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 Iceland Car Rental Mini Guide

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. 

Organising  car rental in Iceland in advance is a great way to ensure you 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.

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

Cheapest car hire in Iceland

Hyundai i10

4 Adults, 5 Doors

From 38.84 EUR/day
Hyundai i10

7 Days rental at 271.91 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Hyundai i10

4 Adults, 5 Doors

From 38.84 EUR/day
Hyundai i10

7 Days rental at 271.91 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Peugeot 108

4 Adults, 5 Doors

From 41.24 EUR/day
Peugeot 108

7 Days rental at 288.73 EUR from 23/01/2023

  2 |
  Manual |
  No

Hyundai i10

4 Adults, 5 Doors

From 42.22 EUR/day
Hyundai i10

7 Days rental at 295.55 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Hyundai i10

4 Adults, 5 Doors

From 42.84 EUR/day
Hyundai i10

7 Days rental at 299.91 EUR from 23/01/2023

  2 |
  Automatic |
  No

Hyundai i10

4 Adults, 5 Doors

From 42.84 EUR/day
Hyundai i10

7 Days rental at 299.91 EUR from 23/01/2023

  2 |
  Automatic |
  No

Peugeot 108

4 Adults, 5 Doors

From 45.50 EUR/day
Peugeot 108

7 Days rental at 318.51 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Volkswagen Up

4 Adults, 5 Doors

From 46.59 EUR/day
Volkswagen Up

7 Days rental at 326.16 EUR from 23/01/2023

  2 |
  Manual |
  No

Volkswagen Up

4 Adults, 5 Doors

From 46.59 EUR/day
Volkswagen Up

7 Days rental at 326.16 EUR from 23/01/2023

  2 |
  Manual |
  No

Hyundai i30 Estate

5 Adults, 5 Doors

From 45.36 EUR/day
Hyundai i30 Estate

7 Days rental at 317.54 EUR from 23/01/2023

  4 |
  Manual |
  Yes

Renault Megane Estate

5 Adults, 5 Doors

From 50.82 EUR/day
Renault Megane Estate

7 Days rental at 355.74 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Renault Megane Estate

5 Adults, 5 Doors

From 50.82 EUR/day
Renault Megane Estate

7 Days rental at 355.74 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Dacia Duster

5 Adults, 5 Doors

From 51.94 EUR/day
Dacia Duster

7 Days rental at 363.58 EUR from 23/01/2023

  3 |
  Manual |
  Yes

Volkswagen Golf

5 Adults, 5 Doors

From 51.95 EUR/day
Volkswagen Golf

7 Days rental at 363.69 EUR from 23/01/2023

  3 |
  Manual |
  No

Toyota Auris

5 Adults, 5 Doors

From 51.97 EUR/day
Toyota Auris

7 Days rental at 363.80 EUR from 23/01/2023

  3 |
  Manual |
  No

Volkswagen Golf

5 Adults, 5 Doors

From 51.98 EUR/day
Volkswagen Golf

7 Days rental at 363.91 EUR from 23/01/2023

  3 |
  Manual |
  Yes

Suzuki SX4

5 Adults, 5 Doors

From 52.82 EUR/day
Suzuki SX4

7 Days rental at 369.78 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Suzuki SX4

5 Adults, 5 Doors

From 52.82 EUR/day
Suzuki SX4

7 Days rental at 369.78 EUR from 23/01/2023

  3 |
  Manual |
  Yes

Suzuki Swift

5 Adults, 3 Doors

From 42.84 EUR/day
Suzuki Swift

7 Days rental at 299.91 EUR from 23/01/2023

  2 |
  Automatic |
  No

Suzuki Swift

5 Adults, 3 Doors

From 42.84 EUR/day
Suzuki Swift

7 Days rental at 299.91 EUR from 23/01/2023

  2 |
  Automatic |
  No

Hyundai i20

5 Adults, 5 Doors

From 44.20 EUR/day
Hyundai i20

7 Days rental at 309.42 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Hyundai i20

5 Adults, 5 Doors

From 44.83 EUR/day
Hyundai i20

7 Days rental at 313.86 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Toyota Yaris

5 Adults, 5 Doors

From 44.83 EUR/day
Toyota Yaris

