Car Hire in Iceland

✓ No Hidden Costs ✓ 24/7 Support ✓ Free Cancellation
Unable to find any location
Driver's country of residence is United States of America (USA) and age is 30-65
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30 - 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80+
500+ Trusted Providers:

Cheapest Car Hire Rates

Reykjavik Harbour
Mini
Toyota Aygo or comparable
Toyota Aygo
  • 4
  • 2
  • 3
  • Man.
Alamo
£ 27.92 per day
Reykjavik Harbour
Economy
HYUNDAI I20 or comparable
HYUNDAI I20
  • 5
  • 2
  • 4
  • Man.
Alamo
£ 29.70 per day
Reykjavik Harbour
Compact
Fiat Tipo or comparable
Fiat Tipo
  • 5
  • 3
  • 4
  • A/C
  • Man.
Alamo
£ 32.70 per day
Reykjavik Harbour
Economy
Toyota Yaris or comparable
Toyota Yaris
  • 5
  • 2
  • 4
  • Auto.
Alamo
£ 33.27 per day

Most Popular Car Hire Offers

Reykjavik Harbour
Mini
Toyota Aygo or comparable
Toyota Aygo
  • 4
  • 2
  • 3
  • Man.
Enterprise
£ 33.85 / per day
Reykjavik Harbour
Economy
HYUNDAI I20 or comparable
HYUNDAI I20
  • 5
  • 2
  • 4
  • Man.
Enterprise
£ 36.00 / per day
Keflavik Airport
Mini
Hyundai i10 or comparable
Hyundai i10
  • 4
  • 2
  • 5
  • Man.
FairCar
£ 39.00 / per day
Reykjavik Harbour
Compact
VW Golf or comparable
VW Golf
  • 5
  • 2
  • 5
  • A/C
  • Man.
Enterprise
£ 39.64 / 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 09:18 on 2022-05-16.

Travel Information

Language
Icelandic,
English
Currency
ISK
Dialing code
354
Traffic direction
Right-hand
Speed limit out of city centre
90 km/h
56 mi/h
Speed limit within city centre
50 km/h
31 mi/h
Acceptable limit of BAC
0.04%

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.

Iceland

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 £ 78 per day
  • Large cars - starting at £ 113 per day
  • Medium cars - starting at £ 79 per day
  • People Carriers - starting at £ 195 per day
  • Small cars - starting at £ 69 per day
  • SUVs - starting at £ 128 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.

Top 5 Most Popular Cities in Iceland

Top 5 Most Popular Destinations in Iceland

Map of Car Hire Destinations

During which month is it most affordable to hire a car in Iceland?

Our data show how prices for hiring a car in Iceland fluctuate depending on the time of the year. This graph can assist you in finding the best bargain.
Average Price for Hiring a Car in Iceland
£ 51.45
January
£ 64.80
February
£ 48.46
March
£ 44.72
April
£ 66.95
May
£ 48.44
June
£ 89.80
July
£ 69.66
August
£ 44.24
September
£ 29.11
October
£ 36.45
November
£ 31.28
December
The cheapest month to hire a car in Iceland is October with prices starting at £ 29.11 for an Economy class cars. The most expensive month in which to hire a car is July with prices for for a Compact class) starting at £ 89.80. The average cost over the course of the entire year is £ 52. You can use this to plan your trip at the time of year when it would be most economical to hire a car. Note that these prices are only averages. The amount of time you hire a car for and the time at which you book will influence the prices.

How many days do people keep their hire cars, on average, in Iceland?

Hirers picking up a car in Iceland keep them for an average of 8 days during in December, while those picking up their cars in February keep them for an average of 5.
Average Hire Length in Iceland
6
January
5
February
5
March
5
April
5
May
5
June
5
July
5
August
5
September
6
October
7
November
8
December

What month is the most favoured for hiring a car in Iceland?

