SUV Car Rentals in Iceland

How much it costs to rent a car in Iceland 

There's no one-size-fits-all answer to this question: Rental vehicles in Iceland can range from the budget-friendly to the budget-busting. Economy and compact vehicles tend to be among the least expensive to rent—and as an added bonus, they're often very fuel-efficient, making them cheaper to run, too. At the other end of the spectrum, you've got luxury vehicles, sports cars, and SUVs, all of which can be on the pricier side due to their added bells and whistles. “Standard” or “midsize” vehicles strike a balance between affordability and comfort, generally offering more space and more amenities without the price tag of higher categories. 

The benefits of renting a car

First and foremost, renting a car in Iceland gives you total flexibility. Whether you’re traveling for business or leisure, you're no longer tied to unreliable bus and train schedules and can explore the area at your own pace. Some places are simply inaccessible by public transport—and that's where having your own set of wheels comes in. For longer journeys, in particular, it's much more convenient to have your own car. You can stop when you want to, there's no limit on the amount of snacks, drinks, and kids' toys you can bring with you, and you don't need to worry about missing any connections. Finally, you're no longer at the mercy of the weather if you have your own vehicle, so you can beat the summer heat and winter chill. 

The different types of rental cars

From eco-friendly electric vehicles to luxury sports cars, there are all kinds of rental car categories to choose from. Wallet-friendly compact, mini, or economy cars are a popular choice with cost-conscious travelers, while intermediate or full-size models offer a tempting blend of affordability and convenience. Premium and luxury models provide a swish way to travel, often featuring more advanced tech and high-end seats. There are all kinds of specialist options on offer, too, ranging from electric vehicles and convertibles to minivans for large groups and SUVs for travelers planning to drive on rough terrain. 

How to find great deals on a car rental in Iceland

Saving a buck or two on your SUV rental vehicle couldn't be easier, thanks to Travelocity. Just input your desired dates, then use the handy filters to narrow down your search. The “great deal” filter, for instance, shows you the cheapest car in each category available on the website, giving you a transparent overview of what's being offered. The “total price” filter lets you set a price cap for your results list. Consider refining your search to only include “compact” and “economy” options, too, as these tend to be lowest priced. 

Why you should book your SUV car rental through Travelocity

Booking your SUV rental car in Iceland through Travelocity makes the whole process super-smooth: Simply type in your destination and dates to see an extensive list of vehicles to choose from. And with countless filter options available, you can tailor your search to your personal preferences—whether that's a car with all-wheel drive, available with online check-in, or with capacity for the whole family. You'll be sitting behind the wheel before you know it. 

SUV car rental booking flexibility

Many SUV bookings made via Travelocity in 2025 come with flexible terms and free cancellation. So, if things don't quite go as planned and you need to call off your trip, you may be able to cancel your car rental at no extra cost. Rest assured that Travelocity's friendly customer service team will be more than happy to lend a helping hand.