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 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

Volkswagen Up

4 Adults, 5 Doors

From 31.22 EUR/day
Volkswagen Up

7 Days rental at 218.57 EUR from 11/12/2023

  2 |
  Manual |
  No

Hyundai i10

4 Adults, 5 Doors

From 31.22 EUR/day
Hyundai i10

7 Days rental at 218.57 EUR from 11/12/2023

  2 |
  Manual |
  Yes

Toyota Aygo

4 Adults, 3 Doors

From 31.23 EUR/day
Toyota Aygo

7 Days rental at 218.64 EUR from 11/12/2023

  2 |
  Manual |
  No

Dacia Duster

5 Adults, 5 Doors

From 39.75 EUR/day
Dacia Duster

7 Days rental at 278.26 EUR from 11/12/2023

  3 |
  Manual |
  Yes

Volkswagen Golf

5 Adults, 5 Doors

From 39.76 EUR/day
Volkswagen Golf

7 Days rental at 278.34 EUR from 11/12/2023

  3 |
  Manual |
  Yes

Volkswagen Golf

5 Adults, 5 Doors

From 40.15 EUR/day
Volkswagen Golf

7 Days rental at 281.08 EUR from 11/12/2023

  3 |
  Automatic |
  Yes

Volkswagen Polo

5 Adults, 5 Doors

From 31.86 EUR/day
Volkswagen Polo

7 Days rental at 223.02 EUR from 11/12/2023

  2 |
  Manual |
  No

Volkswagen Polo

5 Adults, 5 Doors

From 31.86 EUR/day
Volkswagen Polo

7 Days rental at 223.02 EUR from 11/12/2023

  2 |
  Manual |
  No

Hyundai i20

5 Adults, 5 Doors

From 31.87 EUR/day
Hyundai i20

7 Days rental at 223.09 EUR from 11/12/2023

  2 |
  Manual |
  No

Dacia Jogger

7 Adults, 5 Doors

From 68.91 EUR/day
Dacia Jogger

7 Days rental at 482.40 EUR from 11/12/2023

  2 |
  Manual |
  Yes

Kia Sorento

5 Adults, 4 Doors

From 90.11 EUR/day
Kia Sorento

7 Days rental at 630.78 EUR from 11/12/2023

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 101.47 EUR/day
Kia Sorento

7 Days rental at 710.29 EUR from 11/12/2023

  6 |
  Automatic |
  No

Dacia Duster

5 Adults, 5 Doors

From 42.38 EUR/day
Dacia Duster

7 Days rental at 296.72 EUR from 11/12/2023

  4 |
  Manual |
  No

Dacia Duster

5 Adults, 5 Doors

From 42.38 EUR/day
Dacia Duster

7 Days rental at 296.72 EUR from 11/12/2023

  4 |
  Manual |
  No

Dacia Logan MCV

5 Adults, 5 Doors

From 43.43 EUR/day
Dacia Logan MCV

7 Days rental at 304.03 EUR from 11/12/2023

  5 |
  Manual |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 85.30 EUR/day
Tesla Model Y

7 Days rental at 597.15 EUR from 11/12/2023

  4 |
  Automatic |
  Yes

Volkswagen ID.4

5 Adults, 5 Doors

From 64.32 EUR/day
Volkswagen ID.4

7 Days rental at 450.29 EUR from 11/12/2023

  4 |
  Automatic |
  Yes

Nissan Leaf

5 Adults, 5 Doors

From 56.26 EUR/day
Nissan Leaf

7 Days rental at 393.82 EUR from 11/12/2023

  3 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 47.82 EUR/day
Renault Captur Hybrid

