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 A Guide to Car Hire: Iceland 

Hire a Car and you will find driving in Iceland can be an exciting and unique experience, but it also comes with some challenges, especially depending on the season. Here's an overview:

Driving Conditions:

Roads: Iceland has a well-maintained network of roads that can take you to many of its beautiful natural attractions. The Ring Road (Route 1) encircles the entire island, providing access to most of the major destinations.

Daylight Hours: In the summer, Iceland experiences long daylight hours, while in the winter, daylight can be very limited. Be prepared for driving in darkness during the winter months.

Off-Roading: It's important to note that off-roading is strictly prohibited in Iceland to protect its fragile ecosystems.

Best Type of Vehicle To Hire:

Seasonal Variation: The type of vehicle you should choose can vary depending on the season. Here are some guidelines:
Summer (June to August): In the summer months, a regular car or a compact SUV is usually sufficient for most of the popular tourist routes. You won't typically need a 4x4 vehicle unless you plan to venture onto rougher, less-traveled roads.
Winter (October to April): During the winter, especially if you plan to explore beyond major routes, it's advisable to rent a 4x4 or an all-wheel-drive (AWD) vehicle equipped with winter tires. Iceland's winter roads can be icy and challenging.
Winter Tires: If you're driving in Iceland during the winter, make sure your rental car is equipped with proper winter tires. Studded tires are often recommended.

Additional Tips:

Gas Stations: Be aware of the distances between gas stations, especially in more remote areas. Fill up your tank when you have the opportunity.

Weather Updates: Check weather and road condition updates regularly, especially if you plan to travel in rural or mountainous areas.

F-roads: Some roads in Iceland, known as F-roads, are only suitable for 4x4 vehicles. Check road conditions and regulations before attempting to drive on them.

Emergency Kit: It's a good idea to carry an emergency kit in your car, including blankets, non-perishable food, and a first aid kit, in case you encounter unexpected delays.

Overall, driving in Iceland can be a fantastic way to explore its natural wonders, but it's essential to be prepared for the unique challenges the country's weather and terrain can present. Make sure to research your routes, choose a suitable vehicle, and stay informed about road conditions and weather forecasts to ensure a safe and enjoyable trip.


Cheapest car hire in Iceland

Kia Picanto

4 Adults, 5 Doors

From 65.47 EUR/day
Kia Picanto

7 Days rental at 458.35 EUR from 17/06/2024

  2 |
  Manual |
  Yes

Volkswagen Up

4 Adults, 5 Doors

From 65.47 EUR/day
Volkswagen Up

7 Days rental at 458.35 EUR from 17/06/2024

  2 |
  Manual |
  No

Toyota Aygo

4 Adults, 3 Doors

From 65.47 EUR/day
Toyota Aygo

7 Days rental at 458.35 EUR from 17/06/2024

  2 |
  Manual |
  No

Suzuki Baleno

5 Adults, 5 Doors

From 73.49 EUR/day
Suzuki Baleno

7 Days rental at 514.44 EUR from 17/06/2024

  3 |
  Manual |
  Yes

Toyota Auris

5 Adults, 5 Doors

From 73.49 EUR/day
Toyota Auris

7 Days rental at 514.44 EUR from 17/06/2024

  3 |
  Manual |
  No

Kia Ceed

5 Adults, 5 Doors

From 73.51 EUR/day
Kia Ceed

7 Days rental at 514.59 EUR from 17/06/2024

  3 |
  Manual |
  Yes

Suzuki Swift

5 Adults, 3 Doors

From 66.81 EUR/day
Suzuki Swift

7 Days rental at 467.72 EUR from 17/06/2024

  2 |
  Manual |
  No

Toyota Yaris

5 Adults, 5 Doors

From 66.81 EUR/day
Toyota Yaris

7 Days rental at 467.72 EUR from 17/06/2024

  2 |
  Manual |
  No

Hyundai i20

5 Adults, 5 Doors

From 66.83 EUR/day
Hyundai i20

7 Days rental at 467.86 EUR from 17/06/2024

  2 |
  Manual |
  No

Kia Sorento

5 Adults, 4 Doors

From 145.64 EUR/day
Kia Sorento

7 Days rental at 1019.54 EUR from 17/06/2024

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 151.95 EUR/day
Kia Sorento

7 Days rental at 1063.71 EUR from 17/06/2024

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 5 Doors

From 152.00 EUR/day
Kia Sorento

7 Days rental at 1064.03 EUR from 17/06/2024

  6 |
  Automatic |
  Yes

Toyota Corolla

5 Adults, 3 Doors

From 82.53 EUR/day
Toyota Corolla

7 Days rental at 577.73 EUR from 17/06/2024

  3 |
  Manual |
  No

Toyota Corolla

5 Adults, 3 Doors

From 82.53 EUR/day
Toyota Corolla

7 Days rental at 577.73 EUR from 17/06/2024

  3 |
  Manual |
  No

Toyota Corolla

5 Adults, 3 Doors

From 82.53 EUR/day
Toyota Corolla

7 Days rental at 577.73 EUR from 17/06/2024

  3 |
  Manual |
  No

Volkswagen ID.4

5 Adults, 5 Doors

From 139.33 EUR/day
Volkswagen ID.4

7 Days rental at 975.34 EUR from 17/06/2024

  4 |
  Automatic |
  Yes

Nissan Leaf

5 Adults, 5 Doors

From 115.25 EUR/day
Nissan Leaf

7 Days rental at 806.81 EUR from 17/06/2024

  3 |
  Automatic |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 147.33 EUR/day
Tesla Model Y

