On average a rental car in Iceland costs $147 per day.
Economy (Fiat Panda or similar) is the most frequently booked rental car type in Iceland.
In the past 72 hours, the cheapest rental cars were found at Sixt ($58/day), Fair Car ($104/day) and Alamo ($106/day).
Based on ratings and reviews from real users on KAYAK, the best car rental companies in Iceland are Hertz (8.6, 68 reviews), Dollar (8.3, 149 reviews), and Thrifty (8.3, 95 reviews).
Take a look at our extensive car rental location map to find the best rental cars near you.
On average a rental car in Iceland costs $357 per week ($51 per day).
On average a rental car in Iceland costs $1,530 per month ($51 per day).
Driving in Iceland can be an adventurous experience: aside from the main ring road, which goes around the island, you will find plenty of gravel roads and roads with other loose surfaces. During the winter months or in rainy conditions, many of these become impassable due to snow or mud, so it is always important to drive carefully and leave plenty of time to make even a simple trip.
To rent a car in Iceland, the driver needs to be at least 18 years old and have held his or her license for a minimum of 12 months. Those who wish to rent a minibus or four-wheel drive, however, must be at least 23 years old. Drivers between 18 and 20 years old may have to pay an additional surcharge of approximately 620-1240 ISK (5-10 USD) per day with an agency like Avis. An International Driver’s Permit (IDP) is not necessary for renting a car in Iceland, but the driver’s domestic license must be in English.
Petrol prices in Iceland are generally quite high, and four-wheel drives can cost a lot to fill up (expect to pay around 10,000 ISK (80 USD) for a full jeep tank). Petrol stations require drivers to use a credit card with a pin number and commonly offer extra things like fresh groceries or a free car wash. As stations can be few and far between, it is important to refuel regularly and never let your petrol levels drop below half a tank.
Speed limits in Iceland are generally quite low thanks to unpredictable weather and road conditions. In towns and cities, drivers are limited to 50 km/h (31 mph), while paved highways in rural areas have a maximum speed limit of 90 km/h (56 mph). Gravel roads, as found in many parts of the country, have a maximum speed limit of 80 km/h (50 mph). Speeding fines are high and speed cameras common even on rural roads.
The rates displayed include all taxes and fees for car hires for the class listed and were found by KAYAK users in the last hours. Car hires are subject to change and may not be available on all car hires listed or dates of travel. Some car hire providers charge additional fees for other services (gps, infant car seats, etc.). Please check the car hire providers' sites.