Find Rentals
Popular Cars
Rental Deals
Insights
Agencies
FAQs
Iceland

Cheap Car Hire in Iceland from £26

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 6/9 and drop-off date of 13/9. 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.
Driver's age: 26-65
Here’s why our users search for rental cars through Cheapflights

Save over 48%Compare Cheapflights against other travel sites with one search.

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 13 June 2025.

Most popular company

Ice Rental 4x4

Most common car type

Intermediate

Average price per day

£52

Cheapest price per day

£26

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 13 June 2025.

At £26/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 69 car hire agencies operating in Iceland, there are, in total, 254 hire locations. View below for 3 offered car types:

Economy

Economy

Compact

Compact

Intermediate

Intermediate

SUV

SUV

Full-size SUV

Full-size SUV

Mini

Mini

Compact estate car

Compact estate car

Intermediate SUV

Intermediate SUV

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:

Chevrolet Spark£26/day
2
M
Chevrolet Spark
Peugeot 208£29/day
2
M
Peugeot 208
Honda Jazz£31/day
2
M
Honda Jazz

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 £56. Data was last updated on 13 June 2025.
We've found these great deals on car hires in Iceland, including options within the Reykjavik, Akureyri and Keflavik area. Deals are constantly refreshed so come back soon for more car hire options.
Chevrolet Spark£26/day
2
M
Chevrolet Spark
Peugeot 208£29/day
2
M
Peugeot 208
Honda Jazz£31/day
2
M
Honda Jazz

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 33 days before your trip. At that point, average daily prices are around £39, 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 £22.08/day over the past two weeks. Another budget-friendly choice is FLIZZR, with rates starting at £22.18/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 £85 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 £85 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

£62

July

£85

August

£74

September

£50

October

£37

November

£37

December

£41

What car do most people hire in Iceland?

Economy cars (Class Economy Car, for example) are the most popular in Iceland. Mini (Class Mini Car) and SUV (Class Intermediate 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 74 pickup locations in Iceland to choose from. Price data has been averaged over the last 12 months and was last updated on 13 June 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 13 June 2025.
Book your reservation with one of the top car hire agencies located in Iceland, including those serving the greater Reykjavik, Akureyri and Keflavik area. Make sure to take a look at reviews from past customers, daily rate and other charges, and pickup location before making your decision.

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 13 June 2025.
  • What is the most popular car hire provider in Iceland?

    With an average price of £39/day, Sixt is the most popular car hire provider in Iceland, booking 88% more hire cars than any other provider.

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

    At £54/day, it is 19% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for £30/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 13 June 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 (£48+).

Electric

Electric

Hybrid

Hybrid

Petrol/Diesel

Petrol/Diesel

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