Car Rental in Iceland | Compare Cheap Car Hire Iceland

Landmarks in Iceland
Last updated: Jun 22, 2025

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24 May 2025

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18 Apr 2025

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Car Rental Information for Iceland

About Iceland

Iceland is a land of extraordinary natural beauty, famed for its dramatic landscapes shaped by volcanic activity, glaciers, and geothermal phenomena. Visitors are drawn to its unique combination of rugged mountains, vast lava fields, powerful waterfalls, and steaming hot springs. The country’s sparse population and clean environment create a sense of untouched wilderness. Iceland’s appeal lies in its outdoor adventures such as hiking, glacier trekking, whale watching, and exploring ice caves, alongside cultural experiences in Reykjavik’s vibrant arts and music scene. The chance to witness the northern lights or experience the midnight sun adds to its allure. Iceland’s commitment to sustainability and eco-tourism also attracts environmentally conscious travelers. Its blend of natural wonders and modern comforts makes it a compelling destination for those seeking both adventure and relaxation.

Rental Requirements

  • Valid driver's license
  • Credit card in driver's name
  • Minimum age: 21 (25 for some vehicles)

Popular Rental Companies

  • Hertz
  • Avis
  • Enterprise
  • Budget

Driving in Iceland

Major car rental companies in Iceland include Hertz, Avis, Europcar, and Budget. Daily rental costs typically range from 50 to 150 USD depending on vehicle type and season; weekly rentals offer better rates. Drivers must be at least 20 years old, with some companies requiring a minimum age of 23 or 25. A valid driver’s license from the home country is required; an International Driving Permit is recommended but not always mandatory. Roads vary from well-maintained paved highways to gravel and mountain roads; 4x4 vehicles are advisable for rural or highland areas. Parking in Reykjavik is available but can be limited and paid in central areas. Tourists benefit from renting a car to explore Iceland’s dispersed attractions at their own pace, as public transport options outside Reykjavik are limited. Renting a car is highly recommended for flexibility and access to remote sites.

Explore Iceland

Things to Do in Iceland

Visitors can enjoy glacier hiking, ice cave exploration, whale watching tours, and horseback riding on Icelandic horses. The country offers opportunities for snorkeling or diving between tectonic plates at Silfra, snowmobiling on glaciers, and soaking in natural hot springs. Cultural experiences include exploring Reykjavik’s museums, attending music festivals, and sampling local cuisine. Adventure seekers can try river rafting, mountain biking, and northern lights tours during winter months.

Essential Iceland Information

Type: Country
Currency: ISK
Timezone: Atlantic/Reykjavik
Best Time to Visit: Best time to visit depends on interests; summer offers mild weather and long daylight, while winter is best for northern lights.
Languages: Icelandic, English, Danish

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