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Iceland

Cheap Car Rentals in Iceland from AED 158

This price is the cheapest per day rate found by a Cheapflights user in the last 48 hours by searching for a car hire in Iceland with a pick-up date of 26/1 and drop-off date of 30/1. Fares are subject to change and may not be available at all agencies or on all dates of hire. Click the price to replicate the search for this deal.
Driver's age: 25-65
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Iceland car rentals in 2026

Get helpful information to start your search for the perfect car rental in Iceland. The average price data is based on the last 12 months and was last updated on 18 January 2026.

Most common car type

Compact
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Popular car types in Iceland

Explore the most popular car models available for rent in Iceland and choose the one that suits your needs. The price data is sourced from various car rental companies and was last updated on 18 January 2026.
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At AED 158/day, SUV is the cheapest car type available for hire in Iceland in the past week. Out of 71 car hire agencies operating in Iceland, there are, in total, 259 hire locations. View below for 3 offered car types:

Economy

Economy

AED 183+

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Compact

Compact

AED 228+

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Intermediate

Intermediate

AED 349+

View Deal
Full-size SUV

Full-size SUV

AED 369+

View Deal
Compact SUV

Compact SUV

AED 158+

View Deal
Compact estate car

Compact estate car

AED 240+

View Deal
Intermediate estate car

Intermediate estate car

AED 276+

View Deal
Intermediate SUV

Intermediate SUV

AED 297+

View Deal

Compare car rental deals in Iceland by type

Here are the best Iceland small car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland medium car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland SUV hire prices found by Cheapflights users in the past 7 days:

Mini HatchAED 183/day
2
M
Mini Hatch
Found 01/17/26
Kia RioAED 203/day
2
4
M
Kia Rio
Found 01/17/26

Best car rental deals found in Iceland

Browse through a selection of recently found affordable car rental deals in Iceland. Plan your trip with ease and find the perfect rental option for your needs. There are currently 8 rental car agencies in Iceland with an average daily rate of AED 270. Data was last updated on 18 January 2026.
Kia SeltosAED 158/day
4
M
Kia Seltos
Found 01/17/26
Kia RioAED 183/day
2
4
M
Kia Rio
Found 01/17/26
Opel CorsaAED 203/day
2
M
Opel Corsa
Found 01/17/26

Cheapflights insights for Iceland car rentals

Get relevant, data-driven information to help you hire a car in Iceland, including pricing trends, ideal booking times, and more.

How far in advance should I hire a car in Iceland?

For the best savings on car hire in Iceland, make your reservation 7 days before pickup. The average price then is just AED 180/day – about 222% less than the yearly average.

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What is the cheapest car hire company in Iceland?

Alamo is currently the cheapest car hire company in Iceland with deals as low as AED 153.57/day found in the past two weeks. Sixt is another inexpensive option with rates as low as AED 454.56/day.

What is the cheapest month to rent a car in Iceland?

The cheapest month to hire a car in Iceland is January, when you can expect to pay AED 147/day on average. The most expensive month to hire a car in Iceland is July (AED 356/day on average). The average daily car hire price for each month is shown below. Keep in mind that prices will vary based on availability, when you book, and the type of car you hire.

January

AED 147

February

AED 158

March

AED 162

April

AED 165

May

AED 184

June

AED 257

July

AED 356

August

AED 334

September

AED 202

October

AED 176

November

AED 151

December

AED 158

What car do most people hire in Iceland?

SUV cars (Tesla Model Y or similar) are the most popular option for those visiting Iceland. Passenger van cars (Dacia Jogger or similar) are also a popular choice, followed by Intermediate cars (Dacia Jogger or similar).

Which car hire company has the most locations in Iceland?

keddy by Europcar has 21 locations throughout the area, more than any other company. Sunnycars has the second-highest number of locations in Iceland at 19.

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Top rental agencies in Iceland

Explore the leading car rental agencies in Iceland known for their outstanding service and extensive range of vehicles to choose from. There are currently 8 car rental companies in Iceland. Reviews were last updated on 18 January 2026.

Europcar

7.9
Good
33 reviews•17 locations
Check prices
Overview

Cleanliness

8.4

Comfort

8.5

Overall

7.9

Pick-up/drop-off

7.7

Value

7.8

Hertz

8.2
Very Good
29 reviews•16 locations
Check prices
Overview

Cleanliness

8.8

Comfort

8.6

Overall

8.2

Pick-up/drop-off

8.1

Value

7.5

Budget

7.9
Good
14 reviews•8 locations
Check prices
Overview

Cleanliness

7.7

Comfort

8.0

Overall

7.9

Pick-up/drop-off

7.9

Value

7.4

Thrifty

7.8
Good
22 reviews•8 locations
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Overview

Cleanliness

8.6

Comfort

8.4

Overall

7.8

Pick-up/drop-off

7.2

Value

7.3

Dollar

7.3
Good
20 reviews•8 locations
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Overview

Cleanliness

8.3

Comfort

7.7

Overall

7.3

Pick-up/drop-off

6.9

Value

7.2

Ice Rental 4x4

7.2
Good
11 reviews•6 locations
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Overview

Cleanliness

7.8

Comfort

7.5

Overall

7.2

Pick-up/drop-off

7.2

Value

7.4

Ice Rental Cars

6.6
Okay
10 reviews•5 locations
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Overview

Cleanliness

7.4

Comfort

6.6

Overall

6.6

Pick-up/drop-off

6.4

Value

6.6

Avis

8 locations
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Car rental FAQs

Find answers to frequently asked questions about car rentals in Iceland, including policies, requirements, and more. FAQs were last updated on 18 January 2026.

  • What side of the road do you drive on in Iceland?

    In Iceland, drivers are expected to drive on the right side of the road.

Car rentals by fuel type in Iceland

Browse car rentals by fuel type in Iceland. Currently, Petrol/Diesel cars are the cheapest to rent in Iceland. Deals were last updated on 18 January 2026.
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Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Petrol/Diesel being the cheapest (AED 43+).

Electric

Electric

AED 56+

View Deal
Hybrid

Hybrid

AED 44+

View Deal
Petrol/Diesel

Petrol/Diesel

AED 43+

View Deal

Browse thousands of different options on Cheapflights for your next trip

Toggle through the tabs below to find thousands of options on Cheapflights for your next trip.

Airport car hires in Iceland

Hire a car at one of these airports in the Iceland area
Reykjavik Keflavik Intl Airport car rentals
Reykjavik Domestic Airport car rentals
Akureyri Airport car rentals

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