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Explore Reykjavik on a Budget: Find Your Perfect Car Rental Reykjavik Cheap Deals!
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Explore Reykjavik on a Budget: Find Your Perfect Car Rental Reykjavik Cheap Deals!
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Jun 12, 2024

Explore Reykjavik on a Budget: Find Your Perfect Car Rental Reykjavik Cheap Deals!

Explore Reykjavik on a Budget: Find Your Perfect Car Rental Reykjavik Cheap Deals!

The best restaurants in Chicago

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1. Burger Bar & Grill

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2. Eagle French Cafe

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3. L’ardoise Bistro

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4. Anchor Seafood Market

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Navigating the rugged terrain of Reykjavik and its surrounding areas by car is a thrilling way to experience the raw beauty of Iceland while enjoying the freedom to explore at your own pace. Whether you’re touring the city’s cultural sites or venturing into the country’s awe-inspiring landscapes, having your own set of wheels is not just a luxury, but a necessity. So let’s rev up and navigate through the world of car rental Reykjavik cheap options and beyond.

Key Takeaways

  • Explore Reykjavik on a budget with car rental deals starting at $54 per day.
  • Take advantage of early bird discounts, use online comparison tools and look for seasonal offers to get the best deal.
  • Follow essential driving tips such as checking weather forecasts and road conditions, adhering to speed limits & traffic laws, and taking safety precautions while driving in Iceland.

Affordable Car Rental Options in Reykjavik

A rental car parked in front of a scenic Icelandic landscape

When you step off the plane at Keflavik International Airport or Reykjavik Domestic Airport, you’ll find a range of Iceland car rentals ready to equip you for your Icelandic adventure. From global brands like Hertz and Budget to local operators like Ice Rental 4x4, these car rental companies offer a variety of rental cars to suit all budgets and preferences. Whether you’re looking for a compact city car for zipping around Reykjavik’s streets or a sturdy 4x4 for tackling Iceland’s rugged landscapes, you’ll find a car that fits your needs.

Of course, cost is a key concern for many travelers. Thankfully, Reykjavik boasts a competitive car rental market, with prices for the cheapest rental cars starting at around $409 per day. But don’t let this number deter you. With a little savvy, you can find deals that significantly reduce this cost. For instance, you can rent a compact car for as low as $54 per day, which represents a significant saving of approximately 62% compared to the average rental car.

Best Deals and Discounts on Car Rentals

A person comparing car rental deals on a laptop

While the price tag of a rental car in Reykjavik might initially seem steep, there are plenty of ways to snag a bargain. Early bird discounts, online comparison tools, and seasonal offers can all make a big difference to your budget, letting you spend more on experiences and less on getting around.

Moving forward, let’s delve into the specifics.

Early Bird Discounts

Booking your car rental in Reykjavik well in advance can unlock substantial savings. Known as early bird discounts, these deals reward forward-planning travelers with reduced rates or extra perks. For instance, you might get a discount on extended rentals or even a complimentary day for every eight days of rental. To secure these deals, it’s wise to book as early as possible, especially during peak travel season when demand is high and the most economical vehicles are the first to be rented out.

The potential savings can range from 5% to over 15%, depending on the rental company and the duration of the rental.

Online Comparison Tools

The internet is your ally when hunting for car rental deals in Reykjavik. Online comparison tools like Kayak.com and Guidetoiceland.is can help you find the best rates by comparing prices from multiple car rental companies in just a few clicks. These platforms allow you to filter results according to your preferences, such as car type, rental duration, and pick-up and drop-off locations, helping you find a deal that ticks all your boxes.

But remember, the cheapest deal isn’t always the best one. It’s important to consider factors like the rental company’s reputation, the car’s fuel efficiency, and what’s included in the rental rate. For instance, a slightly higher rate might include comprehensive insurance, unlimited mileage, or free cancellation, which could save you money in the long run.

Seasonal Offers

Timing is everything, and that’s certainly true when it comes to scoring car rental deals in Reykjavik. Many rental companies offer seasonal promotions, providing discounted rates or extra perks during certain times of the year. For example, Lotus Car Rental Iceland offers special discounts when you rent a car for seven days or longer. So, before you book, be sure to check the company’s website or get in touch to ask about any ongoing or upcoming offers.

Popular Budget Car Rental Models

Electric car driving on a road in Iceland

Now that you know how to find the best deals, let’s talk about what type of car to rent. In Reykjavik, the most popular rental car models for budget car rental are economy, intermediate, and compact cars. These popular rental car options offer a great balance between affordability and comfort, making them ideal for city driving or shorter trips.

