Car Rental in Iceland

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Driver's country of residence is United States of America (USA) and age is 30-65
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700+ Trusted Suppliers:

Cheapest Car Rental Rates

Keflavik Airport
Compact
Renault Megane STW or similar
Renault Megane STW
  • 5
  • 4
  • 5
  • A/C
  • Auto.
FairCar
$28.86 per day
Keflavik Airport
Intermediate
Skoda Octavia or similar
Skoda Octavia
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Icerental4x4
$32.48 per day
Keflavik Airport
Economy
Hyundai i20 or similar
Hyundai i20
  • 5
  • 2
  • 4
  • Man.
Alamo
$32.64 per day

Most Popular Car Rental Deals

Keflavik Airport
Standard SUV
Dacia Duster or similar
Dacia Duster
  • 5
  • 2
  • 5
  • A/C
  • Man.
Northern Lights
$37.35 per day
Keflavik Airport
Compact Elite SUV
Mazda CX-30 or similar
Mazda CX-30
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Ace Rent a car
$46.29 per day
Keflavik Airport
Premium Crossover
Polestar 2 or similar
Polestar 2
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Saga
$54.07 per day
Keflavik Airport
Intermediate Elite SUV
Kia Sportage or similar
Kia Sportage
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Surprice
$80.52 per day
The above prices are only approximate and were last updated at 5:41 PM on 12/10/24. Prices may vary based on the booking dates, length of rental, and car class.
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Travel Information

Languages
Icelandic, English, Danish, German
Currency
ISK
Drive on
Right-hand side
Country code
+354
Average car rental price
$43 per day
Average car rental length
6 days
Speed limit within town
30 - 50 km/h or 19 - 31 mph
Speed limit out of town
80 - 90 km/h or 50 - 56 mph
Acceptable limit of BAC
0.02%
Rating
9.2 / 10
Average gas price
$2.24 per liter or $8.47 per gallon
Lowest gas price
$1.89 per liter or $7.17 per gallon
Highest gas price
$2.41 per liter or $9.13 per gallon

Why rent a car in Iceland?

Iceland is a great country to explore by car. Despite having a population of less than half a million people, it offers plenty to every traveler, especially in terms of natural beauty. Iceland is surprisingly vast and there is no public transportation to many of the landmarks outside the capital, so getting your own ride is a smart investment.

If you want to know more about renting a car in Iceland, don't miss our complete guide.

Iceland

Top ways to enter Iceland

  • Keflavík Airport: Located about 50 km (31 mi) southwest of Iceland’s capital, Keflavik is by far the largest and busiest airport in the country.
  • Reykjavík Airport: Also known as Reykjavik Domestic, this airport handles domestic flights to destinations in the rest of Iceland, as well as to Greenland such as Ilulissat and Nuuk.
  • Egilsstaðir Airport: Located on Iceland’s eastern coast, Egilsstaðir only has one regular commercial flight which connects it to Reykjavik.

Top cities and places to visit

  • Reykjavik. Home to nearly two-thirds of Iceland’s population (if you include its suburbs), Reykjavik is a world-class destination in terms of culture, arts, and even food. Highlights include the National Gallery of Iceland and the Culture House with exhibitions on Icelandic sagas. For many travelers, Reykjavik is also a hub for exploring the southern and western parts of the country.
  • Akureyri. Small, but full of life and invention, the capital of North Iceland is a five-hour drive from Reykjavik, but the long drive is worth it. The town is known for its art district, scenic waterfront, and, of course, access to local nature.
  • Húsavík. About an hour’s drive north of Akureyri, being in Húsavík can literally feel like you’re on the edge of the world. The town is known as one of the most reliable whale-watching spots, the nearby migrations of the gigantic mammals attracting thousands of visitors every summer. Naturally, there is also the Whale Museum, as well as the Exploration Museum, making this one of the best places to visit in Iceland.
  • Blue Lagoon. Although temporarily closed as of December 2023 due to a volcanic eruption, there is no doubt that as soon as the situation improves, the Blue Lagoon will be back as one of the country’s most popular tourist attractions. Located about halfway between the Keflavik Airport and Reykjavik, the large geothermal spa is one of a kind, normally welcoming more than one million visitors annually.
  • West Iceland. Located just north of the capital region thus making it one of the most accessible parts of the country, West Iceland is a charming place to explore. Famous for its wild nature that is exemplified by landmarks such as Snæfellsjökull National Park (located only a three-hour drive from Reykjavik), it also boasts Europe’s largest hot spring in Deildartunguhver and the wonderfully remote archipelago of Breiðafjörður. 

