Car Rental Iceland No Deposit
We offer car rental in Iceland with no deposit, so no money is frozen on your account during the trip. You pay only the rental price and keep your budget free for adventures.
Book your rental car in Iceland
How to rent a car in Iceland
Four simple steps from search to keys. No credit card, no deposit and no paperwork at the counter.
- 1
Choose place and dates
Enter your pickup place and dates and see all available cars from our fleet with prices.
- 2
Choose car and options
Pick the car class and add extras: no deposit, no credit card, full coverage insurance, child seat or a second driver.
- 3
Book with 15-20% online
Fill in the driver details and pay only 15-20% of the price online. Your voucher arrives by e-mail right away.
- 4
Pick up and pay the rest
Collect your car at Keflavik Airport or at your hotel and pay the remaining amount in cash or by debit card.
Our advantages: Car rental in Iceland without deposit, without credit card, payment by cash or debit card
Car Rental Iceland No Credit Card
No credit card? No problem. We offer car rental in Iceland with no credit card required, which is perfect for travellers who use only debit cards.
Car Rental Iceland Debit Card or Cash
Pay for your rental car in cash or by debit card when you pick it up. Online you prepay only 15-20% to secure the booking.
Why rent a car in Iceland?
Car rental in Iceland with no deposit is the easiest and cheapest way to see the island at your own pace. Public buses are rare outside Reykjavik and do not stop at most waterfalls, glaciers and black beaches, while a taxi from Keflavik Airport to the city alone can cost more than a full day of car hire.
With your own car you stop wherever the view is beautiful, chase the northern lights at night and change plans when the weather changes. Add additional insurance for gravel and sand damage, choose a guaranteed model when the car type really matters, pay for cash or by debit card with no credit card, and keep the option of free cancellation up to 24 hours before pickup.
- No deposit and no credit card
- Cheaper than taxi and tours
- Additional insurance and full coverage
- Guaranteed model on request
- Payment for cash or debit card
- Free cancellation 24 hours
Car Hire Iceland Price
The price of car hire in Iceland depends on the car class, the season, the rental period, the pickup place (airport or city), the insurance package and how early you book. Use the booking form above to compare prices of our car classes and find a cheap car at the airport in a few clicks.
How to rent a car in Iceland cheaper
- Book for a longer period: rentals of 7 days or more have a much lower price per day.
- Choose a car with a manual gearbox, it is usually 10-20% cheaper than an automatic.
- Choose rental with no deposit, so no money is blocked on a credit card during your trip.
- Book 2-3 months ahead for June-August, when demand at the airport is at its peak.
- Compare prices of different car classes in our fleet: a bigger car sometimes costs only a little more.
- Travel in the low season (October-April) when car hire in Iceland can cost half the summer price.
Car rental prices in Iceland by car type
- Economyfrom €30 / day
- Compact / Hybridfrom €35 / day
- Sedanfrom €40 / day
- Minivan & Vanfrom €90 / day
- SUV & Crossoverfrom €45 / day
- 4x4 Jeepfrom €70 / day
- Premium & Luxuryfrom €110 / day
- Convertiblefrom €85 / day
Table of rental prices for popular cars in Iceland by season
| Car model | Body type | Passengers | Luggage capacity | Price per day (low season) | Price per day (high season) |
|---|---|---|---|---|---|
| Toyota Aqua Hybrid | Hatchback | 5 | 1 large + 1 small | €35 | €75 |
| Volkswagen Polo | Hatchback | 5 | 1 large + 1 small | €30 | €70 |
| Hyundai Elantra | Sedan | 5 | 2 large + 1 small | €40 | €85 |
| Kia Ceed Sportswagon | Estate | 5 | 3 large + 1 small | €45 | €95 |
| Dacia Duster 4x4 | SUV | 5 | 2 large + 2 small | €45 | €105 |
| Suzuki Vitara 4x4 | Crossover | 5 | 2 large + 1 small | €50 | €115 |
| Toyota RAV4 Hybrid 4x4 | SUV | 5 | 3 large + 2 small | €70 | €150 |
| Tesla Model Y | Electric SUV | 5 | 3 large + 2 small | €75 | €160 |
| Kia Sorento 4x4 | SUV | 7 | 3 large + 2 small | €85 | €180 |
| Toyota Land Cruiser 150 | 4x4 SUV | 7 | 4 large + 2 small | €130 | €260 |
| Renault Trafic | Minibus | 9 | 5 large + 3 small | €120 | €240 |
Low season: October-April. High season: June-August. Prices are approximate daily rates in EUR for rentals of 7+ days and may change with availability. Check the booking form above for current prices.
Customer reviews about car rental in Iceland
Real feedback from travellers who rented a car with Iceland Car Hub.
Laura Schmidt
Booked a Dacia Duster 4x4 with no deposit and paid the rest by debit card at Keflavik Airport. The car was clean and the full coverage gave us peace of mind on the gravel roads. Great value!
James O'Connor
I do not have a credit card, so this was the only way for us to rent a car in Iceland. Paid 20% online, the rest in cash at pickup. Simple and honest, no hidden fees.
Marta Kowalska
The car was delivered to our hotel in Reykjavik at 8 am as agreed. We drove the Golden Circle and the South Coast with zero problems. Will book again next winter.
Daniel Reed
Good prices compared to other sites and free cancellation helped when our flight changed. Pickup at the airport took about 20 minutes, otherwise everything was perfect.
Sophie Laurent
We rented a Toyota RAV4 in March to chase the northern lights. Winter tyres were included and the support team answered all my e-mails within an hour.
