Iceland car hire
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Cheap car hire in Iceland
Top tips for hiring a car in Iceland
- Visitors who wish to explore the island’s famous wildlife and scenery would do well to rent a car in Iceland: public transportation is generally limited to larger towns and cities. The majority of agencies are represented in the capital city of Reykjavik and at Reykjavik International Airport, meaning it’s easy to pick up a vehicle and enjoy travel flexibility as soon as you arrive. Popular road trip routes include the Golden Circle and Snæfellsnes Peninsula (plan around 2 days for each), or a 10-day journey around the ring road.
- Mountain roads in Iceland are known as "F roads" and are open only seasonally; the first drivable day is usually between the end of June and the middle of July. While these roads are a great way to access some of the country’s areas of natural beauty, it is important to note that it is only legal to travel them in a four-wheel drive or jeep.
- Drivers using the main ring road in Iceland may pass through the Vadlaheidargong Tunnel, which is located in the north of the island and extends for 7.5 km (4.7 mi). The tunnel is a convenient way of shortening your journey and avoiding difficult driving conditions in the winter months. Payment is required online through the tunnel website, costing 1,500 ISK (12 USD) if paid within 3h of your trip, or 2,500 ISK (20 USD) if paid later.
- There are several additional regulations that are important to know when renting a car in Iceland, particularly the use of headlights. Even during daylight hours (including during the summer), headlights are to be switched on at all times. Seatbelts must be worn by all passengers, and it is forbidden to use a cell phone while driving, unless it’s a hands-free kit over the front controls. Finally, please be mindful that off-road driving is illegal and is punishable with a high fine or even jail time.
- 25% of our users found a car hire in Iceland for €39 or less
- Book your car hire in Iceland at least 1 day before your trip in order to get a below-average price
- Off-airport car hire locations in Iceland are around 15% cheaper than airport locations on average
- Compact hire cars in Iceland are around 42% cheaper than other car types, on average
FAQs about hiring a car in Iceland
How much does it cost to hire a car in Iceland?
On average a car hire in Iceland costs €41 per day.
What is the most popular car hire in Iceland?
Compact (Dacia Duster or similar) is the most frequently booked car hire type in Iceland.
What is the cheapest car hire company in Iceland?
In the past 72 hours, the cheapest car hires were found at Goldcar Rental SP (€28/day), Fair Car (€29/day) and Sixt (€32/day).
What is the best car hire company in Iceland?
Based on ratings and reviews from real users on KAYAK, the best car hire companies in Iceland are Hertz (8.4, 51 reviews), and Europcar (7.8, 55 reviews).
How can I find car hires near me in Iceland?
Take a look at our extensive car hire location map to find the best car hire deals near you.
How much does it cost to hire a car for a week in Iceland?
On average a car hire in Iceland costs €326 per week (€47 per day).
How much does it cost to hire a car long term for a month in Iceland?
On average a car hire in Iceland costs €1,397 per month (€47 per day).
What is driving like in Iceland?
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.
How old do you have to be to hire a car in Iceland?
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.
How much does petrol cost in Iceland?
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.
What are the speed limits in Iceland?
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.
Car hire directory
keddy by Europcar car hire locations in Iceland
21 Locations
Sunnycars car hire locations in Iceland
19 Locations
Europcar car hire locations in Iceland
17 Locations
Hertz car hire locations in Iceland
17 Locations
Avis car hire locations in Iceland
8 Locations
Budget car hire locations in Iceland
8 Locations
Firefly car hire locations in Iceland
7 Locations
Fair Car car hire locations in Iceland
6 Locations
Ice Rental 4x4 car hire locations in Iceland
6 Locations
Dollar car hire locations in Iceland
5 Locations
Geysir Car Rental car hire locations in Iceland
5 Locations
Global Rent A Car car hire locations in Iceland
5 Locations
Good to know
Most popular agency | Ice Rental 4x4 |
|---|---|
Most popular car type | Compact |
Average price | €47/day |
Good deal | €39/day |