Car hire in Iceland

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Iceland car hire at a glance

Most popular providerFairCar
Most popular carPremium/Luxury, 4-5 doors
Pick-up points
Cheapest price found
Cheapest month to rentMay
Best time to book4 weeks before
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Keflavík.

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Find the cheapest time to hire a car in Iceland

The cheapest month to rent a car in Iceland is May, when the average cost per day is ₹ 4,791. If that doesn’t work for you, the second cheapest month is October, when the average cost per day is ₹ 5,087. Keep in mind when you’re looking to book, that the most expensive month to rent a car in Iceland is July.
To give you an idea of how much renting a car in Iceland could cost, we've pulled prices from Keflavík.

Explore Iceland

All you need to know about Iceland

Side of the roadRight
CurrencyIcelandic Krone
LanguageIcelandic
Motorway speed limit90kmph
Built-up area speed limit30-50kmph
Age to rent a car21
The information here is based on our understanding as of January 2024. For the most current and accurate information it’s recommended to check official government sources.

Getting the cheapest car rental in Iceland

Here are some tips to help you bag the best prices, and hit the road for less.

How to find a cheap car hire deal in Iceland

Explore Iceland with ease by finding a cheap car hire through our platform. We use the same reliable technology that powers our flight search to help you compare rental prices across eight pickup points, with Reykjavik being the most popular. Discover options in top cities like Reykjavik, Akureyri, and Vik and consider factors such as ease of pick-up and a fair fuel policy. You can also find deals that allow for amendments or cancellations if your plans change.

Iceland's most popular car hire companies

Exploring Iceland is easier with the right car hire, and there are several popular providers to consider. Ice Rental 4x4, FairCar, and Goldcar offer a range of options to fit your travel needs. Ace Rent a Car, Hertz, and Europcar also provide reliable services. Smaller cars work well in cities and save on fuel, while larger vehicles offer more space and versatility for Iceland's varied road conditions.

What are the speed limits in Iceland?

When driving in Iceland, it’s important to adhere to the national speed limits: 90 km/h on highways, expressways, and country roads, and 50 km/h in cities. Always keep an eye on the weather, as conditions can change rapidly, affecting road safety.

Popular driving trips in Iceland

Explore Iceland's landscapes with ease by driving on some of its most popular routes. Beginning with the Golden Circle, start your journey in Reykjavik and experience a loop showcasing Þingvellir National Park, the Gullfoss waterfall, and the active Strokkur geyser in Geysir's geothermal region. A 3.5-hour drive makes this trip a comfortable day out.

For those seeking a longer experience, drive the South Coast along Route 1. You'll encounter waterfalls like Seljalandsfoss, the black sand beaches at Reynisfjara, and the Sólheimajökull glacier.

If time permits, embark on the Ring Road adventure encircling the island, taking in diverse landscapes and charming towns. Consider hiring a 4x4 for sections off the beaten track.

What you'll need to hire a car in Iceland

To rent a car in Iceland, you need to be at least 21 years old and have held a valid driver's licence for at least one year. Although the legal driving age in Iceland is 17, rental companies typically require renters to be 21 or older. It's important to know that Iceland drives on the right side of the road. Make sure to carry your driving licence, a valid ID, and a credit card when arranging your car hire.


Car hire in Iceland: FAQs

You will need insurance to rent a car in Iceland, but you wont necessarily need ‘extra’ insurance. Different car hire companies offer different insurance policies, so make sure you look at the details when you pick a deal.
To rent a car with most companies in Iceland you need to be at least 21 years old. Some companies may have extra fees to pay if you are under 25 years old, so make sure you check before you book.
Our travellers best rated car hire company in Iceland is Orange car rental. You can rent a car with them for ₹ 25,131 on average per day.

If you want to learn more about Orange car rental, you can dig deeper here.
The types of documents you’ll need to rent a car in Iceland depend on the car rental company you go with. But in general, you will need a valid drivers license, ID and passport. Once you’ve booked car hire in Iceland, you can easily get in touch with your chosen provider to find out.
It’s easy to hire a car in Iceland. First, you need to decide where in Iceland you want to pick up your car from.

Once you’ve decided where you want to go, simply enter your dates and search for the best deal for you. Once you’ve found your deal, you’ll be redirected to the provider to book with no extra fees.
You can rent a car for as long as you like, depending on availability. If you know what dates you’re needing wheels for, start searching with Skyscanner today.
You may need a credit card to rent a car in Iceland. It all depends on which car hire company you choose.
It depends where in Iceland you want to visit. The most popular place to go is Reykjavik. On average, it costs ₹ 13,353 per day to rent a car there. The cheapest price we could find is ₹ 5,169 per day.