Small Car Rental Iceland

Our small rental cars in Iceland are popular amongst many thanks to their low running costs and straightforward nature. Whether you plan on spending a lot of time in Reykjavik, or fancy heading out on a day trip elsewhere, renting a small car is an ingenious decision, allowing you to explore Iceland with ease.

We have small cars available as either manual or automatic transmission, so you can choose whichever is your preferred option. Our fuel-efficient vehicles are ideal for couples or other travellers with less luggage. If you are looking for a car with more storage space, take a look at our midsize cars or large vehicles.

Please note: our small cars are not permitted to be used on Iceland’s F-roads. If you plan to use these highland roads, you’ll need to hire a 4x4 car.

Our Small Rental Cars

Toyota Aygo (manual)

or similar (manual)

Model 2022-2023
  • Manual
  • FWD
  • 4 Passengers
  • F-roads not allowed
  • 1 Suitcases
  • Gasoline
  •  

Toyota Yaris (automatic)

or similar (automatic)

Model 2021-2023
  • Automatic
  • FWD
  • 5 Passengers
  • F-roads not allowed
  • 1 Suitcases
  • Gasoline
  •  

Included in our Rental Prices:

  • PAI, SCDW and TP insurances
  • 24/7 road assistance
  • Unlimited mileage
  • Free pick-up and drop-off
  • Fuel discounts
  • Studded winter tyres (seasonal)
  • Free cancellation
  • No deposit required

Kia X-Ceed (automatic)

Model Guarantee

Model 2021-2023
  • Automatic
  • FWD
  • 5 Passengers
  • F-roads not allowed
  • 3 Suitcases
  • Gasoline
  •  

Kia Ceed (automatic)

Model Guarantee

Model 2021-2023
  • Automatic
  • FWD
  • 5 Passengers
  • F-roads not allowed
  • 3 Suitcases
  • Gasoline
  •  

Suzuki Jimny 4x4 (manual) - 2 seats only

Model Guarantee

Model 2023-2024
  • Manual
  • 4WD
  • 2 Passengers
  • F-roads allowed
  • 4 Suitcases
  • Gasoline
  •  

Tesla Model 3 - Long Range 4x4

Free Charging & GPS

Model Guarantee

Model 2022-2023
  • Automatic
  • 4WD
  • 5 Passengers
  • F-roads not allowed
  • 3 Suitcases
  • Electric
  •  


Iceland Small Car Rental Help & Advice

Whether it’s your first adventure or you’re a seasoned pro, these resources will help you enjoy your time exploring Iceland in a small car to its fullest.

Driving in Iceland

Driving in Iceland is a pretty magical experience, with vistas and sights you won’t find anywhere else in the world. Realistically, if you’re planning a holiday trip across the nordic expanse, this will likely be your first time driving in this country, so it’s important to consider the differences from your home.

> See more

Parking in Reykjavik: The Ultimate Guide

Parking in Iceland doesn’t need to be something to worry about on your trip. If you have a tour booked then you may find it less stressful to park in one of the multi-storey car parks or park a little further out of the city centre so you don’t find yourself worrying about being late and trying to find a car parking space. 

> See more

Reykjavík's Districts Explored: Where to Eat and Stay and What to Do

There are 10 unique districts spread throughout the capital itself, each with their own style and reasons to visit. We’ve brought the highlights of the most popular districts - Vesturbær, Miðborg & Hlíðar - and discuss the places to eat at, stay in and see while you visit.

> See more

Why rent a small car in Iceland with Lotus Car Rental?

24/7 Roadside Assistance

If any issues occur with your vehicle while exploring Iceland, we’re ready and waiting to help you out.

Suitable Rental Insurance

We offer extensive insurance packages on all of our small car rentals, covering you from any unforeseen damage.

Pick-Up & Drop-Off Availability

We’ll pick-up and drop-off your small car at a location that suits you, allowing you to get behind the wheel of your vehicle in no time.

Affordable, quality vehicles

All of our small cars are prepared to the highest of standards and are ready to fulfill all of your needs.

Frequently Asked Questions

Can I drive a small car on Iceland’s F-Roads?

Due to their compact dimensions and design, small cars are not typically suited for life off the beaten track, so driving on Iceland’s F-Roads is not permitted. However, the popular Suzuki Jimny is an exception to this rule, as it comes equipped with four-wheel drive and a more robust nature.

Small cars excel in inner-city environments and are a popular choice for those that plan on spending the majority of their time in locations such as Reykjavik. If you have your heart set on a rural adventure, you’ll want to hire a 4x4 or camper van instead.

Who are small cars best suited to?

Small cars have proven particularly popular amongst couples or people that are only traveling with light luggage. Due to their economical approach, small cars are also great value for money and are ideal for those looking for a cost-effective means of exploring Iceland. If you think you’ll need more space for luggage, you may want to consider a mid-sized or large car instead.

What is the minimum age to rent a small car?

You’ll need to be at least 20 years old to rent one of our small cars while in Iceland.

Is there a minimum rental period for small cars?

The minimum rental period for one of our small cars is 24 hours.

What documents will I need to rent a small car in Iceland?

Before you get behind the wheel of your small car, we’ll need to see the following documentation:

  • A valid passport for all drivers of the vehicle.
  • A valid driving license for all drivers.
  • A valid credit card.

We accept all foreign licenses as long as it is in English, or has Latin characters. If your driving license does not follow this format, remember to bring an international driving license.

How do I pay for my small car rental?

Credit and debit cards are accepted methods of payments. 

However, if you choose to use a debit card, a deposit will be collected and then refunded if the car is returned in the same condition as it was rented, with no additional costs or fees. We accept all credit cards. Please contact us for further information.

How do I pick up and return my small car?

One of our team members will be waiting for you at the arrival hall of your airport and will take you to our office to complete the paperwork. After your journey has ended, you can return your rental vehicle to our office at any time. Alternatively, you can arrange for the vehicle to be delivered to a location that suits you, if arranged in advance.

Are there any laws I need to be aware of while driving a small car in Iceland?

There are various rules and regulations that you’ll need to be aware of during your time in the country. For in-depth advice, take a look at our extensive driving in iceland guide.