Iceland

Cheap Car Rentals in Iceland

Driver's age: 25-65
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Iceland car rentals in 2025

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 29 November 2025.

Most popular company

Enterprise Rent-A-Car

Most common car type

Compact

Average price per day

AED 365

Cheapest price per day

AED 320

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 176/day – about 217% less than the yearly average.

What is the cheapest car hire company in Iceland?

Fair Car is currently the cheapest car hire company in Iceland with deals as low as AED 52.78/day found in the past two weeks. Street Rent a Car is another inexpensive option with rates as low as AED 99.34/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 154/day on average. The most expensive month to hire a car in Iceland is July (AED 353/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 154

February

AED 158

March

AED 162

April

AED 165

May

AED 180

June

AED 257

July

AED 353

August

AED 327

September

AED 198

October

AED 176

November

AED 154

December

AED 165

What car do most people hire in Iceland?

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

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 29 November 2025.

Europcar

7.9
Good
33 reviews17 locations
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 reviews16 locations
Overview

Cleanliness

8.8

Comfort

8.6

Overall

8.2

Pick-up/drop-off

8.1

Value

7.5

Budget

7.9
Good
14 reviews8 locations
Overview

Cleanliness

7.7

Comfort

8.0

Overall

7.9

Pick-up/drop-off

7.9

Value

7.4

Thrifty

7.8
Good
22 reviews8 locations
Overview

Cleanliness

8.6

Comfort

8.4

Overall

7.8

Pick-up/drop-off

7.2

Value

7.3

Dollar

7.3
Good
20 reviews8 locations
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 reviews6 locations
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 reviews5 locations
Overview

Cleanliness

7.4

Comfort

6.6

Overall

6.6

Pick-up/drop-off

6.4

Value

6.6

Avis

8 locations

Car rental FAQs

Find answers to frequently asked questions about car rentals in Iceland, including policies, requirements, and more. FAQs were last updated on 29 November 2025.
  • What is the most popular car hire provider in Iceland?

    With an average price of AED 312/day, Enterprise Rent-A-Car is the most popular car hire provider in Iceland, booking 167% more hire cars than any other provider.

  • What is the cheapest city to get a rental car in Iceland?

    When visiting Iceland, it is typically cheapest to rent your car in Reykjavik where rental cars typically will cost around AED 267/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 246/day.

  • 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.

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