Rent a Car in Reykjavik with Dollar Car Rental Iceland
Already in Reykjavík and ready to explore more of Iceland? Renting a car directly from the city is a convenient option if you didn’t need a vehicle when you first arrived or only want a rental car for part of your trip.
With Dollar Car Rental Iceland, you can rent a car in Reykjavik from our location at Flugvallarvegur 5, close to Reykjavík city centre and Reykjavík Domestic Airport (RKV).
Choose from affordable compact cars, larger vehicles, SUVs and 4x4s for everything from a day trip outside the capital to a longer self-drive adventure around Iceland.
If your plans have changed while you’re here, you can also check availability for a last-minute car rental in Reykjavik and get on the road without having to return to Keflavík Airport.
Dollar Reykjavik Car Rental Location
Address:
Flugvallarvegur 5
101 Reykjavík
Iceland
Our Reykjavik car rental location is conveniently positioned for travellers staying in the capital who want to collect a car before heading beyond the city.
Why Rent a Car in Reykjavik?
You don’t necessarily need a rental car for every day you spend in Reykjavík.
If you plan to spend the first few days of your holiday exploring the city on foot, using public transport or joining organised activities, you can wait until you’re ready to travel farther before picking up your car.
Choosing car rental in Reykjavik city means you can collect your vehicle when you actually need it.
A Reykjavik rental car is particularly useful if you’re planning to:
- Drive the Golden Circle
- Explore Iceland’s South Coast
- Visit the Snæfellsnes Peninsula
- Take day trips from Reykjavík
- Travel around the Ring Road
- Visit towns and attractions outside the capital
- Continue your trip to another region of Iceland
Instead of following a fixed tour schedule, having your own car gives you more control over where you go and how long you spend at each destination.
Last-Minute Car Rental in Reykjavik
Plans can change once you arrive in Iceland.
Maybe you’ve decided to add a Golden Circle road trip to your holiday, the weather looks good for exploring outside Reykjavík, or you simply want more flexibility for the next few days.
Dollar offers last-minute car rental in Reykjavik, subject to vehicle availability.
Simply check your dates online to see which vehicles are available. If you find the right option, you can book a rental car today and collect it from our Reykjavík location.
During busy travel periods, availability can change quickly, so booking in advance is still recommended whenever possible.
Choosing the Right Rental Car in Reykjavik
The best rental car in Reykjavik depends on where you plan to go, the time of year and how many people are travelling with you.
Small and Economy Rental Cars
A small or economy car can be a good option for driving around Reykjavík and taking shorter trips on paved roads.
If you’re visiting during summer and planning popular routes such as the Golden Circle or South Coast, a standard 2WD rental car may be all you need.
SUVs and 4×4 Rental Cars
For additional space or trips during Iceland’s colder months, you may prefer an SUV or 4×4.
A 4×4 is also required if your summer itinerary includes Iceland’s designated F-roads in the Highlands. Always check that your specific rental vehicle is approved for F-road driving before planning a Highland route.
Larger Rental Cars
If you’re travelling with children, friends or plenty of luggage, choosing a larger vehicle can give you more passenger and storage space.
Dollar offers a variety of Iceland car rental options, allowing you to choose your vehicle based on your itinerary rather than simply selecting the largest car available.
Where Can You Drive from Reykjavik?
One of the biggest advantages of choosing a car rental in Reykjavik is the number of popular Iceland destinations you can reach directly from the capital.
Golden Circle
The Golden Circle is one of the most popular self-drive routes from Reykjavík. The classic route includes Þingvellir National Park, the Geysir geothermal area and Gullfoss waterfall.
It is an excellent option if you only want to rent a car for one or two days while staying in Reykjavík.
South Coast
Drive east from Reykjavík to explore waterfalls, glaciers and Iceland’s famous black sand coastline.
Popular stops include Seljalandsfoss, Skógafoss, Dyrhólaey and Reynisfjara. If you have more time, you can continue farther east towards Skaftafell and Jökulsárlón Glacier Lagoon.
Snæfellsnes Peninsula
Head north from Reykjavík towards the Snæfellsnes Peninsula for mountains, fishing villages, lava landscapes and coastal scenery.
Popular stops include Kirkjufell, Arnarstapi, Búðir and Snæfellsjökull National Park.
Iceland Ring Road
If you have a week or longer, you can use Reykjavík as the starting point for a larger road trip around Iceland.
Route 1, better known as the Ring Road, connects many of Iceland’s main regions and makes it possible to explore much more of the country with your own rental vehicle.
Driving a Rental Car in Reykjavik
Driving in Reykjavík is relatively straightforward, but there are a few local rules and conditions visitors should know before setting off.
Typical speed limits include:
- Residential areas: 30 km/h
- Many urban roads: 50 km/h
- Rural gravel roads: Up to 80 km/h
- Rural paved roads: Up to 90 km/h
Always follow the posted speed limit, as limits can vary depending on the road.
Headlights must be switched on while driving in Iceland, both during the day and at night.
