Iceland

Cheap Car Rentals in Iceland from RM 108

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 27/12 and drop-off date of 4/1. 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 13 November 2025.

Most popular company

Ice Rental 4x4

Most common car type

Standard

Average price per day

RM 259

Cheapest price per day

RM 108

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 13 November 2025.

At RM 108/day, small car is the cheapest car type available for hire in Iceland in the past week. Out of 71 car hire agencies operating in Iceland, there are, in total, 259 hire locations. View below for 3 offered car types:

Economy

Economy

RM 111+

Compact

Compact

RM 226+

Intermediate

Intermediate

RM 176+

Full-size SUV

Full-size SUV

RM 367+

Mini

Mini

RM 108+

Premium SUV

Premium SUV

RM 499+

Compact estate car

Compact estate car

RM 99+

Intermediate SUV

Intermediate SUV

RM 143+

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:

Perodua AxiaRM 108/day
2
M
Perodua Axia
Perodua AxiaRM 111/day
2
M
Perodua Axia

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 RM 217. Data was last updated on 13 November 2025.
Perodua AxiaRM 108/day
2
M
Perodua Axia
Perodua AxiaRM 111/day
2
M
Perodua Axia
Proton SagaRM 119/day
2
M
Proton Saga

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 7 days before pickup. The average price then is just RM 198/day – about 256% less than the yearly average.

What is the cheapest car hire company in Iceland?

Northern Lights is currently the cheapest car hire company in Iceland with deals as low as RM 61.00/day found in the past two weeks. Ice Rental 4x4 is another inexpensive option with rates as low as RM 118.57/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 RM 173. Conversely, July is the priciest month, averaging RM 392 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 RM 173. Conversely, July is the priciest month, averaging RM 392 per day. Below youll find the monthly average rental prices. Note that costs can fluctuate depending on availability, booking time, and vehicle type.

January

RM 173

February

RM 178

March

RM 182

April

RM 186

May

RM 202

June

RM 289

July

RM 392

August

RM 368

September

RM 223

October

RM 198

November

RM 178

December

RM 190

What car do most people hire in Iceland?

The most popular types of cars to hire in Iceland are the following: SUV cars (Kia Sportage or similar), Economy cars (Kia Stonic or similar), and Passenger van cars (Volkswagen Multivan 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 13 November 2025.

Europcar

8.0
Very Good
33 reviews17 locations

Hertz

8.3
Very Good
29 reviews16 locations

Budget

7.9
Good
14 reviews8 locations

Thrifty

7.9
Good
22 reviews8 locations

Dollar

7.3
Good
20 reviews8 locations

Ice Rental 4x4

7.3
Good
11 reviews6 locations

Ice Rental Cars

6.6
Okay
10 reviews5 locations

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 13 November 2025.
  • What is the most popular car hire provider in Iceland?

    With an average price of RM 119/day, Ice Rental 4x4 is the most popular car hire provider in Iceland, booking 200% more hire cars than any other provider.

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

    At RM 276/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 RM 167/day in Reykjavik.

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

    Cars in Iceland are to be driven on the right side of the road.

Car rentals by fuel type in Iceland

Browse car rentals by fuel type in Iceland. Currently, Hybrid cars are the cheapest to rent in Iceland. Deals were last updated on 13 November 2025.

Browse through car rental deals by fuel type in Iceland. There are currently 3 fuel types to choose from with Hybrid being the cheapest (RM 27+).

Electric

Electric

RM 50+

Hybrid

Hybrid

RM 27+

Petrol/Diesel

Petrol/Diesel

RM 31+

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Airport car hires in Iceland

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Free cancellation

Plans change — we get it. And that’s why you can search and book car hire on Cheapflights from agencies that offer free cancellation