Cheap Car Hire in Iceland from $37
This price is the cheapest per day rate found by a Cheapflights user in the last 48 hours by searching for a car hire in Iceland with a pick-up date of 10/4 and drop-off date of 25/4. Fares are subject to change and may not be available at all agencies or on all dates of hire. Click the price to replicate the search for this deal.
Iceland car hires in 2025
Get helpful information to start your search for the perfect car hire in Iceland. The average price data is based on the last 12 months and was last updated on 21 February 2025.
Most popular company | Ice Rental 4x4 |
|---|---|
Most common car type | Intermediate |
Average price per day | $92 |
Cheapest price per day | $37 |
What is the cheapest time to rent a car in Iceland?
Discover the most affordable period to rent a car in Iceland and save money on your trip. The monthly average price data is based on historical data over the last year and was last updated on 21 February 2025.
January
$67
February
$70
March
$70
April
$62
May
$70
June
$103
July
$127
August
$119
September
$83
October
$67
November
$68
December
$75
Currently, the cheapest month to rent a car in Iceland is April. The most expensive time to rent a car is July. The cheapest prices for each month are shown above, but prices will vary based on availability, how far out you book your rental car, and of course, car type.
Popular car types in Iceland
Explore the most popular car models available for hire in Iceland and choose the one that suits your needs. The price data is sourced from various car hire companies and was last updated on 21 February 2025.
There are 66 hire agencies servicing Iceland. These agencies, altogether, have 243 hire locations available. Need an affordable hire? SUV is the cheapest car type to hire in Iceland with prices from $46 a day in the previous 7-day period. Here are 2 car types you can hire in Iceland:
Economy
$47+
Compact
$52+
SUV
$77+
Full-size SUV
$151+
Compact estate car
$46+
Intermediate SUV
$46+
Compact SUV
$51+
Standard SUV
$71+
Compare available car types for hire in Iceland
Compare and contrast the various car types offered for hire in Iceland to find the perfect fit for your trip. Price data is based on averages over the last 12 months and was last updated on 21 February 2025.
Small cars | $63 - $122 | |
|---|---|---|
All Car Types | $79 - $172 |
To hire a small car in Iceland, you would pay an average price of $80/day. November is the cheapest month to hire a small car in Iceland (~$63/day), while the most expensive month to hire that same car type is July (~$122/day). In fact, November is about 23% cheaper than prices during the rest of the year to book a small car hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a small car saves you 28% in costs. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity. Here are the best Iceland small car hire prices found by Cheapflights users in the past 7 days:
To hire a medium car in Iceland, you would pay an average price of $103/day. March is the cheapest month to hire a medium car in Iceland (~$77/day), while the most expensive month to hire that same car type is July (~$160/day). In fact, March is about 26% cheaper than prices during the rest of the year to book a medium car hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a medium car saves you 9% in costs. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity.
To hire a large car in Iceland, you would pay an average price of $231/day. February is the cheapest month to hire a large car in Iceland (~$161/day), while the most expensive month to hire that same car type is July (~$309/day). In fact, February is about 31% cheaper than prices during the rest of the year to book a large car hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a large car is 52% more expensive. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity.
To hire a SUV in Iceland, you would pay an average price of $111/day. March is the cheapest month to hire a SUV in Iceland (~$80/day), while the most expensive month to hire that same car type is July (~$169/day). In fact, March is about 29% cheaper than prices during the rest of the year to book a SUV hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a SUV saves you 0% in costs. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity. Here are the best Iceland SUV hire prices found by Cheapflights users in the past 7 days:
To hire a van in Iceland, you would pay an average price of $209/day. January is the cheapest month to hire a van in Iceland (~$94/day), while the most expensive month to hire that same car type is July (~$398/day). In fact, January is about 56% cheaper than prices during the rest of the year to book a van hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a van is 47% more expensive. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity.
To hire a luxury car in Iceland, you would pay an average price of $225/day. September is the cheapest month to hire a luxury car in Iceland (~$136/day), while the most expensive month to hire that same car type is March (~$427/day). In fact, September is about 40% cheaper than prices during the rest of the year to book a luxury car hire for Iceland. When comparing with other car types available for hire in Iceland, hiring a luxury car is 51% more expensive. Please note that average prices are based on historical data and can vary depending on how early you book, availability for your travel dates, and vehicle popularity.
Tips for hiring a car in Iceland
Browse helpful tips for hiring a car in Iceland including age restrictions, car type suggestions and more. Tips were last updated on 21 February 2025.
- The legal blood alcohol limit for driving in Iceland is low compared to many countries, at just 0.05 grams of alcohol per 100 millilitres of blood (0.05%). This stringent limit is designed to ensure drivers are as close as possible to sober when behind the wheel. Icelandic authorities rigorously enforce this rule, and exceeding the limit can result in heavy fines and licence suspension. It’s important that you keep these strict regulations in mind when exploring Iceland. Exercise utmost caution when getting behind the wheel to protect your safety and the safety of others on the road.
