Rent a Car in Iceland with Thrifty Car Rental
Thrifty Iceland offers a wide range of rental cars, from compact economy vehicles to spacious SUVs and 4x4s.
Whether you’re planning a Reykjavik city break, a Golden Circle day trip or a full Ring Road adventure, you can find a rental car that suits your route, travel season and budget.
Pick up your rental car at Keflavik International Airport (KEF), Reykjavik or selected locations around Iceland, and start your journey with the support of a local rental team.
Why Choose Thrifty Car Rental in Iceland?
Local Experience
- Operated by Hertz Iceland, local since 2009.
Affordable Rentals
- Compare economy cars, SUVs and 4x4 rentals to find a vehicle that suits your budget.
Cars & 4x4 Rentals
- Choose compact cars, spacious SUVs, electric vehicles and 4x4s for your itinerary.
Airport Pick-up
- Collect your rental car at the KEF car rental area, reached by the airport shuttle.
One Of The Cheapest But Best Rental Car Company in Iceland
Looking for one of the cheapest and best car rental companies in Iceland? Thrifty combines affordable prices with reliable vehicles and trusted local service. We believe cheap car rental in Iceland shouldn’t mean compromising on quality. With competitive rates, transparent pricing, and no hidden fees, Thrifty helps you keep your car rental costs in Iceland low while getting great value for your money.
Iceland Car Rental Backed by 55 Years of Local Knowledge
4x4 Rental Iceland
Here are some of the most popular options for travellers looking to rent a 4×4 in Iceland with a local and trusted provider.
Trusted by Travellers Across Iceland - Top Rated
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How Much Does Car Rental in Iceland Cost (2026)?
The cost of renting a car in Iceland depends on when you travel, how long you rent and which vehicle you choose. Economy cars are generally the most affordable option, while SUVs and 4×4 rentals offer additional space and capability.
Summer is usually the busiest rental season, so booking early can give you a wider selection of vehicles. Compare available rental cars with Thrifty Iceland to find an option that suits your budget and travel plans.
Planning a road trip in Iceland?
Learn if a 4x4 is worth it for your route and season. Including tips on winter driving, F-roads, and ring road.
Ready For Every Road
Tackle Winter & Summer F-roads With a Trusted Local 4x4 Rental. Rent a 4x4 In Iceland With Thrifty
Plan Your Iceland Road Trip with Thrifty
Read Travel Tips & Car Rental Guides From The Thrifty Iceland Team.
Learn How to Drive Safely in Iceland
Driving Rules, 4x4 Advice, & More — All From Local Experts.
Before Your Trip - What to Know
Expert Advice on Renting A Car in Iceland
Our Car Rental Locations in Iceland
Iceland Car Rental: Frequently Asked Questions
- What documents do I need to rent a car in Iceland?
You will need a valid driver’s licence, a credit card in the main driver’s name, and a valid ID or passport at pickup.
- Is there a minimum age to rent a car in Iceland?
Yes. The minimum age is usually 20 years for most vehicles, but some larger or more specialised cars may have higher age requirements.
- Can I cancel or change my booking?
In case of cancellation, the rental needs to be cancelled more than 3-days prior to rental pick up for a full refund. If a rental is cancelled with less than 3-days notice or in case of a no show the full rental price will be charged. If you need to cancel or make changes to your booking, please do so by contact thrifty@thrifty.is and stating your name and reservation number.
- What is included in the rental price?
Rental prices include basic insurance, VAT, and unlimited mileage. Additional coverage and extras can be added during the booking process or even at pick-up (though extras may be subject to availability then).
- How does the car rental pickup process work at Keflavík Airport (KEF)?
Just head to the Car Rental Shuttle Bus directly outside the terminal. This shuttle takes you to the car rental area just outside of Keflavik Airport. Here you will find Thrifty Car Rental, which is located in the same building as Hertz Car Rental, Dollar Car Rental, and Firefly Car Rental. Thrifty is backed by Hertz Car Rental, which has over 55 years of local experience in Iceland having first opened here in 1971. Bringing decades of experience.
- How can I find a cheap 4×4 car rental in Iceland?
Book early, compare car types, and choose only what you need. Smaller cars and manual vehicles are usually the cheapest options, while booking in advance helps secure the best rates.
- What is the cheapest type of car to rent in Iceland?
Small 2WD cars are the most budget-friendly option. They are ideal for city driving, short trips, and popular routes during good weather conditions..
- Do I really need a 4×4 rental in Iceland?
Not always. A 2WD car is often enough for summer travel on main roads like the Golden Circle and South Coast. A 4×4 is recommended in winter, on gravel roads, or if you want more flexibility..
- What’s the difference between a 2WD and a 4×4 in Iceland?
A 2WD is suitable for paved roads and most summer travel, while a 4×4 provides better traction on gravel roads, in winter conditions, and is required for Highland F-roads.
- Are there ways to save money on a 4×4 rental in Iceland?
Yes. Book early, travel outside peak season, and choose a practical model like a Dacia Duster or similar to keep costs lower while still getting 4×4 capability.
- What should I know before driving in Iceland?
Weather can change quickly, and gravel roads are common. Always check road conditions, follow speed limits, and choose a car that matches your travel plans.
- Can I drive everywhere in Iceland with a rental car?
Most main roads are accessible with standard rental cars, but Highland F-roads require a 4×4 and are only open in summer. Off-road driving is illegal in Iceland.