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Cheap Car Hire in Iceland from $48
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 5/10 and drop-off date of 14/10. 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.
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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 18 July 2025.
Most popular company | Sixt |
|---|---|
Most common car type | Compact |
Average price per day | $111 |
Cheapest price per day | $48 |
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 18 July 2025.
There are 70 hire agencies servicing Iceland. These agencies, altogether, have 258 hire locations available. Need an affordable hire? small car is the cheapest car type to hire in Iceland with prices from $48 a day in the previous 7-day period. Here are 3 car types you can hire in Iceland:
Economy
$60+
Compact
$48+
Full-size SUV
$200+
Compact estate car
$50+
Compact SUV
$86+
Intermediate SUV
$96+
Intermediate estate car
$113+
Standard SUV
$140+
Compare car hire deals in Iceland by type
Here are the best Iceland small car hire prices found by Cheapflights users in the past 7 days:
Here are the best Iceland medium car hire prices found by Cheapflights users in the past 7 days:
Here are the best Iceland SUV hire prices found by Cheapflights users in the past 7 days:
Mazda Mazda3$48/day
4
M
A/C
Hyundai Elantra Touring$50/day
4
5
M
A/C
Hyundai Elantra Touring$54/day
4
5
M
A/C
Best car hire deals found in Iceland
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 $93. Data was last updated on 18 July 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.
Mazda Mazda3$48/day
4
M
A/C
Hyundai Elantra Touring$50/day
4
5
M
A/C
Hyundai Elantra Touring$54/day
4
5
M
A/C
Cheapflights insights for Iceland car hires
Get relevant, data-driven information to help you hire a car in Iceland, including pricing trends, ideal booking times, and more.
How far in advance should I hire a car in Iceland?
Book your car hire in Iceland 36 days before your pickup date to maximise your savings. Car hire prices are around $72/day on average when booked 36 days ahead, which saves you 5% off the average price.
What is the cheapest car hire company in Iceland?
In Iceland, the most affordable car hire company right now is Ice Rental 4x4, offering prices from just $45.39/day over the past two weeks. Another budget-friendly choice is Firefly, with rates starting at $50.43/day.
What is the cheapest month to hire a car in Iceland?
At Iceland, the best time to hire a car is in November, with an average daily rate of just $68. Conversely, July is the priciest month, averaging $204 per day. Below youll find the monthly average car hire prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.|1#In Iceland, the best time to hire a car is in November, with an average daily rate of just $68. Conversely, July is the priciest month, averaging $204 per day. Below youll find the monthly average car hire prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.
January
$84
February
$103
March
$77
April
$78
May
$131
June
$166
July
$204
August
$183
September
$114
October
$80
November
$68
December
$102
What car do most people hire in Iceland?
Economy cars (Mazda Mazda2 or similar) are the most popular option for those visiting Iceland. SUV cars (Kia Sorento or similar) are also a popular choice, followed by Passenger van cars (Volkswagen Multivan or similar).
Which car hire company has the most locations in Iceland?
keddy by Europcar has 21 locations throughout the area, more than any other company. Sunnycars has the second-highest number of locations in Iceland at 19.
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 18 July 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 18 July 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.
Europcar
33 reviews•17 locations
Overview
Cleanliness
8.7
Comfort
8.7
Overall
8.2
Pick-up/drop-off
8.1
Value
8.0
Budget
14 reviews•8 locations
Overview
Cleanliness
7.9
Comfort
8.0
Overall
8.0
Pick-up/drop-off
7.9
Value
7.5
Hertz
29 reviews•17 locations
Overview
Cleanliness
8.6
Comfort
8.4
Overall
7.9
Pick-up/drop-off
7.8
Value
7.5
Thrifty
19 reviews•8 locations
Overview
Cleanliness
7.6
Comfort
7.6
Overall
7.6
Pick-up/drop-off
7.0
Value
6.7
Ice Rental Cars
10 reviews•5 locations
Overview
Cleanliness
7.7
Comfort
7.7
Overall
7.5
Pick-up/drop-off
6.8
Value
7.7
Dollar
20 reviews•8 locations
Overview
Cleanliness
8.3
Comfort
7.6
Overall
7.2
Pick-up/drop-off
6.8
Value
7.1
Ice Rental 4x4
11 reviews•6 locations
Overview
Cleanliness
7.6
Comfort
7.2
Overall
6.8
Pick-up/drop-off
6.6
Value
6.9
keddy by Europcar
21 locations
Car hire FAQs
Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 18 July 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.
What is the most popular car hire provider in Iceland?
With an average price of $163/day, Europcar is the most popular car hire provider in Iceland, booking 207% more hire cars than any other provider.
What is the cheapest city to get a rental car in Iceland?
At $107/day, it is 3% cheaper on average to rent a car in Keflavik than any other city in Iceland. The cheapest price found in Iceland was for $70/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.
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 18 July 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 ($40+).
Electric
$66+
Hybrid
$45+
Petrol/Diesel
$40+