- Iceland's weather is famously unpredictable, and this can impact drivers dramatically. It's not uncommon to experience sudden shifts from clear skies to heavy rain, snow or fog, especially in more remote areas. Strong winds can make driving challenging, particularly for those in larger vehicles. So keep a close eye on weather forecasts, drive cautiously and be prepared for changing road conditions. If you’re heading off on a road-tripping adventure, it’s worth travelling with essential supplies, such as warm clothing and emergency equipment, to ensure a safe and enjoyable journey through this stunning country.
- In Iceland, children up to the age of six or those who are less than 135 centimetres tall must use a child restraint system when travelling in a hire vehicle. Infants and toddlers should use rear-facing car seats, while older children can use forward-facing car seats or boosters, depending on their age and size. You can generally book the appropriate child car seat with your hire vehicle; however, it’s worth noting that many airlines don’t count car seats in your checked luggage. Either way, be sure to arrange the appropriate seat to keep your child safe and comply with Iceland’s laws.
Top hire agencies in Iceland
Explore the leading car hire agencies in Iceland known for their outstanding service and extensive range of vehicles to choose from. There are currently 8 car hire companies in Iceland. Reviews were last updated on 21 February 2025.
Hire a car with one of the top providers serving the Iceland region, including those located within the Reykjavik, Isafjordur and Keflavik area. Browse through some of the top car hire agencies in Iceland, including locations around Reykjavik, Isafjordur and Keflavik.
keddy by Europcar
Sunnycars
Europcar
Hertz
Avis
Budget
Firefly
Ice Rental 4x4
Best Iceland car hire deals found
Browse through a selection of recently found affordable car hire deals in Iceland. Plan your trip with ease and find the perfect hire option for your needs. There are currently 8 hire car agencies in Iceland with an average daily rate of $67. Data was last updated on 21 February 2025.
These are some of the best options we've found for those looking for car hires in Iceland, including options within a close proximity to Reykjavik, Isafjordur and Keflavik. Deals are constantly refreshed so come back soon for more car hire options.
Car hire FAQs
Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 21 February 2025.
Should I hire a car in Iceland?
Hiring a car in Iceland offers the freedom to explore the country’s unique landscapes in your own way and on your own schedule. Iceland’s well-maintained roads will lead you to famous attractions like the Golden Circle, Studlagil Canyon and Jokulsarlon Glacier Lagoon. As a bonus, hiring a car is often more convenient and cost-effective than other transport options like taxis or even buses. Moreover, some of Iceland’s most stunning locations, such as remote waterfalls and canyons, are only easily accessible by car. So, if you value flexibility and accessibility, hiring a car may be the ideal way to enhance your Icelandic adventure.
What is driving like in Iceland?
Driving in Iceland is an adventure, offering breathtaking views around every bend. The country only has one toll road to be aware of – the Vadlaheidargong tunnel. Road quality varies, but you’ll generally find well-maintained roads in populated areas. In remote areas like the Westfjords and the Highland roads, the ride can be bumpy due to poor road conditions. It’s best to inform your car hire agency of your itinerary and check travel advisories before heading off into remote areas.
How old do you have to be to hire a car in Iceland?
The minimum age to hire a car is typically 20 in Iceland, but for larger vehicles like 4x4s or vans, the minimum age is generally 23. For some smaller vehicles, the minimum age can be as low as 18, but this differs from agency to agency, so you should always confirm that you meet the age requirements before booking. Also, keep in mind that drivers under 25 may face a young driver fee. Regardless of age, you’ll need a valid driver’s licence that you’ve held for at least one year. If your licence is not in English or Roman script, an International Driving Permit may be necessary. Always check with the hire company for specific requirements and potential surcharges.
Which car hire company is considered to be the best in Iceland?
Taking our users’ ratings and reviews into consideration, Rent-A-Wreck (10.0 rating), Alamo (8.6 rating) and Budget (8.2 rating) seem to be the best car hire companies in Iceland.
What is the most popular car hire provider in Iceland?
With an average price of $66/day, Ice Rental 4x4 is the most popular car hire provider in Iceland, booking 509% more hire cars than any other provider.
What is the cheapest city to get a rental car in Iceland?
At $48/day, it is 36% cheaper on average to rent a car in Keflavik than any other city in Iceland. The cheapest price found in Iceland was for $48/day in Keflavik.
What side of the road do you drive on in Iceland?
Cars travel on the right side of the road in Iceland.
Small car hires in Iceland
Find small car hire deals in Iceland from well-known providers in the area and save on gas mileage with the options provided below. small car hires in Iceland cost an average of $52 per day. Price data was last updated on 21 February 2025.
Car hires by fuel type in Iceland
Browse car hires by fuel type in Iceland. Currently, Petrol/Diesel cars are the cheapest to rent in Iceland. Deals were last updated on 21 February 2025.
Browse through car hire deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Petrol/Diesel being the cheapest ($33+).
Electric
$50+
Hybrid
$35+
Petrol/Diesel
$33+