7 Days rental at 334.77 EUR from 11/12/2023

  3 |
  Automatic |
  Yes

Mitsubishi Eclipse Cross Hybrid

5 Adults, 5 Doors

From 53.55 EUR/day
Mitsubishi Eclipse Cross Hybrid

7 Days rental at 374.89 EUR from 11/12/2023

  3 |
  Automatic |
  Yes

Toyota Corolla Hybrid Estate

5 Adults, 5 Doors

From 53.59 EUR/day
Toyota Corolla Hybrid Estate

7 Days rental at 375.18 EUR from 11/12/2023

  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  275.05/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
9.2/10
18
€ 49.25
€ 56.00
€ 51.95
 Budget
6
8.7/10
147
€ 36.00
€ 44.57
€ 53.85
 Payless
1
8.7/10
26
€ 33.28
€ 55.28
€ 126.14
 Firefly
2
8.7/10
73
€ 33.11
€ 42.16
€ 51.95
€ 209.21
 Alamo
2
8.7/10
53
€ 31.23
€ 39.76
€ 48.20
€ 71.87
 Hertz
7
8.7/10
319
€ 48.12
€ 55.26
€ 64.23
€ 210.32
 Avis
6
8.6/10
89
€ 37.14
€ 51.00
€ 55.42
€ 85.28
 Europcar
13
8.6/10
1,035
€ 49.26
€ 56.26
€ 64.25
€ 182.32
 Enterprise
1
8.5/10
10
€ 33.12
€ 42.17
€ 51.12
€ 76.23
 Sixt
1
8.3/10
13
€ 38.41
€ 49.55
€ 56.57
€ 228.85
 Ice rental cars
2
8.3/10
94
€ 31.22
€ 42.16
€ 51.95
€ 182.27
 Faircar
2
7.5/10
138
€ 31.22
€ 44.48
€ 42.38
 Addcar
1
7.5/10
8
€ 49.55
 Carwiz
1
7.5/10
40
€ 34.31
€ 41.97
€ 59.51
 Wheego
1
7.4/10
44
€ 33.11
€ 39.75
€ 51.26
€ 130.48

Car rental agent statistics in Iceland

  • Highest Rated Agent Icon
    9.2/10
    Highest rated agent:
    GEYSIR
  • Lowest Rated Agent Icon
    7.4/10
    Lowest rated agent:
    WHEEGO
  • Total Number of Reviews Icon
    2,107
    Total number of reviews in
    Iceland
  • Most Locations Icon
    12
    Most Locations in Iceland:
    EUROPCAR
  • Average Wait Time Icon
    18
    Average wait time
    (Min.)
  • Total Rental Companies Icon
    24
    Total rental companies
     

Average prices per day for car hire in Iceland

ItemPercent
January€ 133
February€ 118
March€ 78
April€ 76
May€ 89
June€ 135
July€ 177
August€ 158
September€ 114
October€ 94
November€ 99
December€ 142
ItemPercent
January€ 68
February€ 87
March€ 66
April€ 64
May€ 78
June€ 117
July€ 167
August€ 145
September€ 106
October€ 91
November€ 123
December€ 102
ItemPercent
January€ 179
February€ 191
March€ 176
April€ 178
May€ 194
June€ 337
July€ 427
August€ 299
September€ 231
October€ 195
November€ 257
December€ 213
ItemPercent
January€ 114
February€ 117
March€ 109
April€ 108
May€ 124
June€ 185
July€ 228
August€ 215
September€ 157
October€ 144
November€ 164
December€ 118
ItemPercent
January€ 235
February€ 261
March€ 219
April€ 223
May€ 254
June€ 362
July€ 429
August€ 398
September€ 275
October€ 241
November€ 241
December€ 438
ItemPercent
January€ 101
February€ 100
March€ 67
April€ 63
May€ 74
June€ 117
July€ 145
August€ 130
September€ 101
October€ 81
November€ 111
December€ 96
ItemPercent
January€ 190
February€ 195
March€ 183
April€ 183
May€ 217
June€ 359
July€ 540
August€ 434
September€ 336
October€ 305
November€ 334
December€ 249
ItemPercent
January€ 158
February€ 90
March€ 88
April€ 85
May€ 95
June€ 143
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
Dec , 2022

€ 2.20

€ 2.15

Jan , 2023

€ 2.14

€ 2.08

Feb , 2023

€ 2.15

€ 2.12

Mar , 2023

€ 2.19

€ 2.15

Apr , 2023

€ 2.17

€ 2.15

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

Month, YearDiesel €/ltrUnleaded €/ltr
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
Apr , 2023 2.17 2.15
Mar , 2023 2.19 2.15
Feb , 2023 2.15 2.12
Jan , 2023 2.14 2.08
Dec , 2022 2.20 2.15

Car rental price statistics in Iceland

  • Average Price Icon
    € 218.54
    Average price:
    (per week)
  • Highest Daily Price Icon
    € 2009.61
    Highest daily price:
    Jeep Wrangler Rubicon
  • Total Vehicles Icon
    862
    Total cars available
     
  • Most Popular Car Model Icon
    61
    Most popular model:
    Volkswagen Golf
  • Locations with Most Cars Icon
    266
    Location with most cars:
    Reykjavik - Keflavik International Airport
  • Cheapest Daily Price Icon
    € 31.2 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