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ICELAND TRAVEL GUIDE

The Best Car Rental in Iceland (2026 Guide)

Updated

by Icelandic Adventure

Hiring a car is, without a doubt, the best way to explore Iceland. From the famous Golden Circle to hidden waterfalls, black sand beaches and the remote Eastfjords, having your own vehicle gives you the freedom to experience the country at your own pace.

After driving thousands of miles across Iceland in every season, here’s why we recommend Blue Car Rental.


Why Hire a Car in Iceland?

While guided tours are available, renting a car gives you complete flexibility.

You can:

  • Stop at waterfalls whenever you like
  • Explore hidden locations away from the crowds
  • Change your plans if the weather changes
  • Visit places that tour buses don’t reach
  • Travel at your own pace
  • Save money if travelling as a couple or family

For anyone planning a Ring Road adventure, hiring a car is almost essential.


Why We Recommend Blue Car Rental

We’ve used Blue Car Rental on our own trips around Iceland, including driving the entire 1,900+ mile Ring Road in winter.

They’ve consistently provided modern, reliable vehicles and an easy collection process, making the start of every trip completely stress-free.

Blue Car Rental is also one of Iceland’s largest locally owned car rental companies, with a modern fleet, digital check-in and a strong focus on customer experience.

Book with our link

🚗 Book your Iceland hire car here

👉 https://www.bluecarrental.is/?affiliate=IcelandicAdventure


Why Choose Blue Car Rental?

Here are a few reasons why they’re our first choice.

Modern fleet

Whether you’re looking for a small city car, SUV or 4×4 for winter driving, Blue Car Rental has one of the newest vehicle fleets in Iceland.

Fast airport collection

After landing at Keflavík Airport, the last thing you want is a long queue.

Blue Car Rental’s online check-in helps speed up collection, so you can get on the road sooner. Their “Zero Waiting” approach is one of the things they’re best known for.

Local Icelandic company

Unlike many international brands, Blue Car Rental is an Icelandic company that understands Iceland’s unique roads and driving conditions.

24/7 roadside assistance

It’s reassuring to know help is available if you ever need it during your trip.


Which Car Should You Hire?

It depends on when you’re visiting.

Summer (May–September)

For most travellers sticking to the Ring Road and popular attractions:

  • Toyota Yaris
  • Kia Ceed
  • Hyundai i20

A standard two-wheel drive car is usually perfect.


Winter (October–April)

We strongly recommend hiring a 4×4.

Snow, ice and high winds can arrive quickly, particularly in North and East Iceland.

Popular options include:

  • Dacia Duster
  • Toyota RAV4
  • Kia Sportage
  • Suzuki Jimny

Do You Need Full Insurance?

In our opinion, yes.

Iceland’s weather is unpredictable.

Even if you’re a careful driver, you can still encounter:

  • Strong winds
  • Flying gravel
  • Snow
  • Ice
  • Sand and ash in some regions

Many experienced Iceland travellers recommend taking comprehensive cover for peace of mind rather than trying to save a small amount upfront.


Where Can You Drive?

With a rental car you can easily visit:

  • Reykjavík
  • The Golden Circle
  • South Coast
  • Vík
  • Jökulsárlón Glacier Lagoon
  • Diamond Beach
  • Snæfellsnes Peninsula
  • Akureyri
  • Lake Mývatn
  • Húsavík
  • Eastfjords
  • Westfjords (season dependent)

If you’re driving the Ring Road, allow at least 7–10 days to enjoy it properly.


Our Driving Tips

Before setting off each day, always check:

  • Weather forecast
  • Road conditions
  • SafeTravel Iceland

Conditions can change rapidly, especially during autumn and winter.

Drive to the conditions, not the speed limit.


Frequently Asked Questions

Can I collect my car at Keflavík Airport?

Yes.

Most visitors collect their hire car shortly after arriving, making it easy to begin exploring Iceland straight away.


Is Blue Car Rental a local company?

Yes.

Blue Car Rental is one of Iceland’s largest locally owned car rental companies, operating since 2010.


Should I hire a 4×4?

If you’re travelling during winter or planning to explore beyond the main roads, we’d definitely recommend it.

For summer Ring Road trips, a standard car is usually sufficient.


Can I drive the Ring Road?

Absolutely.

The Ring Road (Route 1) is suitable for standard cars throughout most of the year, although winter weather can occasionally affect driving conditions.


Final Thoughts

Hiring a car completely transforms your Iceland trip.

Instead of rushing between attractions on organised tours, you can stop whenever something catches your eye, discover hidden gems and experience Iceland at your own pace.

After several road trips around Iceland, Blue Car Rental remains our go-to choice thanks to its reliable vehicles, smooth collection process and excellent customer service.

If you’re planning your own Iceland adventure, we’d happily recommend them.

🚗 Book Your Iceland Hire Car

Ready to start your adventure?

👉 Book with Blue Car Rental using our link:

https://www.bluecarrental.is/?affiliate=IcelandicAdventure


More Iceland Travel Guides

Planning your trip? You might also find these guides helpful:

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