Car rental in Iceland

Excellent prices! Extra 50% off top car rental brands in Iceland

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    Free cancellation

    No fee up to 24 hours before your pick-up time

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    More than 96,000 locations

    Car rental locations in every country

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Best car rental prices in Iceland

Bookingauto (Iceland) strives to make your car rental experience as simple and convenient as possible. This also applies to the location of rental points. Our clients can pick up cars in the most popular places, whether it be the city centre, airport, or main railway station. The list of our pick-up locations is extensive, meaning that visitors who book cars with us in Iceland can always collect them from the most suitable place.

Options and possibilities:

We take into account the preferences of our customers and look for a car that fits into the right category. For example, those who come to Iceland on their own or with a small company can rent a spectacular convertible Jaguar F-Type from us, starting at €76 per day and rented out by the popular company EUROPCAR in Iceland. For those of you who arrive with your whole family or friends, a roomy and reliable minivan Mercedes V-Class might be best - from €74 per day. For anyone who loves comfort and doesn’t have limited funds, SIXT recommends opting for a business class car like Mercedes E for €74 per day. For those travelling on a budget, rent a compact model Ford Focus for just €16 per day.

How to minimize costs:

In order to avoid paying too much, plan to pick up the car and return it at the same time. Car rental fees are set for the entire rental day. Therefore, if you return the car after 25 hours, the payment will be calculated as 48 hours, or two full days. Likewise, if you use your rental car for more than 72 hours, you will pay for 96 hours of rent.

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Popular destinations, Iceland

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We recommend that you familiarise yourself with the prices and availability of cars at various rental locations.

The rental points are grouped into three main locations: city, airports, and railway stations. Therefore, it won’t be difficult for you to find an option that suits you. Important note: the number of cars offered and the rental price in different rental locations in Iceland may differ. That is, car rental at the airport can be more expensive compared to the city centre. However, there is generally a larger choice of models at the airport. To pick the best option, you should study all of the offers, compare prices, and then make a decision.

imgAverage prices by car class
How the cost changes in Iceland

During the high season in summer, car rental in Iceland costs 20-30% more than at other times. For example, renting the Renault Talisman popular in Iceland costs €16 per day in July. In autumn, you’d pay about €11 for the same model.

During the holidays, the demand for car rental is very high, which is reflected in both the price and the choice of available cars. Therefore, you should book in advance if possible.

Highest summer price for convertibles. For example, a Jaguar F-Type is offered at €76 per day.

Among budget models, the most demanded in Iceland is the Ford Focus. The EUROPCAR company rents it out for €16 per day.

Business class car rental in high season is also more expensive. For example, renting a Mercedes E costs about €74 per day.

With the arrival of autumn, demand gradually decreases and this is reflected in costs. For example, a Toyota Rav-4 at this time can be rented for just €40 per day.

Fans of exclusive car models also find it easier to fulfill their requests in the autumn months. For example, in Iceland, you can easily rent a BMW X5 to travel in style through the streets of the beautiful city. Rest assured that the memories of these drives will linger in your imagination for a long time.

imgCancellation policy

On our website, you can cancel or change your booking in Iceland under certain terms.

The booking can be cancelled with a full refund at least 24 hours in advance (in some cases, 48 hours may be needed).

If cancelled with less than 24 hours’ notice (or 48 ​​hours in some cases), the administration fee will be deducted from the online payment amount but the rest of the money will be returned to your bank account.

Each vendor has a different cancellation policy and administration fee for different cars. Therefore, we recommend that you carefully read the cancellation policy before booking.

Remember that cancellations and changes are not possible after the pick-up time. This applies to all bookings.

Applies to all bookings:

If your online payment is less than the stated administration fee, there will be no refunds when cancelling your booking once the administration fee is applied.

If your booking is made less than 24 hours prior to the pick-up time (or 48 hours in some cases), a cancellation policy will be automatically applied to your booking.

Important information: To cancel a booking, please go to the “Manage My Booking” section – do not contact the rent-a-car company directly.

Insurance coverage cancellation policy:

If you purchased an additional insurance product with your car rental, the policy will be automatically ended when the booking is cancelled. To check if you are eligible for a refund, see the cancellation policy set out in the terms of your insurance product.

When does the “No-show” rule apply?

The following situations constitute a "No-show":

● The customer didn’t inform of the cancellation before the pick-up time.

