Car rental in Iceland

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Iceland car rental at a glance

Most popular providerIce Rental 4x4
Most popular carSmall, mini
Pick-up points
Cheapest price found
Cheapest month to rentDecember
Best time to book2 weeks before
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Iceland.

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Ice Rental 4x4
Flizzr
Green Motion
Northern Lights
Firefly
Avis

Find cheap car rentals in Iceland

Find the cheapest time to rent a car in Iceland

The cheapest month to rent a car in Iceland is December, when the average cost per day is P3,589. If that doesn’t work for you, the second cheapest month is October, when the average cost per day is P3,677. 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.

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 P3,910 per day to rent a car there. The lowest price we could find is P1,106 per day.

To rent a car with most companies in Iceland, you need to be at least 21 years old. Some companies may have extra fees to pay if you are under 25 years old, so make sure you check before you book.

You may need a credit card to rent a car in Iceland. It all depends on which car rental company you choose.

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 P8,360 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.
Yes! You can book one-way car rental in Iceland, which means you pick up your car in one location and drop it off somewhere else. Europcar, Budget, and Sixt all offer one-way car rental in Iceland.

One-way car rental is popular with people planning a Iceland road trip, because it means you don’t have to drive back to where you started.
Most people renting a car in Iceland book it for 6 days. If you’re still deciding how long your trip’s going to be, here’s what you can expect to pay on average:
· 1 day: P10,654
· 1 week: P27,029
· 2 weeks: P54,058
· 1 month: P140,000

If your plans are flexible, try changing the dates and number of days when you’re comparing prices. A few extra days can sometimes work out cheaper.
Most car rental companies let you add an extra driver at pickup. The fee in Iceland is typically around P1,411 per day.

Some companies include it at no extra cost, so check the details before you book.
The best time to book a car rental in Iceland is usually as early as possible, especially if you’re traveling during busy periods.

You can sometimes find a good last-minute deal, but it’s never guaranteed, and availability is more limited.
Yes! Most car rental companies in Iceland offer same-day car rentals. If you’re looking for a last-minute car rental in Iceland, just enter today’s date on Skyscanner to compare prices.
Some companies in Iceland let you drive a rental car abroad, often for an extra fee, while others don’t.

If you plan to cross a border, check with the company before you travel. Driving abroad without permission could void your insurance or break the terms of your rental agreement.
A good car rental deal in Iceland is usually anything under P7,990 per day. That’s about 25% cheaper than the average car rental cost in Iceland, which is P10,654 per day.

The cheapest price we found in Iceland is P3,520 per day with Street Rent a Car for a Small rental car.

You will need insurance to rent a car in Iceland, but you won't necessarily need "extra" insurance. Different car rental companies offer different insurance policies, so make sure you look at the details when you pick a deal.

Our travelers' best-rated car rental company in Iceland is Orange car rental. You can rent a car with them for P13,529 on average per day.

If you want to learn more about Orange car rental, you can dig deeper here.

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 2 weeks before. The cheapest prices we've found are P3,520 a day and P24,640 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.