Iceland car rentals

Driver's age: 25-65

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Cheap car hire in Iceland

These are the best prices for 5-12 Jul.
Kia Rio Hatchback car
Kia Rio Hatchback
or similar Small
2
2
4-5
$82/day
View Deal
Peugeot 308 car
Peugeot 308
or similar Small
4
2
4-5
$103/day
View Deal
Suzuki Jimny car
Suzuki Jimny
or similar 4WD
2
2
4-5
$125/day
View Deal
Volvo XC60 car
Volvo XC60
or similar 4WD
5
2
4-5
$342/day
View Deal
Hyundai i10 car
Hyundai i10
or similar Small
2
2
2/4
$77/day
View Deal
Renault Mégane Estate car
Renault Mégane Estate
or similar Small
4
2
4-5
$79/day
View Deal
Suzuki SX4 S-Cross car
Suzuki SX4 S-Cross
or similar 4WD
5
3
4-5
$82/day
View Deal
Dacia Duster car
Dacia Duster
or similar 4WD
4
2
4-5
$111/day
View Deal
Skoda Octavia Combi car
Skoda Octavia Combi
or similar Medium
5
3
4-5
$204/day
View Deal
Kia Sorento car
Kia Sorento
or similar 4WD
5
3
4-5
$369/day
View Deal
Booking Insights

KAYAK’s insights & trends for Iceland car hire

Check out the latest trends and booking tips to hire a car in Iceland with confidence.

How far in advance should you book a rental car in Iceland?

You should book your rental car in Iceland around 48 days before your trip in order to get a below-average price.

What is the cheapest car rental company in Iceland?

In the past 72 hours, the cheapest rental cars were found at RAS Car Rental ($69.93/day), FLIZZR ($75.49/day), and Geysir Car Rental ($121.97/day).

What is the cheapest month to hire a car in Iceland?

The cheapest month to hire a car in Iceland is December at an average cost of $105/day. August is the most expensive month to hire a car in Iceland when prices are $273/day on average, which tends to be 192% above the yearly average hire price for Iceland.

Which car hire company in Iceland has the most locations?

Avis operates 8 locations in Iceland, more than any other car hire company.

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Iceland car rental price comparison by vehicle type

Find the right rental car in Iceland by comparing prices across vehicle types.

Small cars

$62 - $153

All Car Types

$172 - $317

How much does it cost to hire a small car in Iceland?

How much does it cost to hire a medium car in Iceland?

How much does it cost to hire a large car in Iceland?

How much does it cost to hire an SUV in Iceland?

How much does it cost to hire a van in Iceland?

How much does it cost to hire a pickup truck in Iceland?

How much does it cost to hire a luxury car in Iceland?

Small car hire in Iceland typically costs around $88 per day. The best time to book is January, when prices average $62 per day, which is about 30% less than the yearly average. Small cars are usually 59% cheaper than the average car hire in Iceland, making them ideal for budget-conscious travellers.

Medium car hire in Iceland typically costs around $160 per day. The best time to book is March, when prices average $131 per day, which is about 19% less than the yearly average. Medium cars are usually 25% cheaper than the average car hire in Iceland, offering a good balance of space and value.

Large car rentals in Iceland typically cost around $211 per day. The best time to book is November, when prices average $180 per day, which is about 15% less than the yearly average. Large cars are usually the same price as an average rental in Iceland.

SUV hire in Iceland typically costs around $247 per day. The best time to book is April, when prices average $181 per day, which is about 27% less than the yearly average. SUVs are typically 15% more expensive than the average car hire in Iceland but provide extra space and capability for groups or road trips.

Van hire in Iceland typically costs around $356 per day. The best time to book is April, when prices average $289 per day, which is about 19% less than the yearly average. Vans are typically 41% more expensive than the average car hire in Iceland but are the best choice for families or groups needing maximum passenger capacity.

Pickup truck hire in Iceland typically costs around $298 per day. The best time to book is November, when prices average $191 per day, which is about 36% less than the yearly average. Pickup trucks are typically 30% more expensive than the average car hire in Iceland but are ideal for hauling gear or outdoor adventures.

