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Fees, Charges & Additional costs

To help you avoid unexpected charges, please review our fee schedule before your rental. Following the terms and conditions of your contract, obeying traffic laws, and returning your vehicle in good condition can help you save money. Always remember to refuel before drop-off and avoid parking or traffic fines.

New Road Tax in Iceland from 1 January 2026

From 1 January 2026, Iceland is introducing a new usage-based Road Tax (“kílómetragjald”). This national system ensures that all vehicles—electric, hybrid, and fossil-fuel—contribute fairly to road maintenance based on the actual distance driven.

For M92 Ehf. rentals, we handle all strict reporting and payments to the Icelandic authorities on your behalf. To cover the mandatory tax and the administrative systems required to manage it, the following charges apply per kilometer:

Road Tax & Service Fee Structure:

  • Government Road Tax: 6.95 ISK per km
  •  Service Fee: 1.0 ISK per km (+ VAT)

*These fees are calculated based on your odometer usage and added to your rental agreement.

Fines / Charges / Fees Amount (ISK)
Smoking in vehicle 75.000
Extra cleaning charge 25.000
Fuel cost per liter for missing fuel Daily rate at Olis
Fuel filling administration fee 6.000
Parking ticket administration fee 4.500 per ticket
Traffic violation administration fee 4.500 per request
Lost & found postal service fee 6.000

Car Rental in Reykjavik, Iceland

Reykjavik Car Rental makes it easy to rent a car in Iceland. Based in Reykjavik with a convenient pick-up location in Hafnarfjordur, we offer a wide selection of vehicles — from compact city cars for quick trips around the capital to rugged 4x4 SUVs built for the highlands and gravel roads of Iceland's interior. Whether you're driving the Golden Circle, exploring the South Coast, or circling the entire island on Route 1, we have the right car for your adventure.

Why Rent a Car in Iceland?

Iceland is a country best explored at your own pace. Public transport outside Reykjavik is limited, and many of the island's most spectacular sights — glacier lagoons, volcanic craters, hidden hot springs, and black sand beaches — are only accessible by car. A rental car gives you the freedom to stop wherever you want, change plans on a whim, and reach destinations that tour buses simply cannot.

Affordable and Transparent Pricing

We believe in honest, upfront pricing with no hidden fees. Every rental includes basic insurance coverage, unlimited mileage options, and 24/7 roadside assistance. Our daily rates are competitive across all vehicle categories, and long-term rentals receive automatic discounts. You can compare prices instantly on our website and book in under two minutes.

Vehicles for Every Journey

Our fleet includes economy cars ideal for solo travellers and couples, mid-size sedans for families, and 4WD SUVs for those heading into Iceland's rugged interior. Every vehicle in our fleet is regularly serviced, thoroughly cleaned between rentals, and equipped with winter tyres during the colder months. Need extras like a GPS, child seat, or additional driver? We have you covered.

Flexible Pick-Up and Drop-Off

Collect your rental car from our Hafnarfjordur location, just a short drive from Reykjavik city centre and Keflavik International Airport. We offer flexible pick-up and drop-off times to fit your flight schedule, and one-way rentals are available on request. Our team is always on hand to help with route planning, road condition updates, and local driving tips.

Driving in Iceland

Iceland's roads range from well-maintained highways to unpaved mountain tracks. The Ring Road (Route 1) circles the entire island and is suitable for all vehicle types year-round. F-roads in the highlands require a 4x4 and are only open during summer. Speed limits are generally 50 km/h in towns, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Fuel stations are found in every town, though they can be far apart in remote areas — always plan ahead.

Popular Routes and Destinations

  • The Golden Circle — Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall. A 230 km loop easily done in a day.
  • South Coast — Seljalandsfoss and Skogafoss waterfalls, Reynisfjara black sand beach, and Jokulsarlon glacier lagoon.
  • Snaefellsnes Peninsula — Glaciers, lava fields, fishing villages, and the iconic Kirkjufell mountain.
  • Ring Road — The full 1,322 km circuit around Iceland. Most travellers allow 7 to 10 days.
  • Westfjords — Remote fjords, Europe's largest bird cliff at Latrabjarg, and the Dynjandi waterfall.

Book Your Rental Car Today

Ready to explore Iceland? Select your pick-up dates and browse our available vehicles. Booking online is fast, secure, and gives you instant confirmation. Our team is available by phone at +354 7902002 or email at [email protected].