Most popular rental car

The most popular rental car in Iceland is the VW Polo, but the Jeep Renegade Trailhawk and the Fiat 500 are also popular.

Driver's license requirements

  • Iceland recognizes driver’s licenses from all member states of the European Union (EU) and the European Economic Area (EEA) as long as they are valid.
  • Other licenses in the Latin alphabet are generally also recognized, provided that you have been in Iceland for less than one month and are visiting on a short trip (drivers who have been in the country for longer than this period are required to obtain a local license instead).
  • If your driver’s license is printed in a non-Latin alphabet (i.e., Cyrillic, Arabic, etc.), you’ll need an International Driving Permit (IDP).
  • Similarly, if your driver’s license doesn’t include a photograph, you might be required to have an IDP.
  • Even if you have an IDP, you must also carry your original license with you at all times.
  • You must carry your driver’s license, not a copy, with you at all times. 
  • You need to have had your driver’s license for at least two years.
  • Some rental car suppliers charge a young driver fee for drivers between the ages of 22 and 25 and a senior driver fee for drivers over the age of 65.
  • There may be additional requirements depending on the car supplier and category, so make sure to check the rental conditions before booking.

Most popular types of rental car

The most popular rental car type is an Economy, followed by Intermediate and Compact.

Top driving routes

  • North Iceland. We already mentioned Akureyri and Husavik, but if you’ve made it this far, it would be a shame not to explore everything else that this wild region has to offer. The Goðafoss waterfall, Mývatn crater lake, and Vindbelgjarfjall volcano are just some of its dramatic natural attractions you will find here.
  • Westfjords. Another awesome off the beaten path destination that can be accessed if you rent a car and are visiting during the warmer months of the year, this wild peninsula is a great place to marvel at the fjords (naturally), spot a puffin or another rare bird, and feel like a true explorer.
  • South Iceland. The breadbasket of Iceland’s tourism industry, this region is very popular with visitors not only for its relative proximity to the capital but also for all the fun things to see and do. Highlights include the otherworldly landscapes of Landmannalaugar, the black sand beaches of Vík, and Þingvellir National Park–a UNESCO World Heritage site.
  • Vatnajokull National Park. This stunning national park, located in the center of Iceland, is full of opportunities to enjoy Iceland’s amazing nature. Full of hiking trails to explore, you’ll cross hills, glaciers, and waterfalls. There’s even campsites available if you want to spend more than a day at this incredible park.

Car rental prices

  • Station wagons - from $29 per day
  • Large cars - from $32 per day
  • Medium cars - from $36 per day
  • Vans - from $85 per day
  • Small cars - from $31 per day
  • SUVs - from $29 per day

Money-saving and other tips

You can do a number of things to get a good car rental deal in Iceland:

  • Compare rates of different rental suppliers
  • Book your rental car well in advance
  • Plan your route before you go
  • Know your fuel and mileage requirements
  • Visit in the month when the rental prices are the lowest. According to our data, visiting Iceland is the cheapest in October when renting a car is about 55% cheaper than the yearly average
  • Check out our list of the best rental companies in Reykjavik.
This information was written, fact-checked, and/or translated by our content creators.

