ytri Tunga → Arnarstapi → Hellnar → Londrangar → Kirkjufell → return via Grundarfjörður.
Drive time without stops: about 6 to 8 hours return.
Distance: 350 to 430 km depending on side roads.
Views are varied. Coast, lava, cliffs, and a glacier-capped volcano.
Borgarfjörður and Hraunfossar
Route: Reykjavik → Borgarnes → Deildartunguhver → Hraunfossar and Barnafoss → return.
Drive time without stops: about 3.5 to 4 hours.
Distance: roughly 260 km.
Good when you want a calmer day and still see classic lava and water.
Pick one loop per day. Do not cram three. You will enjoy the stops more.
Winter driving in and around Reykjavik
Winter is beautiful and calm if you respect the weather. Here is a simple plan.
Keep your route short. The Golden Circle or the South Coast to Skógafoss is enough for one winter day.
Check the weather and roads each morning. If a storm is forecast, use the pools, museums, and bakeries and drive the next day. The road service is fast but not magic.
Leave a safety margin. Add an hour on top of summer times.
Carry warm layers, a charged phone, and water.
In heavy snow or ice, use a 4x4 and drive smoothly.
Use headlights. Keep a longer gap. Avoid sudden braking.
If you want a winter goal that feels special, consider an ice cave trip. You can drive yourself to a meeting point in the south or southeast, then join a guided super jeep for the ice cave itself. This is a great way to keep your own car for the main route and let pros handle the glacier section. Here is a clear overview: Rent a car in Iceland and journey into ice caves.
Insurance, damage, and what “zero excess” really means
Insurance jargon is hard by design. Keep it simple. Look for two things.
What is covered.
What is your excess.
In Iceland, gravel rash, chipped windshields, sand and ash, and wind damage are common. Many rental firms sell each protection as a separate add-on. The excess can still be high. Zero uses an all-in cover with zero excess. That includes gravel, sand and ash, and roadside assistance. You do not leave a deposit. You still drive with care, but a stray chip or gust of wind is not going to ruin your trip.
Read the terms. This is always worth five minutes. If you do not understand a clause, ask at the desk. Good staff will explain it in plain words.
Fuel, charging, and simple money tips
Fuel.
Stations cluster near Reykjavik, Selfoss, Hvolsvöllur, Vík, Borgarnes, and around the Ring Road. Many are self-serve. Pay by card at the pump. If your card asks for a PIN you do not have, go inside.
Charging.
If you rent an EV, map your charge stops with your coffee breaks. Most main towns on the Ring Road have DC chargers. Keep a safe buffer in winter since cold reduces range.
Tolls and parking fees.
Most roads in Iceland are toll free. The one tolled tunnel tourists meet is Vaðlaheiðargöng near Akureyri, far from Reykjavik. You pay it online if you use it. Hvalfjörður tunnel north of Reykjavik has been toll free since 2018. Parking fees around Reykjavik and some natural sites are now normal, so keep the apps handy.
Cards.
Iceland is cashless. You can do your whole trip by card and phone. Keep a little cash only if you prefer it.
A realistic 3-day starter plan with car hire in Reykjavik
Here is a simple plan that fits first-time visitors and keeps stress low. Swap days around as you like. Adjust seasonally.
Day 1. Settle in and learn the city
Land at KEF. If you want to drive right away, collect at the airport and take a slow route into town with a coffee stop. If you are tired, take a transfer and pick up your car the next morning. Park near your hotel in P2 or P3 or use a garage if you are in 101. Stretch your legs along the waterfront. Early to bed.
Day 2. Golden Circle
Pick up your car if you did not on Day 1. Leave Reykjavik by 8 or 9 am. Thingvellir first. Then Geysir. Then Gullfoss. If you have time, stop at Kerið crater on the way back. Dinner in Reykjavik.
Day 3. South Coast sampler
Drive to Seljalandsfoss and Skógafoss. If the weather and daylight behave, continue to Reynisfjara and Vík. Keep an eye on wind forecasts. Back to Reykjavik in the evening. Return the car if your city stay continues and you do not need it tomorrow.
This plan cuts parking costs, keeps you fresh, and shows you a lot without rushing.
How Zero Car fits into your Reykjavik trip
We are a local rental company. The focus is clear pricing and a smooth process. Here is what that means in practice.
All-inclusive price. Zero excess. Gravel, sand and ash, unlimited mileage, roadside assistance included.
No deposit, and a 48-hour minimum rental.
Two offices that make logistics easy. KEF Airport office and a Reykjavik office.
24/7 keybox pickup and drop-off. If you arrive late or leave early, you can still collect and return.
