Car rental in Iceland

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Iceland car rental at a glance

Most popular providerIce Rental 4x4
Most popular carCompact, SUV
Pick-up points
Cheapest price found
Cheapest month to rentFebruary
Best time to book1 week before
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Reykjavik.

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Find the cheapest time to rent a car in Iceland

The cheapest month to rent a car in Iceland is February, when the average cost per day is 53 €. If that doesn’t work for you, the second cheapest month is September, when the average cost per day is 57 €. Keep in mind when you’re looking to book, that the most expensive month to rent a car in Iceland is August.
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Reykjavik.

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What are the best car rental companies in Iceland?

All you need to know about Iceland

Side of the roadRight
CurrencyIcelandic Krone
LanguageIcelandic
Highway speed limit90kmph
Built-up area speed limit30-50kmph
Age to rent a car21
The information here is based on our understanding as of January 2024. For the most current and accurate information, it’s recommended to check official government sources.

Getting the cheapest car rental in Iceland

Here are some tips to help you score the best prices and hit the road for less.

Pick the right ride

Make sure you pick the right type of car for your trip. You can easily filter by "seats," "transmission," and even choose only to see "electric" or "hybrid" vehicles. You can also filter by "car type," so whether you're looking for a luxury car or a more modest mini, you'll find what you need fast. The most popular car type in Iceland is SUV.

Compare across companies

The most popular car rental company in Iceland is Ice Rental 4x4. We search across hundreds of companies to find you a great price with Ice Rental 4x4.

Get your timing right

It can really pay to play around with your timings and compare dates for your car rental to get a great price. The best time to book a bargain is 1 week before. The cheapest prices we've found are 107 € a day and 749 € a week.

Be flexible

Not sure where in Iceland you're going to visit? There are lots of places to pick up your rental car. Being flexible on your pickup location can help you grab a great price, all while seeing more of Iceland. We've found that the most popular place to pick up a car in Iceland is Reykjavik. The cheapest place to pick up your rental car is Reykjavik.

Rent a car long term in Iceland

Looking to rent a car for more than a few weeks? It could be cheaper to rent for a full month. This can cut the admin costs for car rental companies and give you some extra time to explore, too. Give it a try today and search for 30 days' worth of car rentals.

Save on fuel

You can make your money go further by finding a car rental deal in Iceland with "unlimited mileage" or a "full-to-full" fuel policy. This can save you cash on topping up the tank.

Car rental in Iceland: FAQs

You will need insurance to rent a car in Iceland, but you won't necessarily need "extra" insurance. Different car rental companies offer different insurance policies, so make sure you look at the details when you pick a deal.

To rent a car with most companies in Iceland, you need to be at least 21 years old. Some companies may have extra fees to pay if you are under 25 years old, so make sure you check before you book.

Our travelers' best-rated car rental company in Iceland is Orange car rental. You can rent a car with them for 491 € on average per day.

If you want to learn more about Orange car rental, you can dig deeper here.

The types of documents you’ll need to rent a car in Iceland depend on the car rental company you go with. But in general, you will need a valid driver's license, ID, and passport. Once you’ve booked a car rental in Iceland, you can easily get in touch with your chosen provider to find out.

It’s easy to rent a car in Iceland. First, you need to decide where in Iceland you want to pick up your car.

Once you’ve decided where you want to go, simply enter your dates and search for the best deal for you. Once you’ve found your deal, you’ll be redirected to the provider to book with no extra fees.

You can rent a car for as long as you like, depending on availability. If you know what dates you’re needing wheels for, start searching with Skyscanner today.

You may need a credit card to rent a car in Iceland. It all depends on which car rental company you choose.

It depends where in Iceland you want to visit. The most popular place to go is Reykjavik. On average, it costs 286 € per day to rent a car there. The lowest price we could find is 107 € per day.