Car rental in Iceland

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Save big on car rentals in Iceland

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Search for car rentals in Iceland near you

Choose from 11 pickup spots

Iceland car rental at a glance

Most popular providerIce Rental 4x4
Most popular carSmall, mini
Pick-up points
Cheapest price found
Cheapest month to rentOctober
Best time to book3 weeks before
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Iceland.

Choose from car rental companies you trust

Ice Rental 4x4
Budget
Carwiz
Flizzr
Northern Lights
Avis

Find cheap car rentals in Iceland

Hyundai i10

or similar mini

Flizzr
41ManualA/C
Hyundai i10

Free cancellation

Unlimited mileage

From
P1,710
per day

Find the cheapest time to rent a car in Iceland

The cheapest month to rent a car in Iceland is October, when the average cost per day is P3,157. If that doesn’t work for you, the second cheapest month is November, when the average cost per day is P3,225. Keep in mind when you’re looking to book, that the most expensive month to rent a car in Iceland is August.
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Iceland.

Explore Iceland

What are the best car rental companies in Iceland?

All you need to know about Iceland

Side of the roadRight
CurrencyIcelandic Krone
LanguageIcelandic
Highway speed limit90kmph
Built-up area speed limit30-50kmph
Age to rent a car21
The information here is based on our understanding as of January 2024. For the most current and accurate information, it’s recommended to check official government sources.

Getting the cheapest car rental in Iceland

Here are some tips to help you score the best prices and hit the road for less.

Pick the right ride

Make sure you pick the right type of car for your trip. You can easily filter by "seats," "transmission," and even choose only to see "electric" or "hybrid" vehicles. You can also filter by "car type," so whether you're looking for a luxury car or a more modest mini, you'll find what you need fast. The most popular car type in Iceland is Small.

Compare across companies

The most popular car rental company in Iceland is Ice Rental 4x4. We search across hundreds of companies to find you a great price with Ice Rental 4x4.

Get your timing right

It can really pay to play around with your timings and compare dates for your car rental to get a great price. The best time to book a bargain is 3 weeks before. The cheapest prices we've found are P3,564 a day and P24,946 a week.

Be flexible

Not sure where in Iceland you're going to visit? There are lots of places to pick up your rental car. Being flexible on your pickup location can help you grab a great price, all while seeing more of Iceland. We've found that the most popular place to pick up a car in Iceland is Reykjavik. The cheapest place to pick up your rental car is Iceland.

Rent a car long term in Iceland

Looking to rent a car for more than a few weeks? It could be cheaper to rent for a full month. This can cut the admin costs for car rental companies and give you some extra time to explore, too. Give it a try today and search for 30 days' worth of car rentals.

Save on fuel

You can make your money go further by finding a car rental deal in Iceland with "unlimited mileage" or a "full-to-full" fuel policy. This can save you cash on topping up the tank.

Car rental in Iceland: FAQs

The types of documents you’ll need to rent a car in Iceland depend on the car rental company you go with. But in general, you will need a valid driver's license, ID, and passport. Once you’ve booked a car rental in Iceland, you can easily get in touch with your chosen provider to find out.

It’s easy to rent a car in Iceland. First, you need to decide where in Iceland you want to pick up your car.

Once you’ve decided where you want to go, simply enter your dates and search for the best deal for you. Once you’ve found your deal, you’ll be redirected to the provider to book with no extra fees.

You can rent a car for as long as you like, depending on availability. If you know what dates you’re needing wheels for, start searching with Skyscanner today.

It depends where in Iceland you want to visit. The most popular place to go is Reykjavik. On average, it costs P3,714 per day to rent a car there. The lowest price we could find is P1,710 per day.

Most car rental deals in Iceland include basic insurance coverage. You don’t need to add deductible coverage, but it’s worth considering.

In Iceland, the deductible (what you pay if the car is damaged or stolen) ranges from P106,824 to P170,790, depending on who you book with. Deductible coverage prices in Iceland also vary by company.

You can buy deductible coverage separately, which is usually cheaper than buying it through the car rental company.
You need to be at least 21 to rent a car in Iceland. If you’re under 25, you might need to pay a young driver fee. Some car rental companies also only let you book certain cars.

Enter your age when you search on Skyscanner, and we’ll show you the available options.
It depends. Some car rental companies in Iceland accept debit cards, others require a credit card. Check the company’s accepted payment methods before you book.

Either way, the card needs to be in the main driver’s name, and you’ll need enough money on it to cover a security deposit. You’ll get it back when you return the car.
If you’ve booked a car rental with free cancellation, you can usually cancel or change your booking without paying a fee. The time you have to cancel depends on the car rental company, but it’s typically around 48 hours before pickup. If you cancel after that, you may be charged.

If your booking doesn’t include free cancellation, you’ll need to check the car rental company’s policy. Depending on when you cancel, you might need to pay a cancellation fee or you won’t get a refund.
Yes! Hertz, RAS Car Rental, and Europcar all have electric cars available in Iceland.

Prices start at P8,588 per day for Luxury rentals, such as the Tesla Model Y or similar.

Use the electric car filter when you search on Skyscanner to compare EV rentals in Iceland.
The easiest way to compare car rentals in Iceland is to look at lots of companies at the same time, rather than checking each one individually.

Skyscanner is a comparison website. We search 38 car rental companies and compare prices across 373 available cars so you don’t have to.