What is the cheapest city to get a rental car in Iceland?

At $74/day, it is 0% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for $62/day in Reykjavik.

What side of the road do you drive on in Iceland?

In Iceland, drivers are expected to drive on the right side of the road.

Cheap Car Hire in Iceland | Deals From $74/Day

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Iceland car rentals in 2025

Most popular company	Payless
Most common car type	Intermediate
Average price per day	$74
Cheapest price per day	$74

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Popular car types in Iceland

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There are currently 257 hire locations operating in Iceland spread across 70 car hire agencies. In the past week, the cheapest car type to hire in Iceland is small car at $74 a day. Below are all the 4 car types available for hiring in the area, along with estimated starting prices:

Economy

$74+

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Compact

$123+

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Full-size SUV

$336+

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Mini

$90+

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Passenger van

$431+

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Compact estate car

$135+

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Compact SUV

$144+

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Intermediate SUV

$164+

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Compare car rental deals in Iceland by type

Here are the best Iceland small car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland medium car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland SUV hire prices found by Cheapflights users in the past 7 days:

Toyota Prius c$74/day

Mitsubishi Mirage$98/day

Best car rental deals found in Iceland

Toyota Prius c$74/day

Mitsubishi Mirage$98/day

Ford Focus$123/day

A/C

Cheapflights insights for Iceland car rentals

Get relevant, data-driven information to help you hire a car in Iceland, including pricing trends, ideal booking times, and more.

How far in advance should I hire a car in Iceland?

Book your rental car in Iceland 7 days before your pickup date to maximise your savings. Car rental prices are around $82/day on average when booked 7 days ahead, which saves you 44% off the average price.

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What is the cheapest month to hire a car in Iceland?

The cheapest month to hire a car in Iceland is January, when you can expect to pay $72/day on average. The most expensive month to hire a car in Iceland is July ($159/day on average). The average daily car hire price for each month is shown below. Keep in mind that prices will vary based on availability, when you book, and the type of car you hire.

January

$72

February

$74

March

$74

April

$75

May

$82

June

$117

July

$159

August

$147

September

$92

October

$80

November

$75

December

$80

What car do most people hire in Iceland?

SUV cars (Suzuki Vitara, for example) are the most popular in Iceland. Mini (Kia Picanto) and Economy (Suzuki Vitara) cars are also often chosen by our users when visiting Iceland.

Which car hire company has the most locations in Iceland?

keddy by Europcar has 21 locations throughout the area, more than any other company. Sunnycars has the second-highest number of locations in Iceland at 19.

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Top rental agencies in Iceland

Europcar

8.0

Very Good

33 reviews•17 locations

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Recent reviews

10.0

Wonderful|May 2025

It was great, everyone was very helpful.

10.0

Wonderful|Jul 2023

Nice and friendly staff at the counter. She show us some of the points to pay attention while driving, like paid parking in the city area, how to drive on the round-above, which tunnel needs to paid fee to use, etc. I rented a 7-seat caravan for five peoples plus 7 pieces of carry-on luggage.

8.0

Very Good|Nov 2021

The car was clean and we did not have any issues. We were unhappy about waiting in line almost an hour to pick up the car.

1.9

Poor|Sept 2021

Great until the end. At check-in, there was a tiny, and let me emphasize tiny, scratch on our windshield. I’m not convinced it wasn’t there at pick-up, but in any event, not billable damage. But bill me they did. Over $150. I highly recommend going over your car with a fine-toothed comb before leaving the facility at pickup. At least one other party was experiencing the exact same thing while we were there. Not acceptable, and I’m finished with EuropeCar. We travel to Iceland quite a bit, Hertz for me from now on.

3.9

Poor|Sept 2021

The line to pick up the car at the airport in Reykjavik took 2 hours, nightmare. The car was clean and nice and the drop off was quick and easy.

8.0

Very Good|Jun 2021

Friendly staff, and accommodating.

The car had been newer. The transmission was a bit sluggish. Otherwise, served our needs quite well.

1 out of 11

Hertz

8.3

Very Good

29 reviews•16 locations

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Recent reviews

10.0

Wonderful|Jul 2023

Staff at the counter were really good! Brakes squeaked a lot.

8.0

Very Good|Jul 2023

We needed better direction regarding navigation. Hertz offered no maps and provided inadequate guidance on way finding. However, once we returned to the office and asked for help, they provided excellent advice and help. Three different employees provided great service.

1 out of 10

Budget

7.9

Good

14 reviews•8 locations

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Thrifty

7.9

Good

22 reviews•8 locations

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Recent reviews

4.0

Mediocre|Aug 2025

Pickup experience was a nightmare. We waited for an hour and a half for our Thrifty number to be called, while dozens on Hertz customers who arrived later than us were able to pick up their rental. Not sure where the disconnect occurs, but Dollar and Thrifty customers are definitely not high-priority customers at KEF. They did however upgrade our vehicle after our aggravating wait, which helped soften the blow of waiting 90 minutes in the queue.

10.0

Wonderful|May 2024

Friendly

1 out of 8

Dollar

7.3

Good

20 reviews•8 locations

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Ice Rental 4x4

7.3

Good

11 reviews•6 locations

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Ice Rental Cars

6.6

Okay

10 reviews•5 locations

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Avis

8 locations

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Car rental FAQs

What is the cheapest city to get a rental car in Iceland?
At $74/day, it is 0% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for $62/day in Reykjavik.
What side of the road do you drive on in Iceland?
In Iceland, drivers are expected to drive on the right side of the road.

Car rentals by fuel type in Iceland

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Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Hybrid being the cheapest ($39+).

Electric

$67+

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Hybrid

$39+

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Petrol/Diesel

$51+

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Airport car hires in Iceland

Reykjavik Domestic Airport car rentals

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Cheap Car Rentals in Iceland from $74

Iceland car rentals in 2025

Get helpful information to start your search for the perfect car hire in Iceland. The average price data is based on the last 12 months and was last updated on 16 September 2025.

Most popular company

Most common car type

Average price per day

Cheapest price per day

Popular car types in Iceland

Explore the most popular car models available for hire in Iceland and choose the one that suits your needs. The price data is sourced from various car hire companies and was last updated on 16 September 2025.

Compare car rental deals in Iceland by type

Best car rental deals found in Iceland

Browse through a selection of recently found affordable car hire deals in Iceland. Plan your trip with ease and find the perfect hire option for your needs. There are currently 8 hire car agencies in Iceland with an average daily rate of $193. Data was last updated on 16 September 2025.

Cheapflights insights for Iceland car rentals

Get relevant, data-driven information to help you hire a car in Iceland, including pricing trends, ideal booking times, and more.

How far in advance should I hire a car in Iceland?

What is the cheapest month to hire a car in Iceland?

What car do most people hire in Iceland?

Which car hire company has the most locations in Iceland?

Top rental agencies in Iceland

Explore the leading car hire agencies in Iceland known for their outstanding service and extensive range of vehicles to choose from. There are currently 8 car hire companies in Iceland. Reviews were last updated on 16 September 2025.

Car rental FAQs

Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 16 September 2025.

What is the cheapest city to get a rental car in Iceland?

What side of the road do you drive on in Iceland?

Car rentals by fuel type in Iceland

Browse car rentals by fuel type in Iceland. Currently, Hybrid cars are the cheapest to rent in Iceland. Deals were last updated on 16 September 2025.

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Airport car hires in Iceland

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