How to find a cheap car hire deal in Iceland
Whether you need a compact for cruising around town or a bigger ride for longer drives, we'll help you find a cheap rental car in Iceland. Choose from options that start from Rs20,751 a day and get going for less.
Rs146,077 is the lowest rate for a weekly rental if you're planning a longer adventure.
Browse the car rentals in Reykjavik and trim your transport costs. It's the cheapest place in Iceland to book a ride.
Reykjavik is the most popular city to rent a car.
When comparing providers, check out what's on offer from Ice Rental 4x4. It's a trusted name in Iceland.
There's no need to go far after touching down to pick up your ride. Car rentals are available at major airports including Reykjavik Keflavik Airport, Reykjavik Domestic Airport and Akureyri Airport.
You can rent some wheels easily in top cities including Reykjavik, Akureyri, Egilsstadir, Isafjordur and Kópavogur.
A one-way rental might work out in your favor. Providers often lower prices when they need to move cars between sites. When searching for a car for rent in Iceland, choose 'Return car to a different location' to access those deals.
Planning a multi-week rental? It might be cheaper to book a full month, so try different date combinations to find out what works best.
Skip the extra costs by booking a vehicle with a 'Fair fuel policy.' You collect the car with a full tank and bring it back full, paying only for the fuel you use.
Rentals with 'Unlimited mileage' give you freedom to roam without worrying about added charges. Search for this option using the 'Policies' filter and go as far as you like.
Best time to book a car hire in Iceland
Consider this your cheat code for when to book. Four weeks in advance gives you better odds of securing the best price on a car hire in Iceland.
The most affordable month to rent a car is December, with rates averaging Rs16,502 a day.
If you want to steer clear of peak pricing, avoid April.
Compare car hire types in Iceland
Economy: Living up to its name, this option is built with savings in mind. It pairs some of the cheapest rates on offer with strong fuel efficiency to help keep the total spend down. When you'd rather save than splurge, this is an easy choice.
Small: Covering mini and economy classes, small cars work well for everyday travel. If you're looking for a cheap rental car in Iceland, this is where some of the best deals live. They're perfect for city driving and quick getaways, with easy handling, low fuel use, and enough space for the essentials.
Medium: Need more space without going all out? Medium rentals (which include compact and intermediate models) hit the sweet spot. They feel right at home in city traffic, on highways and almost everywhere in between.
Large: More people, more bags, more possibilities. Large cars offer extra passenger space and increased luggage capacity, making them a great match for families and long-distance drives. Choose one of these full-size rides when comfort is non-negotiable.
SUV: These sport utility vehicles are ready for whatever your itinerary brings your way. Their ability to handle different terrain makes them a reliable pick for road trip plans that take shape as you go. A higher seating position gives you a clearer view ahead, helping you feel more in control.
Van: This category of car for rent in Iceland includes commercial vans and trucks. With plenty of load capacity and flexible interior layouts, they're designed to transport bulky items, equipment or larger groups in one go.
Luxury: Want to go beyond the standard upgrade? From sharp good looks to cutting-edge tech and powerful performance, luxury vehicles kick the entire driving experience into high gear. This is what to book when you expect nothing less than exceptional.
Insurance and optional extras
Car rental excess insurance isn't a necessity, but it's worth considering. If your car is damaged, no matter how minor, it can save you from paying an expensive excess fee. Different providers have varying insurance policies and cover levels, so check the terms before booking.
Take your ride to the next level with handy extras like a navigation system or mobile Wi-Fi. These add-ons can make your drive smoother and more enjoyable when you rent a car in Iceland.
Driving in Iceland: What you need to know
The minimum age to rent a car in Iceland is generally 21 years old. Some providers make their own rules, so always double-check your rental company's terms to find out where you stand.
Add a car seat to your car hire reservation in Iceland if you're travelling with small kids. Rules vary from one place to another, but using a child seat suited to their size and age is always the safest choice.
Bring the right documents to make pick-up quick and easy. You'll typically need your physical driver's licence (no screenshots) and a second photo ID. Have a credit card ready for the deposit too. If extra documents are required, they'll be listed in your booking.
If you've never driven in Iceland, remember that traffic here keeps to the right side of the road.
Make sure you stay within the local speed limits. Usually that's around 45kph in built-up areas and 85kph or so on highways, unless road signs indicate differently.
In Iceland, the legal blood alcohol concentration (BAC) limit is 0.05%. If you think you'll be drinking, pass the keys to someone else or find an alternative way to get around.
You'll be using the Icelandic króna (ISK) for all your purchases and expenses on your trip. You may find it helpful to carry a mix of cash and cards to ensure you're covered in all situations.