Lucas Fernández
Very cheap price for a Toyota Aqua for 10 days. No deposit, no stress. The hybrid used very little fuel on the Ring Road.
Traffic Rules and Driving Tips in Iceland
Traffic Rules
Driving in Iceland is safe and relaxed, but the roads, weather and rules are different from mainland Europe, so check road.is and safetravel.is before every long drive.
- Speed limits: 50 km/h in towns, 80 km/h on gravel roads and 90 km/h on paved roads outside towns. Speed cameras are common.
- Headlights must be switched on at all times, day and night, all year round.
- Seat belts are mandatory for everyone. Children under 135 cm must use a suitable child seat or booster.
- Off-road driving is strictly illegal and can lead to fines of hundreds of thousands of ISK.
- Mountain F-roads are open only to 4x4 vehicles and usually only from late June to early September.
- The blood alcohol limit is 0.02%, so in practice do not drink at all before driving.
- On single-lane bridges the car that reaches the bridge first has the right of way. Use the phone only hands-free.
Parking
Street parking in central Reykjavik is paid in zones P1-P4, from about 240 to 660 ISK per hour, and you can pay with the Parka or EasyPark app or at a meter. Many popular sights such as Þingvellir, Seljalandsfoss and Skaftafell charge a parking fee of about 750-1,000 ISK, usually read from your licence plate and paid online.
Gas Stations
The main chains are N1, Olís, Orkan, ÓB and Atlantsolía, and most pumps are self-service and need a card with a PIN or a prepaid card from the station shop. After the 2026 tax reform petrol costs roughly 220-260 ISK per litre (about €1.5-1.8), and stations are rare in the East and in the Highlands, so refill when the tank is half empty.
Toll Roads
The only toll road for tourists is the Vaðlaheiðargöng tunnel near Akureyri, about 2,200 ISK per trip for a car, paid online at veggjald.is within a few hours of the drive, while the Hvalfjörður tunnel is free. Since 1 January 2026 Iceland also has a kilometre fee of 6.95 ISK per km for all cars, which is added to the rental bill at the end of the trip.
Top places to visit in Iceland by car
Distances and driving times are counted from Keflavik International Airport (KEF).
Blue Lagoon
The famous geothermal spa with milky blue water in a black lava field, the perfect first or last stop of the trip.
Hallgrímskirkja, Reykjavík
The iconic church of the capital, inspired by basalt columns. Its tower offers the best panorama of Reykjavík.
Þingvellir National Park
A UNESCO site where you can walk between the North American and Eurasian tectonic plates. Start of the Golden Circle.
Gullfoss Waterfall
The "Golden Falls" drop in two stages into a deep canyon. The Geysir hot spring area is only 10 km away.
Reynisfjara Black Sand Beach
Black volcanic sand, basalt columns and sea stacks near Vík. Stay far from the water, the waves here are dangerous.
Jökulsárlón Glacier Lagoon
Icebergs from the Breiðamerkurjökull glacier float in the lagoon and wash up on nearby Diamond Beach.
Top 3 most popular rental cars in Iceland
The models our customers book most often. Prices are approximate low season rates per day.
Compact / Hybrid hatchback
Toyota Aqua
- 5 seats
- 1 large + 1 small
- Air conditioning
- Automatic
- Hybrid
- 5 doors
from€35per day
View deal
Economy hatchback
Volkswagen Polo
- 5 seats
- 1 large + 1 small
- Air conditioning
- Manual
- Petrol
- 5 doors
from€30per day
View deal
Compact sedan
Hyundai Elantra
- 5 seats
- 2 large + 1 small
- Air conditioning
- Automatic
- Petrol
- 4 doors
from€40per day
View deal
FAQ: car rental in Iceland
Can I rent a car in Iceland with no deposit?
Yes. When you book with Iceland Car Hub you can choose the "No deposit" option. In this case no security deposit is blocked on your card at pickup and you simply pay the remaining rental price.
Can I rent a car in Iceland without a credit card?
Yes. We accept a debit card or cash, so you can rent a car in Iceland with no credit card. Just select the "No credit card" option when you book.
How do I pay for my rental car?
You pay 15-20% of the price online to confirm the booking. The rest is paid when you pick up the car, in cash or by debit card, as you prefer.
Is insurance included in the price?
Basic CDW insurance is included in every rental in Iceland. You can add full coverage with gravel, sand and ash, theft and windscreen protection when you book, so you do not have to pay for damage.
Can I pick up the car at Keflavik Airport?
Yes. Most cars can be collected at Keflavik International Airport (KEF) on arrival. We can also deliver the car to your hotel or address in Reykjavik and other towns.
What is the free cancellation policy?
You can cancel your booking free of charge up to 24 hours before the pickup time and receive a full refund of your prepayment.
What do I need to rent a car in Iceland?
You need a valid driving licence held for at least 1 year, your passport or ID and the booking voucher. A licence not in the Latin alphabet must be shown with an International Driving Permit.
What is the minimum age to rent a car?
The minimum age is usually 20 years for small cars and 23-25 years for 4x4, premium cars and minibuses. Young drivers may pay a small extra fee.
Do I need a 4x4 in Iceland?
Not for the Ring Road and the Golden Circle in summer. A 4x4 is required on F-roads in the Highlands and is strongly recommended from October to April.
Is mileage unlimited?
Yes. All our cars come with unlimited mileage, which is important in Iceland because the Ring Road alone is about 1,330 km long.