Learn more about our Editorial Policy.
Fact checked by
Megan Starr & Aram Vardanyan
Megan & Aram is a travel blog run by two friends that have been helping people travel the world since 2010. They have visited well over 100 countries together and share a special passion for lesser-known destinations, as well as the Nordics. Megan is currently based in Germany and Aram is based in Armenia. They run 4 destination-specific websites in addition to Megan & Aram.

Map of Car Rental Locations

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

The cost of renting a car in Iceland varies by season. The table and graph below can help you find the best time of year to save on a rental car.
Average rental costs per day in Iceland
$41.77
January
$47.66
February
$54.65
March
$42.81
April
$59.94
May
$89.53
June
$105.41
July
$89.48
August
$58.88
September
$49.75
October
$46.95
November
$49.97
December
The cheapest month of the year to rent a car in Iceland is January — when rental costs average $41.77 per day. This is 32% cheaper than the yearly average and 60% cheaper than renting a car in July (when prices average $105.41 per day).

This information can help you identify the low season. But these are only average numbers. How much your car rental will cost will depend on the type of vehicle you rent, how long you’ll rent it for, and how far ahead you book. Simply enter your dates in the form at the top of the page to see the exact prices.

What’s the average rental length in Iceland?

How long renters typically keep their vehicle sometimes varies depending on the time of year. Travelers tend to keep their rental cars longer in April — an average of 7 days. They tend to keep them for a shorter time in January — an average of 5 days.
Average number of rental days in Iceland
5
January
6
February
6
March
7
April
7
May
7
June
7
July
7
August
7
September
7
October
6
November
6
December

What's the most popular month to rent a car in Iceland?

Based on how many customers search for a car in Iceland, the most popular month is March, while the least popular is April.
Monthly searches in Iceland by pick-up date relative to the average
99%
January
123%
February
128%
March
64%
April
76%
May
90%
June
114%
July
110%
August
114%
September
107%
October
86%
November
89%
December

Car rental information

Car rental locations 22
Airport locations 7
Popular suppliers Icerental4x4, FairCar, Ace Rent a car, Europcar, Thrifty
Popular car categories SUVs, Small cars, Vans, Medium cars
Lowest price $29 per day
Cheapest supplier FairCar

Most popular car models of rental suppliers

Rental Supplier Model Doors Luggage Type
Icerental4x4 Dacia Duster 5 2 SUVs
Icerental4x4 Subaru XV 5 2 SUVs
FairCar Suzuki Vitara 5 3 SUVs
Icerental4x4 Hyundai i10 4 1 Small cars
Icerental4x4 Suzuki Vitara 5 2 SUVs
Northern Lights Dacia Duster 5 2 SUVs
Icerental4x4 Mitsubishi Eclipse Cross 5 2 SUVs
FairCar Suzuki SX-Cross 5 3 SUVs
Ace Rent a car Mazda CX-30 5 2 SUVs
Icerental4x4 Hyundai I20 5 2 Small cars

Our customers' reviews

Because we want to make sure each review listed here is left by a real customer, we don’t have the option to post a review here. Instead, we ask each and every customer to leave a review after they return their rental car. This way, you know that all reviews are authentic.

