Cheap Iceland car hire

Compare car hire from trusted providers

Book car hire with confidence

Save big on car rental in Iceland

Find the best car hire deal

Search for car hire in Iceland near you

Choose from 11 pick-up spots

Iceland car hire at a glance

Most popular providerFairCar
Most popular carPremium/Luxury, 4-5 doors
Pick-up points
Cheapest price found
Cheapest month to rentDecember
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 Keflavík.

Choose from car rental companies you trust

Find the cheapest time to hire a car in Iceland

The cheapest month to rent a car in Iceland is December, when the average cost per day is £41. If that doesn’t work for you, the second cheapest month is October, when the average cost per day is £44. 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 Keflavík.

Explore Iceland

All you need to know about Iceland

Side of the roadRight
CurrencyIcelandic Krone
LanguageIcelandic
Motorway 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 bag the best prices, and hit the road for less.

How to find a cheap car hire deal in Iceland

Exploring Iceland is more convenient with a car, and we've got you covered for finding affordable options. We apply the same search algorithm as our flight search to compare car hire deals across Iceland's 8 pickup points, including the popular Reykjavik. Evaluate options based on price, ease of pick-up, and fair fuel policies. Whether you're visiting Reykjavik, Akureyri, or Vik, easily find flexible deals that you can amend or cancel.

Iceland's most popular car hire companies

In Iceland, consider car hire with providers like Ice Rental 4x4, FairCar, Goldcar, Ace Rent a Car, Hertz, and Europcar. Each provider offers a range of services, allowing you to choose the right vehicle for your Icelandic journey. Small cars are efficient for city trips, while larger vehicles offer more room and perform well in diverse road conditions. Exploring your options among these providers ensures you find a vehicle that meets your specific requirements.

What are the speed limits in Iceland?

In Iceland, speed limits are consistent with 90 km/h on highways, expressways, and country roads, while inside cities, the limit drops to 50 km/h. It's important to stay vigilant about these limits to ensure a safe journey. Given Iceland's often-unpredictable weather and natural wonders, always keep an eye on conditions and maintain a safe distance from the vehicle ahead.

Popular driving trips in Iceland

Discover the appeal of Iceland through its most popular driving routes. Start your journey with the Golden Circle, an accessible loop from Reykjavik. It offers sights like Þingvellir National Park, where tectonic plates meet, the majestic Gullfoss waterfall, and the Geysir geothermal area with the Strokkur geyser.

For more adventure, the South Coast beckons along Route 1, Iceland's Ring Road. Here, marvel at the Seljalandsfoss and Skógafoss waterfalls, stroll the black sands of Reynisfjara, or visit the Sólheimajökull glacier.

For a comprehensive Icelandic experience, consider the Ring Road. Travel Highway 1 either partially or in full, passing through varied landscapes that showcase waterfalls, glaciers, volcanoes, and charming towns. A 4x4 vehicle is advisable if you plan to explore beyond the main road.

What you'll need to hire a car in Iceland

To hire a car in Iceland, you must be at least 21 years old. Though the legal driving age in Iceland is 17, the minimum age to rent is slightly higher. You’ll also need a valid driving licence and most agencies require a credit card. Ensure your licence is in English or has an accompanying International Driving Permit. Remember, Iceland drives on the right, so be prepared for the roads and keep your documentation easily accessible.


Car hire in Iceland: FAQs

You will need insurance to rent a car in Iceland, but you wont necessarily need ‘extra’ insurance. Different car hire companies offer different insurance policies, so make sure you look at the details when you pick a deal.
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 drivers license, ID and passport. Once you’ve booked car hire in Iceland, you can easily get in touch with your chosen provider to find out.
It’s easy to hire a car in Iceland. First, you need to decide where in Iceland you want to pick up your car from.

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.
You may need a credit card to rent a car in Iceland. It all depends on which car hire company you choose.
It depends where in Iceland you want to visit. The most popular place to go is Reykjavik. On average, it costs £129 per day to rent a car there. The cheapest price we could find is £46 per day.