There is always staff at the KEF office to help with questions or the keyboxes.
Online check-in to save time at the counter.
A fleet that fits Iceland. Compact cars, crossovers, 4x4s, EVs, and hybrids.
If you want to read more about using a car in the city, this guide is a helpful companion: Reykjavik with a rental car: your ultimate guide to Iceland’s capital
Mistakes to avoid when you hire a car in Reykjavik
These are the things we see most often. Easy to avoid once you know them.
Starting too fast on arrival day.
Jet lag plus dark winter roads is not ideal. If you are unsure, sleep first and collect the car the next morning.
Underestimating parking rules.
P1 to P4 zones have different hours and prices. Use EasyPark or Parka and end your session when you leave. Garages are a good fallback.
Booking the wrong car.
Pick for the roads, not the photo. Small is fine for the city and Golden Circle in summer. Move up for winter or gravel.
Ignoring the wind.
Hold your doors. Park with the wind in mind. It only takes one strong gust.
Skipping the basics on Icelandic rules.
Headlights on. Belts on. No drinking. Speed within limits. No off-road. These are simple and make a big difference.
Common questions about car hire in Reykjavik
Is it hard to drive in Reykjavik?
Not really. The city is small. Traffic is calm by big-city standards. Follow signs, watch for bus lanes, and keep to posted limits. If a roundabout confuses you, slow down and take your time.
Automatic or manual?
Automatic is easiest if you are new to Iceland’s roads. It is also common here. Manual is fine if you prefer it and have recent practice.
Do I need a 4x4 for winter?
It helps. For city use and the Golden Circle on a calm day, a small car on winter tyres can be enough. For longer routes and changeable weather, a 4x4 adds safety and traction.
What about child seats?
Children under 135 cm must use a child seat by law. Plan your seat type based on height and weight. If you rent from Zero, add the seat during booking so it is ready at pickup.
Can I park anywhere at night for free?
No. Central zones often remain paid into the evening and on Sundays in the core areas. Check the zone and hours in the app or on the sign.
Are there toll roads near Reykjavik?
No. You will not hit a toll around the capital. The one tolled tunnel is up north near Akureyri. Hvalfjörður tunnel north of Reykjavik has been free since 2018.
Will my headlights turn on automatically?
Do not assume they will. Many cars default to daytime running lights only. Turn the headlight switch to On and leave it there.
What if a storm is coming?
Do not push through it. Check 1777 and umferdin.is. Move your long day trip to another day. Iceland rewards patience
A calm way to book and pick up your car
- Decide your pickup point. KEF if you head out at once. Reykjavik if you rest first.
- Choose the car for your route. Compact for city and Golden Circle in summer. Crossover or 4x4 for winter and gravel.
- Add the practical extras only. Think child seat, second driver, and maybe a roof box if you ski or carry bulky gear.
- Finish online check-in. It saves time at the desk.
- On pickup day, bring your license, a payment card, and your booking.
- Walk around the car. Take photos. Note any marks. Ask how to start the heater and where the charging port is if you take an EV.
- Set your first stop before you drive. Coffee, a viewpoint, a gas station. Then ease into the route.
If you choose Zero, you will find clear pricing with zero excess cover, fast pickup with keyboxes if you want them, and staff on hand at KEF to help at any hour. If you choose someone else, use the same checklist and you will be fine.
Simple itineraries that pair well with Reykjavik car hire
Three summer day trips
Day 1 Golden Circle.
Day 2 South Coast to Vík.
Day 3 Snaefellsnes.
Three winter day trips
Day 1 Golden Circle with daylight in mind.
Day 2 South Coast to Skógafoss and back.
Day 3 Reykjanes coast and Blue Lagoon.
One open day idea
Drive to Borgarnes for lunch, then to Hraunfossar and Barnafoss. It is easy, scenic, and not crowded.
Want something different?
You can do an ice cave trip with a short self-drive to the meeting point, then a guided super jeep for the glacier. It feels special and keeps your own driving simple. Read more here: Rent a car in Iceland and journey into ice caves.
Final notes to keep your trip simple
- Keep the car small if your route allows it. Parking gets easier and fuel costs drop.
- Pack light. Soft bags fit better than hard suitcases.
- In summer, book early. In winter, book a 4x4 if you plan to roam.
- Save the Reykjavik parking pages in your phone. If in doubt, use a garage. Reykjavik
- Remember the core rules. Headlights, seat belts, modest speed, no alcohol, no off-road. That is Iceland driving in one line.
If you want a one-stop rental with full cover and no excess, Zero was built for that. If you want to compare, use the checklists above and you will still pick well. Either way, Reykjavik is a great base for a road trip. Enjoy it.