Cheap car hire in Keflavík, Iceland

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There are 34 car hire providers in Keflavík. Check out the map below to find the most convenient pick-up spot.

The most popular car rental companies in Keflavík

Hiring a car in Keflavík: Fast facts

Here's everything you need to know to hit the road happy.
Most popular car hire companyCity Car Rental
Most popular carCompact, SUV
Average daily price174 €
Best time to book3 weeks before

How to book the best car rental deals in Keflavík

We’re frequently named as the most trusted travel search site out there. We scan hundreds of trusted travel providers and put it all in one place, allowing you to instantly compare car hire rates and then book with no fees. Here's how to get the most out of your Keflavík car rental search.

How to find a cheap car hire deal in Keflavík

  • Grab a cheap rental car in Keflavík and get on your way for around 174 € a day. From solo rides to family outings, we'll help you find a rental that suits your trip.

  • Daily rental prices in Keflavík start from just 63 €.

  • Staying on a bit longer? Grab a weekly rental from 94 € and explore beyond the usual highlights.

  • Book early to lock in the best price for a Keflavík car hire. On top of better deals, you're more likely to get the vehicle you actually want.

  • Rent your wheels from FairCar, Nordic Car Hire or Sixt. They're some of the most trusted providers in the city.

  • Check if a collision damage waiver (CDW) is part of your Keflavík car hire policy, whether you book with FairCar or another supplier. Some companies might not include it in the base price and instead sell it separately.

  • Booking one-way could land you a cheaper deal on your rental. Providers sometimes offer lower prices when vehicles need to be moved between branches. Simply select 'Return car to a different location' when searching the cars for rent in Keflavík.

  • Search for a vehicle with a 'Fair fuel policy.' You'll pick up and drop off your car with a full tank, so you pay only for what you use. No surprise refueling fees tacked on at the end either.

  • Pack more into your journey by searching for rentals with 'Unlimited mileage.' Located under the 'Policies' filter, these rides let you drive as far as you want without extra charges.

Best value car hire options right now

  • You'll find the best deal with this company. Prices average 159 € a day.

  • Next in line, this provider offers daily rates of around 193 €.

  • The third option also delivers savings with every booking. Expect to pay roughly 238 € a day for one of their rentals.

  • If you're still weighing up what kind of wheels you need, consider something from the Compact rental category. It's the most frequently booked car type in Keflavík.

Compare car hire types in Keflavík

  • Small: Including classes like mini and economy, this cheap rental car in Keflavík gets you moving without breaking the bank. These agile, fuel-efficient cars are ideal choices for city driving and short trips.

  • Medium: Not too small, not too big, this is the Goldilocks of rentals! Typically including compact and intermediate cars, they strike a balance of fuel efficiency and interior space and are great for small families and couples.

  • Large: Offering a more comfortable ride and advanced tech features, this Keflavík car hire category includes full-size cars. With roomier rear seats and plenty of storage space, they let you load up and transport everyone, and everything, with ease.

  • SUV: When wanderlust strikes, an SUV is ready to roll. It's your ultimate road trip buddy, ready for country roads, highways, and anything in between. These sports utility vehicles also promise extra space and advanced safety features.

  • Van: Choose this vehicle category when you need a car for rent in Keflavík that can handle the heavy stuff. Featuring options like commercial vans and trucks, they're designed to transport more, whether that's equipment, luggage or the whole travel crew.

Insurance and optional extras

  • Excess insurance covers the fee you'd have to pay if your Keflavík car hire is stolen or damaged. While not mandatory, it's a smart add-on if you'd rather play it safe. Keep in mind that not all insurance policies are the same, so make sure you understand exactly what's included.

  • From navigation systems to mobile Wi-Fi hotspots, the right extras can make all the difference. Consider which features will help you make the most of your trip when you rent a car in Keflavík.

Good to know

  • To rent a vehicle in Iceland, you typically have to be at least 21 years old. Some places may rent vehicles to younger drivers for an additional fee, so always check the terms before securing your wheels.

  • If the kids are tagging along, check if you should add a car seat to your Keflavík car hire booking. Whether required by local laws or not, they're always the safest way for little ones to travel.

  • You'll be asked for some documents when collecting your car. As a rule, bring a valid driver's licence, a credit card with enough funds for the excess (most companies don't accept debit cards), and additional photo ID. Your booking confirmation will spell it all out.

  • If it's your first time driving in Iceland, don't forget that traffic here sticks to the right side of the road.