● The customer failed to pick up a car in Iceland at the arranged time and date.

● The customer failed to provide the documentation required to pick up the car.

● The customer failed to provide a credit card in the main driver’s name with enough available funds on it.

In the event of any of the above, no refunds can be made.

The car hire company reserves the right to refuse a car to any customer who fails to provide all of the necessary documentation and a credit card with enough available funds for the car's security deposit. In such cases, the customer will not be entitled to a refund.

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Free cancellation
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In 24 hours
imgEstimated prices for fuel in Iceland

Estimated prices for gasoline and diesel fuel in Iceland in May 2024. This information is updated twice a month.

● €1.56 - cost of 1 litre of gasoline

● €1.49 - cost of 1 litre of diesel

Data is collected from various sources, including official government websites and those of fuel companies. Keep in mind that domestic fuel prices can vary greatly.

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Car rental discounts in Iceland

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up to 20% discount for early bookings made more than 1 month in advance.

In May 2024, you have the chance to rent a car in Iceland with an additional 30% discount.

To arrange a rental, use the search form on our website to find cars available for the dates you need.

In May 2024, the most popular rental companies - EUROPCAR and SIXT - provide their customers with a discount. Other service providers are also willing to cut their prices. Discounted options have a special “-30% Off” mark that you will see during your search.

When choosing a car, pay attention to the following parameters: the number of passengers, the capacity of the boot, and the type of transmission. Make sure that all parameters match your needs.

imgAge restrictions when renting a car in Iceland

Many rental companies in Iceland have strict age restrictions on drivers. This may include additional charges for drivers under 26 years old.

We advise you to carefully study the age requirements of the company, especially if you are under 26 years old. After all, your car rental costs may depend on this. Different countries, companies and even rental locations may have different age limits and fees. Therefore, we urge you to read the full terms and conditions of the rental service and the information specified in the voucher.

imgWhat documents are needed to rent a car?

You can rent a car in Iceland after providing a driver's license, passport, credit card, and a voucher that you will receive by email. If you are renting a luxury car, you may need to show two credit cards.

If more than one person will be driving the car, then each of the drivers needs to provide their driver's license.

  • Driving license
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  • Credit card
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  • Voucher
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  • Passport
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An international driving permit is required

Popular questions about car rental in Iceland

Question: What is included in the base rental price?

Answer : The car rental price in Iceland usually includes unlimited mileage, basic CDW insurance and local VAT. Before booking, you can get acquainted with the full list of services included in the rental price by reading the rental conditions of your chosen car.

Question: Is it possible to rent a car in one destination and return it in another city?

Answer : You can pick up a car in Iceland and return it in another city, but you will have to pay extra for this. When booking, find the option "Return in another location" in the search form and indicate the city in which you will return the car. However, this option is not available for all cars. The system will return eligible options to you in the search results. The indicated rental price in this case already includes an additional fee for returning the car in another city. In some circumstances, the need to return a car in another city may arise after the lease has been issued, i.e. during the use of the vehicle. In this case, you need to call the rental company directly at the phone number indicated on the voucher to come to an agreement and discuss the terms of the surcharge.

Question: How do I choose the perfect car for me?

Answer : The most popular cars in Iceland are ones that fit into the Compact and Standard categories, including the Ford Focus and Renault Talisman models. If you want to choose a car that exactly matches your needs, try making a short list of your expectations. Think about your passengers and how comfortable they’ll be while driving. Check the volume of the boot,  as well as safety and fuel economy features if that’s important to you.

Question: How do I rent a car in my area?

Answer : For almost any location in Iceland, you can find a car rental office on our website. Click on the "Rent a car near me" icon in the search form. The system will automatically determine your coordinates and suggest a number of available cars, starting with the ones closest to your location. However, check the exact address of the rental office before booking to ensure that the coordinates are accurate.

Question: Are there low-cost airlines in the car rental business in Iceland?

Answer : The most budget-friendly car rental options are offered by Budget, Last minute rent a car, and Thrifty. You should know, though, that well-known network companies often hold promotional offers, where the discount can be up to 70% off. What’s more, you won’t have to compromise on the quality of service! To choose the most attractive offer, take your time and compare the prices of the cars offered by different rental companies. This will help you to choose a car with suitable characteristics and rent it on the best terms.

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  • Change or cancel for free!

    Change or cancel your booking up to 48 hours before pick-up.

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