Iceland car rentals

Driver's age: 25-65

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Cheap car rentals in Iceland

These are the best prices for 27 May - 3 Jun.
Hyundai i20 car
Hyundai i20
or similar Small
2
2
4-5
C$ 51/day
View Deal
Volkswagen Golf car
Volkswagen Golf
or similar Small
4
2
4-5
C$ 61/day
View Deal
Suzuki Jimny car
Suzuki Jimny
or similar SUV
2
2
4-5
C$ 695/day
View Deal
Class Full-size SUV car
Class Full-size SUV
or similar SUV
5
2
4-5
C$ 157/day
View Deal
Hyundai i10 car
Hyundai i10
or similar Small
2
2
2/4
C$ 52/day
View Deal
Renault Mégane Estate car
Renault Mégane Estate
or similar Small
4
2
4-5
C$ 53/day
View Deal
Dacia Duster car
Dacia Duster
or similar SUV
4
2
4-5
C$ 66/day
View Deal
Kia Sportage car
Kia Sportage
or similar SUV
5
3
4-5
C$ 78/day
View Deal
Mazda CX-60 car
Mazda CX-60
or similar SUV
5
3
4-5
C$ 92/day
View Deal
Class Intermediate Wagon car
Class Intermediate Wagon
or similar Medium
5
3
4-5
C$ 99/day
View Deal
Booking Insights

KAYAK’s insights & trends for Iceland car rentals

Check out the latest trends and booking tips to rent a car in Iceland with confidence.

How far in advance should you book a rental car in Iceland?

You should book your rental car in Iceland around 16 days before your trip in order to get a below-average price.

What is the cheapest car rental company in Iceland?

In the past 72 hours, the cheapest rental cars were found at Budget (C$ 22.47/day), Fair Car (C$ 28.54/day), and Ice Rental 4x4 (C$ 37.06/day).

What is the most popular rental car in Iceland?

Rentals in the SUV category (Class Intermediate SUV or similar) are the most popular option in Iceland, costing C$ 109/day on average. Some users have found deals as low as C$ 63/day.

What is the cheapest month to rent a car in Iceland?

The cheapest month to rent a car in Iceland is December at an average cost of C$ 90/day. July is the most expensive month to rent a car in Iceland when prices are C$ 228/day on average, which tends to be 94% above the yearly average rental price for Iceland.

What rental car company in Iceland has the most locations?

keddy by Europcar operates 21 locations in Iceland, more than any other rental company.

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Iceland car rental price comparison by vehicle type

Find the right rental car in Iceland by comparing prices across vehicle types.

Small cars

C$ 48 - C$ 121

All Car Types

C$ 133 - C$ 245

How much does it cost to rent a small car in Iceland?

How much does it cost to rent a medium car in Iceland?

How much does it cost to rent a large car in Iceland?

How much does it cost to rent an SUV in Iceland?

How much does it cost to rent a van in Iceland?

How much does it cost to rent a pickup truck in Iceland?

How much does it cost to rent a luxury car in Iceland?

Small car rentals in Iceland typically cost around C$ 67 per day. The best time to book is January, when prices average C$ 48 per day which is about 30% less than the yearly average. Small cars are usually 59% cheaper than the average rental in Iceland, making them ideal for budget-conscious travelers.

Medium car rentals in Iceland typically cost around C$ 121 per day. The best time to book is February, when prices average C$ 101 per day which is about 18% less than the yearly average. Medium cars are usually 26% cheaper than the average rental in Iceland, offering a good balance of space and value.

Large car rentals in Iceland typically cost around C$ 158 per day. The best time to book is May, when prices average C$ 124 per day which is about 23% less than the yearly average. Large cars can be 4% cheaper than the average rental in Iceland, offering more comfort for longer trips at a valuable price.

SUV rentals in Iceland typically cost around C$ 197 per day. The best time to book is April, when prices average C$ 141 per day which is about 29% less than the yearly average. SUVs are typically 17% more expensive than the average rental in Iceland, but provide extra space and capability for groups or road trips.

Van rentals in Iceland typically cost around C$ 273 per day. The best time to book is April, when prices average C$ 225 per day which is about 18% less than the yearly average. Vans are typically 40% more expensive than the average rental in Iceland, but are the best choice for families or groups needing maximum passenger capacity.

Pickup truck rentals in Iceland typically cost around C$ 228 per day. The best time to book is November, when prices average C$ 148 per day which is about 36% less than the yearly average. Pickup trucks are typically 29% more expensive than the average rental in Iceland, ideal for hauling gear or outdoor adventures.

Luxury car rentals in Iceland typically cost around C$ 208 per day. The best time to book is February, when prices average C$ 168 per day which is about 20% less than the yearly average. Luxury cars are typically 22% more expensive than the average rental in Iceland, but deliver premium comfort and style for special occasions.