7 Days rental at 313.86 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Hyundai i20

5 Adults, 5 Doors

From 44.83 EUR/day
Hyundai i20

7 Days rental at 313.86 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Toyota Yaris

5 Adults, 5 Doors

From 44.83 EUR/day
Toyota Yaris

7 Days rental at 313.86 EUR from 23/01/2023

  2 |
  Manual |
  Yes

Nissan Note

5 Adults, 5 Doors

From 45.50 EUR/day
Nissan Note

7 Days rental at 318.51 EUR from 23/01/2023

  2 |
  Automatic |
  No

Ford Fiesta

5 Adults, 5 Doors

From 47.63 EUR/day
Ford Fiesta

7 Days rental at 333.46 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Kia Sorento

5 Adults, 4 Doors

From 106.86 EUR/day
Kia Sorento

7 Days rental at 748.08 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 106.86 EUR/day
Kia Sorento

7 Days rental at 748.08 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 130.97 EUR/day
Kia Sorento

7 Days rental at 916.82 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 137.63 EUR/day
Kia Sorento

7 Days rental at 963.41 EUR from 23/01/2023

  6 |
  Automatic |
  No

Dacia Logan MCV

5 Adults, 5 Doors

From 44.83 EUR/day
Dacia Logan MCV

7 Days rental at 313.86 EUR from 23/01/2023

  5 |
  Manual |
  Yes

Dacia Logan MCV

5 Adults, 5 Doors

From 44.83 EUR/day
Dacia Logan MCV

7 Days rental at 313.86 EUR from 23/01/2023

  5 |
  Manual |
  Yes

Dacia Duster

5 Adults, 5 Doors

From 49.82 EUR/day
Dacia Duster

7 Days rental at 348.78 EUR from 23/01/2023

  4 |
  Manual |
  No

Dacia Duster

5 Adults, 5 Doors

From 49.82 EUR/day
Dacia Duster

7 Days rental at 348.78 EUR from 23/01/2023

  4 |
  Manual |
  No

Suzuki Vitara

5 Adults, 5 Doors

From 54.82 EUR/day
Suzuki Vitara

7 Days rental at 383.74 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Suzuki Vitara

5 Adults, 5 Doors

From 54.82 EUR/day
Suzuki Vitara

7 Days rental at 383.74 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Suzuki Vitara

5 Adults, 5 Doors

From 55.81 EUR/day
Suzuki Vitara

7 Days rental at 390.72 EUR from 23/01/2023

  4 |
  Manual |
  Yes

Suzuki Vitara

5 Adults, 5 Doors

From 55.81 EUR/day
Suzuki Vitara

7 Days rental at 390.72 EUR from 23/01/2023

  4 |
  Manual |
  Yes

Dacia Duster

5 Adults, 5 Doors

From 61.21 EUR/day
Dacia Duster

7 Days rental at 428.50 EUR from 23/01/2023

  4 |
  Manual |
  No

Nissan Leaf

5 Adults, 5 Doors

From 84.28 EUR/day
Nissan Leaf

7 Days rental at 590.00 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Renault Zoe

5 Adults, 5 Doors

From 77.28 EUR/day
Renault Zoe

7 Days rental at 541.00 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 139.75 EUR/day
Tesla Model Y

7 Days rental at 978.26 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Nissan Leaf

5 Adults, 5 Doors

From 84.28 EUR/day
Nissan Leaf

7 Days rental at 590.00 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Renault Zoe

5 Adults, 5 Doors

From 77.28 EUR/day
Renault Zoe

7 Days rental at 541.00 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 139.75 EUR/day
Tesla Model Y

7 Days rental at 978.26 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 139.75 EUR/day
Tesla Model Y

7 Days rental at 978.26 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Nissan Leaf

5 Adults, 5 Doors

From 84.28 EUR/day
Nissan Leaf

7 Days rental at 590.00 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Renault Zoe

5 Adults, 5 Doors

From 77.28 EUR/day
Renault Zoe

7 Days rental at 541.00 EUR from 23/01/2023

  2 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 98.38 EUR/day
Renault Captur Hybrid

