Iceland

Cheap Car Rentals in Iceland from ₹ 1,655

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 7/1 and drop-off date of 14/1. 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 2025

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 29 November 2025.

Most popular company

Ice Rental 4x4

Most common car type

Intermediate

Average price per day

₹ 6,517

Cheapest price per day

₹ 1,655

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 29 November 2025.

There are 71 hire agencies servicing Iceland. These agencies, altogether, have 259 hire locations available. Need an affordable hire? small car is the cheapest car type to hire in Iceland with prices from ₹ 1,655 a day in the previous 7-day period. Here are 3 car types you can hire in Iceland:

Economy

Economy

₹ 1,655+

Compact

Compact

₹ 2,065+

Intermediate

Intermediate

₹ 2,144+

Full-size SUV

Full-size SUV

₹ 5,659+

Mini

Mini

₹ 1,862+

Compact estate car

Compact estate car

₹ 2,045+

Compact SUV

Compact SUV

₹ 2,528+

Intermediate SUV

Intermediate SUV

₹ 2,811+

Compare car rental deals in Iceland by type

Here are the best Iceland small car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland medium car hire prices found by Cheapflights users in the past 7 days:

Here are the best Iceland SUV hire prices found by Cheapflights users in the past 7 days:

Volkswagen Polo₹ 1,655/day
2
M
A/C
Volkswagen Polo
Hyundai i10₹ 1,853/day
2
M
A/C
Hyundai i10

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 ₹ 3,420. Data was last updated on 29 November 2025.
Volkswagen Polo₹ 1,655/day
2
M
A/C
Volkswagen Polo
Hyundai i10₹ 1,853/day
2
M
A/C
Hyundai i10
Suzuki Swift₹ 1,997/day
2
M
Suzuki Swift

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 63 days before pickup. The average price then is just ₹ 4,336/day – about 7,758% less than the yearly average.

What is the cheapest car hire company in Iceland?

In Iceland, the most affordable car hire company right now is Street Rent a Car, offering prices from just ₹ 1,372/day over the past two weeks. Another budget-friendly choice is Ice Rental 4x4, with rates starting at ₹ 1,434/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 ₹ 3,576. Conversely, July is the priciest month, averaging ₹ 8,672 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 ₹ 3,576. Conversely, July is the priciest month, averaging ₹ 8,672 per day. Below youll find the monthly average rental prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.

January

₹ 3,576

February

₹ 3,800

March

₹ 3,800

April

₹ 3,934

May

₹ 4,336

June

₹ 6,348

July

₹ 8,672

August

₹ 8,001

September

₹ 4,783

October

₹ 4,247

November

₹ 3,665

December

₹ 4,023

What car do most people rent in Iceland?

Intermediate cars (Skoda Octavia or similar) are the most popular option for those visiting Iceland. Passenger van cars (Volkswagen Caddy or similar) are also a popular choice, followed by Economy cars (Toyota Yaris or similar).

Which car hire company has the most locations in Iceland?

keddy by Europcar has 21 locations throughout the area, more than any other company. Sunnycars has the second-highest number of locations in Iceland at 19.

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 29 November 2025.

Europcar

7.9
Good
33 reviews17 locations
Overview

Cleanliness

8.4

Comfort

8.5

Overall

7.9

Pick-up/drop-off

7.7

Value

7.8

Hertz

8.2
Very Good
29 reviews16 locations
Overview

Cleanliness

8.8

Comfort

8.6

Overall

8.2

Pick-up/drop-off

8.1

Value

7.5

Budget

7.9
Good
14 reviews8 locations
Overview

Cleanliness

7.7

Comfort

8.0

Overall

7.9

Pick-up/drop-off

7.9

Value

7.4

Thrifty

7.8
Good
22 reviews8 locations
Overview

Cleanliness

8.6

Comfort

8.4

Overall

7.8

Pick-up/drop-off

7.2

Value

7.3

Dollar

7.3
Good
20 reviews8 locations
Overview

Cleanliness

8.3

Comfort

7.7

Overall

7.3

Pick-up/drop-off

6.9

Value

7.2

Ice Rental 4x4

7.2
Good
11 reviews6 locations
Overview

Cleanliness

7.8

Comfort

7.5

Overall

7.2

Pick-up/drop-off

7.2

Value

7.4

Ice Rental Cars

6.6
Okay
10 reviews5 locations
Overview

Cleanliness

7.4

Comfort

6.6

Overall

6.6

Pick-up/drop-off

6.4

Value

6.6

Avis

8 locations

Car rental FAQs

Find answers to frequently asked questions about car rentals in Iceland, including policies, requirements, and more. FAQs were last updated on 29 November 2025.
  • 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 Ice Rental 4x4, and with prices around ₹ 2,873/day, it’s easy to understand why. The most popular car type from Ice Rental 4x4 is ECONOMY, which starts as low as ₹ 1,434/day.

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

    At ₹ 7,049/day, it is 0% cheaper on average to rent a car in Reykjavik than any other city in Iceland. The cheapest price found in Iceland was for ₹ 3,551/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 29 November 2025.

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 (₹ 21+).

Electric

Electric

₹ 45+

Hybrid

Hybrid

₹ 28+

Petrol/Diesel

Petrol/Diesel

₹ 21+

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