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Cheap Car Hire in Iceland from £20
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 26/8 and drop-off date of 2/9. 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.
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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 15 August 2025.
Most popular company | Ice Rental 4x4 |
|---|---|
Most common car type | Compact |
Average price per day | £53 |
Cheapest price per day | £20 |
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 15 August 2025.
At £20/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 70 car hire agencies operating in Iceland, there are, in total, 257 hire locations. View below for 3 offered car types:
Economy
£23+
Compact
£26+
Intermediate
£34+
SUV
£43+
Full-size SUV
£62+
Mini
£24+
Compact estate car
£20+
Compact SUV
£33+
Compare car hire 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:
Hyundai Elantra Touring£20/day
4
5
M
A/C
Peugeot 208£23/day
2
M
Honda Jazz£23/day
2
M
Best car hire 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 £50. Data was last updated on 15 August 2025.
Hyundai Elantra Touring£20/day
4
5
M
A/C
Peugeot 208£23/day
2
M
Honda Jazz£23/day
2
M
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?
To get the best deal on car hire in Iceland, book about 79 days before your trip. At that point, average daily prices are around £40, which is about 43% cheaper than the typical rate.
What is the cheapest car hire company in Iceland?
In Iceland, the most affordable car hire company right now is Ice Rental 4x4, offering prices from just £14.28/day over the past two weeks. Another budget-friendly choice is FLIZZR, with rates starting at £23.75/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 £37. Conversely, July is the priciest month, averaging £103 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 £37. Conversely, July is the priciest month, averaging £103 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
£37
February
£38
March
£37
April
£38
May
£53
June
£65
July
£103
August
£81
September
£51
October
£41
November
£38
December
£41
What car do most people hire in Iceland?
SUV cars (Class Intermediate SUV, for example) are the most popular in Iceland. Intermediate (Skoda Octavia) and Compact (Class Compact SUV) 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.
Discover the price range for hiring a car in popular cities across Iceland, helping you budget and make informed decisions for your upcoming travel. There are 89 pickup locations in Iceland to choose from. Price data has been averaged over the last 12 months and was last updated on 15 August 2025.
Top hire 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 15 August 2025.
Europcar
33 reviews•17 locations
Overview
Cleanliness
8.7
Comfort
8.7
Overall
8.2
Pick-up/drop-off
8.1
Value
8.0
Budget
14 reviews•8 locations
Overview
Cleanliness
7.9
Comfort
8.0
Overall
8.0
Pick-up/drop-off
7.9
Value
7.5
Hertz
29 reviews•16 locations
Overview
Cleanliness
8.6
Comfort
8.4
Overall
7.9
Pick-up/drop-off
7.8
Value
7.5
Thrifty
19 reviews•8 locations
Overview
Cleanliness
7.6
Comfort
7.6
Overall
7.6
Pick-up/drop-off
7.0
Value
6.7
Ice Rental Cars
10 reviews•5 locations
Overview
Cleanliness
7.7
Comfort
7.7
Overall
7.5
Pick-up/drop-off
6.8
Value
7.7
Dollar
20 reviews•8 locations
Overview
Cleanliness
8.3
Comfort
7.6
Overall
7.2
Pick-up/drop-off
6.8
Value
7.1
Ice Rental 4x4
11 reviews•6 locations
Overview
Cleanliness
7.6
Comfort
7.2
Overall
6.8
Pick-up/drop-off
6.6
Value
6.9
keddy by Europcar
21 locations
Car hire FAQs
Find answers to frequently asked questions about car hires in Iceland, including policies, requirements, and more. FAQs were last updated on 15 August 2025.
What is the most popular car hire provider in Iceland?
With an average price of £70/day, Budget is the most popular car hire provider in Iceland, booking 224% more hire cars than any other provider.
What is the cheapest city to get a rental car in Iceland?
At £53/day, it is 8% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for £31/day in Reykjavik.
What side of the road do you drive on in Iceland?
Cars in Iceland are to be driven on the right side of the road.
Car hires by fuel type in Iceland
Browse car hires by fuel type in Iceland. Currently, Petrol/Diesel cars are the cheapest to rent in Iceland. Deals were last updated on 15 August 2025.
Browse through car hire deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Petrol/Diesel being the cheapest (£35+).
Electric
£58+
Hybrid
£36+
Petrol/Diesel
£35+