Car Rental in Iceland

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500+ Trusted Suppliers:

Cheapest Car Rental Rates

Downtown Car Rental
Economy
Suzuki Swift or similar
Suzuki Swift
  • 5
  • 2
  • 5
  • Auto.
City Car Rental
$26.73 / per day
Keflavik Airport Car Rental
Mini
Hyundai i10 or similar
Hyundai i10
  • 4
  • 1
  • 4
  • A/C
  • Man.
Icerental4x4
$27.50 / per day
Keflavik Airport Car Rental
Compact SUV
Mazda CX-30 or similar
Mazda CX-30
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Dollar
$35.49 / per day
Keflavik Airport Car Rental
Standard SUV
Dacia Duster or similar
Dacia Duster
  • 5
  • 2
  • 5
  • A/C
  • Man.
Northern Lights
$38.89 / per day

Most Popular Car Rental Deals

Keflavik Airport Car Rental
Intermediate SUV
Suzuki Vitara or similar
Suzuki Vitara
  • 5
  • 3
  • 5
  • A/C
  • Auto.
FairCar
$40.66 / per day
Keflavik Airport Car Rental
Intermediate Elite SUV
Honda CR-V or similar
Honda CR-V
  • 5
  • 3
  • 5
  • A/C
  • Auto.
AddCar
$41.64 / per day
Keflavik Airport Car Rental
Compact Elite SUV
Mazda CX-30 or similar
Mazda CX-30
  • 5
  • 2
  • 5
  • A/C
  • Auto.
Ace Rent a car
$45.08 / per day
Keflavik Airport Car Rental
Full-size
Tesla Model Y Long Range *Model Guaranteed* or similar
Tesla Model Y Long Range *Model Guaranteed*
  • 5
  • 2
  • 5
  • A/C
  • Auto.
SIXT
$74.79 / per day
The above prices are only approximate and were last updated at 11:25 on 2023-12-04. Prices may vary based on the booking dates, length of rental, and car class.

Travel Information

Languages
Icelandic, English, Danish, German
Currency
ISK
Drive on
Right-hand side
Country code
+354
Average car rental price
$41 per day
Average car rental length
7 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 gasoline price
$2.23 per liter or $8.43 / 1 gallon
Lowest gasoline price
$1.70 per liter or $6.42 / 1 gallon
Highest gasoline price
$2.51 per liter or $9.49 / 1 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 Car Rental

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.

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 $43 per day
  • Large cars - from $40 per day
  • Medium cars - from $43 per day
  • Vans - from $64 per day
  • Premium cars - from $127 per day
  • Small cars - from $27 per day
  • SUVs - from $32 per day

How can I save money on my rental car?

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.

Top 6 Most Popular Cities in Iceland

Top 5 Most Popular Locations in Iceland

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. This graph compares prices from month to month in order to help you find the best time of year.
Average rental costs per day in Iceland
$55.01
January
$60.13
February
$57.18
March
$58.43
April
$61.12
May
$92.31
June
$121.68
July
$109.01
August
$68.95
September
$55.40
October
$50.18
November
$62.17
December
The cheapest month of the year to rent a car in Iceland is November — when rental costs average $50.18 per day. This is 29% cheaper than the yearly average and 59% cheaper than renting a car in July (when prices average $121.68 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 June — an average of 8 days. They tend to keep them for a shorter time in January — an average of 6 days.
Average number of rental days in Iceland
6
January
6
February
6
March
7
April
7
May
8
June
8
July
8
August
8
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 July, while the least popular is December.
Monthly searches in Iceland by pick-up date relative to the average
62%
January
74%
February
85%
March
92%
April
100%
May
129%
June
148%
July
147%
August
133%
September
101%
October
68%
November
61%
December

Car Rental Information

Car rental locations 20
Airport locations 8
Popular suppliers FairCar, Thrifty, Icerental4x4, WheeGo, Ace Rent a car
Popular car categories SUVs, Small cars, Vans, Medium cars
Lowest price $27 per day
Cheapest supplier City Car Rental

Most Popular Car Models of Rental Suppliers

Rental Supplier Model Doors Luggage Type
Icerental4x4 Dacia Duster 5 2 SUVs
FairCar Suzuki SX-Cross 5 3 SUVs
Thrifty Peugeot 2008 5 3 SUVs
Thrifty Peugeot 2008 5 2 SUVs
Northern Lights Suzuki Vitara 5 2 SUVs
FairCar Suzuki Jimny 5 2 SUVs
Northern Lights Dacia Duster 5 2 SUVs
FairCar Hyundai i10 5 2 Small cars
FairCar Suzuki Vitara 5 3 SUVs
Ace Rent a car Suzuki Jimny 4 1 SUVs

Our Customers' Reviews

Because we want to make sure each review listed here is left by a real customer, we don’t have an 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, verified, and trustworthy.