7 Days rental at 1031.33 EUR from 17/06/2024

  4 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 92.08 EUR/day
Renault Captur Hybrid

7 Days rental at 644.57 EUR from 17/06/2024

  3 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 92.08 EUR/day
Renault Captur Hybrid

7 Days rental at 644.57 EUR from 17/06/2024

  3 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 92.08 EUR/day
Renault Captur Hybrid

7 Days rental at 644.57 EUR from 17/06/2024

  3 |
  Automatic |
  Yes

Top tips when hiring a car in Iceland

  • Select the Right Type of Vehicle: Consider the type of terrain and weather conditions you'll encounter during your Iceland trip. If you plan to explore the rugged Icelandic countryside, including gravel roads and F-roads, renting a 4x4 or SUV with high ground clearance is advisable. For urban travel or shorter trips along the Ring Road, a standard car may suffice.

  • Book Early: Iceland is a popular tourist destination, especially during the summer months. To ensure availability and get the best rates, book your rental car well in advance of your trip. This is particularly important if you're visiting during peak season or if you have specific vehicle preferences.

  • Understand Insurance Options: Carefully review the insurance options offered by rental companies. Basic insurance typically covers third-party liability, but consider purchasing additional coverage for comprehensive insurance, including collision damage waiver (CDW) and gravel protection. Iceland's unpredictable weather and road conditions make comprehensive insurance especially valuable.

  • Plan Your Route: Before setting out, plan your driving route and research road conditions using reliable sources like the Icelandic Road and Coastal Administration (IRCA) website. Be aware of any road closures, weather alerts, or seasonal restrictions, especially if you plan to venture into remote areas or explore the Highlands.

  • Respect Nature and Safety: Iceland's natural landscapes are fragile and often subject to environmental protections. Stay on designated roads and trails, respect parking regulations, and avoid off-road driving, which is strictly prohibited and can result in hefty fines. Additionally, prioritize safety by adhering to speed limits, wearing seatbelts, and exercising caution on Iceland's narrow, winding roads.

 

Popular car hire destinations in Iceland

Laws and rules of the road when driving in Iceland

  •  

    R

    Road Driving Side

  •  

    50kph

    Urban speed Limit

  •  

    80kph

    Rural Speed Limit

  •  

    90kph

    Motorway Speed Limit

  •  

    ISK  261.90/Ltr

    Current Petrol Price

  •  

    50mg

    Drink Drive Limit

  •  

    ISK

    Currency

  •  

    YES

    Tolls

  •  

    21

    Min Rental Age

    18

    Min Driving Age

  •  

    Front and Rear

    Seatbelts

  •  

    Fixed and Mobile

    Speed Cameras

  •  

    Hands Free Only

    Mobile Phones

Compare car rental agents in Iceland

Rental Agent
Locations
Rating (/10)
Customer Reviews
Mini (€/day)
Compact (€/day)
Intermediate (€/day)
Standard (€/day)
 Geysir
1
9.3/10
15
€ 84.97
€ 109.29
€ 98.53
 Hertz
3
8.8/10
143
€ 65.47
€ 82.40
€ 92.08
€ 179.02
 Payless
1
8.8/10
50
€ 85.00
€ 105.71
€ 160.14
 Alamo
2
8.7/10
41
€ 65.49
€ 73.51
€ 92.44
€ 101.18
 Europcar
14
8.7/10
1,373
€ 68.26
€ 83.25
€ 103.25
€ 154.32
 Firefly
2
8.7/10
49
€ 65.47
€ 73.49
€ 98.53
 Avis
6
8.6/10
93
€ 80.00
€ 101.57
€ 101.57
€ 168.85
 Green motion
3
8.6/10
33
€ 82.40
€ 87.11
€ 87.54
€ 138.12
 Budget
6
8.5/10
128
€ 68.57
€ 82.42
€ 87.57
 Ice rental cars
2
8.2/10
146
€ 65.47
€ 77.01
€ 49.69
€ 153.03
 Sixt
1
8.2/10
19
€ 78.23
€ 87.11
€ 98.69
€ 189.94
 Enterprise
1
8.0/10
9
€ 79.18
€ 90.87
€ 98.56
€ 107.32
 Carwiz
1
7.3/10
28
€ 128.18

