Find Rentals
Popular Cars
Insights
Agencies
FAQs
Iceland

Cheap Car Rentals in Iceland

Driver's age: 26-65
Here’s why our users search for rental cars through Cheapflights

Save over 40%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 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 17 June 2025.

Most popular company

Fair Car

Most common car type

Intermediate

Average price per day

AED 295

Cheapest price per day

AED 295

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 17 June 2025.
Compact estate car

Compact estate car

AED 395+

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 231% 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 273.54/day found in the past two weeks. Firefly is another inexpensive option with rates as low as AED 288.67/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 305/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 250

July

AED 305

August

AED 279

September

AED 184

October

AED 162

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 17 June 2025.

Europcar

8.2
Very Good
33 reviews17 locations
Overview

Cleanliness

8.7

Comfort

8.7

Overall

8.2

Pick-up/drop-off

8.1

Value

8.0

Hertz

8.0
Very Good
30 reviews17 locations
Overview

Cleanliness

8.6

Comfort

8.4

Overall

8.0

Pick-up/drop-off

7.8

Value

7.6

Budget

8.0
Very Good
14 reviews8 locations
Overview

Cleanliness

7.9

Comfort

8.0

Overall

8.0

Pick-up/drop-off

7.9

Value

7.5

GREEN MOTION

7.9
Good
3 reviews5 locations
Overview

Cleanliness

7.9

Comfort

7.9

Overall

7.9

Pick-up/drop-off

7.9

Value

8.6

Thrifty

7.6
Good
19 reviews8 locations
Overview

Cleanliness

7.6

Comfort

7.6

Overall

7.6

Pick-up/drop-off

7.0

Value

6.7

Ice Rental Cars

7.5
Good
10 reviews5 locations
Overview

Cleanliness

7.7

Comfort

7.7

Overall

7.5

Pick-up/drop-off

6.8

Value

7.7

Dollar

7.2
Good
20 reviews8 locations
Overview

Cleanliness

8.3

Comfort

7.6

Overall

7.2

Pick-up/drop-off

6.8

Value

7.1

Ice Rental 4x4

6.8
Okay
11 reviews6 locations
Overview

Cleanliness

7.6

Comfort

7.2

Overall

6.8

Pick-up/drop-off

6.6

Value

6.9

Car rental FAQs

Find answers to frequently asked questions about car rentals in Iceland, including policies, requirements, and more. FAQs were last updated on 17 June 2025.
  • What is the most popular car hire provider in Iceland?

    With an average price of AED 336/day, Ice Rental 4x4 is the most popular car hire provider in Iceland, booking 60% 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 295/day (0% less than the country average). The absolute cheapest rental car price in Iceland was found in Reykjavik for just AED 238/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, Petrol/Diesel cars are the cheapest to rent in Iceland. Deals were last updated on 17 June 2025.

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 76+).

Electric

Electric

AED 114+

Hybrid

Hybrid

AED 96+

Petrol/Diesel

Petrol/Diesel

AED 76+

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

Best Car Hire Deals

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

No Surprises

Prices shown to you will be completely in full, without any hidden charges or fees.

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