Daily Car Hire Rates in Iceland

  • Mini
    Hyundai i10
    4 |
    1 |
    3 |
    From € 36.36
  • Economy
    Volkswagen Polo
    5 |
    2 |
    5 |
    From € 46.75
  • Compact
    Hyundai i30
    5 |
    3 |
    5 |
    From € 50.21
  • Estate
    Hyundai i30 Estate
    5 |
    5 |
    5 |
    From € 55.40
  • Suv
    Suzuki Jimny
    4 |
    2 |
    3 |
    From € 64.04

*daily rates in Iceland based on a 1 day rental (24hr period) and for guidance purposes only.

Iceland is quite an expensive place to go on holiday but you will find Iceland car hire surprisingly cheap. Whether you plan to visit Reykjavik for some sightseeing or want to explore the fabulous waterfalls, glaciers and geysers you can be assured that Rhino have car hire Iceland to match your requirements. Our rates include collision damage waiver, theft waiver, insurance, taxes and unlimited mileage so there are no hidden costs to worry about.

If you're trying to keep the costs down then we have a good range of economy hire cars in Iceland to choose from such as the Peugeot 107 and Toyota Yaris. Larger models that are available include the Toyota Avensis and Mercedes A Class. Our booking engine is simple to understand, safe and secure so why not try us for a quote today and see how cheaply you can hire a car in Iceland.
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*average daily rates based on 7 day rental, search for todays best prices.

Useful things to know about Iceland

  • Iceland is not a densely populated country as only has around 320,000 inhabitants.
  • The currency in Iceland is the Icelandic króna (ISK).
  • Cars are the main form of transport in Iceland and it has a high level of car ownership, with one car for every 1.5 inhabitants.
  • The official language and the most widely spoken is Icelandic, although English is spoken as a secondary language.
  • A traditional dish in Iceland is called hákarl whihc is a beheaded and gutted shark that is buried underground for months until it has fermented.
Fuel Prices in Iceland by Month
Month, YearDiesel €/ltrUnleaded €/ltr
Jan , 2020 1.71 1.74
Dec , 2019 1.71 1.75
Nov , 2019 1.68 1.74
Oct , 2019 1.65 1.71
Sep , 2019 1.68 1.75
Aug , 2019 1.60 1.67

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.

Iceland Mountains

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.

Iceland Malbik Endar

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.

More Top Iceland Car Hire Locations:

Driving in Iceland - Need to know



    Road Driving Side



    Urban speed Limit



    Rural Speed Limit



    Motorway Speed Limit


    ISK  217.84/Ltr

    Current Petrol Price



    Drink Drive Limit






    Min Rental Age


    Min Driving Age




Next Upcoming Holiday


    Thursday 9 Apr 2020

    Maundy Thursday - National holiday

Fuel Prices in Iceland

  • Price of petrol in Iceland in January

    € 1.74/Ltr

    ($ 2.13/Ltr | ISK 217.84/Ltr)
  • Price of diesel in Iceland in January

    € 1.71/Ltr

    ($ 2.09/Ltr | ISK 214.08/Ltr)

Cost to fill a rental car in Iceland in January

  Petrol Diesel
Economy € 69.60  ($ 85.23) | € 68.40  ($ 83.76)
Compact € 69.60  ($ 85.23) | € 68.40  ($ 83.76)
Full Size € 87.00  ($ 106.54) | € 85.50  ($ 104.70)
SUV € 104.40  ($ 127.85) | € 102.60  ($ 125.64)
Carrier € 121.80  ($ 149.15) | € 119.70  ($ 146.58)

Useful Links if Renting a Car in Iceland


Police Car in Iceland

(Click to enlarge)

Most popular car hire locations in Iceland

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

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Read our Frequently Asked Questions

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 save money, as usually the earlier you book, the cheaper it will be. Also you won't need to rely on unpredictable public transport or expensive taxi fares. Some of our car rental  locations in Iceland include the capital city of Reykjavik and the Keflavik Airport which is the main airport of Iceland. A popular choice of vehicle to rent when travelling to Iceland is a SUV as the weather can be unpredictable at times and many areas are mountainous and can be tricky to negotiate. We have a good variety of SUV's to choose from with models available such as the BMW X5 and Nissan Pathfinder. You can also add on any optional extras you might need such as snow tires, ski rack, sat nav and child seats.

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