Car Rental Packages


The best way to discover Iceland and its beautiful nature is on your own in a rental car. We offer a unique package which includes a rental car and accommodation at HI Hostels all around Iceland. We handle all the details of your booking free of charge. 

Please note that the car's driver must be at least 20 years old, must have had a valid driver's license for last least one year, and have a valid credit card. No exceptions can be made. 


Our car rental packages include:


  • Hostel overnight bookings (advanced bookings at hostels or open vouchers). As the hostels are very busy during the summer time we recommend advanced bookings, especially for families and groups. Hostels must be booked through the Central Booking Office to be included in a car rental package. 

  • Rental car with unlimited kilometres (petrol not included), VAT (24%), Collision Damage Waiver (CDW) and up to 4 drivers per car.

  • Road map of Iceland.

  • Information brochure about HI Hostels.



  • 3 ISK discount per litre of petrol at N1 service stations around the country.


  • Audio Guide (CD or MP3) around Iceland.


  • An HI membership card for each guest (valid for one year at HI Hostels around the world).



Please note that reservations are made by car category only. We cannot guarantee a specific car model. If you require a car with automatic transmission, please mention it on the booking form (no extra charge for this service). All categories, except categories J, K and E, are available with automatic transmission. There is no extra charge for automatic transmission. 


Bed linen is included at all hostels for bookings made through our Central Booking Office. 


Breakfast is not included and cannot be booked beforehand (except for groups and travel agencies); you can add breakfast upon arrival and pay for it separately. Please contact us if you require a list of hostels that serve breakfast. All HI Hostels have guest kitchens where guests can store food and prepare normal meals. 


If you are ready to start the booking process, then please fill in the form below and send to us at info@hostel.isIf you are not ready to book, but would like to get a quote for your package, please send us an email with the information below: 


  • Preferred car type
  • Number of persons
  • Number of days with car
  • Number of nights at hostels
  • Preferred room type
  • If you are travelling with children under 13 years of age 
  • Approximate start date of journey

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Comments from our guests

The booking service saved me quite a lot of time, filling up the missing dates I hadn't been able to find via the internet myself. I was very thankful for that & the staff was very helpful and friendly

- Susanne Weigelt from Germany


The fact that the HI hostel exist in Iceland made it possible for us to come as a family. First time I stayed in hostel because of the price, this time I stayed because I loved the atmosphere the efficiency and the friendliness.

 - Yanina Zaslavsky Afek from Israel



It was an easy way to book our car and accommodations for the entire trip. Very convenient to just contact one person versus several hostels and a car rental company

- Melissa Mailloux from USA

 Main Office: HI Iceland | Borgartún 6 | 105 Reykjavík | Tel 575 6700 | Fax 553 0535 | | Copyright ©