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Iceland

Cheap Car Hire in Iceland from £25

Driver's age: 25-65
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Iceland car hires in 2026

Most popular company

Ice Rental 4x4

Most common car type

Compact

Average price per day

£36

Cheapest price per day

£25
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Popular car types in Iceland

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At £25/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 78 car hire agencies operating in Iceland, there are, in total, 278 hire locations. View below for 3 offered car types:

Economy

Economy

£29+

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Compact

Compact

£25+

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Intermediate

Intermediate

£34+

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SUV

SUV

£36+

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Full-size SUV

Full-size SUV

£71+

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Mini

Mini

£25+

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Compact estate car

Compact estate car

£32+

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Compact SUV

Compact SUV

£35+

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Best car hire deals found in Iceland

MG ZS£25/day
MG ZS
Found 09/03/26
Ford Ka£25/day
Ford Ka
Found 09/04/26
Volkswagen T-ROC£28/day
Volkswagen T-ROC
Found 09/04/26

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 19 days before your trip. At that point, average daily prices are around £37, which is about 57% cheaper than the typical rate.

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What is the cheapest car hire company in Iceland?

In Iceland, the most affordable car hire company right now is Fair Car, offering prices from just £25.43/day over the past two weeks. Another budget-friendly choice is Street Rent a Car, with rates starting at £30.63/day.

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

At Iceland, the best time to hire a car is in March, with an average daily rate of just £43. Conversely, August is the priciest month, averaging £112 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 March, with an average daily rate of just £43. Conversely, August is the priciest month, averaging £112 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

£46

February

£62

March

£43

April

£46

May

£48

June

£74

July

£99

August

£112

September

£65

October

£53

November

£61

December

£51

What car do most people hire in Iceland?

SUV cars (Kia Sportage, for example) are the most popular in Iceland. Mini (Hyundai i10) and Economy (Volkswagen Polo) cars are also often chosen by our users when visiting Iceland.

Which car hire company has the most locations in Iceland?

Avis has 8 locations throughout the area, more than any other company. NextCar has the second-highest number of locations in Iceland at 1.

What are the car hire prices for popular cities in Iceland?

If you're looking for the best car hire deals in Iceland, start with Reykjavik, where rates average £25/day. You can also find good prices in Akureyri (£59/day), Isafjordur (£91/day), and Egilsstaðir (£91/day).

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Top hire agencies in Iceland

Avis

9.2
Wonderful
1 review•8 locations
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Overview

Cleanliness

9.6

Comfort

8.8

Overall

9.2

Pick-up/drop-off

9.2

Value

7.6

Routes Car & Truck Rentals

5.7
Fair
11 reviews•1 location
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Overview

Cleanliness

6.7

Comfort

5.4

Overall

5.7

Pick-up/drop-off

5.1

Value

6.1

Go Rentals

1 location
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NextCar

1 location
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National

3 locations
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Rhodium

1 location
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RAS Car Rental

4 locations
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Fara Car Rental

2 locations
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Car hire FAQs

  • What is the most popular car hire provider in Iceland?

    With an average price of £78/day, FLIZZR is the most popular car hire provider in Iceland, booking 85% more hire cars than any other provider.

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

    At £45/day, it is 11% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for £22/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

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Browse through car hire deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Electric being the cheapest (£41+).

Electric

Electric

£41+

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Hybrid

Hybrid

£44+

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Petrol/Diesel

Petrol/Diesel

£46+

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Airport car hires in Iceland

Akureyri Airport car hires
Reykjavik Domestic Airport car hires

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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