Luxury car hire in Iceland typically costs around $267 per day. The best time to book is November, when prices average $221 per day, which is about 18% less than the yearly average. Luxury cars are typically 21% more expensive than the average car hire in Iceland but deliver premium comfort and style for special occasions.

Good to know

Most popular agency

Most popular car type

Average price

Good deal

Ice Rental 4x4
Small
$122/day
$98/day

Top tips for hiring a car in Iceland

  • Visitors who wish to explore the island’s famous wildlife and scenery would do well to rent a car in Iceland: public transportation is generally limited to larger towns and cities. The majority of agencies are represented in the capital city of Reykjavik and at Reykjavik International Airport, meaning it’s easy to pick up a vehicle and enjoy travel flexibility as soon as you arrive. Popular road trip routes include the Golden Circle and Snæfellsnes Peninsula (plan around 2 days for each), or a 10-day journey around the ring road.
  • Mountain roads in Iceland are known as "F roads" and are open only seasonally; the first drivable day is usually between the end of June and the middle of July. While these roads are a great way to access some of the country’s areas of natural beauty, it is important to note that it is only legal to travel them in a four-wheel drive or jeep.
  • Drivers using the main ring road in Iceland may pass through the Vadlaheidargong Tunnel, which is located in the north of the island and extends for 7.5 km (4.7 mi). The tunnel is a convenient way of shortening your journey and avoiding difficult driving conditions in the winter months. Payment is required online through the tunnel website, costing 1,500 ISK (12 USD) if paid within 3h of your trip, or 2,500 ISK (20 USD) if paid later.
  • There are several additional regulations that are important to know when renting a car in Iceland, particularly the use of headlights. Even during daylight hours (including during the summer), headlights are to be switched on at all times. Seatbelts must be worn by all passengers, and it is forbidden to use a cell phone while driving, unless it’s a hands-free kit over the front controls. Finally, please be mindful that off-road driving is illegal and is punishable with a high fine or even jail time.
  • 25% of our users found rental cars in Iceland for $98 or less

FAQs about hiring a car in Iceland

  • How much does it cost to hire a car in Iceland?

    On average a car hire in Iceland costs $122 per day.

  • How can I find car hires near me in Iceland?

    Take a look at our extensive car hire location map to find the best car hire deals near you.

  • How much does it cost to hire a car for a week in Iceland?

    On average a car hire in Iceland costs $855 per week ($122 per day).

  • How much does it cost to hire a car long term for a month in Iceland?

    On average a car hire in Iceland costs $3,663 per month ($122 per day).

  • What is driving like in Iceland?

    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.

  • How old do you have to be to hire a car in Iceland?

    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.

  • How much does petrol cost in Iceland?

    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.

  • What are the speed limits in Iceland?

    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.

Car rental directory

  • sunnycars

    Sunnycars car hire locations in Iceland

    21 Locations

  • keddy

    keddy by Europcar car hire locations in Iceland

    21 Locations

  • europcar

    Europcar car hire locations in Iceland

    18 Locations

  • hertz

    Hertz car hire locations in Iceland

    16 Locations

  • firefly

    Firefly car hire locations in Iceland

    11 Locations

  • avis

    Avis car hire locations in Iceland

    8 Locations

  • budget

    Budget car hire locations in Iceland

    8 Locations

  • dollar

    Dollar car hire locations in Iceland

    8 Locations

  • faircar

    Fair Car car hire locations in Iceland

    7 Locations

  • thrifty

    Thrifty car hire locations in Iceland

    7 Locations

  • icerentalcars

    Ice Rental Cars car hire locations in Iceland

    6 Locations

  • icerental4x4

    Ice Rental 4x4 car hire locations in Iceland

    6 Locations

Car hire locations in Iceland

Everything you need to know for your car rental in Iceland

Complete your trip to Iceland

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The rates displayed include all taxes and fees for hire cars for the class listed and were found by KAYAK users in the last 48 hours. Offers are subject to change and may not be available on all car hires listed or dates of travel. Some hire car providers charge additional fees for other services (GPS, infant car seats, etc.). Please check the website of the respective hire car provider.