Car Hire in Iceland
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Cheapest Car Hire Rates
City Centre
Mini
Kia Picanto
or comparable
£21.99
per day
Egilsstaðir Airport
Economy
Toyota Yaris
or comparable
£27.88
per day
Keflavik Airport
Compact
Opel Crossland X
or comparable
£40.05
per day
Keflavik Airport
Standard SUV
Dacia Duster
or comparable
£55.92
per day
Most Popular Car Hire Deals
Keflavik Airport
Intermediate Crossover
Peugeot 3008
or comparable
£57.66
per day
Keflavik Airport
Compact Elite Crossover
Renault Captur
or comparable
£71.50
per day
Keflavik Airport
Full-size SUV
Suzuki Grand Vitara
or comparable
£77.47
per day
Keflavik Airport
Luxury SUV
Volvo XC40
or comparable
£94.62
per day
These prices are approximate and depend on the dates of the booking, hire length and type of car. This information was last updated at 05:27 on 2024-07-13.
Travel Information
Languages
Icelandic, English, Danish, German
Currency
ISK
Drive on
Right-hand side
Dialing code
+354
Average car hire price
£56 per day
Average car hire length
7 days
Speed limit within city centre
30 - 50 km/h or 19 - 31 mph
Speed limit out of city centre
80 - 90 km/h or 50 - 56 mph
Acceptable limit of BAC
0.02%
Average petrol price
£1.74 per litre or £6.60 per gallon
Lowest petrol price
£1.33 per litre or £5.03 per gallon
Highest petrol price
£1.96 per litre or £7.43 per gallon
Why hire a car in Iceland?
Large, remote, and sparsely populated, Iceland continues to capture the public imagination as a truly wild destination. The island’s landscape of volcanoes, geysers, and rugged coastline is well-known while the capital, Reykjavik, is a cosy, but modern destination that punches way above its weight when it comes to arts and culture.
Top ways to enter Iceland
- Keflavik Airport. Serving the town of the same name and located some 50 km (31 miles) southwest of the capital, Reykjavik, Keflavik is the main international airport of Iceland. The airport has flights by around 30 airlines and offers connections with many destinations across Europe, as well as some in North America.
- Reykjavik Airport. Much closer to the national capital, but also much smaller, Reykjavik Airport only has domestic flights save for some seasonal connections with nearby Greenland.
- Akureyri Airport. Serving the main town of the remote North Iceland Coast, Akureyri Airport has some domestic routes but also has a seasonal flight to and from Amsterdam by the low-cost carrier Transavia.
Top cities and places to visit
- Reykjavik. Smaller than most capitals of Europe, Reykjavik is cozy and easy to navigate, but at the same time punches way above its weight when it comes to cultural life. In addition to many interesting museums and historic buildings, the city is also home to green spaces like Hljómskálagarðurinn (or Music Pavilion Park) and the Reykjavik Botanical Gardens, two places that are especially lovely during summer time.
- Blue Lagoon. Its origin story might not sound especially appealing — the famous geothermal spa was created as a byproduct of a nearby power plant — but Blue Lagoon is nonetheless one of the most iconic destinations in Iceland. Relaxing in the distinctly blue hot spring is one of the highlights of any trip to the country, especially during the winter when there’s a marked contrast between the water and air temperatures. Better yet, the Blue Lagoon is only a 50-minute drive from the capital and 20 minutes from Keflavik Airport.
- Þingvellir National Park. Another source of national pride that’s practically a stone’s throw from the capital, Þingvellir’s name might not be easy for foreigners to pronounce, but it is nonetheless one of the most beautiful areas in the country. In addition to impressive landscapes, the area is home to the original site of the Icelandic parliament, the oldest of its kind in the world.
Most popular hire car
The most popular car in Iceland is the Toyota Yaris, followed by the Hyundai i10. The most popular car hire types are economy, mini, and compact. A smaller car is fine to travel in Reykjavik and along the main highways, but a more powerful vehicle might be required if you wish to go exploring the more remote parts of the country.
Driving licence requirements
- Iceland recognizes driver’s licenses from all the 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 (Cyrillic, Arabic, etc.), you’ll need an International Driving Permit (IDP).
- Similarly, if your driver’s license doesn’t show your photograph, you might be required to have an IDP in addition.
- Even if you have an IDP, you must also have 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 driving licence for at least two years.
- Some 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 hire car
The most popular car type is an Economy, followed by Intermediate and Compact.
