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Reykjavik Downtown

If you're looking for car rental in Reykjavik Downtown, look no further. We offer low CO2 vehicles that are at the cutting edge of environmental technology, with a choice of hire vehicles right across the range, from small city cars to luxury limousines all of which give our customers the opportunity to reduce their CO2 emissions.

Renting a car in Reykjavik is highly recommended, as it provides the freedom to explore stunning destinations like the Golden Circle, Blue Lagoon, and the remote beauty of the Icelandic highlands. The drive from the airport to Reykjavik is smooth, taking about 45 minutes via Route 41, offering scenic views along the way.

Reykjavik, the northernmost capital in the world, is a charming blend of modern culture and breathtaking natural beauty. Known for its colorful houses, artistic vibe, and rich Viking history, the city offers a mix of lively nightlife, world-class museums, and stunning coastal views. Visitors can explore landmarks like Hallgrímskirkja Church, Harpa Concert Hall, and the Sun Voyager sculpture, or relax in geothermal pools such as the Sky Lagoon. 

 

Tips for renting a car in Reykjavik

Before you rent
Choose wisely. In 2019 we introduced our multi-product system which helps you choose a car based on your needs and easily see the final price. Car rental insurance can be tricky to navigate and often isn't what you expect, by booking with us direct you'll receive the correct insurance for your rental.

When you collect your vehicle
Plan ahead. We recommend planning your route before you leave, especially when renting a car at an airport. Are you sure where you're meeting your chaperone or where the rental desk is? Your confirmation email will have the contact information for the location, so we suggest saving the number in your phone ahead of time.

Have the correct documents ready. We try and keep the check in process as painless as possible but we do need to process certain information for legal reasons so having these ready ahead of time can help speed up the process. Make sure you have your booking details ready, along with your driving licence, passport and valid credit card.

Complete a vehicle check. It's essential when you are taken to your car you complete a Vehicle Condition Report (VCR) and note any existing damage, paying particular attention to the five damage hotspots. If you don't report this, you may be liable for these damages when you return the vehicle. We don't want you to get caught out, so we've put together a handy vehicle inspection video to help you check everything thoroughly.

While you rent
Take care. Unfortunately you may be liable for any damage caused to a vehicle in your care, and this will vary depending on the product you choose. A large proportion of damages to any car can be dings you pick up in car parks, so be mindful when space is limited and park further away and walk a little further to your destination.

When you return your vehicle
Complete a vehicle check. It's time to carry out a VCR again and even more essential to fully log any damage, no matter how small, to ensure you are fully covered and we can process your return effectively. Be sure to check the vehicle as before, paying special attention to the five damage hotspots.

Green Motion Car Rental Iceland Reykjavik 767x767

Good to know about car rental in Reykjavik

 

Once you have arrived in Reykjavik and picked up your rental car from the designated office, we wish you a safe and delightful journey.

For those navigating Keflavik’s roads for the first time, take a moment to get acquainted with the vehicle, understand Iceland’s traffic regulations, and plan your routes using GPS or navigation apps like Google Maps or Waze.

In Iceland, driving is on the right-hand side. A valid driving license from your home country is required, and depending on your country of origin, you may also need an International Driving Permit (IDP).

Driving in Reykjavik requires attention, especially during wintertime. The weather in Iceland can change rapidly, with snow, ice, and strong winds posing challenges, particularly outside urban areas. Winter tires are mandatory from November 1 to April 15, ensuring better grip on icy roads.

Iceland’s roads can be narrow, especially in rural areas, and some highland roads (marked F-roads) require a 4x4 vehicle and are only open during summer months. Be cautious when driving near the coastline, as wind gusts can be extreme — always hold onto your car doors when opening them to avoid damage.

The speed limits in Iceland are generally 50 km/h in urban areas, 80 km/h on gravel roads in rural areas, and 90 km/h on paved highways, with adjustments based on road conditions and signage. Speed cameras are widely used, and fines for violations can be significant. Fuel stations are available in Reykjavik and along major highways, but in remote areas, they can be far apart — always monitor your fuel level and refuel when possible.

Parking in Reykjavik’s downtown is metered, and using parking apps like Leggja can be convenient. Outside the city center, parking is generally free. Most roads in Iceland do not have tolls, except for the Vaðlaheiðargöng tunnel in the north, which requires an online payment.

If you need help while in Reykjavik, don't hesitate to contact our office. In an emergency, dial 112, Iceland’s national emergency number.

Enjoy your journey and explore Iceland’s stunning landscapes with confidence! 🚗

Useful Information

Side of road

Drive on the right side of the road

Side of road

Drive on the right side of the road

Local currency

Icelandic króna

Average temperatures

3°C (37°F) - 14°C (57°F)

FAQs about car hire in Reykjavik Downtown

Is Reykjavik easy to drive in?

Yes, Reykjavik is relatively easy to drive in, with well-maintained roads and clear signage. However, be aware of winter conditions that can affect driving safety.

How is the traffic in Reykjavik?

Traffic is generally light compared to other capitals, but rush hour (7:30–9:00 AM and 4:30–6:00 PM) can cause minor congestion, especially in the city center.

Are there any car-restricted areas in Reykjavik?

Yes, parts of downtown Reykjavik, especially around Laugavegur, are pedestrian-only. Check for signs before entering restricted zones.

Is there anything special to keep in mind when driving in Reykjavik?

Weather changes quickly, so check road.is for updates. Sheep may cross roads in rural areas, so drive cautiously. Wind gusts are strong, so hold onto your car doors when opening them. F-roads require a 4x4, and some are only open in summer.

Are there any specific driving rules I should be aware of in Iceland?

Yes! Headlights must be on at all times, day and night. Seat belts are mandatory for all passengers, and off-road driving is illegal and subject to heavy fines. Many bridges in Iceland are single-lane, and drivers must yield according to oncoming traffic and signage. There is a strict zero-tolerance policy for driving under the influence of alcohol.