• Search and Compare Icon
    Search & compare prices from leading car hire companies & save!
  • Flexible Rates Icon
    Flexible Rentals, Worldwide locations, No Hidden Fees
  • Social Media Icon
    Get in touch via Facebook
  • Multi Lingual Icon
    24/7 Multi Lingual Customer Service

 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

Peugeot 108

4 Adults, 5 Doors

From 32.73 EUR/day
Peugeot 108

7 Days rental at 229.17 EUR from 20/05/2024

  2 |
  Manual |
  No

Volkswagen Up

4 Adults, 5 Doors

From 33.27 EUR/day
Volkswagen Up

7 Days rental at 232.93 EUR from 20/05/2024

  2 |
  Manual |
  No

Volkswagen Up

4 Adults, 3 Doors

From 33.27 EUR/day
Volkswagen Up

7 Days rental at 232.93 EUR from 20/05/2024

  1 |
  Manual |
  No

Volkswagen Golf

5 Adults, 5 Doors

From 43.55 EUR/day
Volkswagen Golf

7 Days rental at 304.89 EUR from 20/05/2024

  3 |
  Manual |
  Yes

Dacia Duster

5 Adults, 5 Doors

From 44.32 EUR/day
Dacia Duster

7 Days rental at 310.24 EUR from 20/05/2024

  3 |
  Manual |
  Yes

Volkswagen Golf

5 Adults, 5 Doors

From 44.32 EUR/day
Volkswagen Golf

7 Days rental at 310.24 EUR from 20/05/2024

  3 |
  Manual |
  No

Hyundai i20

5 Adults, 5 Doors

From 34.88 EUR/day
Hyundai i20

7 Days rental at 244.22 EUR from 20/05/2024

  2 |
  Manual |
  Yes

Toyota Yaris

5 Adults, 5 Doors

From 35.98 EUR/day
Toyota Yaris

7 Days rental at 251.92 EUR from 20/05/2024

  2 |
  Manual |
  Yes

Volkswagen Polo

5 Adults, 5 Doors

From 35.98 EUR/day
Volkswagen Polo

7 Days rental at 251.92 EUR from 20/05/2024

  2 |
  Manual |
  No

Dacia Jogger

7 Adults, 5 Doors

From 81.23 EUR/day
Dacia Jogger

7 Days rental at 568.64 EUR from 20/05/2024

  2 |
  Manual |
  Yes

Kia Sorento

5 Adults, 4 Doors

From 82.30 EUR/day
Kia Sorento

7 Days rental at 576.14 EUR from 20/05/2024

  6 |
  Automatic |
  No

Kia Sorento

5 Adults, 4 Doors

From 82.30 EUR/day
Kia Sorento

7 Days rental at 576.14 EUR from 20/05/2024

  6 |
  Automatic |
  No

Dacia Logan MCV

5 Adults, 5 Doors

From 45.04 EUR/day
Dacia Logan MCV

7 Days rental at 315.34 EUR from 20/05/2024

  5 |
  Manual |
  Yes

Dacia Logan MCV

5 Adults, 5 Doors

From 45.04 EUR/day
Dacia Logan MCV

7 Days rental at 315.34 EUR from 20/05/2024

  5 |
  Manual |
  Yes

Dacia Duster

5 Adults, 5 Doors

From 52.40 EUR/day
Dacia Duster

7 Days rental at 366.83 EUR from 20/05/2024

  4 |
  Manual |
  No

Volkswagen ID.4

5 Adults, 5 Doors

From 106.32 EUR/day
Volkswagen ID.4

7 Days rental at 744.28 EUR from 20/05/2024

  4 |
  Automatic |
  Yes

Nissan Leaf

5 Adults, 5 Doors

From 80.26 EUR/day
Nissan Leaf

7 Days rental at 561.86 EUR from 20/05/2024

  3 |
  Automatic |
  Yes

Tesla Model Y

5 Adults, 5 Doors

From 114.33 EUR/day
Tesla Model Y

7 Days rental at 800.35 EUR from 20/05/2024

  4 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 66.19 EUR/day
Renault Captur Hybrid