Ireland
Peugeot 308
October 25, 2023
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.
United States of America (USA)
Suzuki Jimny
October 24, 2023
Everything was perfect. Iceland is amazing
United States of America (USA)
Suzuki Vitara
September 20, 2023
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
September 12, 2023
I received a good car.
Slovakia
Mazda CX-30
July 24, 2023
we followed regular guides (golden triangle ...), just 3day itinerary .
Australia
Mazda CX-30
July 18, 2023
Reykjavik, the Golden Circle and the amazing waterfalls and glaciers around VIK.
Israel
Mitsubishi Eclipse Cross
July 12, 2023
Nature spots, thermal baths were amazing, restaurants were great!
Canada
Peugeot 2008
June 26, 2023
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.
United States of America (USA)
Opel Mokka
June 2, 2023
Beautiful landscape and nature even the weather is rough in the May.
United States of America (USA)
Peugeot 2008
May 30, 2023
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
May 4, 2023
Iceland is a brilliant destination.
India
Mazda CX-30
April 23, 2023
All ara good experience
United States of America (USA)
Opel Mokka
April 15, 2023
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
April 13, 2023
Great time . Visited some great places National parks, waterfalls, Blue Lagoon etc etc
Greece
Hyundai i10
April 13, 2023
Black beach , boat trip, museum of Lava, gheizer
Latvia
Ford Puma
April 3, 2023
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
March 24, 2023
Waterfalls, mountains and caves!
United States of America (USA)
Peugeot 108
March 2, 2023
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
February 21, 2023
I did the ring road in Iceland so I saw 90% of the attractions.
Lithuania
Mazda CX-30
February 13, 2023
Iceland is amazing!
United Kingdom
Peugeot 308
November 20, 2022
Glauvartn Fontana, Gleysir, Northern lights by blue lagoon, plenty of waterfalls, marvelous nature
Malaysia
Fiat Panda
November 9, 2022
Pls avoid heavy winter. October to November consider as the last month to travel to Iceland of the year as the road condition is still okay
United States of America (USA)
Toyota RAV4
October 19, 2022
Iceland is simply magical.
Poland
Suzuki Grand Vitara
October 18, 2022
Iceland is so beautifull and diverse. No 1 on my most beautifull places I visited so far.
United States of America (USA)
Nissan Kicks
October 2, 2022
Ice cave was wonderful. Loved al the nature we saw on the drive. The Buubble hotel was lovely.
Australia
Hyundai i10
September 23, 2022
Wonderful scenery
Estonia
Skoda Octavia
September 14, 2022
Iceland is extremely beautiful country
Canada
Subaru XV
August 28, 2022
Spend 10 days round the Ring road and visit all the falls, craters, canyon, glaciers and beaches, we enjoyed every one of them
United States of America (USA)
Hyundai Tucson
July 30, 2022
Wonderful scenery and fantastic roads. We took the ring road and went around the country. Even the gravel roads were well maintained. We did not go off road. Accommodation was not easy because we were late to book but still managed to find some decent places. The people are among the best I have met.
Finland
Suzuki Vitara
July 22, 2022
We made a long road trip (12 days) in Iceland. First few days we spend in the capitol region, then to Westfjords for a couple of days (unbelievable serpentine roads!), from there to Akureyri area for two days. We couldn't find suitable accommodation in the east, so we just spend one night in the east... There was a lot to see in the south, small icebergs and seals, glaciers and warm pools. Last two days again close to capital.
United States of America (USA)
Suzuki Vitara
July 15, 2022
No car problems, except wind shield wiper screeches at times
Poland
Renault Trafic
July 6, 2022
All Iceland is amazing. I recommend a tour around the entire island, not just the southeast coast
United States of America (USA)
Suzuki Jimny
June 28, 2022
easy pickup and drop off
Italy
Suzuki Jimny
June 27, 2022
Iceland is a great, wild country.
Italy
Dacia Duster
June 12, 2022
Amazing Iceland. I would recommend to pick up a good car or a 4x4 car to deal with gravel roads.
Bulgaria
VW Golf
May 11, 2022
The cars we got were brand new Dacia Duster, although we booked a lower class. That was a pleasant surprise. The agents at ACE were very fast and efficient. I would definitely recommend them.
Netherlands
Suzuki Vitara
March 8, 2022
I had booked a manual car as I thought I'd have control. I ended up having a automatic which was fine as I had driven one before. I was glad it was changed as the car automatically respoded to weather conditions. I'd ask for an explanation of gear box for automatic as it was only after I got going I had to research what some of the labels meant in car.
Netherlands
Renault Duster
February 17, 2022
We rented a car in Iceland and it was a great experience with a good price and good car.
Netherlands
Suzuki Jimny
February 11, 2022
Everything went very smoothly. The representative of Add Car/ Lava Cars was very friendly, picked us up, gave us the car and took it back. We prolonged one day due to a cancelled flight. It all went super smoothly.
Ireland
Suzuki Vitara
January 25, 2022
