Iceland car rentals

On average a car hire in Iceland costs $80 per day.

Economy (Kia Picanto or similar) is the most frequently booked car hire type in Iceland.

In the past 72 hours, the cheapest car hires were found at Ice Rental 4x4 ($51/day), City Car Rental ($60/day) and SURPRICE CAR RENTAL ($65/day).

Based on ratings and reviews from real users on KAYAK, the best car hire in Iceland is Europcar (7.9, 56 reviews).

Take a look at our extensive car hire location map to find the best car hire deals near you.

Based on car searches on KAYAK, the most popular cities to hire a car in Iceland are Reykjavik (94% of total searches of users looking to hire a car in Iceland) and Keflavik (6%).

On average a car hire in Iceland costs $917 per week ($131 per day).

On average a car hire in Iceland costs $3,932 per month ($131 per day).

Driving in Iceland can be an adventurous experience: aside from the main ring road, which goes around the island, you will find plenty of gravel roads and roads with other loose surfaces. During the winter months or in rainy conditions, many of these become impassable due to snow or mud, so it is always important to drive carefully and leave plenty of time to make even a simple trip.

To rent a car in Iceland, the driver needs to be at least 18 years old and have held his or her license for a minimum of 12 months. Those who wish to rent a minibus or four-wheel drive, however, must be at least 23 years old. Drivers between 18 and 20 years old may have to pay an additional surcharge of approximately 620-1240 ISK (5-10 USD) per day with an agency like Avis. An International Driver’s Permit (IDP) is not necessary for renting a car in Iceland, but the driver’s domestic license must be in English.

Petrol prices in Iceland are generally quite high, and four-wheel drives can cost a lot to fill up (expect to pay around 10,000 ISK (80 USD) for a full jeep tank). Petrol stations require drivers to use a credit card with a pin number and commonly offer extra things like fresh groceries or a free car wash. As stations can be few and far between, it is important to refuel regularly and never let your petrol levels drop below half a tank.

Speed limits in Iceland are generally quite low thanks to unpredictable weather and road conditions. In towns and cities, drivers are limited to 50 km/h (31 mph), while paved highways in rural areas have a maximum speed limit of 90 km/h (56 mph). Gravel roads, as found in many parts of the country, have a maximum speed limit of 80 km/h (50 mph). Speeding fines are high and speed cameras common even on rural roads.