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Iceland

Cheap Car Rentals in Iceland from AED 107

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 5/1 and drop-off date of 12/1. 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 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 30 December 2025.

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 30 December 2025.
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At AED 107/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 3 offered car types:

Economy

Economy

AED 107+

View Deal
Compact

Compact

AED 219+

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Intermediate

Intermediate

AED 205+

View Deal
Full-size SUV

Full-size SUV

AED 377+

View Deal
Compact estate car

Compact estate car

AED 110+

View Deal
Compact SUV

Compact SUV

AED 132+

View Deal
Intermediate SUV

Intermediate SUV

AED 142+

View Deal
Intermediate estate car

Intermediate estate car

AED 209+

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 107/day
2
M
Mini Hatch
Found 12/29/25

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 209. Data was last updated on 30 December 2025.
Mini HatchAED 107/day
2
M
Mini Hatch
Found 12/29/25
Audi Q3AED 132/day
4
5
M
Audi Q3
Found 12/30/25
Ford KugaAED 142/day
5
M
A/C
Ford Kuga
Found 12/30/25

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 218% 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 153.53/day found in the past two weeks. Sixt is another inexpensive option with rates as low as AED 156.80/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 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 147

February

AED 158

March

AED 162

April

AED 165

May

AED 180

June

AED 257

July

AED 353

August

AED 330

September

AED 198

October

AED 176

November

AED 154

December

AED 162

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 30 December 2025.

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
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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 30 December 2025.

  • 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 30 December 2025.
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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 24+).

Electric

Electric

AED 56+

View Deal
Hybrid

Hybrid

AED 31+

View Deal
Petrol/Diesel

Petrol/Diesel

AED 24+

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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