Road between lake and mountains in Iceland
Updated: September 2026 • Cheapest month: October

Renting a Car in Iceland

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Rent a Car in Iceland

Renting a car in Iceland gives you freedom, but the details matter. Prices change quickly, and the terms may not be what you expect. This page helps you compare options and avoid guesswork.

What Kind of Car Do you Need in Iceland?

Season, road type, and travel area all matter when choosing a car in Iceland. We explain when you actually need a 4x4 in Iceland and when a regular car will do just fine.

Small dark car parked next to the Ring Road

Pick Up Your Rental Car in the City or at the Airport

Picking up your car right at Keflavík Airport (KEF) is easy: you land, grab the keys, and head straight for the Ring Road. But if you’re spending a few days in Reykjavík first, picking up in the city can make more sense. Both options have their perks, as you can read in Tips for Renting a Car in Iceland.

Popular Car Types and Deals in Iceland

Discover the most popular rental cars in Iceland right now. We compare trusted rental brands and update prices nonstop. Easily find the best-value option for your trip, from compact city cars to spacious SUVs.

Hyundai i10 - Manual or similar

Hyundai i10 - Manual or similar

mini

Petrol

•

Manual

4 • 5

From €25.87 / day

Available Deals

City Car Rental logo

City Car Rental

€25.87 / day

Europcar logo

Europcar

€37.60 / day

View Deals

Toyota Yaris - Manual or similar

Toyota Yaris - Manual or similar

economy

Petrol

•

Manual

5 • 5

From €28.42 / day

Available Deals

City Car Rental logo

City Car Rental

€28.42 / day

Europcar logo

Europcar

€40.00 / day

View Deals

Z VW Up or similar

Z VW Up or similar

mini

Petrol

•

Manual

4 • 2

From €36.82 / day

Available Deals

Goldcar logo

Goldcar

€36.82 / day

Firefly Car Rental logo

Firefly Car Rental

€37.42 / day

Hertz logo

Hertz

€41.33 / day

View Deals

HYUNDAI I20 or similar

HYUNDAI I20 or similar

economy

Petrol

•

Manual

5 • 4

From €37.42 / day

Available Deals

Firefly Car Rental logo

Firefly Car Rental

€37.42 / day

Alamo logo

Alamo

€48.36 / day

Enterprise logo

Enterprise

€52.55 / day

View Deals

Y TOYOTA YARIS AUTOMATIC or similar

Y TOYOTA YARIS AUTOMATIC or similar

economy

Petrol

•

Automatic

5 • 4

From €39.43 / day

Available Deals

Dollar Europe logo

Dollar Europe

€39.43 / day

Hertz logo

Hertz

€41.08 / day

View Deals

HYUNDAI I10 1.0 AUTOMATIC or similar

HYUNDAI I10 1.0 AUTOMATIC or similar

mini

Petrol

•

Automatic

4 • 5

From €40.80 / day

Available Deals

Europcar logo

Europcar

€40.80 / day

View Deals

Jeep Compass Trailhawk 4x4 or similar

Jeep Compass Trailhawk 4x4 or similar

compact

Hybrid

•

Automatic

5 • 5

From €43.11 / day

Available Deals

Carwiz logo

Carwiz

€43.11 / day

View Deals

SUZUKI SWIFT 1.2 AUTOMATIC or similar

SUZUKI SWIFT 1.2 AUTOMATIC or similar

economy

Petrol

•

Automatic

5 • 5

From €44.00 / day

Available Deals

Europcar logo

Europcar

€44.00 / day

Alamo logo

Alamo

€140.91 / day

Enterprise logo

Enterprise

€149.44 / day

View Deals

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Car Rental Offices in Iceland

Find car rental offices across Iceland’s main cities and airports. We compare trusted car rental companies nationwide, showing real-time availability and transparent prices.

Explore the map to explore locations near you, from city centres, train stations and airports, and choose the most convenient place to pick up or return your rental car.

