Iceland car hire: most popular destinations in Iceland
Cheap car hire in Iceland: tour the island of volcanoes and ice at your own pace
Iceland is one of the most impressive natural destinations in the world. Glaciers, waterfalls, volcanoes and black sand beaches form an almost unreal landscape that invites you to travel around the island by road. By opting for cheap car hire in Iceland, you can not only optimise your travel budget, but also enjoy total autonomy to explore every corner of the island without limitations.
Unlike other European destinations, many of Iceland's main attractions are located far from urban centres and do not have frequent public transport connections. Choosing a rental car in Iceland is therefore the most practical option for designing a personalised route, stopping at natural viewpoints and adapting your itinerary to changing weather conditions.
Travelling the island by road is an essential part of the experience. The circular road connecting the south, east and north links different regions in scenic drives lasting several hours. Driving a rental car in Iceland offers constantly changing landscapes and the possibility of discovering natural sites that are difficult to visit without your own vehicle.
In this context, car rental in Iceland is the most efficient alternative to combine freedom, savings and flexibility in one of the most spectacular destinations in Europe.
Useful information on car rental in Iceland
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Tips for renting a car in Iceland
Check Iceland's road traffic regulations
Find out about tolls, vignettes and restricted areas in Iceland
Choose your car type according to your Icelandic itinerary
Frequently asked questions about renting a car in Iceland
Do I need a credit card to rent a car in Iceland?
Not always. Some of our suppliers require a physical credit card in the name of the main driver to rent a car at Iceland, but many others accept a debit card! However, it must always be physical and in the name of the main driver. Check the terms and conditions of each offer before renting your car at Iceland, to make sure.
What is included in the car hire price in Iceland?
The price shown on Pepecar includes the items detailed in the Supplier Conditions displayed during the booking process.
It normally includes:
- Vehicle hire for the selected period.
- Compulsory basic insurance (with excess, unless otherwise stated).
- Mileage according to the contracted rate.
- Mandatory taxes and fees.
Each vehicle may have different conditions, so it is important to always review the ‘Rental Conditions’ section before confirming your booking.
What is Pepecar's cancellation policy for cheap car hire in Iceland?
The cancellation policy of renting a car at Iceland with Pepecar is very simple! If you cancel 48 hours before the car collection time, the cancellation will be completely free of charge. If not, there will be a cancellation penalty which you will be informed of during the booking process.
Is Pepecar cheaper than renting directly from a supplier?
Sometimes yes, sometimes no. It depends on the supplier, the location, the dates, when you make the booking and how far in advance, and ultimately on the prices set by the suppliers compared to those set by Pepecar for each occasion. Pepecar is not restricted by suppliers when setting its own prices; we set our own rates.
What information should I review before confirming a rental?
Before confirming your booking, you should check:
- The total price and what it includes.
- The deposit that will be paid or blocked on your card.
- The type of cover included and the excess.
- The fuel policy.
- The cancellation and modification conditions.
- The documentation you need to present when picking up the vehicle.
At Pepecar, this information is detailed in each offer, so you will have no doubts before deciding which vehicle to rent. The aim is to ensure that renting a car is an informed decision and that, once you have made it, all you have to do is enjoy your rental car without any worries.
What documents do I need to hire a car in Iceland?
In order to rent a car, you will normally be required to provide the following documents:
- National identity card or passport valid in [metadata:parent-country]
- Driving licence valid in [metadata:parent-country]
- Credit card in the name of the driver who made the booking.
Customer reviews on car rental in Iceland
Cavinosch
21-03-2026
Very efficient and easy to handle
Pedro
21-03-2026
Speed of recruitment
ANA BELEN GUERRERO JAIME
22-03-2026
Hi. Easy to do online and very clearly explained.
Jose Manuel
22-03-2026
Very good!
Esperanza
23-03-2026
So far my experience is very good, because the information is detailed and transparent and helps to make a good choice, without final surprises, which is what bothers me the most when I rent a car. The management is easy and fast. Everything is ok
Lalo
23-03-2026
The booking website is agile and fast.
Javier Armán Carames
24-03-2026
The experience was very good, quick, easy and I found what I needed at the price I wanted.
Jhon stiven Trejos maya
25-03-2026
Very fast and comfortable
Jose Garcia
26-03-2026
Everything is correct and the company's service is good
EUGENIO TORRES GUTIERREZ
27-03-2026
for the time being positive
Guillermo
27-03-2026
Very fast and good value for money
Carlos
28-03-2026
It was quick and easy
Pablo Alejandro
30-03-2026
In the visualisation of possibilities.
Natalia Rodríguez-Bermejo
31-03-2026
Quick and easy to book
MARIA LOURDES QUINTANA LUIS
02-04-2026
Very good, very fast, service and price.
Estanislao Buisel Quintana
04-04-2026
Easy and cheap
Rating of 3.9 out of 5 based on 4148 reviews. See all reviews.
Where to rent a car in Iceland.
Knowing where to rent a car in Iceland is essential to organise an efficient route in a country where nature sets the itinerary. Waterfalls, glaciers, volcanoes and black sand beaches are not always connected by public transport, so having your own vehicle is practically essential. Car rental in Iceland allows you to tailor your trip to suit your own pace and access the most spectacular scenery without limitations.
Choosing the right pick-up point makes it easy to plan your journey, whether you want to complete the circular route around the island or focus on specific areas such as the south coast, north or east of the country.
The main locations available are:
- Reykjavík- car rental in Reykjavík is one of the most common ways to start your journey. From the capital you can organise trips to the Golden Circle, explore the south coast or start a circular route around the country.
- Reykjavík Airport: picking up your car at the airport is the most practical option if you want to start your route as soon as you land. From here you can head straight to Reykjavík or start your journey south without relying on additional transfers. Not far from the capital, there is also the option of Reflavík International Airport, where you can find good value car hire in Iceland with Pepecar.
- Akureyri: located in the north, car hire in Akureyri is ideal if your itinerary includes volcanic landscapes, fjords and less crowded regions. Its strategic location makes it easy to explore the north at your leisure. Akureyri airport can be the perfect solution to get you out of Akureyri at the wheel of your rental car.
- Egilsstaðir: In the east, car rental in Egilsstaðir allows you to discover one of the country's most natural and least travelled areas. It is an excellent base for touring the eastern part of the island. Egilsstaõir airport is also a great place to pick up your car hire in Iceland.
One of the most popular routes is to start at Keflavík airport, pass through Reykjavík and Selfoss and complete the journey through the east and north before returning to the starting point. This versatility makes car hire in Iceland the most efficient option for travelling through these wild and unique landscapes with total agility and in the freest possible way.
All these options are available at Pepecar, with full clarity on the rental conditions and a wide range of car hire in Iceland.
What is it like to drive a rental car in Iceland?
Driving a rental car in Iceland is a unique experience that requires some planning. It drives on the right and the main road around the island is maintained in good condition for much of the year, connecting Reykjavík with the south, east and north.
Important things to keep in mind:
- Weather conditions can change rapidly.
- In winter there can be snow, ice and strong winds.
- Some secondary mountain roads are only accessible by 4WD vehicles.
- Distances between service stations can be long in sparsely populated areas.
- It is advisable to check road conditions before long journeys.
Travelling by rental car in Iceland offers one distinct advantage: the ability to stop at waterfalls, glaciers or volcanic beaches whenever you wish, without relying on organised tours. Freedom of movement is key to fully enjoying one of Europe's most stunning natural destinations.