If you’re planning to explore beyond Reykjavik, you might consider renting a more robust vehicle. For example, the VW Polo is the most commonly rented car in Iceland, thanks to its reliability and fuel efficiency. However, for exploring Iceland’s rugged landscapes, a 4x4 might be a more suitable choice.

Whatever your needs and preferences, make sure to compare car rental prices across different car types and rental car companies, including popular car rental company options, to find the best value for your money, including cheap rental cars.

Top Car Rental Locations in Reykjavik

A car rental location sign near the city center

Whether you’re landing at Keflavik International Airport or stepping off a bus in downtown Reykjavik, you’ll find plenty of car rental locations ready to hand over the keys to your Icelandic adventure. Some of the most popular pick-up spots include Reykjavik Domestic Airport and Keflavik International Airport, as well as various locations in the city center.

If you’re staying in Reykjavik for a few days before hitting the road, you might consider picking up your rental car from a location near your accommodation. Many hotels in Reykjavik, such as:

  • Storm Hotel
  • Skuggi Hotel
  • Hotel Reykjavik Grand
  • Hotel Cabin

Our city car rental services are conveniently located near major car rental offices, including europcar car rental locations, saving you the hassle of transporting your luggage across the city.

Money-Saving Tips for Renting a Car in Iceland

Renting a car in Reykjavik is a significant investment, but with careful planning, you can keep costs down. This section will guide you through key strategies to save money on your car rental, from choosing the right insurance to understanding fuel policies and avoiding hidden fees.

Prepare yourself for some valuable tips to become a smart car renter.

Choosing the Right Insurance

Selecting the appropriate insurance cover for your rental car is key to avoiding unforeseen expenses. In Iceland, rental car insurance typically includes Third-Party Liability Insurance (TPL), which is a legal requirement, and Collision Damage Waiver (CDW), which is an optional cover that reduces your financial liability for damage to the car. Some rental companies may also offer additional insurance options such as Super Collision Damage Waiver (SCDW), which further reduces your liability, or Personal Accident Insurance (PAI), which covers medical expenses in case of an accident.

When choosing your insurance cover, consider factors like the type of car you’re renting, the duration of your rental, and your comfort level with risk. Remember, the cheapest option isn’t always the best one. While opting for the minimum cover might save you money upfront, it could end up costing you more if you get into an accident or damage the car.

Understanding Fuel Policies

Understanding your rental company’s fuel policy can also help you save money. Most car rental companies in Reykjavik follow either a ‘full to full’ or ‘full to empty’ fuel policy. A ‘full to full’ policy means you pick up the car with a full tank of gas and are expected to return it with a full tank. This policy is generally the most cost-effective option, as you only pay for the fuel you use.

On the other hand, a ‘full to empty’ policy means you pick up the car with a full tank of gas and are allowed to return it empty. While this policy offers the convenience of not having to refuel before returning the car, it could end up costing more if you don’t use up the entire tank, as you won’t be refunded for any unused fuel.

Avoiding Hidden Fees

Nothing puts a damper on a road trip like unexpected fees. Unfortunately, hidden fees and extra charges are all too common in car rentals. These can include additional driver fees, young or senior driver fees, and extra charges for equipment like GPS or child seats.

So how can you avoid these nasty surprises? Here are some tips:

  1. Read the rental contract thoroughly and ask about any additional fees or charges that aren’t clearly explained.
  2. Consider who will be driving the car. If you’re planning to share the driving with someone else, check whether the rental company charges an additional driver fee.
  3. If you’re under 25 or over 70, you might also be subject to a young or senior driver fee.

By following these tips, you can avoid unexpected fees and charges when renting a car.

Navigating Reykjavik and Beyond: Road Trip Ideas

A road trip map of Iceland with highlighted routes

Now that we’ve covered the practicalities of renting a car in Reykjavik, it’s time to hit the road. But where should you go? Iceland is a land of breathtaking landscapes and natural wonders, and with your own set of wheels, you’re free to explore it at your own pace.

Next, we provide an overview of some of Iceland’s favored road trip routes, namely the Golden Circle, the South Coast, and the Snæfellsnes Peninsula.

Golden Circle Route

The Golden Circle Route is a must-do for any road trip in Iceland. This popular tourist route takes you through some of the country’s most renowned attractions, including Thingvellir National Park, the Geysir Geothermal Area, and Gullfoss Waterfall. Start your journey in Reykjavik and head out into the southern uplands to explore these natural wonders.

Driving the entire Golden Circle Route takes about three to four hours, not including stops. However, to truly appreciate the beauty of the attractions, we recommend setting aside a full day for this route. Whether you’re marveling at:

  • the geological wonders of Thingvellir National Park
  • watching the geyser Strokkur erupt at the Geysir Geothermal Area
  • feeling the spray of the mighty Gullfoss Waterfall

The Golden Circle Route offers an unforgettable taste of Iceland’s natural beauty.