7 Days rental at 688.68 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Landrover Defender

5 Adults, 5 Doors

From 262.79 EUR/day
Landrover Defender

7 Days rental at 1839.57 EUR from 23/01/2023

  6 |
  Automatic |
  Yes

Hyundai Tuscon Hybrid

5 Adults, 5 Doors

From 111.11 EUR/day
Hyundai Tuscon Hybrid

7 Days rental at 777.78 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 98.38 EUR/day
Renault Captur Hybrid

7 Days rental at 688.68 EUR from 23/01/2023

  3 |
  Automatic |
  Yes

Landrover Defender

5 Adults, 5 Doors

From 262.79 EUR/day
Landrover Defender

7 Days rental at 1839.57 EUR from 23/01/2023

  6 |
  Automatic |
  Yes

Hyundai Tuscon Hybrid

5 Adults, 5 Doors

From 111.11 EUR/day
Hyundai Tuscon Hybrid

7 Days rental at 777.78 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Jeep Wrangler

5 Adults, 5 Doors

From 599.81 EUR/day
Jeep Wrangler

7 Days rental at 4198.70 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Jeep Wrangler

5 Adults, 5 Doors

From 645.43 EUR/day
Jeep Wrangler

7 Days rental at 4518.06 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

Jeep Wrangler

5 Adults, 5 Doors

From 557.04 EUR/day
Jeep Wrangler

7 Days rental at 3899.34 EUR from 23/01/2023

  4 |
  Automatic |
  Yes

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
 

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  279.06/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
8.4/10
14
€ 48.12
€ 63.78
€ 64.94
€ 65.28
 Ras
4
8.1/10
81
€ 67.81
€ 94.01
€ 101.50
 Budget
6
8.0/10
207
€ 48.14
€ 59.28
€ 99.14
€ 150.85
 Europcar
14
8.0/10
487
€ 50.71
€ 59.85
€ 68.14
€ 165.00
 Hertz
7
7.7/10
359
€ 64.44
€ 71.86
€ 81.41
€ 238.39
 Firefly
2
7.7/10
21
€ 48.11
€ 51.97
€ 61.21
 Avis
6
7.6/10
47
€ 52.57
€ 112.42
€ 148.57
 Payless
1
7.5/10
29
€ 50.28
€ 118.00
€ 157.42
 Sixt
1
7.5/10
17
€ 62.83
€ 71.88
€ 428.57
 Alamo
2
7.3/10
59
€ 49.04
€ 51.98
€ 61.25
€ 69.43
 Global rent a car
1
6.2/10
6
€ 78.63
€ 105.29
€ 118.20
€ 211.83
 Ice rental cars
2
5.8/10
58
€ 46.59
€ 51.95
€ 61.23
€ 145.17
 Carwiz
1
5.4/10
6
€ 42.22
€ 45.36
€ 64.38
€ 120.64
 Wheego
1
5.4/10
20
€ 41.24
€ 51.94
€ 62.54
€ 114.71
 Faircar
3
5.4/10
215
€ 38.84
€ 50.82
€ 44.83

Car rental agent statistics in Iceland

  • 8.4/10
    Highest rated agent:
    GEYSIR
  • 5.0/10
    Lowest rated agent:
    ICE RENTAL CARS
  • 1,626
    Total number of reviews in
    Iceland
  • 13
    Most Locations in Iceland:
    EUROPCAR
  • 19
    Average wait time
    (Min.)
  • 23
    Total rental companies
     

