If you’re planning to tour Iceland by car, then Iceland car rentals provide the cheapest and best way to explore the vast island. With public transportation being scarce outside major cities like Reykjavík, renting a car becomes the cheaper and most viable option for tourists to explore the island fully.

Though it may seem expensive initially, it is much cheaper and less strenuous than having to purchase a car or travel by bus. With plenty of car rental companies in Iceland at your disposal, you will never fail to get a deal that suits your budget.  Let’s get to our Rent a car in Iceland: Price Comparison and Tips.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

The wide array of vehicles available for hire also makes it possible for you to get a car that can take you almost anywhere on the island from SUVs, four-wheel cars, luxury cars, 4×4 rental cars and jeeps just to mention a few. In this article, we give you some tips on picking an Iceland car rental provider as well as taking a look at some of the best car rental companies on the island.

Rent a car in Iceland: Price Comparison and Tips 2022

July 11th to July 19th – 2022 (8 days)

Option A – New cars:

CARS ICELAND                      BEST COMPANY 2022 (1st place)


Toyota Aygo / Kia Picanto:          1.091€

Dacia Duster 4×4:                       1.491€ *prices with all insurance included  

REYKJAVÍK CARS                    BEST COMPANY 2022 (2nd place)


Toyota Aygo:                                1.031€

Dacia Duster 4×4:                       1.566€



Toyota Aygo:                                1.351€

Toyota Rav4:                               2.308€

REYKJAVÍK AUTO                     

BEST COMPANY 2022 (3rd place)


Volkswagen Polo:                         980€

Dacia Duster 4×4:                        1.567€



Volkswagen Golf:                           1.154€

Toyota Rav4:                                  1.856€



Hyundai i10:                                 1.625€

Suzuki Jimny 4×4:                      2.004€

Rent a car in Iceland - Iceland Car Rental - Rent a Car in Iceland

Option B – Older cars:



Toyota Yaris:                                  1101€

Toyota Rav4 4×4:                               1.587€

REYKJAVÍK CARS (they also rent older models)


Hyundai i10:                                987€

Dacia Duster 4×4:                           1.419€



Hyundai i10:                                1.635€

Toyota Rav4                                 3.383€



Renault Megane:                           1.049€

Hyundai Tucson:                          1.748€

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

Renting a car is really the best and only way to see the country so be sure to factor it into your budget. We went there thinking we would just take a bus to other areas. We were wrong. The only buses that exist outside the capital city of Reykjavik are tour buses. So technically you can take a bus but you will pay for it because it will be part of an organized tour and it will add up fast. If you are travelling with another person, a car is the cheapest way to see the country. Plus, driving in Iceland is very easy and there isn’t much traffic.


Renting a car in Iceland may not be the cheapest way to explore Iceland (it’s tough to beat hitchhiking) but it doesn’t have to blow your budget. With public transportation being non-existent outside of the larger cities like Reykjavik, renting a car gives you the freedom at a fraction of the cost when compared to the sightseeing tours sold at tourist information centers.

Below are seven ways to save money on your Iceland car rental:

Don’t buy it:

You don’t need theft insurance for the vehicle. According to our agent, car thefts in Iceland are rare and he actually told us not to bother with any of the additional insurance (yes, they have insurance for ash from volcanoes), so we didn’t.

Go online:

The best deals can be found online for Iceland car rentals. By booking online, you will find a better deal than renting directly from the tourist center in Iceland. Some online companies even offer discounts if you book online, therefore, you will be able to save a lot by booking online. There are a variety of car rental companies on the island so take your time and visit their websites, compare prices, and look at their packages and whether or not they offer discounts for booking online. By doing this, you will be able to get a good deal at a pocket-friendly price.

Pick up at Keflavik International Airport:

Because the airport is located about an hour from Reykjavik, you will have to spend €15 – €20 each way to get to and from the airport. So, you might as well just rent your car from the airport and roll your shuttle bus fees into the price of your car rental.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

Get to know your vehicle:

The longer you keep the rental car the cheaper it becomes.

Petrol Blues:

When considering renting a car be sure to factor in the cost of gas. In Europe, gas is sold by the liter, not the gallon; therefore, expect to pay about $5 per gallon.

Choose Your Rental Dates Wisely:

Sept. 1 in Iceland signals the beginning of the low season, which runs until May 31. Renting a car in Iceland becomes even cheaper at that time. And by cheaper I mean €35/day vs. €85/day – it’s a HUGE price difference.

Consider your budget:

Look for a car rental company that falls within your budget. Remember you do not have to spend a fortune on car rental, therefore, try to get a car rental service that will leave you with some cash to spend on the road.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland


Driving Conditions in Iceland are in many ways unusual and often quite unlike what foreign drivers are accustomed to. It is therefore very important to find out how to drive in this country. We know that the landscapes are beautiful, which naturally draws the driver’s attention away from the road. But in order to reach your destination safely, you must keep your full attention on driving.