South Coast Adventure

If you’re looking for a road trip that combines stunning landscapes, natural wonders, and a bit of adventure, the South Coast Adventure is for you. This route takes you along Iceland’s south coast, home to black sand beaches, powerful waterfalls, and towering glaciers. From Reykjavik, you can take Route 41 towards the Ring Road (Route 1), which takes you directly into the south coast region.

Given the number of attractions along the South Coast, we recommend setting aside two to three days for this route. Highlights include the Seljalandsfoss and Skógafoss waterfalls, the Vatnajökull National Park, and the Jökulsárlón glacier lagoon. And don’t forget to pack your camera – the South Coast is one of the most picturesque regions in Iceland.

Snæfellsnes Peninsula

For a taste of everything Iceland has to offer, look no further than the Snæfellsnes Peninsula. Known as “Iceland in Miniature”, this region boasts a diverse range of landscapes, including:

  • Basalt cliffs
  • Black sand beaches
  • Waterfalls
  • A glacier-capped volcano

To explore the peninsula, take Route 54, the main route that circles around the region.

The drive around the Snæfellsnes Peninsula takes about two hours, but with so many sights to see, you’ll want to allow plenty of time for stops. Highlights include:

  • Gerðuberg basalt cliffs
  • Ytri Tunga beach
  • Bjarnarfoss waterfall
  • Búðakirkja black church

Whether you’re a nature lover, a history buff, or a photography enthusiast, the Snæfellsnes Peninsula has something for everyone.

Essential Driving Tips for Iceland

Driving in Iceland is a unique experience that requires careful preparation and awareness of local driving conditions and laws. Next, we offer vital tips covering a range of topics from comprehending weather and road conditions to adhering to speed limits and traffic laws, aiming to guarantee a safe and pleasant trip.

Weather and Road Conditions

Iceland’s weather is as dramatic as its landscapes, and it can have a significant impact on driving conditions. The country experiences a range of weather conditions throughout the year, from mild, wet summers to cold, snowy winters. These conditions can make roads slippery and reduce visibility, making driving more challenging and potentially hazardous.

To prepare for these conditions, it’s important to check the weather forecast and road conditions before you set off. The Icelandic Meteorological Office’s website provides real-time weather updates, while the website road.is provides up-to-date information on road conditions. Also, remember to adjust your driving to the conditions – reduce your speed, keep a safe distance from the car in front, and avoid sudden braking or steering.

Speed Limits and Traffic Laws

Adhering to speed limits and traffic laws is crucial for a safe journey in Iceland. The speed limits in the country vary depending on the type of road you’re driving on. In towns, the speed limit is typically 30-50 km/h, while on gravel roads it’s 80 km/h, and on paved roads, it’s 90 km/h.

It’s also worth noting that in Iceland, the following rules apply:

  • It’s mandatory to drive with headlights on at all times, regardless of the time of day or weather conditions.
  • Seatbelts must be worn by all passengers.
  • Using a mobile phone while driving is prohibited unless you’re using a hands-free device.

By observing these rules, you can ensure a safe and hassle-free journey.

Safety Precautions

Safety should always be your top priority when driving in Iceland. This means taking precautions like wearing a seatbelt at all times, driving slowly around corners, especially on gravel roads, and obeying local laws. Also, be aware that in Iceland, driving off-road is illegal, as it can damage the fragile flora and disturb wildlife habitats.

In case of an emergency or accident, it’s important to know what to do. Here are the steps to follow:

  1. If anyone is injured, call emergency services immediately by dialing 112.
  2. If there are no injuries, move your vehicle to a safe location if possible.
  3. Exchange contact and insurance information with the other party.
  4. Notify your car rental company about the incident as soon as possible.

Frequently asked questions

Where is the cheapest place to rent a car in Iceland?

For the best value in car rentals in Iceland, look to Reykjavik for prices as low as $38 per day - 87% less expensive than Isafjordur. Hertz, City Car Rental and Ace also offer competitively priced rates.

How much is car rental in Reykjavik?

Car rental in Reykjavik is available from US$22 per day with great deals from $25/day.

Why is it so expensive to hire a car in Iceland?

The high demand for rental cars in Iceland due to an increase in tourism has caused a supply shortage, resulting in exorbitant prices.

What is the typical cost of renting a car in Reykjavik?

Renting a car in Reykjavik typically starts at around $409 per day and can go as low as $54 depending on the type of car and duration of the rental.

How can I find the best deals on car rentals in Reykjavik?

Booking in advance, using comparison tools, and looking out for seasonal offers and promotions are the best way to get great deals on car rentals in Reykjavik.

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