The Vitara we rented was ideal for the roads, roads are excellent overall. Felt very comfortable driving on a different side of the road.
Denmark
Suzuki Vitara
January 6, 2022
Visit iceland in winter season! The snow makes the country magical..
Slovakia
Dacia Duster
December 27, 2021
Very good, fast, and car without any problem
Malta
Dacia Duster
October 23, 2021
4WDs good for unpaved roads, it needs to be a special jeep for F roads however. The coast/main roads are fine for 2WDs for most of the year, though I cant say about deep winter.
United States of America (USA)
Suzuki SX-Cross
September 18, 2021
Iceland is Unbelievably beautiful. Everywhere you go will be nice but I particularly enjoyed the glacier and canyon hikes.
United States of America (USA)
Dacia Duster
August 24, 2021
Car was gutless but it did the trick of transporting me around the country on paved roads
United States of America (USA)
Hyundai Tucson
July 23, 2021
Stayed in 9-locations over 16-days, covering about 66% of ring road as well as the golden circle (over 1200 miles). Watch your speed limits... and the road. The roads are slightly elevated in most areas, and there are no shoulders...so if you veer off the road to the right there is no room for error and you will likely roll your car. In other words, if you are driving, pull over where you can to view the awesome sights along the way!
United States of America (USA)
Hyundai i10
July 18, 2021
We rented a basic car so we stayed on the main highways and didn't have any problems. I would tell people not to go on F Roads unless you have a 4 X 4 rental.
United States of America (USA)
Hyundai i10
July 8, 2021
This rental car service was efficient and honest. They were friendly and dealt with us in a timely manner. All things were followed through with as expected
United States of America (USA)
Suzuki Vitara
June 28, 2021
Great Icelandic people, amazing views, very clean accommodations, nice public WC. We will visit Iceland again!
Germany
Dacia Duster
May 10, 2021
Blue Lagoon, Glaciers, Waterfalls,, black sand beach, when it comes to nature Iceland is a must see spot
United Kingdom
Hyundai i10
August 27, 2020
I would definitely recommend hiring a car in Iceland, if you are planning on site seeing. It allows you a freedom to see more of Iceland’s tourist attractions in your own time frame and worked out cheaper that pre organised coach trips.
United Kingdom
Dacia Duster
December 25, 2019
Already have recommended!
United States of America (USA)
Suzuki SX4 S-Cross 4WD
November 15, 2019
Renting a car saved us a lot of money because going on the tours for the Golden Circle and the south coast of Iceland can be very pricey. We were able to move at our own pace and were able to have more freedom in our travels. We also stayed in three separate hotels so it made it easier to have our own transportation to and from the hotels.
United Kingdom
Nissan Qashqai
September 29, 2019
We definitely needed a car for our stay as did lots of sightseeing. Iceland is an amazing country.
Canada
Dacia Duster
September 23, 2019
No doubt renting a car in Iceland is the way to go. Driving was easy and taking a tour would mean you’d miss out on all the random stops we took to take in the amazing scenery.
Greece
Suzuki Jimny
September 3, 2019
VERY GOOD CHOICE!!!
United Kingdom
VW Golf
July 31, 2019
My friend and I travelled from Keflavik to Hofn along the south coast, the car we where provided was extremely fuel efficient and easy to drive. Iceland was an incredible county with loads and loads to do, the views where incredible and i would highly recommend visiting.
United Kingdom
Fiat 500
July 12, 2019
If you want to see Iceland without paying through the roof, HIRE A CAR. All these are easily accessible by car : The Blue Lagoon, Several waterfalls, Black Sand Beach, Geyser, Golden Circle, Lava Tunnel, Europe/America Bridge, Reykjavik City Centre and north coast of Reykjavik etc. etc.
United Kingdom
Dacia Duster
July 6, 2019
Iceland road are single roads but very good easy to drive in summer.
Belgium
KIA Ceed SW
May 20, 2019
Definitely rent a 4x4, you will needed.
United States of America (USA)
Hyundai Tucson
March 30, 2019
Iceland is wonderful. Keflavik has so many interesting things to see. Driving around to see the country is definitely the way to go
United Kingdom
Fiat Panda 4x4
March 28, 2019
some very nice places to visit only go on bus as not sure the car would get there
United Kingdom
Hyundai Tucson
March 21, 2019
Excellent trip. We found it far more convenient to drive ourselves to all the main attractions (and many others) than pay out for organized mini-bus trips. We did take a couple of taxis at night and found that they were hugely expensive ! Having your own vehicle gives you the option to stay longer, or leave sooner, than agency organised excursions would. If we hadn't been self-drive we would not have got to see the Northern Lights which was the highlight of our trip. We had to drive 40 miles out of Rekjavik following a Cloud Cover App to find the only area with a clear sky - couldn't do that if you didn't have your own car.
United States of America (USA)
Fiat 500
June 28, 2018
You can easily hitchhike instead.