Top driving routes
- Akureyri. Akureyri might only be home to about 18,000 people, but that makes it by far the largest settlement of Iceland outside the country’s southwestern region. Things to see include two interesting museums, the northern lights in the winter, the midnight sun in July, and whales and dolphins year-round.
- Vatnajökull National Park. Located in the southeastern part of the country, Vatnajökull is home to some of Iceland’s highest peaks, largest glaciers, and mightiest waterfalls. Many car hire companies don’t permit driving inside the park, so make sure to ask in advance; either way, the locals claim that the best way to enjoy it is by walking (you can park your vehicle near the visitors’ centre at the entrance).
- West Fjords. The large and remote northwestern peninsula is one of the wildest regions of Iceland. It takes some planning to get there — it’s a three-hour drive just to get there from Reykjavik, and the sparsity of population means there’s not a lot of accommodation or even petrol stations — but those travelers who do make the effort are rewarded with a truly fascinating experience.
Car hire prices
- Station wagons - starting at £30 per day
- Large cars - starting at £32 per day
- Medium cars - starting at £26 per day
- People Carriers - starting at £104 per day
- Small cars - starting at £22 per day
- SUVs - starting at £30 per day
How can I save money on my hire car?
You can do a number of things to get a good car hire deal in Iceland:
- Compare rates of different car hire companies
- Book your car well in advance
- Plan your route before you go
- Know your fuel and mileage requirements
- Visit on the month when the car hire prices are the cheapest. According to our data, visiting Iceland is the cheapest in October when hiring a car is about 55% cheaper than the yearly average.
- Check out our list of the best rental companies in Reykjavik.
The most popular city in Iceland
Top Most Popular Location in Iceland
Map of Car Hire Destinations
In which month is car hire in Iceland the most affordable?
Prices for hiring a car in Iceland fluctuate depending on the time of year. This table and graph can help you find the best bargain.
Average price for hiring a car per day in Iceland
The best month to hire a car in Iceland is January — when the average price for a hire is £33.40 per day. This is 35% less than the yearly average and 63% less than hiring a car in July (when the average price is £91.29 per day).
This information can help you determine the low season. But note that these prices are only averages. The cost of your hire is determined by the type of car you select, the length of time you hire it for and how much in advance you book. Simply type in your dates in the form at the top of the page in order to find out the exact prices.
This information can help you determine the low season. But note that these prices are only averages. The cost of your hire is determined by the type of car you select, the length of time you hire it for and how much in advance you book. Simply type in your dates in the form at the top of the page in order to find out the exact prices.
How many days do people keep their hire cars, on average, 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 July — an average of 8 days. They tend to keep them for a shorter time in January — an average of 5 days.
Average number of hire days in Iceland
Which month is most favoured for hiring a car in Iceland?
Given the number of customers searching for a car in Iceland, August is the most popular, while April is the month that sees the lowest demand.
Monthly Car Hire Searches in Iceland Compared to the Yearly Average
Car hire information
| Car hire locations | 23 |
| Airport locations | 8 |
| Popular suppliers | Icerental4x4, FairCar, Thrifty, Ace Rent a car, Northern Lights |
| Popular car categories | SUVs, Small cars, People Carriers, Medium cars |
| Lowest price | £22 per day |
| Cheapest supplier | Europcar |
Most popular car models of suppliers
| Hire Agency | Model | Doors | Luggage | Type |
|---|---|---|---|---|
| Icerental4x4 | Dacia Duster | 5 | 2 | SUVs |
| Icerental4x4 | Subaru XV | 5 | 2 | SUVs |
| FairCar | Suzuki SX-Cross | 5 | 3 | SUVs |
| Northern Lights | Dacia Duster | 5 | 2 | SUVs |
| FairCar | Suzuki Vitara | 5 | 3 | SUVs |
| Icerental4x4 | Hyundai i10 | 4 | 1 | Small cars |
| FairCar | Suzuki Jimny | 5 | 2 | SUVs |
| Northern Lights | Suzuki Vitara | 5 | 2 | SUVs |
| FairCar | Hyundai i10 | 5 | 2 | Small cars |
| Thrifty | Peugeot 2008 | 5 | 3 | SUVs |
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.
BJ
United Kingdom
Dacia Duster
22 March 2024
All of the waterfalls on the south coast were amazing. The golden circle was equally as fantastic. Having our own car made it all the more personal and meant we could stay longer or shorter ar any given spot
EI
United Kingdom
Skoda Octavia
19 March 2024
Iceland is a magical country of amazing scenery and lovely people. Having the car meant we could explore at our own pace, stop where we wanted etc.
