Car Rental or Private Transfer from Keflavík Airport? An Honest Comparison
Drive Reykjavik team · 6 min read · October 2026

Most visitors to Iceland land at Keflavík International Airport (KEF), about 50 km from Reykjavík. One of the first decisions of the trip is how to cover that distance: pick up a rental car at the airport, or have a driver waiting in the arrivals hall. Both are good choices. The right one depends on what you plan to do after the first hour.
We are a private transfer company, so we have an obvious interest. That is exactly why this guide is honest about when a rental car is the better option.
The short answer
- Rent a car if you are driving the Ring Road or exploring the countryside on your own for several days.
- Book a private transfer if you are staying in Reykjavík, joining day tours, arriving tired after a night flight, or travelling in winter without experience of icy roads.
- Combine both if you start with a few days in the city: take a transfer in, and rent a car in Reykjavík only for the days you need it.
- Distance KEF to Reykjavík: about 50 km, roughly 45 to 50 minutes by car.
- Our transfer price: 20,500 kr per car for 1 to 4 people, 28,000 kr per van for 5 to 7, one way.

When a rental car makes sense
Iceland is a wonderful country to explore by car. If your plan is to follow the Ring Road, stay in a different place every night or stop wherever the light is good, a rental car gives you complete freedom, and over a week or more it is usually the most practical choice.
- You want to drive the Ring Road or a large part of it.
- You will spend most nights outside Reykjavík.
- You are comfortable driving in wind, rain, gravel and, in winter, snow and ice.
- You have a confident driver who is not exhausted after the flight.
The costs people forget
The daily rental price is only the start. Before you compare, add the things that are easy to overlook:
- Insurance: gravel protection and sand-and-ash cover are common extras in Iceland, because stone chips and wind-blown sand damage cars.
- Fuel or charging, which is expensive in Iceland compared with most of Europe and North America.
- Parking in Reykjavík: central parking is paid in the daytime, and many city hotels have little or no parking of their own.
- Days the car stands still: if you spend three nights in the city and join day tours, you pay for a car you hardly use.
- Your first and last hours: queues at the rental desk after landing, and returning the car before a flight, eat into the time you have.
When a private transfer is the better choice
- You are staying in Reykjavík. The city centre is compact and walkable, and day tours pick you up from your hotel.
- You arrive on a night flight. Many flights from North America land early in the morning. Driving 50 km on no sleep is not a good start.
- It is winter. Between October and April the road can be icy, dark and windy. Our drivers handle it every day.
- You are a family or a group. One fixed price per car, child seats free on request, and space for luggage, with no need to split into two rental cars.
- You are heading somewhere specific, like a hotel on the Golden Circle or the South Coast, and simply want to get there.
Winter driving: be realistic
Iceland's main roads are well maintained, but winter conditions change quickly. Strong wind, snow drifts and black ice are common, and daylight is short in December and January. Many visitors drive safely in winter, but if you have never driven on ice, your first time should not be at night after a transatlantic flight. Our guide to driving in Iceland in winter explains what to expect.
How a private transfer works with us
We have been driving travellers around Iceland for ten years, and we go everywhere in the country, not only to Reykjavík. You book online with your flight number. Your driver checks the flight before leaving, meets you in the arrivals hall with a name sign and drives you to the door of your hotel or address. The price is fixed per car and the same day and night.
- Fixed price per car, not per person, agreed before you travel
- Economy (Tesla) for 1 to 4 passengers, Van (Mercedes Vito) for 5 to 7, minibus for 8 to 16 on request
- Your driver meets you in the arrivals hall with a name sign and checks your flight before leaving
- 45 minutes of free waiting at the airport
- Free cancellation up to 24 hours before pick-up
Rental car and transfer side by side
- Freedom over many days: rental car.
- Effort after landing: transfer (none), rental (desk, paperwork, driving).
- Winter safety for inexperienced drivers: transfer.
- Cost for a city stay with day tours: usually transfer.
- Cost for a week on the Ring Road: usually rental car.
- Groups of 5 to 7: a van transfer is simpler than two rental cars.
Still unsure? Read our comparison of private transfer, Flybus and taxi, or message us on WhatsApp at +354 777 3949 with your plans and we will tell you honestly what we would do.
FAQ
No. The centre is compact and walkable, buses cover the rest, and most day tours pick you up from your hotel. A car is useful mainly outside the city.
For a stay in Reykjavík with day tours, a transfer is usually cheaper once you add insurance, fuel and parking. For a week on the Ring Road, a rental car is usually better value.
About 50 km, roughly 45 to 50 minutes in normal conditions.
Yes. Several rental companies have offices in Reykjavík, so you can take a transfer in and pick up a car only when you leave the city.
Main roads are maintained, but ice, wind and darkness make winter driving demanding. Check road.is and vedur.is daily, and avoid driving tired after a night flight.
With Drive Reykjavik it is 20,500 kr per car for 1 to 4 passengers and 28,000 kr per van for 5 to 7, one way, the same price day and night.
Your driver checks your flight before leaving for the airport, so a delay is not a problem. You also have 45 minutes of free waiting after landing.
Yes. We drive from Keflavík Airport to hotels and towns all over Iceland. See our [transfers](/transfers) for fixed prices by destination.
Yes, free of charge on request. Tell us the children's ages when you book.
Travel tips
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