7 Days rental at 463.34 EUR from 20/05/2024

  3 |
  Automatic |
  Yes

Toyota C-HR Hybrid

5 Adults, 5 Doors

From 68.99 EUR/day
Toyota C-HR Hybrid

7 Days rental at 482.94 EUR from 20/05/2024

  4 |
  Automatic |
  Yes

Renault Captur Hybrid

5 Adults, 5 Doors

From 74.25 EUR/day
Renault Captur Hybrid

7 Days rental at 519.77 EUR from 20/05/2024

  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  265.53/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
16
€ 72.72
€ 79.24
€ 70.69
 Green motion
3
9.1/10
27
€ 55.55
€ 61.04
€ 70.69
€ 84.16
 Hertz
3
8.8/10
148
€ 53.55
€ 60.43
€ 74.25
€ 170.62
 Payless
1
8.8/10
48
€ 33.28
€ 55.28
€ 122.00
 Avis
6
8.7/10
99
€ 55.00
€ 69.00
€ 69.57
€ 120.28
 Europcar
14
8.7/10
1,326
€ 56.26
€ 68.26
€ 78.25
€ 123.32
 Firefly
2
8.7/10
53
€ 33.27
€ 44.32
€ 52.40
€ 127.71
 Alamo
2
8.7/10
42
€ 36.66
€ 44.33
€ 60.39
€ 77.75
 Budget
6
8.5/10
134
€ 49.00
€ 57.00
€ 62.71
 Enterprise
1
8.4/10
8
€ 51.66
€ 60.45
€ 73.27
€ 88.13
 Ice rental cars
2
8.2/10
141
€ 33.27
€ 44.32
€ 49.69
€ 153.03
 Sixt
1
8.1/10
18
€ 51.64
€ 65.40
€ 68.99
€ 173.28
 Wheego
1
7.7/10
49
€ 32.73
€ 44.32
€ 53.19
€ 170.55
 Faircar
2
7.6/10
142
€ 33.27
€ 48.80
€ 45.04
 Carwiz
1
7.3/10
27
€ 50.25

Car rental agent statistics in Iceland

  • Highest Rated Agent Icon
    9.4/10
    Highest rated agent:
    EUROPCAR
  • Lowest Rated Agent Icon
    7.3/10
    Lowest rated agent:
    CARWIZ
  • Total Number of Reviews Icon
    2,278
    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€ 135
July€ 177
August€ 158
September€ 114
October€ 94
November€ 99
December€ 142
ItemPercent
January€ 75
February€ 87
March€ 72
April€ 68
May€ 82
June€ 117
July€ 167
August€ 145
September€ 106
October€ 91
November€ 123
December€ 102
ItemPercent
January€ 246
February€ 245
March€ 239
April€ 207
May€ 234
June€ 337
July€ 427
August€ 299
September€ 231
October€ 195
November€ 257
December€ 213
ItemPercent
January€ 113
February€ 117
March€ 110
April€ 107
May€ 124
June€ 185
July€ 228
August€ 215
September€ 157
October€ 144
November€ 164
December€ 118
ItemPercent
January€ 407
February€ 439
March€ 396
April€ 343
May€ 338
June€ 362
July€ 429
August€ 398
September€ 275
October€ 241
November€ 241
December€ 438
ItemPercent
January€ 99
February€ 99
March€ 63
April€ 60
May€ 72
June€ 117
July€ 145
August€ 130
September€ 101
October€ 81
November€ 111
December€ 96
ItemPercent
January€ 265
February€ 264
March€ 254
April€ 231
May€ 256
June€ 359
July€ 540
August€ 434
September€ 336
October€ 305
November€ 334
December€ 249
ItemPercent
January€ 156
February€ 107
March€ 107
April€ 97
May€ 108
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
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

Dec , 2023

€ 2.09

€ 2.07

Jan , 2024

€ 2.12

€ 2.10

Feb , 2024

€ 2.17

€ 2.13

Mar , 2024

€ 2.17

€ 2.12

Month, YearDiesel €/ltrUnleaded €/ltr
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
Apr , 2023 2.17 2.15

Car rental price statistics in Iceland

  • Average Price Icon
    € 229.11
    Average price:
    (per week)
  • Highest Daily Price Icon
    € 1924.96
    Highest daily price:
    Jeep Wrangler Rubicon
  • Total Vehicles Icon
    912
    Total cars available
     
  • Most Popular Car Model Icon
    52
    Most popular model:
    Hyundai i10
  • Locations with Most Cars Icon
    298
    Location with most cars:
    Reykjavik - Keflavik International Airport
  • Cheapest Daily Price Icon
    € 32.7 per day
    Cheapest daily price:
    WHEEGO - 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