List of Car Rental Locations in Iceland

Browse all locations where you can rent a car across Iceland, including major cities and airports. Find up-to-date car rental prices from trusted rental companies, compare options side by side, and book the best deal for your itinerary.

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Best Car Rental Prices in Iceland

Lowest average rates: October from €39.99 / day

What are the costs of a rental car in Iceland? Prices strongly depend on the time of year. In October average daily prices for rental cars start around €39.99. The prices are higher in the peak season (August), with a lowest average price of €155.39 per day. The absolute lowest price we observed in market data during the full year, was €25.83 per day.

The chart below shows the lowest average daily price for each month of the year, so you can directly see at what time of year the prices for rental cars in Iceland are affordable.

Price list per month

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Important Things to Know When Renting a Car in Iceland

Car rentals in Iceland come with a few specific conditions. Knowing these upfront helps you avoid surprises.

Age and Driver's License

Minimum age requirements in Iceland depend on more than just your birth year. Your license type and experience can affect which cars are available to you.

Learn more

Credit Card and Deposit

Most rentals require a credit card, but the conditions behind that request differ. Deposit amounts and blocking rules aren’t handled the same way everywhere.

Learn more

Insurance

Insurance coverage in Iceland isn’t as straightforward as it seems at first. What’s included, optional, or limited can vary widely between rentals.

Learn more

Why Travelers Choose Road Trip Car

Because exploring Iceland should feel like freedom, not logistics. At Road Trip Car, we make renting a car easy, transparent, and worry-free, with trusted local partners and 24/7 support wherever your journey takes you.

Join more than 10,000 travelers who’ve already discovered the joy of the open road and the confidence of knowing everything’s taken care of.

10,000+

Happy customers worldwide

10+

Available locations in Iceland

24/7

Customer support

Ready to Hit the Road Without Any Worries?

Compare Prices

Transparent pricing

Secure online payments

Free cancellation

White 4x4 in snowy landscape in Iceland

Tips From Travelers Who Went Before You

You can read more tips on the page about driving in Iceland.

Frequently Asked Questions About Car Rental in Iceland

Do you have questions about your upcoming trip to Iceland or the car you want to rent? You will find answers to frequently asked questions below. If your question is not listed, Feel free to contact us using the form. Our team will provide you with personalized assistance so you can hit the road worry-free!

How much does it cost to rent a car in Iceland?

Car rental prices in Iceland vary by season. Average daily rates range from €39.99 in October to €155.39 in August. The lowest daily rate we've recorded is €25.83.

When are car rental prices lowest in Iceland?

The cheapest time to rent a car in Iceland is currently October, with an average price of €39.99 per day.

When are car rental prices highest in Iceland?

Car hire prices in Iceland are currently at their highest in August, with an average price of €155.39 per day. If you are looking to rent a car during that period, we advise to check our prices frequently, or to book now and cancel and re-book when prices have potentially dropped.

When is car rental availability best in Iceland?

Availability is currently best in January and there is a low supply of rental cars in August.

How many car rental locations are there in Iceland?

Via Road Trip Car you have access to 13 car rental locations in Iceland, with multiple offices per location, covering all major airports, train stations, and city centers.

Can I drive a regular car on F roads?

No, a 4x4 (4WD) vehicle is mandatory on F roads and in the interior.

Which insurance policies are important?

In addition to CDW and theft protection, gravel, sand, and ash coverage are strongly recommended.

What is the minimum age to rent a car in Iceland?

The minimum age is usually 20, but some car types require you to be older.

Top Car Rental Companies in Iceland

We compare leading global and local car rental providers in Iceland to help you find the right deal for your travels, such as:

SurPrice Car Rentals

Greenmotion

Alamo

City Car Rental

Enterprise

Dollar Europe

Firefly Car Rental

Goldcar

Carwiz

Hertz

Europcar

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