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 139/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 112/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.

Cheap Car Hire in Iceland | Deals From AED 155/Day

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Iceland car rentals in 2025

Most popular company	Fair Car
Most common car type	Compact
Average price per day	AED 139
Cheapest price per day	AED 155

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Popular car types in Iceland

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At AED 155/day, small car 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 2 offered car types:

Economy

AED 155+

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Compact

AED 199+

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Full-size SUV

AED 548+

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Intermediate estate car

AED 178+

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Compact SUV

AED 201+

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Compact estate car

AED 208+

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Intermediate SUV

AED 265+

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Standard SUV

AED 266+

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

MG 3AED 155/day

Toyota YarisAED 170/day

Suzuki BalenoAED 172/day

A/C

Best car rental deals found in Iceland

MG 3AED 155/day

Toyota YarisAED 170/day

Suzuki BalenoAED 172/day

A/C

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 219% less than the yearly average.

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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 158/day on average. The most expensive month to hire a car in Iceland is July (AED 349/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 158

February

AED 162

March

AED 162

April

AED 165

May

AED 180

June

AED 257

July

AED 349

August

AED 323

September

AED 202

October

AED 176

November

AED 165

December

AED 173

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

Europcar

8.0

Very Good

33 reviews•17 locations

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Recent reviews

10.0

Wonderful|May 2025

It was great, everyone was very helpful.

10.0

Wonderful|Jul 2023

Nice and friendly staff at the counter. She show us some of the points to pay attention while driving, like paid parking in the city area, how to drive on the round-above, which tunnel needs to paid fee to use, etc. I rented a 7-seat caravan for five peoples plus 7 pieces of carry-on luggage.

8.0

Very Good|Nov 2021

The car was clean and we did not have any issues. We were unhappy about waiting in line almost an hour to pick up the car.

1.9

Poor|Sep 2021

Great until the end. At check-in, there was a tiny, and let me emphasize tiny, scratch on our windshield. I’m not convinced it wasn’t there at pick-up, but in any event, not billable damage. But bill me they did. Over $150. I highly recommend going over your car with a fine-toothed comb before leaving the facility at pickup. At least one other party was experiencing the exact same thing while we were there. Not acceptable, and I’m finished with EuropeCar. We travel to Iceland quite a bit, Hertz for me from now on.

3.9

Poor|Sep 2021

The line to pick up the car at the airport in Reykjavik took 2 hours, nightmare. The car was clean and nice and the drop off was quick and easy.

8.0

Very Good|Jun 2021

Friendly staff, and accommodating.

The car had been newer. The transmission was a bit sluggish. Otherwise, served our needs quite well.

1 out of 11

Hertz

8.3

Very Good

29 reviews•16 locations

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Recent reviews

10.0

Wonderful|Jul 2023

Staff at the counter were really good! Brakes squeaked a lot.

8.0

Very Good|Jul 2023

We needed better direction regarding navigation. Hertz offered no maps and provided inadequate guidance on way finding. However, once we returned to the office and asked for help, they provided excellent advice and help. Three different employees provided great service.

1 out of 10

Budget

7.9

Good

14 reviews•8 locations

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Thrifty

7.9

Good

22 reviews•8 locations

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Recent reviews

4.0

Mediocre|Aug 2025

Pickup experience was a nightmare. We waited for an hour and a half for our Thrifty number to be called, while dozens on Hertz customers who arrived later than us were able to pick up their rental. Not sure where the disconnect occurs, but Dollar and Thrifty customers are definitely not high-priority customers at KEF. They did however upgrade our vehicle after our aggravating wait, which helped soften the blow of waiting 90 minutes in the queue.

10.0

Wonderful|May 2024

Friendly

1 out of 8

Dollar

7.3

Good

20 reviews•8 locations

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Ice Rental 4x4

7.3

Good

11 reviews•6 locations

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Ice Rental Cars

6.6

Okay

10 reviews•5 locations

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Avis

8 locations

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Car rental FAQs

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 139/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 112/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

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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 26+).

Electric

AED 53+

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Hybrid

AED 31+

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Petrol/Diesel

AED 26+

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Airport car hires in Iceland

Reykjavik Keflavik Intl Airport car rentals

Reykjavik Domestic Airport car rentals

Akureyri Airport car rentals

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Cheap Car Rentals in Iceland from AED 155

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 18 lokakuu 2025.

Most popular company

Most common car type

Average price per day

Cheapest price per day

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 lokakuu 2025.

Compare car rental deals in Iceland by type

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 240. Data was last updated on 18 lokakuu 2025.

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?

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

Which car hire company has the most locations in Iceland?

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 lokakuu 2025.

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 lokakuu 2025.

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

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

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 lokakuu 2025.

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Airport car hires in Iceland

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