Iceland

Cheap Car Rentals in Iceland from AED 170

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 21/9 and drop-off date of 24/9. 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: 26-65
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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 16 September 2025.

Most popular company

Ice Rental 4x4

Most common car type

Compact

Average price per day

AED 296

Cheapest price per day

AED 170

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 16 September 2025.

At AED 170/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 70 car hire agencies operating in Iceland, there are, in total, 257 hire locations. View below for 2 offered car types:

Economy

Economy

AED 184+

Compact

Compact

AED 313+

Mini

Mini

AED 170+

Luxury

Luxury

AED 691+

Compact estate car

Compact estate car

AED 231+

Intermediate SUV

Intermediate SUV

AED 379+

Compact SUV

Compact SUV

AED 388+

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:

Fiat 500AED 170/day
2
M
Fiat 500
Kia PicantoAED 184/day
2
M
Kia Picanto

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 302. Data was last updated on 16 September 2025.
Fiat 500AED 170/day
2
M
Fiat 500
Kia PicantoAED 184/day
2
M
Kia Picanto
Audi Q2AED 379/day
5
M
Audi Q2

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.

What is the cheapest car hire company in Iceland?

Firefly is currently the cheapest car hire company in Iceland with deals as low as AED 141.72/day found in the past two weeks. Ice Rental 4x4 is another inexpensive option with rates as low as AED 163.13/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 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 176

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 16 September 2025.

Europcar

8.0
Very Good
33 reviews17 locations

Hertz

8.3
Very Good
29 reviews16 locations

Budget

7.9
Good
14 reviews8 locations

Thrifty

7.9
Good
22 reviews8 locations

Dollar

7.3
Good
20 reviews8 locations

Ice Rental 4x4

7.3
Good
11 reviews6 locations

Ice Rental Cars

6.6
Okay
10 reviews5 locations

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 16 September 2025.
  • What is the most popular car hire provider in Iceland?

    With an average price of AED 185/day, FLIZZR is the most popular car hire provider in Iceland, booking 75% 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 322/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 213/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, Electric cars are the cheapest to rent in Iceland. Deals were last updated on 16 September 2025.

Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Electric being the cheapest (AED 75+).

Electric

Electric

AED 75+

Hybrid

Hybrid

AED 106+

Petrol/Diesel

Petrol/Diesel

AED 86+

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Airport car hires in Iceland

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Free cancellation

Plans change — we get it. And that’s why you can search and book car hire on Cheapflights from agencies that offer free cancellation