Though Iceland is popular for travellers all year long, the month for which the highest number of people search for a hire car is in January. in June is the month that sees the lowest demand for hire cars.
Monthly Car Hire Searches in Iceland Compared to the Yearly Average
299%
January
225%
February
211%
March
71%
April
49%
May
1%
June
1%
July
1%
August
55%
September
50%
October
135%
November
100%
December

Most Popular Car Hire Models

Hire Agency Model Doors Luggage Type
Icerental4x4 Dacia Duster 5 2 SUVs
Icerental4x4 Suzuki Vitara 5 2 SUVs
FairCar Hyundai i10 5 2 Small cars
FairCar Renault Duster 5 3 SUVs
Icerental4x4 Suzuki Grand Vitara 5 3 SUVs
Northern Lights Dacia Duster 5 2 SUVs
Icerental4x4 Suzuki Vitara 4 2 SUVs
Northern Lights Suzuki Vitara 5 2 SUVs
FairCar Suzuki SX-Cross 5 3 SUVs
FairCar Hyundai i10 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 an option to post a review here. Instead, we ask each and every customer to leave a review after they return their rental. This way, you know that all reviews are authentic, verified, and trustworthy.

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.
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.
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........

Top 24 Hire Companies in Iceland in 2022

Alamo
Alamo
Outstanding 8.9 / 16 reviews
+3545199300
Arnarvollur 4, 235 Reykjanesbaer, Iceland
Europcar
Europcar
Outstanding 8.9 / 47 reviews
+3545686915
Reykjavik Domestic Airport
Working hours
Mon:08:00-18:00
Tue:08:00-18:00
Wed:08:00-18:00
Thu:08:00-18:00
Fri:08:00-18:00
Sat:08:00-17:00
Sun:09:00-17:00
SIXT
SIXT
Outstanding 8.8 / 42 reviews
+3545402222
Blikavöllur 5, 235 Reykjanesbær
Ace Rent a car
Ace Rent a car
Outstanding 8.7 / 350 reviews
+3545673000 / 8778223872
Flugvellir 6. 260 Reykjanesbær
Working hours
Mon:00:00-23:59
Tue:00:00-23:59
Wed:00:00-23:59
Thu:00:00-23:59
Fri:00:00-23:59
Sat:00:00-23:59
Sun:00:00-23:59
Northern Lights
Northern Lights
Outstanding 8.6 / 118 reviews
+3545712266
Bogatröð 2, 235 Reykjanesbær
Working hours
Mon:00:00-23:59
Tue:00:00-23:59
Wed:00:00-23:59
Thu:00:00-23:59
Fri:00:00-23:59
Sat:00:00-23:59
Sun:00:00-23:59
Enterprise
Enterprise
Outstanding 8.6 / 1 reviews
5199300
ARNARVOLLUR,
Budget
Budget
Outstanding 8.5 / 5 reviews
+3545626060
Keflavik International Airport
Working hours
Mon:00:00-01:00; 06:00-23:59
Tue:00:00-01:00; 06:00-23:59
Wed:00:00-01:00; 06:00-23:59
Thu:00:00-01:00; 06:00-23:59
Fri:00:00-01:00; 06:00-23:59
Sat:00:00-01:00; 06:00-23:59
Sun:00:00-01:00; 06:00-23:59
National
National
Outstanding 8.5 / 1 reviews
+3545199300
Arnarvöllur 4, 235 Reykjanesbær
Keddy
Keddy
Outstanding 8.5
+3544616000
AKUREYRI AIRPORT
Working hours
Mon:08:00-18:00
Tue:08:00-18:00
Wed:08:00-18:00
Thu:08:00-18:00
Fri:08:00-18:00
Sat:09:00-17:00
Sun:09:00-17:00
Hertz
Hertz
Outstanding 8.4
5224440
Akureyri Apt
Working hours
Mon:08:00-18:00
Tue:08:00-18:00
Wed:08:00-18:00
Thu:08:00-18:00
Fri:08:00-18:00
Thrifty
Thrifty
Outstanding 8.4
5224430
Keflavik Airport
Working hours
Mon:00:00-02:00; 05:30-23:59
Tue:00:00-02:00; 05:30-23:59
Wed:00:00-02:00; 05:30-23:59
Thu:00:00-02:00; 05:30-23:59