Traffic is generally busiest on weekday mornings and in the late afternoon, particularly on major routes into and out of Reykjavík.
Weather can also change quickly, so check current road and weather conditions before longer journeys outside the city.
Parking Your Rental Car in Reykjavik
If you plan to keep your Reykjavik rental car while staying in the city, it is worth checking the parking arrangements at your accommodation.
Central Reykjavík has several paid parking zones, with prices and operating hours varying by location.
Always check nearby signs when parking rather than assuming that a space is free. Some hotels and guesthouses have private parking, while others rely on public street parking.
If you’re staying in central Reykjavík for several days but only need a car for trips outside the city, collecting your rental car on the day you leave Reykjavík can also help you avoid unnecessary parking costs.
Picking Up Your Dollar Rental Car in Reykjavik
When collecting your Iceland rental car, make sure you have the required documents ready.
You will generally need:
- Your Dollar reservation confirmation
- A valid driver’s licence
- A valid payment card that meets the rental requirements
Your driver’s licence must meet Dollar Iceland’s rental requirements, and additional conditions can apply depending on your age and selected vehicle category.
We recommend reviewing the rental terms before arriving so you know exactly what you need at collection.
Reykjavik Car Rental or Keflavik Airport Car Rental?
Whether you should rent your car in Reykjavík or at Keflavík International Airport depends on your itinerary.
If you want a rental car for your entire Iceland holiday, collecting your vehicle near Keflavik International Airport (KEF) after your international flight may be the most convenient choice.
However, if you’re spending the first part of your trip in Reykjavík without a car, choosing a Reykjavik car rental allows you to collect your vehicle only when you’re ready to start exploring outside the city.
This can be particularly useful for travellers who have already arranged airport transportation, are staying several days in Reykjavík, or decide to rent a car after arriving in Iceland.
Why Choose Dollar Car Rental in Reykjavik?
Dollar Car Rental Iceland offers a straightforward way to get on the road from Reykjavík.
Choose from a range of affordable rental vehicles suitable for different routes, seasons and group sizes. Whether you’re looking for a compact car for a quick day trip or a larger SUV for a longer Iceland road trip, you can choose a vehicle that matches your plans.
Our Reykjavík location also means there is no need to travel back to Keflavík Airport just to collect a car.
So, if you’re ready to see more than the capital, book a rental car today with Dollar and start your Iceland road trip directly from Reykjavík.
FAQ About Car Rental in Reykjavik
- Can I rent a car in Reykjavik city centre?
Yes. Dollar Car Rental Iceland has a Reykjavík location at Flugvallarvegur 5, 101 Reykjavík, conveniently located close to the city centre and Reykjavík Domestic Airport. It is a useful option if you’re already staying in Reykjavík and want to rent a car for the next part of your trip.
- Can I book a last-minute car rental in Reykjavik?
Yes, you can book a last-minute car rental in Reykjavik if vehicles are available for your dates. Availability can be more limited during busy travel periods, so we recommend checking online as soon as you decide you need a car.
- Is it worth renting a car while staying in Reykjavik?
If you’re only planning to explore central Reykjavík, you may not need a rental car. However, a car becomes much more useful if you want to visit the Golden Circle, South Coast, Snæfellsnes Peninsula or other destinations outside the capital.
- Is it cheaper to rent a car in Reykjavik or at Keflavik Airport?
Rental prices vary depending on your travel dates, vehicle category, rental duration and availability. If you only need a car for part of your holiday, renting in Reykjavík can help you avoid paying for rental days when you don’t need a vehicle.
- Do I need a 4×4 rental car in Reykjavik?
You do not need a 4×4 simply to drive around Reykjavík. Your choice should depend on where you plan to travel after leaving the city and the season of your visit. A suitable 4×4 is mandatory if you plan to drive on Iceland’s F-roads.
- Can I rent a car in Reykjavik for one day?
Short-term rentals may be available depending on your dates and vehicle availability. A one-day rental can be particularly useful for travellers who want to take a self-drive day trip from Reykjavík.
- What are the best day trips from Reykjavik by rental car?
Popular self-drive day trips include the Golden Circle, South Coast, Reykjanes Peninsula and Snæfellsnes Peninsula. The best route will depend on how much driving you want to do and current weather and road conditions.
- Can I pick up a rental car in Reykjavik and return it at Keflavik Airport?
One-way rentals may be available, allowing you to collect your car in Reykjavík and return it at Dollar’s Keflavík location. This can be convenient if you want to rent a car for the final part of your Iceland trip and then drive towards the airport. One-way rentals are subject to availability and may include an additional fee.
- What documents do I need to rent a car in Reykjavik?
You will need a valid driver’s licence that meets Dollar Iceland’s rental requirements and an accepted payment card in the main driver’s name. Requirements can vary depending on the vehicle category, so check the rental terms before collection.
- Should I book my Reykjavik rental car in advance?
Booking in advance is recommended, particularly during summer and other busy travel periods. However, if you’re already in Iceland and your plans change, you can check Dollar’s current availability for a last-minute car rental and book online.