Find Rentals
Insights
Agencies
FAQs
Iceland

Cheap Car Hire in Iceland

Driver's age: 26-65
Here’s why our users search for rental cars through Cheapflights

Price trackingHolding out for a great deal? Get notified when prices are reduced.

Customized resultsFilter by rental agency, car type, price range and more.

Unlimited free useSearch as many times as you want with no hidden charges or fees.

Iceland car hires 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 10 July 2025.

Most popular company

Alamo

Most common car type

Intermediate

Average price per day

R1 700

Cheapest price per day

R1 434

Cheapflights insights for Iceland car hires

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?

For the best savings on car hire in Iceland, make your reservation 61 days before pickup. The average price then is just R870/day – about 1 519% less than the yearly average.

What is the cheapest car hire company in Iceland?

In Iceland, the most affordable car hire company right now is Saga, offering prices from just R1 580,09/day over the past two weeks. Another budget-friendly choice is Northern Lights, with rates starting at R1 605,65/day.

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

At Iceland, the best time to hire a car is in January, with an average daily rate of just R763. Conversely, July is the priciest month, averaging R1 527 per day. Below youll find the monthly average car hire prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.|1#In Iceland, the best time to hire a car is in January, with an average daily rate of just R763. Conversely, July is the priciest month, averaging R1 527 per day. Below youll find the monthly average car hire prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.

January

R763

February

R781

March

R781

April

R799

May

R870

June

R1 225

July

R1 527

August

R1 367

September

R888

October

R799

November

R781

December

R852

What car do most people hire in Iceland?

The most popular types of cars to hire in Iceland are the following: SUV cars (Class Intermediate SUV or similar), Intermediate cars (Class Intermediate SUV or similar), and Compact cars (Kia Cee'd or similar).

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.

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 10 July 2025.

Europcar

8,2
Very Good
33 reviews17 locations
Overview

Cleanliness

8,7

Comfort

8,7

Overall

8,2

Pick-up/drop-off

8,1

Value

8,0

Hertz

8,0
Very Good
30 reviews17 locations
Overview

Cleanliness

8,6

Comfort

8,4

Overall

8,0

Pick-up/drop-off

7,8

Value

7,6

Budget

8,0
Very Good
14 reviews8 locations
Overview

Cleanliness

7,9

Comfort

8,0

Overall

8,0

Pick-up/drop-off

7,9

Value

7,5

GREEN MOTION

7,9
Good
3 reviews5 locations
Overview

Cleanliness

7,9

Comfort

7,9

Overall

7,9

Pick-up/drop-off

7,9

Value

8,6

Thrifty

7,6
Good
19 reviews8 locations
Overview

Cleanliness

7,6

Comfort

7,6

Overall

7,6

Pick-up/drop-off

7,0

Value

6,7

Ice Rental Cars

7,5
Good
10 reviews5 locations
Overview

Cleanliness

7,7

Comfort

7,7

Overall

7,5

Pick-up/drop-off

6,8

Value

7,7

Dollar

7,2
Good
20 reviews8 locations
Overview

Cleanliness

8,3

Comfort

7,6

Overall

7,2

Pick-up/drop-off

6,8

Value

7,1

Ice Rental 4x4

6,8
Okay
11 reviews6 locations
Overview

Cleanliness

7,6

Comfort

7,2

Overall

6,8

Pick-up/drop-off

6,6

Value

6,9

Car hire FAQs

Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 10 July 2025.
  • What is the most popular car hire provider in Iceland?

    When hiring a car in Iceland, the most popular provider of hire cars among Cheapflights users is Alamo, and with prices around R1 628/day, it’s easy to understand why. The most popular car type from Alamo is COMPACT, which starts as low as R1 608/day.

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

    At R1 700/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 R1 545/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.

Browse thousands of different options on Cheapflights for your next trip

Toggle through the tabs below to find thousands of options on Cheapflights for your next trip.

Airport car hires in Iceland

Hire a car at one of these airports in the Iceland area

Best Car Hire Deals

We make it easy and fast to find and compare deals from 70,000+ hire locations and hundreds of agencies.

No Surprises

Prices shown to you will be completely in full, without any hidden charges or fees.

Free Cancellation

Plans change — we get it. And that’s why you can search and book car hire on Cheapflights from agencies that offer free cancellation