Cheapest car hire in Iceland

Top tips when hiring a car in Iceland

  • Off road driving where not marked or signed is forbidden in Iceland
  • Drive on the right-hand side of the road in Iceland, take extra care on narrow roads with passing places
  • Check weather conditions and forecasts before planning any journey and heed warnings, the weather can change very quickly and road conditions can deteriorate quickly
  • Hiring a car in Iceland doesn't need to be expensive, compare deals for the best value

Iceland car hire reviews

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Rated 3.8 / 5 | 1,800 reviews

Laws and rules of the road when driving in Iceland



    Road Driving Side



    Urban speed Limit



    Rural Speed Limit



    Motorway Speed Limit


    ISK  169.01/Ltr

    Current Petrol Price



    Drink Drive Limit









    Min Rental Age


    Min Driving Age


    Front and Rear



    Fixed and Mobile

    Speed Cameras


    Hands Free Only

    Mobile Phones

Recent customer reviews (average rating 7.8/10)



I needed a car

I needed a car for a few days whilst in Iceland on business. Rhino were the cheapest and car was fine, no complaints, but everything is expensive in Iceland, so £40 per day for a basic car that costs under £10 in Spain was a bit of a shock.



Not for the fei

Not for the feint hearted, Iceland is fantastic, but very expensive. Be prepared for an expensive trip. Our weekend away cost more than the average 2 weeks summer holiday!

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Compare car rental agents in Iceland

Rental Agent
Rating (/10)
Customer Reviews
Mini (€/day)
Compact (€/day)
Intermediate (€/day)
Standard (€/day)
€ 25.36
€ 34.51
€ 54.81
€ 79.91
€ 39.41
€ 52.43
€ 61.67
€ 180.44
€ 27.42
€ 46.42
€ 77.14
€ 25.00
€ 35.71
€ 70.00
€ 83.28
 Ice rental cars
€ 47.56
€ 45.55
€ 53.45
€ 79.88
€ 26.27
€ 43.80
€ 42.70
€ 89.68
 Global rent a car
€ 41.93
€ 45.51
€ 53.93
€ 87.68

Car rental agent statistics in Iceland

  • 9.2/10
    Highest rated agent:
  • 3.9/10
    Lowest rated agent:
  • 260
    Total number of reviews in
  • 7
    Most Locations in Iceland:
  • 18
    Average wait time
  • 19
    Total rental companies

Average prices per day for car hire in Iceland

(SELECT TOP 7 [January],[Feburary],[March],[April],[May],[June],[July],[August],[September],[October],[November],[December],[VehicleMatrixCategory] FROM( SELECT VehicleMatrixCategory, [Month_Name], RateTotal / 7 as RateTotal FROM[cartrawler_v2].[dbo].[LocationVehicleHistoryV2] WHERE VehicleMatrixCategory in ('Compact','Economy','Fullsize','Intermediate','Luxury','Mini','Standard') AND CountryCode = 'is' ) AverageRates PIVOT( AVG(RateTotal) FOR[Month_Name] IN( January, Feburary, March, April, May, June, July, August, September, October, November, December ) ) AS PivotTable ) UNION (SELECT TOP 1 [January],[Feburary],[March],[April],[May],[June],[July],[August],[September],[October],[November],[December],'SUV' as VehicleMatrixCategory FROM ( SELECT VehicleMatrixCategory, [Month_Name], RateTotal / 7 as RateTotal FROM[cartrawler_v2].[dbo].[LocationVehicleHistoryV2] WHERE VehicleMatrixType ='SUV' AND CountryCode = 'is' ) AverageRates PIVOT( AVG(RateTotal) FOR[Month_Name] IN( January, Feburary, March, April, May, June, July, August, September, October, November, December ) ) AS PivotTable ) ORDER BY VehicleMatrixCategory

SELECT CAST(AVG(RateTotal/7) as decimal(19,2)) as AvgRateTotal FROM[cartrawler_v2].[dbo].[LocationVehicleHistoryV2] WHERE (VehicleMatrixCategory ='SUV' OR VehicleMatrixType ='SUV') AND CountryCode = 'is'

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

Month, YearDiesel €/ltrUnleaded €/ltr
Sep , 2020 1.28 1.35
Aug , 2020 1.26 1.32
Jul , 2020 1.29 1.35
Jun , 2020 1.34 1.41
May , 2020 1.33 1.36
Apr , 2020 1.30 1.32
Mar , 2020 1.40 1.44
Feb , 2020 1.63 1.69
Jan , 2020 1.68 1.72
Dec , 2019 1.71 1.75
Nov , 2019 1.68 1.74
Oct , 2019 1.65 1.71

Car rental price statistics in Iceland

  • € 175.00
    Average price:
    (per week)
  • € 9493.85
    Highest daily price:
    Toyota Avensis Estate
  • 457
    Total cars available
  • 32
    Most popular model:
    Skoda Octavia Estate
  • 158
    Location with most cars:
    Reykjavik - Keflavik International Airport
  • € 25.0 per day
    Cheapest daily price:
    BUDGET - Reykjavik - Downtown

FAQs about car hire in Iceland

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

Car hire in Iceland starts from just €25.00 per day for a (mini) class car from Budget. The average price to hire a car in Iceland is just €409.90 per day, whilst the most expensive hire car in Iceland is a Toyota Avensis Estate car for a (intermediate) class from Hertz costing €9493.90 per day.

How do I get a free additional driver when hiring a car in Iceland?

We often have special offers on car hire in Iceland including free additional drivers, for example, is offering free additional driver and express check-in at for €0.00 per day.

Why is car hire so cheap in Iceland?