Car rental agent statistics in Iceland

  • Highest Rated Agent Icon
    9.5/10
    Highest rated agent:
    EUROPCAR
  • Lowest Rated Agent Icon
    7.3/10
    Lowest rated agent:
    CARWIZ
  • Total Number of Reviews Icon
    2,127
    Total number of reviews in
    Iceland
  • Most Locations Icon
    14
    Most Locations in Iceland:
    EUROPCAR
  • Average Wait Time Icon
    18
    Average wait time
    (Min.)
  • Total Rental Companies Icon
    26
    Total rental companies
     

Average prices per day for car hire in Iceland

ItemPercent
January€ 124
February€ 113
March€ 81
April€ 81
May€ 93
June€ 132
July€ 177
August€ 158
September€ 114
October€ 94
November€ 99
December€ 142
ItemPercent
January€ 75
February€ 87
March€ 72
April€ 68
May€ 82
June€ 116
July€ 167
August€ 145
September€ 106
October€ 91
November€ 123
December€ 102
ItemPercent
January€ 246
February€ 245
March€ 239
April€ 207
May€ 234
June€ 330
July€ 427
August€ 299
September€ 231
October€ 195
November€ 257
December€ 213
ItemPercent
January€ 113
February€ 117
March€ 110
April€ 107
May€ 124
June€ 178
July€ 228
August€ 215
September€ 157
October€ 144
November€ 164
December€ 118
ItemPercent
January€ 407
February€ 439
March€ 396
April€ 343
May€ 338
June€ 404
July€ 429
August€ 398
September€ 275
October€ 241
November€ 241
December€ 438
ItemPercent
January€ 99
February€ 99
March€ 63
April€ 60
May€ 72
June€ 110
July€ 145
August€ 130
September€ 101
October€ 81
November€ 111
December€ 96
ItemPercent
January€ 265
February€ 264
March€ 254
April€ 231
May€ 256
June€ 357
July€ 540
August€ 434
September€ 336
October€ 305
November€ 334
December€ 249
ItemPercent
January€ 156
February€ 107
March€ 107
April€ 97
May€ 108
June€ 149
July€ 188
August€ 162
September€ 121
October€ 100
November€ 89
December€ 142

Select category to see average car hire prices in Iceland

*average daily rates based on 7 day rental, search for today's best prices.

Fuel prices in Iceland

DieselUnleaded
May , 2023

€ 2.04

€ 2.06

Jun , 2023

€ 2.05

€ 2.07

Jul , 2023

€ 2.08

€ 2.09

Aug , 2023

€ 2.12

€ 2.13

Sep , 2023

€ 2.17

€ 2.20

Oct , 2023

€ 2.17

€ 2.20

Nov , 2023

€ 2.12

€ 2.08

Dec , 2023

€ 2.09

€ 2.07

Jan , 2024

€ 2.12

€ 2.10

Feb , 2024

€ 2.17

€ 2.13

Mar , 2024

€ 2.17

€ 2.12

Apr , 2024

€ 2.15

€ 2.09

Month, YearDiesel €/ltrUnleaded €/ltr
Apr , 2024 2.15 2.09
Mar , 2024 2.17 2.12
Feb , 2024 2.17 2.13
Jan , 2024 2.12 2.10
Dec , 2023 2.09 2.07
Nov , 2023 2.12 2.08
Oct , 2023 2.17 2.20
Sep , 2023 2.17 2.20
Aug , 2023 2.12 2.13
Jul , 2023 2.08 2.09
Jun , 2023 2.05 2.07
May , 2023 2.04 2.06

Car rental price statistics in Iceland

  • Average Price Icon
    € 458.29
    Average price:
    (per week)
  • Highest Daily Price Icon
    € 1538.92
    Highest daily price:
    Land Rover Defender
  • Total Vehicles Icon
    853
    Total cars available
     
  • Most Popular Car Model Icon
    47
    Most popular model:
    Hyundai i10
  • Locations with Most Cars Icon
    261
    Location with most cars:
    Reykjavik - Keflavik International Airport
  • Cheapest Daily Price Icon
    € 65.5 per day
    Cheapest daily price:
    ALAMO - Reykjavik - Keflavik International Airport
FAQs - How can we help?

There are always some points on which you are not sure when hiring a car, so we have done our best to answer the frequently asked questions. Just click this link and you will find the questions are sorted by category for easy navigation.

Useful links if renting a car in Iceland

Other Car Hire Locations in Iceland

We specialise in car rentals throughout Iceland to find you the best price and that's a promise...

Akureyri
€39.8
 
 
Mini 3 4 1 from €39.8 per day
Compact 5 5 3 from €53.7 per day
Economy 5 5 2 from €50.2 per day
Isafjordur Airport
€67.8
 
 
Mini 3 4 1 from €67.8 per day
Compact 5 5 3 from €94.3 per day
Economy 5 5 2 from €73.0 per day
Keflavik Airport
€32.8
 
 
Mini 3 4 2 from €32.8 per day
Compact 5 5 3 from €42.5 per day
Economy 5 5 2 from €43.5 per day
Reykjavik
€36.4
 
 
Mini 3 4 1 from €36.4 per day
Compact 5 5 3 from €50.2 per day
Economy 5 5 2 from €46.8 per day