Car Hire Iceland

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. 

Our Iceland car hire services cover the full range of of rental options along with an Avis Preferred service and out of hours key drop options.  

Our range of cars are perfect for navigating Iceland’s roads. With a large variety of models to choose from – including economy, sedans and 4x4s – you can be sure to get the very most out of your stay.

If you’re planning a trip for friends or family, check out our range of large cars, estates and 7-seaters.

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.

For the full range of Iceland car rentals, see our Avis car rental fleet.

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.

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. 

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.

Iceland 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

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 mid-April, 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. 

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. Iceland’s colourful and historic capital Reykjavík is just a 40 min drive away from Keflavik International airport on Route 41.

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.

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.

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.