Car Rental Statistics

Highest rated company
Hertz
9.3 / 10
)
Lowest rated company
Global Rent a Car
6.1 / 10
)
Total number of reviews
129
Total rental companies
29
Average daily price
$41.35
Lowest daily price
$26.73
Total cars available
1216

Top 29 Suppliers in Iceland in 2023

Dollar
Dollar
Exceptional 9.3 / 26 reviews
4 locations
$29 - $180
Hertz
Hertz
Exceptional 9.3 / 24 reviews
11 locations
$47 - $177
Europcar
Europcar
Exceptional 9.1 / 209 reviews
13 locations
$55 - $274
Ace Rent a car
Ace Rent a car
Exceptional 9 / 626 reviews
1 location
$29 - $485
Thrifty
Thrifty
Exceptional 9 / 168 reviews
4 locations
$31 - $179
SIXT
SIXT
Very good 8.9 / 59 reviews
2 locations
$36 - $91
Alamo
Alamo
Very good 8.9 / 21 reviews
2 locations
$36 - $159
National
National
Very good 8.9 / 18 reviews
2 locations
$41 - $177
GreenMotion
GreenMotion
Very good 8.8 / 373 reviews
2 locations
$35 - $1758
Icerental4x4
Icerental4x4
Very good 8.7 / 1029 reviews
1 location
$28 - $192
Budget
Budget
Very good 8.7 / 19 reviews
5 locations
$40 - $191
Enterprise
Enterprise
Very good 8.7 / 14 reviews
2 locations
$44 - $169
Northern Lights
Northern Lights
Very good 8.6 / 252 reviews
1 location
$39 - $169
Avis
Avis
Very good 8.6 / 13 reviews
5 locations
$43 - $183
Lava Car Rental
Lava Car Rental
Very good 8.4
1 location
$43 - $74
Ring Car Rental
Ring Car Rental
Very good 8.4
1 location
$68 - $71
Firefly
Firefly
Very good 8.3 / 10 reviews
1 location
Surprice
Surprice
Very good 8.3 / 10 reviews
2 locations
RightCars
RightCars
Very good 8.1 / 47 reviews
1 location
$28 - $118
Carwiz
Carwiz
Very good 8.1 / 37 reviews
1 location
$37 - $63
Economy rent a car
Economy rent a car
Very good 8 / 2 reviews
1 location
$93 - $213
FairCar
FairCar
Good 7.9 / 900 reviews
3 locations
Nordic Car Rental
Nordic Car Rental
Good 7.9 / 15 reviews
4 locations
$56 - $165
AddCar
AddCar
Good 7.8 / 78 reviews
1 location
$44 - $45
WheeGo
WheeGo
Good 7.5 / 199 reviews
1 location
$29 - $160
Routes Car Rental
Routes Car Rental
Good 7.3 / 120 reviews
1 location
$45 - $168
NUCarrentals
NUCarrentals
Satisfactory 6.3 / 131 reviews
2 locations
City Car Rental
City Car Rental
Satisfactory 6.2 / 75 reviews
3 locations
$27 - $135
Global Rent a Car
Global Rent a Car
Satisfactory 6.1 / 87 reviews
2 locations
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