Norway
Mazda CX-5
10/13/24
The Mazda cx-5 is an amazing car on Icelandic highlands. We did not at all push its limits while driving on legal F-roads. We went hiking to Hekla, tried to find the ice cave in the South, Eldborg, Reykjadalur, Geysir, Black Sand Beach, lots of waterfalls, hot pots +++ Chose unlimited mileage!
Canada
Toyota Yaris
7/26/24
Beautiful Landscape
Canada
Kia Sportage
7/24/24
We toured the island ring road and it was great.
United States of America (USA)
Suzuki Vitara
7/3/24
Stick to Akureyri, Höfn. The rest was so-so. Loved both of those areas. Also loved “the garage” near Vik and the “milk factory” in Höfn.
United States of America (USA)
Suzuki SX4 S-Cross
6/13/24
Vik, Golden cirle, and Westman Island was favorites.
United States of America (USA)
Toyota Aygo X
6/11/24
The highlight of my trip to this beautiful Island was Raphael, Prince and Paulina. Honestly and truly, they are the best resources Iceland have.
Singapore
Nissan Kicks
6/4/24
Car rental process during landing
Netherlands
Dacia Duster
5/13/24
Good food! Blue Lagoon was amazing! The gazers and waterfalls was beautiful! Great trip!
United States of America (USA)
Dacia Duster
5/8/24
Drove the perimeter road
France
Dacia Duster
4/2/24
Iceland is a diamond
United States of America (USA)
Suzuki Grand Vitara
4/1/24
Iceland is all about the outdoors! Everything was amazing!
United States of America (USA)
Toyota RAV4
3/5/24
I would suggest to visit Iceland in winter. We were there in February 2024 and did an amazing tour of an Ice Cave that started from Jokursarlon Glacier Lagoon.
France
Mitsubishi Eclipse Cross
3/1/24
Amazing landscape and nature. Lovely geothermal spas. Lovely horseback ride in nature. Entertaining & educational quaint museums.
United States of America (USA)
Dacia Duster
3/1/24
Iceland and the people were amazing. Friendly, kinds, caring.
Luxembourg
Skoda Octavia
2/18/24
The secret lagoon was amazing, we loved seeing the northern lights and whale watching.
United States of America (USA)
Opel Mokka
1/26/24
Northern lights are awesome
Poland
Dacia Duster
1/24/24
Photo 1 by Dawid S. about renting a Dacia Duster in Iceland (1/24/24) Photo 2 by Dawid S. about renting a Dacia Duster in Iceland (1/24/24) Photo 3 by Dawid S. about renting a Dacia Duster in Iceland (1/24/24)
United Kingdom
Subaru XV
1/9/24
Photo 1 by Keith W. about renting a Subaru XV in Iceland (1/9/24) Photo 2 by Keith W. about renting a Subaru XV in Iceland (1/9/24) Photo 3 by Keith W. about renting a Subaru XV in Iceland (1/9/24) Photo 4 by Keith W. about renting a Subaru XV in Iceland (1/9/24) Photo 5 by Keith W. about renting a Subaru XV in Iceland (1/9/24)
United Kingdom
Dacia Duster
12/28/23
Car made it possible to drive around and explore the south west of the island.
Brazil
Suzuki SX-Cross
12/10/23
The nature spots of Iceland and the best experiences ever that them gave me
United Kingdom
Suzuki Vitara
11/23/23
Amazing country. The most beautiful place I've ever seem. Endless things to see and do.
United Kingdom
Ford Tourneo
11/20/23
Iceland is a great place !!!
United States of America (USA)
Peugeot 208
11/15/23
Awesome time driving into the interior to see gullfoss falls, geothermal bread, canyons. Also great to have the small car to navigate the city.
Ireland
Peugeot 308
10/25/23
We were on a short family break in Reykjevik. Had an amazing time in this beautiful city and surrounding area. Visited the blue lagoon, the strokkur geyser, Perlan and saw the Northern Lights.
Photo 1 by Michael C. about renting a Peugeot 308 in Iceland (10/25/23) Photo 2 by Michael C. about renting a Peugeot 308 in Iceland (10/25/23) Photo 3 by Michael C. about renting a Peugeot 308 in Iceland (10/25/23) Photo 4 by Michael C. about renting a Peugeot 308 in Iceland (10/25/23) Photo 5 by Michael C. about renting a Peugeot 308 in Iceland (10/25/23)
United States of America (USA)
Suzuki Jimny
10/24/23
Everything was perfect. Iceland is amazing
United States of America (USA)
Suzuki Vitara
10/21/23
