Iceland

Cheap Car Rentals in Iceland from AED 163

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 23/5 and drop-off date of 6/6. 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 7 March 2026.

Most popular company

Ice Rental 4x4

Most common car type

Compact

Average price per day

AED 208

Cheapest price per day

AED 163

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 7 March 2026.

At AED 163/day, SUV is the cheapest car type available for hire in Iceland in the past week. Out of 74 car hire agencies operating in Iceland, there are, in total, 271 hire locations. View below for 2 offered car types:

Economy

Economy

AED 186+

Compact

Compact

AED 214+

Full-size SUV

Full-size SUV

AED 393+

Compact SUV

Compact SUV

AED 163+

Intermediate estate car

Intermediate estate car

AED 247+

Compact estate car

Compact estate car

AED 260+

Intermediate SUV

Intermediate SUV

AED 265+

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 SUV hire prices found by Cheapflights users in the past 7 days:

Mini HatchAED 186/day
2
M
Mini Hatch
Kia RioAED 196/day
2
4
M
Kia Rio
Kia RioAED 214/day
4
4
M
Kia Rio

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 287. Data was last updated on 7 March 2026.
Hyundai CretaAED 163/day
4
M
Hyundai Creta
Kia RioAED 186/day
2
4
M
Kia Rio
Opel CorsaAED 196/day
2
M
Opel Corsa

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 191/day – about 238% less than the yearly average.

What is the cheapest car hire company in Iceland?

Payless is currently the cheapest car hire company in Iceland with deals as low as AED 111.98/day found in the past two weeks. Ice Rental 4x4 is another inexpensive option with rates as low as AED 208.45/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 143/day on average. The most expensive month to hire a car in Iceland is July (AED 364/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 143

February

AED 154

March

AED 165

April

AED 173

May

AED 191

June

AED 261

July

AED 364

August

AED 342

September

AED 202

October

AED 173

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.

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 7 March 2026.

Europcar

7.9
Good
33 reviews18 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

7.8
Good
15 reviews8 locations
Overview

Cleanliness

7.6

Comfort

7.9

Overall

7.8

Pick-up/drop-off

7.9

Value

7.4

Thrifty

7.8
Good
22 reviews7 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 reviews6 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 7 March 2026.
  • What is the most popular car hire provider in Iceland?

    With an average price of AED 208/day, Ice Rental 4x4 is the most popular car hire provider in Iceland, booking 88% 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 208/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 110/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.

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 7 March 2026.

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 38+).

Electric

Electric

AED 64+

Hybrid

Hybrid

AED 49+

Petrol/Diesel

Petrol/Diesel

AED 38+

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Airport car hires in Iceland

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