Reykjavik may be one of Europe’s smallest capital cities, but it is packed with exciting things to see and do. On a visit to Reykjavik you can experience captivating museums, iconic architecture and world-class cuisine. Not only that but it is surrounded by natural beauty and is a logical starting point for any visit to Iceland. With its thriving arts and culture scene, Reykjavik city centre has everything you need to be inspired. By day immerse yourself in its buzzing café culture, and by night enjoy Reykjavik’s lively restaurant scene, where local ingredients play a starring role.

Reykjavik’s natural wonders are also a treat to explore. Famous for its hot springs, you can recharge your batteries at the city’s geothermal Blue Lagoon or drive to Iceland’s Golden Circle sightseeing route which encompasses Thingvellir National Park, the Geysir Geothermal Area and Gullfoss waterfall.

Reykjavik is also known for its great design and craftsmanship. The main shopping area is clustered around Laugavegur, Bankastræti and Skólavörðustígur, and you can also find some interesting design stores, handicrafts and galleries in the revamped Old Harbour Area.

Iceland is a land of wide-open spaces, contrasting landscapes and constant geothermal activity, making it one of the world’s most exciting destinations to visit. There’s no better way to discover this vast land of fire and ice than from the comfort of your hire car. Avis has a number of rental offices dotted throughout strategic locations in Iceland – including in Akureyri, Isafjordur, Egilsstadir, Hofn, Saudarkrokur and Husavik – so no matter where you plan to travel, we have you covered.

Here are some key places to put on your list for your travels through Iceland:

Thingvellir National Park

No visit to Iceland can be considered complete without a visit to Thingveillir National Park, which sits within the Golden Circle. Here you can see the divide between the tectonic plates of Europe and North America, along with epic volcanic landscapes encompassing gorges, waterfalls, lakes, and more. Iceland’s parliament was founded here in 930, making it one of the oldest operating parliaments in the world.

Landmannalaugar

Also known as the People’s Pools, this area of outstanding beauty is nestled amid colourful rhyolite mountains and lava fields. Geothermal hot springs and off-the-beaten-track hiking trails are a major draw in this remarkable corner of Iceland.

Jokulsarlon Glacier Lagoon

Located in the southeast of Iceland, visitors will truly have their minds blown by this enormous lake where icebergs of all different sizes and shapes, composed of ice over a thousand years old, silently drift across the lagoon. The icebergs end their journey when they reach the shores of Diamond Beach ­– where they sparkle like cut diamonds on the black sand.

Hornstrandir Nature Reserve

Known for its remote setting and dramatic landscapes at the edge of the Arctic Circle, Hornstrandir Nature Reserve offers magical hiking routes and diverse wildlife, across one of the most isolated parts of Iceland.

We’ve unlocked Iceland’s driving rules and regulations for your journey to help keep you safe and avoid the unexpected. Familiarise yourself with our comprehensive guide.

Which Side of the Road?

In Iceland, please drive on the right-hand side of the road.

Unique Country Driving Laws

• It is prohibited to drive outside marked roads or tracks
• Special warning signs indicate possible danger, such as sharp bends, as there is no sign to reduce speed, so please drive carefully, and choose the appropriate speed according to road and weather conditions
• Use of mobile phones is prohibited while driving
• Motorists must use headlights at all times, day and night

Speed Limits

For a standard Avis rental vehicle with no trailers:

• Urban areas: 31 mph (50 km/h)
• Rural areas: 55 mph (90 km/h)
• Unpaved roads: 49mph (80km/h)
• Unless indicated by road signs.
• Child Safety / Seatbelt Laws

It is compulsory for everyone inside the vehicle to wear a seatbelt.

• Children under 12 and less than 150cm tall must be seated in an appropriate child restraint for their size.

Please note - It is the child’s parent / guardian or vehicle renter’s responsibility to fit the child seat.

Compulsory Equipment in your Avis rental car

• Warning Triangle
• Please ask your Avis representative whether snow tyres are compulsory at the time of your arrival

Emergency Services

Police                                         112

Ambulance                                  112

Fire Department                          112

European Emergency Number   112

Can foreigners drive in Iceland?

In Iceland, all foreign driver’s licenses are accepted. However, you do need to be a minimum of 21 years old to rent a car in Iceland and 23 to rent a 4x4.

Are car rentals in Iceland expensive?

The price of a hire car in Iceland varies depending on seasonality. With Avis, you can find the best car rental deals in Reykjavik and enjoy flexible booking options. Use our online booking form to compare prices for your chosen dates.

Should I 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 is recommended if you want to go to places like the West Fjords or the northern regions.