Iceland is a beautiful country. Breathtaking views and every day was amazing. The weather is exactly how it is discribed . Cold, snowy, incredibly windy, rainy and sunny in the same day. Always windy! Listen to the rental agent when you’re told to be careful when opening and closing car doors.
Argentina
Suzuki SX-Cross
10/16/23
Island proved to be much nicer than expected.
United States of America (USA)
Suzuki Vitara
9/20/23
The weather was great for the trip so we could enjoy almost everything we wanted to see. The only thing we really missed was the Northern Lights. The activities and nature were amazing, but the cost of most things is quite high
Ukraine
Peugeot 308
9/12/23
I received a good car.
United Kingdom
Peugeot 208
7/28/23
Visit the volcano site.
Slovakia
Mazda CX-30
7/24/23
we followed regular guides (golden triangle ...), just 3day itinerary .
Australia
Mazda CX-30
7/18/23
Reykjavik, the Golden Circle and the amazing waterfalls and glaciers around VIK.
Photo 1 by Mark M. about renting a Mazda CX-30 in Iceland (7/18/23) Photo 2 by Mark M. about renting a Mazda CX-30 in Iceland (7/18/23)
Israel
Mitsubishi Eclipse Cross
7/12/23
Nature spots, thermal baths were amazing, restaurants were great!
United States of America (USA)
Renault Traffic
7/5/23
Aside from our rental car experience, iceland itself was amazing.
United Kingdom
Subaru XV
7/5/23
So many things in the Golden Circle plus more besides. We love Iceland and will return. I'll definitely use Discover Cars again yes.
Canada
Peugeot 2008
6/26/23
Easy to drive around, but need to be familiar with round abouts as they are everywhere. It can get very rainy and foggy without warning. Make sure you have a good gps. The country is so beautiful driving was the best way to get around to see sights, everything is very easy to get to on the golden circle and beyond with paved roads.
Photo 1 by Tanya G. about renting a Peugeot 2008 in Iceland (6/26/23) Photo 2 by Tanya G. about renting a Peugeot 2008 in Iceland (6/26/23) Photo 3 by Tanya G. about renting a Peugeot 2008 in Iceland (6/26/23) Photo 4 by Tanya G. about renting a Peugeot 2008 in Iceland (6/26/23)
United States of America (USA)
Opel Mokka
6/2/23
Beautiful landscape and nature even the weather is rough in the May.
Photo 1 by ying t. about renting a Opel Mokka in Iceland (6/2/23) Photo 2 by ying t. about renting a Opel Mokka in Iceland (6/2/23) Photo 3 by ying t. about renting a Opel Mokka in Iceland (6/2/23)
United States of America (USA)
Peugeot 2008
5/30/23
All things nature on the trip to this beautiful place—snorkeling , hiking glaciers and waterfalls. So many things to see and renting your own car is a great way to do it!
Hungary
Hyundai i10
5/4/23
Iceland is a brilliant destination.
India
Mazda CX-30
4/23/23
All ara good experience
United States of America (USA)
Opel Mokka
4/15/23
Fantastic scenery, hikes, hot pools, restaurants, adventures and wonderful people to meet everywhere. Good sturdy car and nice pristine uncrowded backroads!
United Kingdom
Ford Kuga
4/13/23
Great time . Visited some great places National parks, waterfalls, Blue Lagoon etc etc
Greece
Hyundai i10
4/13/23
Black beach , boat trip, museum of Lava, gheizer
Latvia
Ford Puma
4/3/23
We were lucky the trip went as planned and no roads were closed due to weather and we could see the glacier and frozen waterfalls. The car connected well to our android phones, was spacious and easy to drive.
United Kingdom
Suzuki Jimny
3/24/23
Waterfalls, mountains and caves!
United States of America (USA)
Peugeot 108
3/2/23
Everything was great, one minus though, we couldn't see the northern lights due to weather conditions, maybe next time !
United States of America (USA)
Suzuki Vitara
2/21/23
I did the ring road in Iceland so I saw 90% of the attractions.
Lithuania
Mazda CX-30
2/13/23
Iceland is amazing!
Photo by Valdemaras R. about renting a Mazda CX-30 in Iceland (2/13/23)
United Kingdom
Dacia Duster
1/24/23
Photo by Simon P. about renting a Dacia Duster in Iceland (1/24/23)
United Kingdom
Peugeot 2008
1/4/23
Photo 1 by SANJAY S. about renting a Peugeot 2008 in Iceland (1/4/23) Photo 2 by SANJAY S. about renting a Peugeot 2008 in Iceland (1/4/23)

