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Iceland

Cheap Car Rentals in Iceland from ₹ 4,383

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 1/6 and drop-off date of 7/6. 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: 25-65
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Iceland car rentals in 2026

Get helpful information to start your search for the perfect car rental in Iceland. The average price data is based on the last 12 months and was last updated on 25 May 2026.

Most popular company

Ice Rental 4x4

Most common car type

Standard

Average price per day

₹ 7,002

Cheapest price per day

₹ 4,383
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Popular car types in Iceland

Explore the most popular car models available for rent in Iceland and choose the one that suits your needs. The price data is sourced from various car rental companies and was last updated on 25 May 2026.
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There are 74 hire agencies servicing Iceland. These agencies, altogether, have 271 hire locations available. Need an affordable hire? small car is the cheapest car type to hire in Iceland with prices from ₹ 4,383 a day in the previous 7-day period. Here are 3 car types you can hire in Iceland:

Economy

Economy

₹ 4,383+

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Compact

Compact

₹ 5,776+

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Intermediate

Intermediate

₹ 9,573+

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Full-size SUV

Full-size SUV

₹ 18,614+

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Mini

Mini

₹ 4,216+

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Intermediate SUV

Intermediate SUV

₹ 5,955+

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Compact SUV

Compact SUV

₹ 6,086+

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Compact estate car

Compact estate car

₹ 6,314+

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Best car rental deals found in Iceland

Browse through a selection of recently found affordable car rental deals in Iceland. Plan your trip with ease and find the perfect rental option for your needs. There are currently 8 rental car agencies in Iceland with an average daily rate of ₹ 6,784. Data was last updated on 25 May 2026.
Volkswagen Polo₹ 4,383/day
2
M
Volkswagen Polo
Found 05/24/26
Hyundai i10₹ 4,606/day
2
M
Hyundai i10
Found 05/24/26
Suzuki Swift₹ 4,751/day
2
M
A/C
Suzuki Swift
Found 05/23/26

Cheapflights insights for Iceland car rentals

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?

For the best savings on car hire in Iceland, make your reservation 43 days before pickup. The average price then is just ₹ 4,781/day – about 8,455% less than the yearly average.

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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 ₹ 38/day over the past two weeks. Another budget-friendly choice is Ice Rental 4x4, with rates starting at ₹ 40/day.

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

At Iceland, the best time to rent a car is at January, with an average daily rate of just ₹ 3,681. Conversely, July is the priciest month, averaging ₹ 9,418 per day. Below youll find the monthly average rental prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.|1#In Iceland, the best time to rent a car is in January, with an average daily rate of just ₹ 3,681. Conversely, July is the priciest month, averaging ₹ 9,418 per day. Below youll find the monthly average rental prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.

January

₹ 3,681

February

₹ 3,920

March

₹ 4,255

April

₹ 4,446

May

₹ 5,068

June

₹ 6,836

July

₹ 9,418

August

₹ 8,988

September

₹ 5,211

October

₹ 4,542

November

₹ 3,825

December

₹ 3,920

What car do most people rent in Iceland?

SUV cars (Toyota Land Cruiser Prado or similar) are the most popular option for those visiting Iceland. Passenger van cars (Toyota ProAce or similar) are also a popular choice, followed by Intermediate cars (Peugeot 5008 or similar).

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.

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Top rental agencies in Iceland

Explore the leading car rental agencies in Iceland known for their outstanding service and extensive range of vehicles to choose from. There are currently 8 car rental companies in Iceland. Reviews were last updated on 25 May 2026.

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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Avis

8 locations
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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 rental FAQs

Find answers to frequently asked questions about car rentals in Iceland, including policies, requirements, and more. FAQs were last updated on 25 May 2026.

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

    When hiring a car in Iceland, the most popular provider of hire cars among Cheapflights users is Europcar, and with prices around ₹ 8,087/day, it’s easy to understand why. The most popular car type from Europcar is MINI, which starts as low as ₹ 6,668/day.

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

    At ₹ 8,441/day, it is 4% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for ₹ 3,608/day in Reykjavik.

  • What side of the road do you drive on in Iceland?

    Cars travel on the right side of the road in Iceland.

Car rentals by fuel type in Iceland

Browse car rentals by fuel type in Iceland. Currently, Petrol/Diesel cars are the cheapest to rent in Iceland. Deals were last updated on 25 May 2026.
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Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Petrol/Diesel being the cheapest (₹ 42+).

Electric

Electric

₹ 50+

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Hybrid

Hybrid

₹ 61+

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Petrol/Diesel

Petrol/Diesel

₹ 42+

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Browse thousands of different options on Cheapflights for your next trip

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Airport car hires in Iceland

Hire a car at one of these airports in the Iceland area
Car Rental in Reykjavik Keflavik Intl Airport
Car Rental in Reykjavik Domestic Airport
Car Rental in Akureyri Airport

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Plans change – we get it. And that’s why you can search and book rental cars on Cheapflights from agencies that offer free cancellation