The best way to hire a car in Iceland through FindYCar

The best way to hire a car in Iceland through FindYCar

Here’s the best and easiest way to hire a car in Iceland:

  1. Find a suitable vehicle. Consider your needs and budget.
  2. Book now. Add extras and complete all required fields in the form.
  3. Confirm your booking with a card (a 20% or 100% deposit is required).
Location

Location

  • You are free to specify any location you prefer to collect your vehicle (this could be a city, airport, or delivery)
  • Enter the start and end dates of the rental and perform a search.
Booking

Booking

  • Choose a car and add additional services (insurance, no deposit)
  • Book a car through our website and make the payment online
  • You will receive an email voucher with the rental company’s contact details and pick-up instructions.
Pick-Up

Pick-Up

  • When collecting the car, you will need to present your voucher, passport, driving licence, and a credit card (if a deposit is required)
  • Sign the rental agreement, collect the car, and enjoy your trip.

Cheap Car Hire Iceland: Best of FindYCar

Car Hire Iceland
Car Hire Iceland

A land where glaciers meet volcanoes, Iceland captivates adventurers with its wild beauty. Black sand beaches, roaring waterfalls and geothermal pools define its otherworldly landscapes, while the northern lights add a touch of pure magic to winter skies. From the Golden Circle to remote fjords, every turn reveals a new wonder – Blue Lagoon dips, glacier hikes, puffin cliffs and endless scenic drives that feel straight out of another world.

Public transport barely exists outside Reykjavik, making a hire car essential for exploring the country’s legendary landscapes. Here’s what you can discover with a car hire in Iceland:

  • The Ring Road circles the entire island, connecting waterfalls, glaciers and volcanic landscapes that most organised tours rush past
  • The Golden Circle’s geysers, Gullfoss waterfall and Þingvellir National Park are just the beginning – having your own car means you can uncover hidden gems
  • Black sand beaches such as Reynisfjara, Diamond Beach and countless unnamed coves appear around every coastal bend.

A guaranteed model, no credit card, cash payment, insurance upgrades, unlimited mileage, no deposit and many other options await you at FindYCar. Book now before someone else does.

How much does it cost to hire a car in Iceland?

Iceland ranks among Europe’s most expensive destinations, with limited competition and harsh conditions driving costs up. Be prepared for these typical car hire rates in Iceland:

  • Economy: €48–€79 per day
  • Mid-range: €81–€117 per day
  • SUVs and people carriers: €123–€181 per day
  • Luxury: from €187 per day

The country’s steep costs can strain your budget, but smart planning helps you stay in control. Try these money-saving tips:

  • Search through FindYCar and book in advance
  • Compare prices carefully
  • Avoid adding too many extras
  • Consider a long-term car hire.

Here’s how we recommend comparing prices:

Table of hire prices for popular cars in Iceland by season

Car model Body type Passengers Luggage capacity Price per day (low season) Price per day (high season)
Toyota Aygo Mini / Economy 4 1 €45 €75
Hyundai i20 Economy Hatchback 5 2 €50 €85
Toyota Yaris Compact Hatchback 5 2 €55 €90
Volkswagen Golf Compact Hatchback 5 3 €60 €95
Skoda Octavia Mid-size Saloon 5 3 €65 €110
Dacia Duster 4×4 Compact SUV (4WD) 5 3 €75 €130
Toyota RAV4 4×4 SUV / Family 5 3 €85 €150
Subaru Forester AWD Off-road SUV 5 3 €95 €165
Land Rover Discovery Luxury 4×4 SUV 7 4 €130 €220
Toyota Hilux Double Cab Pickup / 4WD 5 4 €140 €240

⚠️ Note: To help you plan your travel budget for Iceland, we’ve prepared a table of approximate car hire prices. It covers popular models across different categories, clearly showing the price differences between high and low seasons. We’ve also included special deals for those looking to hire without a deposit or a credit card.

Chart of car hire prices in Iceland: seasonal analysis based on verified bookings

Based on an analysis of seasonal car hire prices in Iceland, collected from verified bookings via the FindYCar website, it’s possible to identify periods with the lowest and highest prices. The study covered all vehicle types and classes, including bookings without a deposit and without a credit card.

The lowest average prices are seen in November and January, at €44 and €49 respectively. It’s also relatively affordable to hire a car in October and February, at €49 and €50. These prices are approximately 10 to 15 per cent below the annual average.

The highest prices occur during the summer months, particularly in July and August, when the average hire cost reaches €97 and €88 respectively. Compared with the cheapest months, summer hire can be almost twice as expensive, with increases ranging from 75 to 120 per cent depending on the month. June also shows elevated prices at €79, roughly 60 per cent higher than the annual minimum values.

49 €
JAN
50 €
FEB
51 €
MAR
52 €
APR
53 €
MAY
79 €
JUN
97 €
JUL
88 €
AUG
55 €
SEP
49 €
OCT
44 €
NOV
50 €
DEC

Hiring a car in Iceland: what documents do I need?

You can rent a car in Iceland with the same documents required across Europe:

  • Driving licence
  • Credit card and booking voucher
  • Passport.
Traffic Rules

Traffic Rules

Iceland’s roads demand respect due to unpredictable weather, gravel surfaces, and wildlife that can appear suddenly — making defensive driving essential. Understand these key rules before hiring a car in Iceland:

  1. Keep to the right-hand lane and overtake on the left.
  2. Vehicle headlights must remain on at all times.
  3. The legal blood alcohol limit is 0.05%.
  4. Livestock such as sheep, horses, and reindeer roam freely in rural areas – always be ready to brake suddenly.
  5. Speed limits are 50 km/h in built-up areas, 80 km/h on gravel roads, and 90 km/h on paved roads.
Parking

Parking

Paid zones in Reykjavik city centre operate from 9am to 9pm on weekdays and 10am to 9pm at weekends – use the EasyPark or Parka app for €1.6–3.2 per hour.

Free spaces fill quickly around the city edges, but avoid resident-marked zones or you may face a €32 fine.

Petrol Stations

Petrol Stations

N1 and Olís stations are located every 50–100 km along the Ring Road, with unleaded petrol at €1.9–2.1 per litre – cheaper at self-service pumps after 8pm.

Most accept cards at unmanned spots in remote areas, and you can grab a quick hot dog inside for €5.

Toll Roads

Toll Roads

The Vaðlaheiðargöng tunnel near Akureyri costs €13.8 one way via number plate scan – pay online at vegamyndir.is within 24 hours.

All other routes across the island remain free, from winding coastal roads to mountain gravel tracks.