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Iceland

Cheap Car Rentals in Iceland from $156

This price is the cheapest per day rate found by a Cheapflights user in the last 48 hours by searching for a car hire in Iceland with a pick-up date of 27/7 and drop-off date of 10/8. Fares are subject to change and may not be available at all agencies or on all dates of hire. Click the price to replicate the search for this deal.
Driver's age: 25-65
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Iceland car rentals in 2026

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 28 May 2026.

Most popular company

Ice Rental 4x4

Most common car type

Compact

Average price per day

$125

Cheapest price per day

$156
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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 28 May 2026.
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There are currently 272 hire locations operating in Iceland spread across 74 car hire agencies. In the past week, the cheapest car type to hire in Iceland is small car at $156 a day. Below are all the 3 car types available for hiring in the area, along with estimated starting prices:

Economy

Economy

$156+

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Compact

Compact

$221+

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Intermediate

Intermediate

$300+

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Full-size SUV

Full-size SUV

$466+

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Compact estate car

Compact estate car

$189+

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Compact SUV

Compact SUV

$191+

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Standard SUV

Standard SUV

$244+

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Intermediate SUV

Intermediate SUV

$249+

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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 $248. Data was last updated on 28 May 2026.
Hyundai Accent$156/day
2
M
Hyundai Accent
Found 05/28/26
Toyota Corolla$170/day
2
M
Toyota Corolla
Found 05/28/26
Toyota Corolla Wagon$189/day
4
M
A/C
Toyota Corolla Wagon
Found 05/26/26

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 $92/day on average when booked 7 days ahead, which saves you 62% 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 $66/day on average. The most expensive month to hire a car in Iceland is July ($167/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

$66

February

$71

March

$76

April

$80

May

$90

June

$117

July

$167

August

$161

September

$95

October

$80

November

$70

December

$73

Which car hire company has the most locations in Iceland?

Avis has 8 locations throughout the area, more than any other company. NextCar has the second-highest number of locations in Iceland at 1.

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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 28 May 2026.

Routes Car & Truck Rentals

5.7
Fair
11 reviews•1 location
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Overview

Cleanliness

6.7

Comfort

5.4

Overall

5.7

Pick-up/drop-off

5.1

Value

6.1

Go Rentals

1 location
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Avis

8 locations
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NextCar

1 location
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National

3 locations
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Rhodium

1 location
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RAS Car Rental

4 locations
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Fara Car Rental

2 locations
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Car rental FAQs

Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 28 May 2026.

  • What is the most popular car hire provider in Iceland?

    With an average price of $214/day, Budget is the most popular car hire provider in Iceland, booking 50% more hire cars than any other provider.

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

    At $142/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 $75/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

Browse car rentals by fuel type in Iceland. Currently, Electric cars are the cheapest to rent in Iceland. Deals were last updated on 28 May 2026.
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Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Electric being the cheapest ($91+).

Electric

Electric

$91+

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Hybrid

Hybrid

$110+

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Petrol/Diesel

Petrol/Diesel

$103+

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Browse thousands of different options on Cheapflights for your next trip

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Airport car hires in Iceland

Hire a car at one of these airports in the Iceland area
Reykjavik Domestic Airport car rentals
Akureyri Airport car rentals

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Free cancellation

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