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 28 August 2026.
Most popular company | Fair Car |
|---|---|
Most common car type | Intermediate |
Average price per day | $91 |
Cheapest price per day | $49 |
There are 78 hire agencies servicing Iceland. These agencies, altogether, have 278 hire locations available. Need an affordable hire? small car is the cheapest car type to hire in Iceland with prices from $49 a day in the previous 7-day period. Here are 3 car types you can hire in Iceland:
Economy
$58+
Compact
$59+
Full-size SUV
$112+
Mini
$49+
Compact SUV
$66+
Compact estate car
$67+
Intermediate SUV
$70+
Intermediate estate car
$72+
Get relevant, data-driven information to help you hire a car in Iceland, including pricing trends, ideal booking times, and more.
January
$79
February
$124
March
$77
April
$80
May
$77
June
$118
July
$168
August
$200
September
$115
October
$97
November
$117
December
$93
Avis
Cleanliness
Comfort
Overall
Pick-up/drop-off
Value
Routes Car & Truck Rentals
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Go Rentals
NextCar
National
Rhodium
RAS Car Rental
Fara Car Rental
Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 28 August 2026.
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.
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.
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.
With an average price of $209/day, Europcar is the most popular car hire provider in Iceland, booking 308% more hire cars than any other provider.
At $90/day, it is 1% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for $47/day in Reykjavik.
Cars travel on the right side of the road in Iceland.
Browse through car hire deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Electric being the cheapest ($44+).
Electric
$44+
Hybrid
$44+
Petrol/Diesel
$48+