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Cheap Car Rental Iceland

Cheap car hire in Iceland from local rental companies, with full insurance options and the full price shown before you book.

  • Local companies
  • Full Insurance
  • Airport delivery

Car Rental Iceland

Iceland is the ultimate road-trip country. The Ring Road (Route 1) circles the island past waterfalls, glaciers, black-sand beaches and lava fields, and the Golden Circle is an easy day trip from Reykjavik. Weather changes fast, so check road conditions and wind warnings daily. Highland F-roads require a 4x4 and are open only in summer, and fuel stations are sparse in the east and north. Car rental is expensive in Iceland, so booking early and comparing local companies makes a big difference.

Why rent a car in Iceland

  • The Golden Circle: Þingvellir, Geysir and Gullfoss.
  • The South Coast to Vík and Jökulsárlón.
  • Highland F-roads in summer with a 4x4.
White compact car illustration
Cheap car rentalIceland
AwayCars
Car Rental Iceland

Car rental in Iceland: quick facts

Updated October 2026.

Price
€71–€87 per day on average, depending on the month.
Cheapest months
January and December.
Most expensive
February and May (book early).
Pick-up
2 cities and 1 airports, incl. KEF.
Deposit & card
Low-deposit and debit-card options from local companies (use the search filters).
Booking
Pay 15–20% online, the rest at pick-up. Free cancellation on many offers.
Driver age
Usually 21+ with 1 year of driving experience; some companies ask 23–25.
Driving
Drive on the right. Speed limits: 50 km/h in towns, 80 km/h on gravel roads, 90 km/h on paved roads.
Currency
Icelandic króna (ISK)

Pick-up locations in Iceland

2 cities and 1 airports.

ReykjavikCity & hotel deliveryKeflavikCity & hotel deliveryKeflavik AirportKEF · airport

What's the price of car hire in Iceland?

Prices from local rental companies. Updated October 2026.

€71avg. in Dec
€78yearly average
€87avg. in May
  • Mini & economy€53–€83
  • Compact & SUV€75–€139
  • 7-seaters & 4x4€128–€174
  • Premiumfrom €185

Tip: in low season, the cheapest 7-day deals from local companies are often far below the monthly average. Search your dates to see them.

Cheap car rental tips

  • Book 7 days or more: the daily price drops a lot on longer rentals
  • Travel in January or December, the cheapest months
  • Book early for March and May
  • Compare airport and town pick-up, and filter for no deposit

Rental prices for popular cars in Iceland by season

Approximate price per day.

CarSeatsBagsLow seasonHigh season
Fiat PandaMini41€53€65
Hyundai i10Mini41€53€65
Toyota YarisEconomy52€64€78
Peugeot 208Economy52€67€83
Volkswagen PoloCompact52€75€91
Dacia DusterSUV53€99€122
Nissan QashqaiSUV53€114€139
Suzuki Jimny4x441€128€157
Citroën Berlingo7-seater73€142€174
Fiat 500CConvertible41€121€148
BMW 3 SeriesPremium53€185€226

Estimated by car class from the monthly averages of local rental companies, with low season = Dec and high season = May. Your price depends on dates, rental length and availability. See live prices.

Car rental prices in Iceland by month

Average price per day, all car classes.

The lowest average rates in Iceland are in December at about €71 per day, around 18% below May (€87), the most expensive month. The busiest period is March and May, at €86–€87 per day. April and August sit in between, at about €77–€78. The cheapest months to travel are January and December.

Monthly prices as a table
MonthAverage price per day
January€72
February€86
March€86
April€78
May€87
June€84
July€75
August€77
September€76
October€76
November€72
December€71
Check prices for your dates

Best time to rent a car in Iceland

Car rental demand in Iceland by month (share of cars booked).

Demand is highest in July, August and September. Book these months early, as no-deposit and automatic cars sell out first. The quietest months are January and December, when cars are easiest to find and cheapest.

Choose your car in Iceland

Every class from local companies. Tap a type to see live prices.

Small carsFiat 500, Toyota Aygo – mini rental carFiat 500, Toyota Aygo or similarEconomy carsCitroën C3, Toyota Yaris – economy rental carCitroën C3, Toyota Yaris or similarCompact carsRenault Megane, VW Golf – compact rental carRenault Megane, VW Golf or similarSUVsToyota RAV4, Nissan Qashqai – suv rental carToyota RAV4, Nissan Qashqai or similar4x4 & JeepsSuzuki Jimny – 4x4 / jeep rental carSuzuki Jimny or similarMinivansMercedes Vito, Ford Tourneo – 7-seater rental carMercedes Vito, Ford Tourneo or similarConvertiblesVW Golf Cabriolet, Fiat 500C – convertible rental carVW Golf Cabriolet, Fiat 500C or similarPremium carsMercedes E-Class, BMW 5 Series – premium rental carMercedes E-Class, BMW 5 Series or similar