Good to know

Most popular agency

Most popular car type

Average price

Good deal

Fair Car
Medium
C$ 90/day
C$ 66/day

Top tips for renting a car in Iceland

  • Visitors who wish to explore the island’s famous wildlife and scenery would do well to rent a car in Iceland: public transportation is generally limited to larger towns and cities. The majority of agencies are represented in the capital city of Reykjavik and at Reykjavik International Airport, meaning it’s easy to pick up a vehicle and enjoy travel flexibility as soon as you arrive. Popular road trip routes include the Golden Circle and Snæfellsnes Peninsula (plan around 2 days for each), or a 10-day journey around the ring road.
  • Mountain roads in Iceland are known as "F roads" and are open only seasonally; the first drivable day is usually between the end of June and the middle of July. While these roads are a great way to access some of the country’s areas of natural beauty, it is important to note that it is only legal to travel them in a four-wheel drive or jeep.
  • Drivers using the main ring road in Iceland may pass through the Vadlaheidargong Tunnel, which is located in the north of the island and extends for 7.5 km (4.7 mi). The tunnel is a convenient way of shortening your journey and avoiding difficult driving conditions in the winter months. Payment is required online through the tunnel website, costing 1,500 ISK (12 USD) if paid within 3h of your trip, or 2,500 ISK (20 USD) if paid later.
  • There are several additional regulations that are important to know when renting a car in Iceland, particularly the use of headlights. Even during daylight hours (including during the summer), headlights are to be switched on at all times. Seatbelts must be worn by all passengers, and it is forbidden to use a cell phone while driving, unless it’s a hands-free kit over the front controls. Finally, please be mindful that off-road driving is illegal and is punishable with a high fine or even jail time.
  • 25% of our users found rental cars in Iceland for C$ 66 or less
  • Small rental cars in Iceland are around 40% cheaper than other car types, on average

FAQs about renting a car in Iceland

  • How much does it cost to rent a car in Iceland?

    On average a rental car in Iceland costs C$ 90 per day.

  • How can I find car rentals near me in Iceland?

    Take a look at our extensive car rental location map to find the best rental cars near you.

  • Where should I rent a car in Iceland?

    Based on car searches on KAYAK, the most popular cities to rent a car in Iceland are Reykjavik (92% of total searches of users looking to rent a car in Iceland), Keflavik (7%) and Akureyri (1%).

  • How much does it cost to rent a car for a week in Iceland?

    On average a rental car in Iceland costs C$ 630 per week (C$ 90 per day).

  • How much does it cost to rent a car long term for a month in Iceland?

    On average a rental car in Iceland costs C$ 2,699 per month (C$ 90 per day).

  • What is driving like in Iceland?

    Driving in Iceland can be an adventurous experience: aside from the main ring road, which goes around the island, you will find plenty of gravel roads and roads with other loose surfaces. During the winter months or in rainy conditions, many of these become impassable due to snow or mud, so it is always important to drive carefully and leave plenty of time to make even a simple trip.

  • How old do you have to be to rent a car in Iceland?

    To rent a car in Iceland, the driver needs to be at least 18 years old and have held his or her license for a minimum of 12 months. Those who wish to rent a minibus or four-wheel drive, however, must be at least 23 years old. Drivers between 18 and 20 years old may have to pay an additional surcharge of approximately 620-1240 ISK (5-10 USD) per day with an agency like Avis. An International Driver’s Permit (IDP) is not necessary for renting a car in Iceland, but the driver’s domestic license must be in English.

  • How are gas prices in Iceland?

    Gas prices in Iceland are generally quite high, and four-wheel drives can cost a lot to fill up (expect to pay around 10,000 ISK (80 USD) for a full jeep tank). Gas stations require drivers to use a credit card with a pin number and commonly offer extra things like fresh groceries or a free car wash. As stations can be few and far between, it is important to refuel regularly and never let your gas levels drop below half a tank.

  • What are the speed limits in Iceland?

    Speed limits in Iceland are generally quite low thanks to unpredictable weather and road conditions. In towns and cities, drivers are limited to 50 km/h (31 mph), while paved highways in rural areas have a maximum speed limit of 90 km/h (56 mph). Gravel roads, as found in many parts of the country, have a maximum speed limit of 80 km/h (50 mph). Speeding fines are high and speed cameras common even on rural roads.

Car rental directory

  • sunnycars

    Sunnycars car rental locations in Iceland

    21 Locations

  • keddy

    keddy by Europcar car rental locations in Iceland

    21 Locations

  • europcar

    Europcar car rental locations in Iceland

    18 Locations

  • hertz

    Hertz car rental locations in Iceland

    16 Locations

  • firefly

    Firefly car rental locations in Iceland

    11 Locations

  • avis

    Avis car rental locations in Iceland

    8 Locations

  • budget

    Budget car rental locations in Iceland

    8 Locations

  • dollar

    Dollar car rental locations in Iceland

    8 Locations

  • faircar

    Fair Car car rental locations in Iceland

    7 Locations

  • thrifty

    Thrifty car rental locations in Iceland

    7 Locations

  • icerentalcars

    Ice Rental Cars car rental locations in Iceland

    6 Locations

  • icerental4x4

    Ice Rental 4x4 car rental locations in Iceland

    6 Locations

Car rental locations in Iceland

Everything you need to know for your car rental in Iceland

The rates displayed include all taxes and fees for car rentals for the class listed and were found by KAYAK users in the last 48 hours. Offers are subject to change and may not be available on all car rentals listed or dates of travel. Some car rental providers charge additional fees for other services (GPS, infant car seats, etc.). Please check the car rental providers' sites.