  • Stay within local speed limits of about 45kph in built-up areas and around 85kph on highways. Road signs will indicate if the limit is different.

  • In Iceland, the legal blood alcohol concentration (BAC) limit is 0.05%. If you think you'll be drinking, leave the driving to someone else or arrange a taxi or ride-share instead.

  • Around 8am is one of the busiest times to be on the road in this destination. Try to avoid peak times generally for a smoother trip.

  • You'll be using the Icelandic króna (ISK) on your trip here. Along with your debit and credit cards, have some cash on hand for minor purchases.

  • Icelandic is the language most often spoken across the country.

Best hotels in Keflavík for drivers

  • Offering parking, Park Inn by Radisson Reykjavik Keflavik Airport takes the guesswork out of where to leave your car. This hotel is around 0.16 kilometres from central Keflavík and also comes with a fitness centre and internet access.

  • B&B Guesthouse Keflavík is also a good option if your plans involve plenty of driving. It features parking, plus an airport shuttle and a restaurant. Base yourself here and you'll be roughly 0.48 kilometres from the city centre.

  • Explore the full lineup of hotels in Keflavík and pick the stay that suits your trip. Filters make it easy to tailor your search to what you need — like 'Parking,' 'Outdoor parking,' or 'Valet parking.' There's even an 'Electric vehicle (EV) charging station' filter to find hotels with charging access.

  • You're ready to make some memories now you've locked in a car hire deal in Keflavík and your hotel. From Keflavíkurkirkja to Vatnsnes Lighthouse and The Giantess in the Mountain, you'll never run out of things to do here.

Hit the road: Where to drive to from Keflavík

  • Around 32 kilometres northeast of central Keflavík, Reykjavik easily earns a place on your itinerary. Steer straight toward must-see sights like The Northern Light Centre and Harpa.

  • 101 Guesthouse Hotel and Hilton Reykjavik Nordica are popular accommodation options with parking in Reykjavik.

  • Or pick up your cheap car hire in Keflavík and travel roughly 32 kilometres east to Kópavogur. Featuring Midnight Hikes Reykjavik and Reykjavik Safari, it's every bit as good as advertised.

  • Take it easy after a day spent exploring Kópavogur at 101 Guesthouse Hotel or Hilton Reykjavik Nordica. These hotels cater to visitors bringing their own car.

  • Got a little fuel left in the tank? Take off to Saudarkrokur, about 241 kilometres northeast of Keflavík. From Drangey Tours to Puffin and Friends, it makes for a well-rounded adventure.

Frequently asked questions

On average, hiring a car in Keflavík will set you back around 174 € per day or 170 € per week. 
The cheapest car to rent in Keflavík is a compact SUV. The most popular is Compact, SUV.
The cheapest car hire companies in Keflavík are currently Alamo and Hertz.
Bagging the best car hire deal depends on when you book  – often, it pays to book your wheels as far in advance as possible. But according to our data, the cheapest month to rent a car in Keflavík is currently January.
On average, around 170 €. But the best price we found for car hire for a week in Keflavík is 94 €.
Based on everything we know about daily prices, the average cost to hire a car in Keflavík for a whole month is 1.829 €. 

But sometimes, you'll get a discount for booking a whole month instead of 3 and a half weeks. So play with your dates to find the best deals!
If you're looking for freedom to explore Keflavík, choose a car with unlimited mileage, or look for car hire deals with a ’full to full' fuel policy as opposed to a 'half-full to full' one.

We also clearly highlight car and van hire options in Keflavík that have free cancellation
Yes – you can easily find car hire companies that allow you to pick up your car in one place, and then drop it off in another. Just select ‘Return car to a different location’ when you search with us.
Public transport can only get you so far, and could be tricky to navigate with children or luggage. With your own set of wheels, you can go wherever you want, whenever you want, for as long as you want. And you'll be able to discover more outside of Keflavík.
Most places – Keflavík included – allow under 25s to rent a car as long as they provide a valid driver's license and the correct documentation. It may cost slightly more due to a higher insurance excess for young drivers. 
The cheapest price we found for an economy car is 63 € per day. The average price per day is around 116 €.
Of course. Most major car hire companies like City Car Rental, FairCar and Nordic Car Rental offer baby and child seats as an add-on when you book.
Other travellers rated City Car Rental as the best overall in terms of experience.
We search the internet for all kinds of vehicle hire deals, including vans. But at the moment, we can't find any van hire in Keflavík.