Car Hire in Iceland
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Cheapest Car Hire Rates
Keflavik Airport
Compact
Renault Megane STW
or comparable
£22.82
per day
Keflavik Airport
Economy
Peugeot 208
or comparable
£25.01
per day
Keflavik Airport
Intermediate
Skoda Octavia
or comparable
£25.57
per day
Most Popular Car Hire Deals
Keflavik Airport
Standard SUV
Dacia Duster
or comparable
£29.60
per day
Keflavik Airport
Premium Crossover
Polestar 2
or comparable
£42.63
per day
Keflavik Airport
Compact Elite Crossover
Renault Captur
or comparable
£46.92
per day
Keflavik Airport
Intermediate Elite SUV
Hyundai Tucson
or comparable
£49.20
per day
The above prices are only approximate and were last updated at 06:56 on 14/12/2024. 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
Dialing code
+354
Average car hire price
£33 per day
Average car hire length
6 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
£1.77 per litre or £6.71 per gallon
Lowest petrol price
£1.50 per litre or £5.68 per gallon
Highest petrol price
£1.91 per litre or £7.24 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 £23 per day
- Large cars - starting at £26 per day
- Medium cars - starting at £28 per day
- People Carriers - starting at £54 per day
- Small cars - starting at £24 per day
- SUVs - starting at £24 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 £33.10 per day. This is 32% less than the yearly average and 60% less than hiring a car in July (when the average price is £83.53 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 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 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, March 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 | 22 |
| Airport locations | 7 |
| Popular suppliers | Icerental4x4, FairCar, Ace Rent a car, Europcar, Thrifty |
| Popular car categories | SUVs, Small cars, People Carriers, Medium cars |
| Lowest price | £23 per day |
| Cheapest supplier | FairCar |
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 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.
BJ
United Kingdom
Dacia Duster
22/03/2024
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
19/03/2024
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
13/02/2024
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
30/12/2023
We wasn't traveling so much, we stayed in country house for Christmas
JC
United Kingdom
Suzuki Vitara
18/09/2023
Plenty of good walking amazing natural features, easy to drive around, polite people.
JM
United Kingdom
Peugeot 2008
16/04/2023
All the nature hotspots - amazing place
AH
United Kingdom
Subaru XV
03/11/2022
The whole place - Iceland is epic!
MJ
United Kingdom
Hyundai Tucson
18/10/2022
Iceland was fantastic so diverse, it was an experience to behold.
ID
United Kingdom
Suzuki Jimny
20/04/2022
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
23/03/2022
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
05/02/2022
Renting a car is a must in Iceland
NB
United Kingdom
Suzuki Vitara
08/08/2021
We took the car to Vik and to Selfloss saw a wonderful waterfall. Also a trip to the volcano
WO
United Kingdom
VW Up
04/07/2021
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........
Car Hire 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
£33.24
Lowest daily price
£22.82
Total cars available
1414
Top 29 suppliers in Iceland in 2024
Saga
4 locations
£36 - £198
Hertz
10 locations
£37 - £219
Dollar
4 locations
£43 - £226
Alamo
2 locations
£25 - £216
Europcar
14 locations
£28 - £188
Thrifty
7 locations
£42 - £216
Ace Rent a car
1 location
£25 - £167
Lava Car Rental
1 location
£36 - £54
Flizzr
1 location
£27 - £103
SIXT
2 locations
£24 - £172
National
2 locations
£33 - £208
Enterprise
3 locations
£30 - £230
Goldcar
1 location
£27 - £51
GreenMotion
2 locations
£38 - £1,019
Budget
3 locations
£31 - £135
Avis
4 locations
£36 - £157
Surprice
2 locations
£50 - £77
Northern Lights
1 location
£28 - £154
A Car Rental
1 location
£56 - £130
Firefly
1 location
£56 - £130
Icerental4x4
1 location
£26 - £165
WheeGo
1 location
£26 - £102
RightCars
1 location
£40 - £43
AddCar
1 location
£42 - £67
Zezgo
1 location
£31 - £34
FairCar
3 locations
£23 - £109
Nordic Car Rental
4 locations
£43 - £130
Routes Car Rental
1 location
£37 - £139
City Car Rental
3 locations
£37 - £139
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