Find Rentals
Popular Cars
Rental Deals
Insights
Agencies
FAQs
Iceland

Cheap Car Rentals in Iceland from AED 161

Driver's age: 25-65
Here’s why our users search for rental cars through Cheapflights

Save over 43%Compare Cheapflights against other travel sites with one search.

Price trackingHolding out for a great deal? Get notified when prices are reduced.

Customized resultsFilter by rental agency, car type, price range and more.

Unlimited free useSearch as many times as you want with no hidden charges or fees.

Iceland car rentals in 2026

Most popular company

Ice Rental 4x4

Most common car type

Premium

Average price per day

AED 286

Cheapest price per day

AED 161
Search Deals
Search Deals
Search Deals
Search Deals

Popular car types in Iceland

All deals

At AED 161/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 78 car hire agencies operating in Iceland, there are, in total, 278 hire locations. View below for 2 offered car types:

Economy

Economy

AED 172+

View Deal
Compact

Compact

AED 208+

View Deal
Full-size SUV

Full-size SUV

AED 483+

View Deal
Mini

Mini

AED 161+

View Deal
Compact SUV

Compact SUV

AED 213+

View Deal
Compact estate car

Compact estate car

AED 231+

View Deal
Intermediate SUV

Intermediate SUV

AED 258+

View Deal
Intermediate estate car

Intermediate estate car

AED 273+

View Deal

Best car rental deals found in Iceland

Fiat 500AED 161/day
Fiat 500
Found 08/20/26
MG 3AED 172/day
MG 3
Found 08/20/26
Suzuki BalenoAED 186/day
Suzuki Baleno
Found 08/20/26

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 208% less than the yearly average.

Find deals

What is the cheapest car hire company in Iceland?

City Car Rental is currently the cheapest car hire company in Iceland with deals as low as AED 42.71/day found in the past two weeks. Budget is another inexpensive option with rates as low as AED 50.25/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 August (AED 386/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 195

June

AED 250

July

AED 353

August

AED 386

September

AED 217

October

AED 180

November

AED 147

December

AED 154

Which car hire company has the most locations in Iceland?

Avis has 8 locations throughout the area, more than any other company. NextCar has the second-highest number of locations in Iceland at 1.

Find deals

Top rental agencies in Iceland

Avis

9.2
Wonderful
1 review•8 locations
Check prices
Overview

Cleanliness

9.6

Comfort

8.8

Overall

9.2

Pick-up/drop-off

9.2

Value

7.6

Routes Car & Truck Rentals

5.7
Fair
11 reviews•1 location
Check prices
Overview

Cleanliness

6.7

Comfort

5.4

Overall

5.7

Pick-up/drop-off

5.1

Value

6.1

Go Rentals

1 location
Check prices

NextCar

1 location
Check prices

National

3 locations
Check prices

Rhodium

1 location
Check prices

RAS Car Rental

4 locations
Check prices

Fara Car Rental

2 locations
Check prices

Car rental FAQs

  • What is the most popular car hire provider in Iceland?

    With an average price of AED 535/day, Sixt is the most popular car hire provider in Iceland, booking 200% 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 305/day (15% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 180/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

All deals

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 47+).

Electric

Electric

AED 47+

View Deal
Hybrid

Hybrid

AED 51+

View Deal
Petrol/Diesel

Petrol/Diesel

AED 48+

View Deal

Browse thousands of different options on Cheapflights for your next trip

Airport car hires in Iceland

Reykjavik Keflavik Intl Airport car rentals
Akureyri Airport car rentals
Reykjavik Domestic Airport car rentals

Best Car Rental Deals

We make it easy and fast to find and compare deals from 70,000+ rental locations and hundreds of agencies.

No surprises

Prices shown to you will be final, without any hidden charges or fees.

Free cancellation

Plans change – we get it. And that’s why you can search and book rental cars on Cheapflights from agencies that offer free cancellation