Cheap Car Rentals in Iceland from AED 206
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 27/8 and drop-off date of 5/9. 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.
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 July 2025.
Most popular company | Europcar |
|---|---|
Most common car type | Intermediate |
Average price per day | AED 562 |
Cheapest price per day | AED 206 |
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 July 2025.
At AED 206/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, 259 hire locations. View below for 3 offered car types:
Economy
AED 206+
Compact
AED 314+
Intermediate
AED 339+
Full-size SUV
AED 804+
Compact estate car
AED 219+
Intermediate SUV
AED 253+
Compact SUV
AED 337+
Standard SUV
AED 406+
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:
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 367. Data was last updated on 16 July 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?
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 224% less than the yearly average.
What is the cheapest car hire company in Iceland?
Ice Rental 4x4 is currently the cheapest car hire company in Iceland with deals as low as AED 113.41/day found in the past two weeks. City Car Rental is another inexpensive option with rates as low as AED 217.75/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 331/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 331
August
AED 290
September
AED 184
October
AED 165
November
AED 162
December
AED 176
What car do most people hire in Iceland?
Intermediate cars (Class Intermediate SUV 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 SUV cars (Class Intermediate SUV 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 16 July 2025.
Europcar
Overview
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Value
Budget
Overview
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Hertz
Overview
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Comfort
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Thrifty
Overview
Cleanliness
Comfort
Overall
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Ice Rental Cars
Overview
Cleanliness
Comfort
Overall
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Value
Dollar
Overview
Cleanliness
Comfort
Overall
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Value
Ice Rental 4x4
Overview
Cleanliness
Comfort
Overall
Pick-up/drop-off
Value
keddy by Europcar
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 July 2025.
What is the most popular car hire provider in Iceland?
With an average price of AED 704/day, Europcar is the most popular car hire provider in Iceland, booking 273% 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 496/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 463/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, Hybrid cars are the cheapest to rent in Iceland. Deals were last updated on 16 July 2025.
Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Hybrid being the cheapest (AED 62+).
Electric
AED 74+
Hybrid
AED 62+
Petrol/Diesel
AED 74+