Car Rental Statistics

Highest-rated company
Saga
9.1 / 10
)
Lowest-rated company
City Car Rental
5.1 / 10
)
Total number of reviews
179
Total rental companies
29
Average daily price
$42.86
Lowest daily price
$28.86
Total cars available
1267

Top 29 suppliers in Iceland in 2024

Saga
Saga
Exceptional 9.1 / 14 reviews
4 locations
$45 - $237
Hertz
Hertz
Very good 8.9 / 32 reviews
10 locations
$47 - $229
Dollar
Dollar
Very good 8.7 / 42 reviews
4 locations
$55 - $271
Alamo
Alamo
Very good 8.6 / 59 reviews
2 locations
$32 - $274
Europcar
Europcar
Very good 8.6 / 259 reviews
14 locations
$40 - $231
Thrifty
Thrifty
Very good 8.5 / 216 reviews
7 locations
$54 - $259
Ace Rent a car
Ace Rent a car
Very good 8.5 / 674 reviews
1 location
$35 - $317
Lava Car Rental
Lava Car Rental
Very good 8.5 / 11 reviews
1 location
$45 - $69
Flizzr
Flizzr
Very good 8.5 / 12 reviews
1 location
$36 - $130
SIXT
SIXT
Very good 8.4 / 65 reviews
2 locations
$31 - $148
National
National
Very good 8.3 / 19 reviews
2 locations
$42 - $235
Enterprise
Enterprise
Very good 8.2 / 18 reviews
3 locations
$37 - $1,418
Goldcar
Goldcar
Very good 8.2 / 14 reviews
1 location
$35 - $57
GreenMotion
GreenMotion
Very good 8.2 / 371 reviews
2 locations
$61 - $1,626
Budget
Budget
Very good 8.2 / 27 reviews
3 locations
$40 - $170
Avis
Avis
Average 7.9 / 13 reviews
4 locations
$45 - $209
Surprice
Surprice
Average 7.7 / 18 reviews
2 locations
$57 - $81
Northern Lights
Northern Lights
Average 7.6 / 288 reviews
1 location
$35 - $199
A Car Rental
A Car Rental
Average 7.6 / 1 review
1 location
$68 - $164
Firefly
Firefly
Average 7.5 / 10 reviews
1 location
$68 - $164
Icerental4x4
Icerental4x4
Average 7.3 / 1,307 reviews
1 location
$32 - $207
WheeGo
WheeGo
Average 7.2 / 239 reviews
1 location
$39 - $136
RightCars
RightCars
Average 7.1 / 53 reviews
1 location
$54 - $59
AddCar
AddCar
Average 7 / 84 reviews
1 location
$60 - $92
Zezgo
Zezgo
Average 7 / 6 reviews
1 location
$39 - $44
FairCar
FairCar
Below average 6.9 / 1,012 reviews
3 locations
$29 - $161
Nordic Car Rental
Nordic Car Rental
Below average 6.7 / 27 reviews
4 locations
$53 - $189
Routes Car Rental
Routes Car Rental
Below average 6 / 123 reviews
1 location
$48 - $177
City Car Rental
City Car Rental
Poor 5.1 / 83 reviews
3 locations
$48 - $177
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