Average prices per day for car hire in Iceland

ItemPercent
January€ 133
February€ 139
March€ 80
April€ 75
May€ 84
June€ 125
July€ 174
August€ 161
September€ 120
October€ 92
November€ 100
December€ 161
ItemPercent
January€ 68
February€ 102
March€ 66
April€ 60
May€ 73
June€ 110
July€ 170
August€ 150
September€ 112
October€ 89
November€ 138
December€ 111
ItemPercent
January€ 179
February€ 189
March€ 171
April€ 172
May€ 186
June€ 336
July€ 449
August€ 307
September€ 242
October€ 198
November€ 292
December€ 168
ItemPercent
January€ 114
February€ 112
March€ 105
April€ 102
May€ 116
June€ 177
July€ 217
August€ 218
September€ 167
October€ 131
November€ 157
December€ 122
ItemPercent
January€ 235
February€ 280
March€ 236
April€ 232
May€ 253
June€ 336
July€ 408
August€ 399
September€ 286
October€ 245
November€ 258
December€ 219
ItemPercent
January€ 101
February€ 117
March€ 65
April€ 58
May€ 71
June€ 115
July€ 144
August€ 134
September€ 106
October€ 80
November€ 116
December€ 99
ItemPercent
January€ 190
February€ 192
March€ 176
April€ 178
May€ 182
June€ 307
July€ 538
August€ 409
September€ 336
October€ 299
November€ 323
December€ 193
ItemPercent
January€ 158
February€ 98
March€ 102
April€ 90
May€ 92
June€ 140
July€ 188
August€ 166
September€ 129
October€ 101
November€ 91
December€ 143

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
Dec , 2021

€ 1.67

€ 1.76

Jan , 2022

€ 1.81

€ 1.89

Feb , 2022

€ 1.87

€ 1.97

Mar , 2022

€ 2.06

€ 2.06

Apr , 2022

€ 2.11

€ 2.10

May , 2022

€ 2.22

€ 2.22

Jun , 2022

€ 2.30

€ 2.36

Jul , 2022

€ 2.45

€ 2.48

Aug , 2022

€ 2.38

€ 2.41

Sep , 2022

€ 2.28

€ 2.26

Oct , 2022

€ 2.24

€ 2.25

Nov , 2022

€ 2.27

€ 2.23

Month, YearDiesel €/ltrUnleaded €/ltr
Nov , 2022 2.27 2.23
Oct , 2022 2.24 2.25
Sep , 2022 2.28 2.26
Aug , 2022 2.38 2.41
Jul , 2022 2.45 2.48
Jun , 2022 2.30 2.36
May , 2022 2.22 2.22
Apr , 2022 2.11 2.10
Mar , 2022 2.06 2.06
Feb , 2022 1.87 1.97
Jan , 2022 1.81 1.89
Dec , 2021 1.67 1.76

Car rental price statistics in Iceland

  • € 271.88
    Average price:
    (per week)
  • € 737.79
    Highest daily price:
    Land Rover Defender
  • 831
    Total cars available
     
  • 59
    Most popular model:
    Volkswagen Golf
  • 225
    Location with most cars:
    Reykjavik - Keflavik International Airport
  • € 38.8 per day
    Cheapest daily price:
    FAIRCAR - Keflavík

FAQs about car hire in Iceland

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

Car hire in Iceland starts from just €38.80 per day for a (mini) class car from Faircar. The average price to hire a car in Iceland is just €108.50 per day, whilst the most expensive hire car in Iceland is a Land Rover Defender car for a (premium) class from Green motion costing €737.80 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 19 car hire companies across the country. With over 18 car hire locations and 7,626 car hire options available, competition keeps prices low in Iceland.

Who is the best car hire company in Iceland?

Based on over 1,626 reviews from recent car hire customers, the best car hire agency in Iceland Is Europcar who score on average 8.0/10 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 18 car hire companies and 225 cars to choose from.

How much does fuel cost in Iceland?

Current fuel prices in Iceland are €2.229/ltr for petrol and €2.268/ltr for diesel as of 7 November 2022, it’ll cost on average €89 to fill an average compact class car with petrol and €91 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?

Faircar is the cheapest car hire company in Iceland offering a (mini) class car such as the Hyundai i10 for as little as €271.60 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 15 car hire companies in over 17 locations.

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...

Car Hire 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
Car Hire 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
Car Hire 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
Car Hire 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