Fri:00:00-02:00; 05:30-23:59
Sat:00:00-02:00; 05:30-23:59
Sun:00:00-02:00; 05:30-23:59
Carwiz
Carwiz
Outstanding 8.4 / 3 reviews
+3545712266
Bogatröð 2
Working hours
Mon:00:00-23:59
Tue:00:00-23:59
Wed:00:00-23:59
Thu:00:00-23:59
Fri:00:00-23:59
Sat:00:00-23:59
Sun:00:00-23:59
Avis
Avis
Outstanding 8.3 / 10 reviews
+3545914000
Keflavíkurflugvöllur, 235 Keflavík
Working hours
Mon:00:00-01:00; 06:00-23:59
Tue:00:00-01:00; 06:00-23:59
Wed:00:00-01:00; 06:00-23:59
Thu:00:00-01:00; 06:00-23:59
Fri:00:00-01:00; 06:00-23:59
Sat:00:00-01:00; 06:00-23:59
Sun:00:00-01:00; 06:00-23:59
Icerental4x4
Icerental4x4
Outstanding 8.3 / 43 reviews
+3545712266
Bogatröð 2, 235 Reykjanesbær
Working hours
Mon:00:00-23:59
Tue:00:00-23:59
Wed:00:00-23:59
Thu:00:00-23:59
Fri:00:00-23:59
Sat:00:00-23:59
Sun:00:00-23:59
Surprice
Surprice
Outstanding 8.2 / 7 reviews
+3547874444
Reykavik airport
Working hours
Mon:08:00-18:00
Tue:08:00-18:00
Wed:08:00-18:00
Thu:08:00-18:00; 00:00-23:59
Fri:08:00-18:00
Sat:08:00-18:00
Sun:08:00-18:00
Fara Car Rental
Fara Car Rental
Outstanding 8 / 27 reviews
+3545372018
Framnesvegure 19C, 230, Keflavik
Working hours
Mon:08:01-20:00
Tue:08:01-20:00
Wed:08:01-20:00
Thu:08:01-20:00
Fri:08:01-20:00
Sat:08:01-20:00
Sun:08:01-20:00
Firefly
Firefly
Outstanding 8 / 5 reviews
+3545220022
Kjóavollur 2-4, 235 Keflavíkurflugvollur
Working hours
Mon:05:30-17:00
Tue:05:30-17:00
Wed:05:30-17:00
Thu:05:30-17:00
Fri:05:30-17:00
Sat:05:30-17:00
Sun:05:30-17:00
AddCar
AddCar
Great 7.8 / 17 reviews
+3545194141
Keflavikurflugvöllur, 235 Keflavík
Working hours
Mon:05:00-02:00
Tue:05:00-02:00
Wed:05:00-02:00
Thu:05:00-02:00
Fri:05:00-02:00
Sat:05:00-02:00
Sun:05:00-02:00
RightCars
RightCars
Great 7.8 / 5 reviews
+3545716040
Blikavollur 3
Working hours
Mon:05:45-23:59
Tue:05:45-23:59
Wed:05:45-23:59
Thu:05:45-23:59
Fri:05:45-23:59
Sat:05:45-23:59
Sun:05:45-23:59
GreenMotion
GreenMotion
Great 7.8 / 334 reviews
+3546626508 / +3545511115
Helluhraun 4, Hafnarfjörður, 220
Working hours
Mon:09:00-17:00
Tue:09:00-17:00
Wed:09:00-17:00
Thu:09:00-17:00
Fri:09:00-17:00
Sat:09:00-17:00
Sun:09:00-17:00
FairCar
FairCar
Great 7.6
+3545115660
Hverfisgata 105, 101 Reykjavík
Working hours
Mon:08:00-17:00
Tue:08:00-17:00
Wed:08:00-17:00
Thu:08:00-17:00
Fri:08:00-17:00
Sat:08:00-17:00
Sun:08:00-17:00
Goldcar
Goldcar
Great 7.6 / 1 reviews
+3547737079
Blikavellir 3, 235, Keflavik
Working hours
Mon:07:00-20:00
Tue:07:00-20:00
Wed:07:00-20:00
Thu:07:00-20:00
Fri:07:00-20:00
Sat:07:00-20:00
Sun:07:00-20:00
NUCarrentals
NUCarrentals
Great 7.1 / 120 reviews
+3545115660
Skúlagata 13
Working hours
Mon:00:00-23:59
Tue:00:00-23:59
Wed:00:00-23:59
Thu:00:00-23:59
Fri:00:00-23:59
Sat:00:00-23:59
Sun:00:00-23:59
Global Rent a Car
Global Rent a Car
Good 6.4 / 85 reviews
+3545917900
Knarrarvogur 2, 104 Reykjavík, Iceland
Working hours
Mon:09:00-16:00
Tue:09:00-16:00
Wed:09:00-16:00
Thu:09:00-16:00
Fri:09:00-16:00
Sat:09:00-13:00
Sun:09:00-13:00
Download App
Book and manage your booking on the go
We use cookies to improve your experience. By accepting you agree with our cookie policy.
Please select a pick-up location and dates