The speed limit in populated areas is usually 50 km/hr. The speed limit is often 60 km/hr on thruways, but in residential areas, it is usually only 30 km/hr. -The main rule in rural areas is that gravel roads have a speed limit of 80 km/hr, and paved roads 90 km/hr. -Signs indicate if other speed limits apply.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland


Driving in the Icelandic highland is quite different from driving in the lowland. The conditions can change fast due to weather, rain and even sometimes snow. Therefore roads can be closed and rivers can be too big to cross. Before you start your travel you should get information about the area as well as leave your travel plan with someone who can check up on you if needed.

You can make your travel plan here:

  • Start by checking if the area you are going to visit is open
  • Get as much information about the area as you can
  • Information centers, rangers and hut wardens can help you get the information needed
  • Are you sure that you have the experience and knowledge needed to go the highland?
  • If you are driving be on a 4×4 jeep, other cars will only get you into trouble
  • If you are not sure how to cross a river skip it or wait for the next car to assist you over

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland


When the fact that the country lies right below the Arctic Circle is taken into consideration, along with the fact that the growing season is short, it is apparent that the environment can take many years, decades or even centuries to recover. For example, many people don’t realize that by uprooting or driving on moss, the damage is caused that can take at least a decade or, more likely, some hundreds of years to mend – and we’re not even talking about the highlands where the summer is much shorter.

Whilst traveling around the country, the highest respect for the Icelandic environment must be shown. It’s good to remember to take nothing besides photographs and leave nothing behind except footprints.

Make sure you:

-Check out the roadmap and see where the roads and trails are.

-Get information about the appropriate routes at visitor centers, and from rangers or staff.

-Find out in advance when mountain roads are likely to be open, along with other related information, at visitor centers or here. While on your trip around the country you’ll quickly see that in many places, road ruts and paths have formed from other people. Often they are closed off with nothing more than a row of small rocks. Don’t be caught in the pitfall of following those paths; only stay on roads and marked trails.

Instead, think about the damage off-road driving has caused, take photos and educate friends and acquaintances. See how long such damage takes to heal. Notice that ruts don’t just look ugly; they draw in water and thereby cause even further damage, leading to erosion of soil and vegetation. Walk around a short distance or turn around if you can’t go any farther by driving. That’s the only right thing do. Besides, you can easily expect a sky-high fine or prison term for offences. We should all set a good example. Together we share the responsibility of ensuring that everyone gets the chance of enjoying a pristine natural environment for years to come.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland


One thing is for sure when you go hiking in Iceland and that’s what you’ll not get far without coming to the first stream. Usually, they’re little brooks, which are good to get a fresh drink from. On the other hand, they can be large rivers and you will need to wade them, in which case you should bear some things in mind:

-Rivers often have less volume earlier in the day, so organizing hiking trips accordingly is not a bad idea.

-Look around for suitable locations to ford. Be aware that places that are good for crossing with jeeps are seldom good for crossing on foot. -Look for meanders in the river which are places where there are loose gravel and sand and the current dies down as the river expands.

-Meanders are usually the best location you’ll find for fording a river though the river may be wider there. -Preferably wade the river with two or three other people at a time by clasping arms together at the elbows.

-Loosen any straps on backpacks and be sure not to have anything tied tight that could complicate things if you or someone else might fall. -It’s best to have special wading shoes as it is not wise to cross barefoot – this can increase the likelihood of a fall.

-Before fording, it’s smart to decide on a spot farther down the river where everyone will go to if someone might unfortunately fall.

-If you fall, roll onto your back, keep your feet in front of you and trudge to the place – or near to it that was previously decided upon.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

When planning your hiking trip get information about rivers, if they are possible to cross on foot and then what time is best and etc. Never cross a river unless you are 100% sure of how to do it and feel safe doing it.

Helpful Tips on 4×4 Driving in Iceland

If you have plans to visit Iceland’s countryside then you should also pick a 4×4 vehicle since you will most likely be driving on some gravel roads. And should you go off the beaten path to visit the Iceland highland then you are sure to encounter some F-roads that are only drivable by larger 4×4.

Iceland gravel roads. All major roads in Iceland are paved. But keep in mind that of 13.000 km total roads in Iceland only about 5.000 is paved with asphalt. Most gravel roads are not difficult to drive on or dangerous, you just need to keep special attention while driving and make sure you are not going to fast.

These roads are often narrow and many bridges only have one lane. You are also likely to meet some sheep and Icelandic horses so make sure you are paying attention.

Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

List of the most popular F-roads

Here is a list of the most popular F-roads in Iceland and average opening times:

F-RoadNameAvg. opening date
F206LakagígarJune 12th
F208Fjallabaksleið nyrðri(Landmannalaugar and Eldgjá)June 12th
F225Landmannaleið, LandmannalaugarJune 15th
F35Kjölur (Hveravellir)June 11th
F26SprengisandurJune 27th
F88AskjaJune 20th
F902KverkfjöllJune 19th
F52UxahryggirJune 5th
F550KaldidalurJune 13th

Driving in snow and difficult weather conditions

Make sure you are always driving according to road and weather conditions. If there is snow and the roads are slippery make sure to take it slow and drive safe. If you are driving outside of populated areas make sure to find out the conditions of the roads on your route. You should also check out the weather forecast.   Car Rental Iceland - Iceland Car Rental - Rent a Car in Iceland

Kolla, Iceland24 © 2022 Iceland24