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Top Deals From our Rental Partners

Provider Offer Code Valid Until
Centauro Logo 15% off rentals in the UK PR22CJUKRL 30-Dec-2025
OK Mobility Logo 10% off rentals in Spain CJOKRAC 31-Dec-2030
Centauro Logo 15% off across Europe PR22CJEURL 31-Dec-2025
Bipi Logo £100 off monthly rentals (UK) UKAFI100 31-Dec-2025

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Car Rentals From locals

No credit card

No Credit Card

Book directly from locals who offer flexible payment methods.

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City delivery

City Delivery

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No deposit

No Deposit

Many locals allow you to rent without large upfront deposits.

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Free cancellation

Free Cancellation

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Car Rental in Iceland

Iceland is famous for its dramatic landscapes – waterfalls, glaciers, black sand beaches, and the famous Golden Circle. Renting a car is the best way to explore this unique country, since public transport is limited outside Reykjavik. With a car, you can travel freely along the Ring Road, visit remote villages, and chase the Northern Lights.

The main pick-up location is Keflavík International Airport (KEF), where most travelers start their journey. Rentals are also available in Reykjavik city and Akureyri in the north. SUVs and 4×4 vehicles are strongly recommended, especially in winter or for highland routes.

When booking, look for deals with no hidden fees, free cancellation, and clear insurance coverage. Summer is the busiest season, so book early for the best availability. Fuel is more expensive than in most countries, but road conditions are excellent and signage is clear.

Important driving tips: headlights must be on at all times, off-road driving is illegal, and weather can change quickly, so always check conditions before heading out.

With a rental car, you can explore highlights like Þingvellir National Park, Jökulsárlón Glacier Lagoon, and Snæfellsnes Peninsula. Whether you want a compact car for short trips or a 4×4 SUV for adventure, car rental in Iceland gives you the flexibility to see it all.

FAQ

What is the cheapest way to rent a car in Iceland?

For cheap car hire in Iceland, compare offers from multiple providers to find budget rental cars, low-cost 4x4s, and affordable vehicles in Reykjavik, Keflavík, and other major locations.

Which airports in Iceland have car rental services?

Keflavík International Airport (KEF) and Reykjavik Domestic Airport (RKV) both offer on-site car hire and vehicle pick-up points from leading providers.

Can I rent a car in Iceland without a credit card?

Some companies allow car rental without a credit card in Iceland, accepting debit cards or cash deposits, but availability is limited. Always check the rental terms.

What is the minimum age to rent a car in Iceland?

The minimum car hire age in Iceland is usually 20 or 21, but young driver surcharges often apply for drivers under 25.

Is insurance included in car rental in Iceland?

Most Iceland car rental deals include basic insurance such as CDW (Collision Damage Waiver), but additional coverage for gravel protection and theft protection is often recommended due to local driving conditions.

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How does Cheap Drive Deals work?

We partner with trusted car rental platforms like EconomyBookings, Holiday Autos, Centauro, and more to bring you the best deals across Europe and worldwide. You search once, we compare hundreds of offers instantly.

Why should I book with Cheap Drive Deals?

✅ We compare top-rated rental providers
✅ You save up to 70% on rental prices
✅ Transparent pricing — no hidden fees
✅ Wide availability at airports, city centers, and even local delivery
✅ Secure online booking in minutes

How can I get the best price?

🚗 Book early — prices rise closer to departure
📅 Use off-peak dates if possible
🏷️ Compare different locations (airport vs city)
🛡️ Avoid unnecessary extras you don’t need 

Which rental companies do you work with?

We collaborate with major global brands like:

  • EconomyBookings

  • Centauro

  • Holiday Autos

  • Carmellimo

  • Enjoy Travel

  • Rentalcars

  • And also with local providers in Spain, Portugal, Netherlands, and more.

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