Best Car Rental Prices in Iceland

Fiat 500 Mini car

  • Manual
  • 4
  • 1
  • 3
Fiat 500 rental car
from€53per day
View deal
  • Airport pick-up
  • Unlimited mileage
  • Pay 15–20% now
  • Low deposit
  • Debit card

Citroën C3 Economy car

  • Manual
  • 5
  • 2
  • 5
Citroën C3 rental car
from€64per day
View deal
  • Hotel delivery
  • Unlimited mileage
  • Free cancellation
  • Low deposit
  • Additional driver

Toyota RAV4 SUV

  • Automatic
  • 5
  • 3
  • 5
Toyota RAV4 rental car
from€114per day
View deal
  • Meet & greet
  • Unlimited mileage
  • Debit card
  • Full insurance
  • Child seats

* The prices shown in this section are for reference only and are not a binding offer. They are based on average prices of local rental companies in the cheapest month. Final prices depend on your dates, rental length, pick-up point, extras and availability. Features vary by company: use the filters in the search above.

No deposit, no credit card, full insurance

Car Rental Iceland No Deposit

  • Nothing blocked on your card
  • More budget for the trip
  • Quicker return
  • Low-deposit cars when zero isn't available

Car Rental Iceland No Credit Card

  • Pay with a debit card or cash
  • No credit card authorisation
  • Payment methods shown on each car
  • No hidden fees

Full Insurance in Iceland

  • TPL and CDW on most cars
  • Full coverage with zero excess
  • Cover shown before you pay
  • No surprises at the desk

Tip: no-deposit and no-credit-card cars are in high demand. If none show for your dates, use the “Low deposit” filter or choose “Debit card” as the payment method.

Driving in Iceland

Speed limits

50 km/h in towns, 80 km/h on gravel roads, 90 km/h on paved roads

Alcohol limit

0.2 g/l

Tolls

There are no motorway tolls. Highland F-roads need a 4x4 and are closed for much of the year.

Traffic side

Drive on the right.

Parking and fuel in Iceland

Parking

Central Reykjavik and many nature sites have paid parking, usually by app or machine.

Fuel stations

Many pumps are unattended and need a card with a PIN. Stations are far apart in the east and the highlands, so fill up often.

What you need to rent a car

  • Passport or ID
  • Driving licence, usually held for 1–2 years
  • Booking voucher (on your phone is fine)
  • International Driving Permit, where required

The minimum age is usually 21, and many companies ask for 23–25. A card for the deposit is only needed if the car has one.

Why book with AwayCars

  • Local companiesOften cheaper and more flexible than the big brands
  • Pay 15–20% nowThe rest at pick-up
  • Every car typeMini, economy, SUV, 7-seater, convertible, premium
  • Flexible paymentCredit card, debit card or cash, by company
  • Where you need itAirport, office, hotel or port delivery
  • ExtrasChild seats, second driver, unlimited mileage
  • Insurance optionsTPL, CDW and full coverage with low or zero excess
  • No hidden feesThe full price is shown before you book

Car Rental Iceland: FAQ

How do I rent a car in Iceland?

Enter your pick-up place and dates in the search on this page and compare cars from local rental companies. Use the filters for deposit, payment method, insurance and gearbox, then book with a 15–20% advance online. Your voucher arrives by email straight away, and you pay the rest at pick-up.

Where can I pick up a rental car in Iceland?

At 1 airports (Keflavik Airport), and in Reykjavik and Keflavik. Many companies also deliver to hotels and apartments.

How much does car rental cost in Iceland?

On average about €71 per day in December, the cheapest month, and about €87 in May, the busiest. Prices for your dates are shown live in the search.

Can I rent a car in Iceland with no deposit?

Some companies offer no deposit or a low deposit. Use the “No deposit” or “Low deposit” filter to see them.

Can I rent a car in Iceland without a credit card?

Some companies accept a debit card or cash. Check the payment methods listed on each car before you book.

Are automatic cars available in Iceland?

Yes. Filter the results by gearbox. Automatics are fewer and sell out first in high season, so book early.

What documents do I need to rent a car in Iceland?

Your passport or ID, a driving licence held for at least one year (often two), and the booking voucher. Some licences also need an International Driving Permit; the requirements for your rental are shown in the booking terms.

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

Usually 21 with at least one year of driving experience. Many companies ask for 23–25, and some add a young-driver fee.

Is full insurance available?

Most cars include third-party liability and CDW. Many companies offer full coverage with zero or reduced excess; the cover and excess are shown on each car before you book.

Can I return the car somewhere else?

Yes, where the company allows one-way rental. Choose a different drop-off location in the search to see those offers.

When is the best time to rent a car in Iceland?

Demand is highest in July, August and September, so book early for those months. January and December are the quietest months, with the widest choice.

What should I know about driving in Iceland?

Traffic drives on the right. Speed limits: 50 km/h in towns, 80 km/h on gravel roads, 90 km/h on paved roads. Alcohol limit: 0.2 g/l. There are no motorway tolls. Highland F-roads need a 4x4 and are closed for much of the year.

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