Compare prices and check availability for automatic car hire in Iceland to find the right car size for your group and route.

Why Choose Automatic Car Hire
Automatic cars simplify driving on long scenic routes and in changing weather. Drivers report less fatigue on tight schedules and during short daylight hours.
Picking up at Keflavík International Airport is straightforward. Several rental desks operate inside the arrivals area and many providers offer meet-and-greet or shuttle options for off-airport desks.
What Types of Automatic Cars Are Available
Fleets in Iceland range from small automatic hatchbacks to larger SUVs and 4×4 automatics. Popular choices include compact automatics, family SUVs, and 7 Seater vans for larger groups.
If you plan to drive into the Highlands you must choose a proper 4×4 vehicle. Mountain roads marked with an F require specially equipped vehicles and may be closed for months each year. Check official opening notices before planning those routes.
| Feature | Automatic | Manual |
|---|---|---|
| Ease of use | Simple for busy driving and hills | Requires more hands-on gear control |
| Traffic | Less tiring in stop-start traffic | More demanding in heavy traffic |
| Availability | Good for popular models and SUVs | Wider choice in some small cars |
| Fuel | Often slightly higher cost | Often slightly lower cost |
Main takeaway: Automatic cars reduce driver workload. Choose based on planned roads and group needs.
Driving an Automatic for the First Time
Familiarise yourself with the gear selector and safety features before leaving the lot. Modern automatics often have modes for snow or economy. Test the car in the rental car park.
Icelandic roads can change quickly. Check live conditions every morning on the national road site. This avoids surprises from closures or sudden weather.
- Use the handbrake on inclines when stationary.
- Keep headlights on at all times while driving.
- Expect single-lane bridges and livestock on rural roads. Drive cautiously and give way where signed.
Picking Up and Returning Your Rental Car
Many companies have desks inside Keflavík arrivals. This speeds collection and reduces shuttle wait times. Allow 20 to 45 minutes for paperwork depending on arrival time.
Return slots may be limited in central Reykjavík. The city runs paid parking zones and different tariff rules by area. Plan drop off or early return to avoid parking penalties.
- Inspect the car together and photograph any existing damage.
- Keep fuel receipts if pre-paid fuel options are used.
- Note documented return instructions to avoid extra charges.
Popular pickup locations
– Keflavík Airport (KEF) — main international gateway with multiple airport desks.
– Reykjavík city centre — convenient for short urban stays and hotel pickups.
– Akureyri — northern hub for Lake Mývatn and North Iceland trips.
– Egilsstaðir — eastern base for the East Fjords and remote drives.
– Ísafjörður — Westfjords gateway for rugged coastal routes.
– Höfn — useful for Vatnajökull and southeastern coast access.
– Vík í Mýrdal — south coast stop for quick glacier and beach visits.
– Selfoss — handy for southern ring road starts and Golden Circle access.
– Húsavík — whale-watching base and northern excursions.
– Reykjanesbær — local alternative near Keflavík for early departures.
How Much Does Automatic Car Hire Cost
Prices vary by season, vehicle type and demand. Expect a premium for automatic models compared with similar manual vehicles. Families often budget more for an automatic SUV or a 7 Seater.
Seasonal notes: summer demand and festival weeks push rates up. Winter requires winter equipment which can add a daily fee or be included in higher-tier packages. Check availability early for school holidays and July.
| Factor | Impact on Cost | Notes |
|---|---|---|
| Vehicle size | Medium to high | Larger cars are more expensive |
| Season | High | Summer and holiday weeks cost more |
| Optional extras | Variable | GPS, child seats, snow gear add fees |
| Insurance level | Medium to high | CDW and gravel protection reduce risk |
Main takeaway: Compare total cost including extras. A slightly higher rate for an automatic can be worth comfort and convenience.
Key Takeaways
Automatic cars suit families and groups who prefer simple driving and relaxed journeys. They cut stress on busy days and in poor weather.
Check mountain road notices and plan any Highlands driving well in advance. F roads need suitable 4×4 vehicles and opening dates vary yearly.
Confirm pickup details at Keflavík and allow time for paperwork. Be aware of Reykjavík’s paid parking rules in central zones.
Frequently asked questions
- Do I need a 4×4 automatic to drive the Ring Road?
No. The Ring Road is largely paved and passable in standard automatics outside severe winter conditions.
- Are automatic cars more expensive to hire in Iceland?
They usually cost more than equivalent manuals. The premium covers lower availability and higher demand.
- When are F roads open?
Opening dates vary by road and year. Check official mountain road updates before travel.
- Are winter tyres mandatory?
There is no blanket tyre law. Rental companies fit winter or studded tyres seasonally and recommend them for winter travel.
- Can I pick up a car at Keflavík late at night?
Many desks operate long hours. Check your provider’s desk times and meet-and-greet options.
- Is parking in Reykjavík difficult?
The city uses four paid tariff zones. Read local signage and use official parking apps.
- Will my UK driving licence work in Iceland?
Most foreign licences are accepted for short stays. Carry your physical licence while driving.
- Should I buy extra insurance for gravel damage?
Gravel damage is common on rural roads. Consider gravel protection to avoid large repair bills.
- How long does collection typically take at the airport?
Allow around 20 to 45 minutes for collection, longer in peak arrival periods.