Car hire prices in Iceland are kept low thanks to the 14 car hire companies across the country. With over 13 car hire locations and 4,045 car hire options available, competition keeps prices low in Iceland.

Who is the best car hire company in Iceland?

Based on over 260 reviews from recent car hire customers, the best car hire agency in Iceland Is Hertz who score on average 8.1/10 across all locations in Iceland.

What is the most popular car hire location in Iceland?

The most popular locations to hire a car in Iceland is Reykjavik - Keflavik International Airport with 13 car hire companies and 158 cars to choose from.

How much does fuel cost in Iceland?

Current fuel prices in Iceland are €1.35/ltr for petrol and €1.28/ltr for diesel as of 21 September 2020, it’ll cost on average €54 to fill an average compact class car with petrol and €51 for diesel.

What are the speed limits in Iceland?

Speed limits in Iceland are in km/h and are generally 50 km/h on urban roads, 80 km/h on rural roads and 90 km/h on the motorways but you should always follow local signage.

What is the cheapest car hire company in Iceland?

Budget is the cheapest car hire company in Iceland offering a (mini) class car such as the Kia Picanto for as little as €175.00 per week.

What is the most popular hire car in Iceland?

The most popular car hire category in Iceland is the Dacia Duster available from 9 car hire companies in over 11 locations.

Is it worth hiring a car in Iceland?

Iceland has a reputation for being a very expensive country to visit, however hiring a car doesn't have to break the bank. Relative to other travel costs such as hotels and public transport, hiring a car in Iceland represents great value. Prices starting from around £15 per day for an economy class rental car in Iceland, there's no reason not to get behind the wheel and take to the roads in Iceland in a hire car. Local car rental agents offer great value, whilst leading international car hire companies such as Hertz, Europcar and Avis are all well represented in Iceland with offices at the main airports and town centre location.

Most people collect car hire in Iceland from:

Other car hire locations in Iceland:

  • Akureyri
  • Egilsstadir Airport
  • Hofn Airport
  • Isafjordur Airport
  • Keflavik Airport
  • Reykjavik
  • Reykjavik Airport
  • Saudarkrokur Airport
  • Vestmannaeyjar Airport

Iceland Mini Guide

Iceland is a huge mountainous island located in the North Atlantic Ocean which is famous for its stunning countryside and fun-loving people. However, recently the global crisis has sent Iceland’s economy crashing down, meaning that this notoriously expensive country may now become more affordable to visit. The international airport is Keflavik, situated in the southwest of the country about 40 kilometres from Iceland’s capital city Reykjavík.

Car rental is the most flexible way to see as much as possible of Iceland and you may want to think about hiring a four wheel drive such as a Land Rover or Jeep and get off the beaten track. It is important to make your car rental reservation well in advance if you want to be sure of getting the right type of vehicle for your holiday and potentially get it fitted out with special snow tyres.  Driving in Iceland is on the right side of the road and headlights must be used at all times, while the wearing of seat belts is also compulsory.

It is very important to know what the road signs in Iceland mean as these will help you deal with challenging conditions. A popular sign outside of the city is 'Malbik Endar' which literally means 'end of paved road'. This indicates that the surfaced road ends and a gravel track starts, the sign shows a picture of a car with gravel to indicate this and you should slow down to an appropriate speed for the conditions. You should take particular care if you plan to cross any rivers or drive along mountain roads as there will be steep falls if you stray from the path.

Keep a credit card on you as this is the quickest way of paying for petrol and bear in mind that there can be massive distances between petrol stations so you should keep stocked up. Petrol costs are approximately ISK170 per litre. Similarly it is very important to plan your route ahead in case of any inclement weather. This means it is a good idea to carry food and water with you and know where the nearest accommodation is at all times in case you need to stop.

The Icelandic meteorological office is a good place to check what conditions you may have to drive in before setting out on your journey. Due to the wet conditions making many impassable, the majority of mountain roads remain closed under June or even later.  The route one ring road is the only highway in Iceland and it covers the entire country.

Is it safe to drive in Iceland?

Iceland is a terrific country to visit with so many things to see and do as well as a huge variety of natural wonders to be inspired by such as bubbling mud pools, geysers spurting into the sky, twinkling glaciers and the famous aurora lights.

Organising a hire car in Iceland in advance is a great way to see what the Island has to offer. Following the rules of the road and local guidance / advice is important to staying safe when driving in Iceland. All rental cars in Iceland are fitted with suitable winter tyres to ensure safe passage around the road network. Taking care and treating the roads and weather conditions with respect is important when driving in Iceland.

Popular car hire destinations in Iceland

Useful links if renting a car in Iceland

Fuel Prices in Iceland

  • Price of petrol in Iceland in September

    € 1.35/Ltr

    ($ 1.65/Ltr | 169.01/Ltr)
  • Price of diesel in Iceland in September

    € 1.28/Ltr

    ($ 1.57/Ltr | 160.25/Ltr)

Cost to fill a rental car in Iceland in September

  Petrol Diesel
Economy € 54.00  ($ 66.13) | € 51.20  ($ 62.70)
Compact € 54.00  ($ 66.13) | € 51.20  ($ 62.70)
Full Size € 67.50  ($ 82.66) | € 64.00  ($ 78.37)
SUV € 81.00  ($ 99.19) | € 76.80  ($ 94.05)
Carrier € 94.50  ($ 115.72) | € 89.60  ($ 109.72)

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Police Car in Iceland

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Other Car Hire Locations in Iceland

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

Car Hire Akureyri
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
Car Hire Isafjordur Airport
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
Car Hire Keflavik Airport
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
Car Hire Reykjavik
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