AD
United Kingdom
Dacia Duster
13 February 2024
Golden Circle was very much enjoyed - we also booked a morning session as Fontana Geo Spa, which was great value for money, although the drive to and from was very taxing.
AH
United Kingdom
Suzuki SX-Cross
30 December 2023
We wasn't traveling so much, we stayed in country house for Christmas
JC
United Kingdom
Suzuki Vitara
18 September 2023
Plenty of good walking amazing natural features, easy to drive around, polite people.
JM
United Kingdom
Peugeot 2008
16 April 2023
All the nature hotspots - amazing place
AH
United Kingdom
Subaru XV
3 November 2022
The whole place - Iceland is epic!
MJ
United Kingdom
Hyundai Tucson
18 October 2022
Iceland was fantastic so diverse, it was an experience to behold.
ID
United Kingdom
Suzuki Jimny
20 April 2022
a 4x4 gave us that extra feeling of safety on Iceland's roads. Which are excellent to drive, but the weather can change quickly.
JR
United Kingdom
Volkswagen Polo
23 March 2022
Iceland isn’t a country of aggressive drivers. They are courteous drivers, and expect courtesy. On Reykjavik side streets, be prepared to give way to pedestrians and cyclists.
Pingvellir National Park - wide open snow covered spaces - fantastic. But, what Iceland considers a clear road, even a major route, isn’t always clear in the Western European driving sense. Be prepared to turn back if the snow/road conditions warrant it. And, always fill up before you get to half a tank. Gas stations aren’t that frequent outside Reykjavik!
Blue Lagoon - great - well worth the money.
JT
United Kingdom
Dacia Duster
5 February 2022
Renting a car is a must in Iceland
NB
United Kingdom
Suzuki Vitara
8 August 2021
We took the car to Vik and to Selfloss saw a wonderful waterfall. Also a trip to the volcano
WO
United Kingdom
VW Up
4 July 2021
Iceland is a beautiful country and well worth hiring a car to see all that it has to offer....Icelandic drivers are courteous on the roads,which are in excellent condition.....so us foreign drivers should have no problems on the roads........
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Car Hire Statistics
Highest-rated company
Hertz
8.9 / 10
Lowest-rated company
City Car Rental
5.1 / 10
Total number of reviews
169
Total rental companies
28
Average daily price
£55.88
Lowest daily price
£21.99
Total cars available
1339
Top 28 suppliers in Iceland in 2024
Hertz
12 locations
£28 - £303
Dollar
4 locations
£48 - £454
Ace Rent a car
1 location
£65 - £206
Alamo
2 locations
£53 - £198
Europcar
13 locations
£22 - £305
Thrifty
4 locations
£47 - £429
SIXT
2 locations
£48 - £216
Budget
7 locations
£46 - £153
National
2 locations
£68 - £329
Icerental4x4
1 location
£37 - £221
GreenMotion
2 locations
£57 - £820
Enterprise
3 locations
£61 - £307
Lava Car Rental
1 location
£68 - £120
Avis
7 locations
£52 - £179
Saga
4 locations
£42 - £403
Ring Car Rental
1 location
FairCar
3 locations
£50 - £265
Northern Lights
1 location
£42 - £213
Surprice
2 locations
£68 - £111
Firefly
1 location
NextCar
1 location
£85 - £270
Zezgo
1 location
£212 - £237
WheeGo
1 location
£39 - £224
AddCar
1 location
£54 - £88
Nordic Car Rental
4 locations
£97 - £343
Carwiz
1 location
£73 - £295
Routes Car Rental
1 location
£98 - £297
City Car Rental
3 locations
Why book with us?
Special offers
As a market leader (see SimilarWeb), we get special offers like contactless pick-ups, great prices, and free upgrades.
Award-winning
World's Leading Car Rental Booking Website in the World Travel Tech Awards (4 years in a row).
Highly-rated
A combined rating of 4.5 with 150k+ total reviews on platforms like Trustpilot, Google, and Review Center.
4M users
Have already booked on one of the fastest-growing car rental booking websites.
Awards
World Travel Tech Awards - World's Best Car Rental Booking Website 2023
World Travel Tech Awards - World's Best Car Rental Booking App 2023
Magellan Awards Gold Winner 2023
Travel & Hospitality Awards 2021
FT 1000: Europes Fastest Growing Companies - Top 300 Companies 2021
FT 1000: Europe's Fastest Growing Companies - Top 100 Companies 2020
Uzakrota Travel Awards - World’s Leading Car Rental Website 2022
Inc. 5000 Europe - Top 500 Companies 2019
Our clients highly recommend us
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