Many choose to explore Iceland by renting a car at the Keflavik International Airport and then spend several days or even weeks on the road. However rental cars in are quite expensive in Iceland compared to many other European countries but thankfully the prices are coming down. This winter you can expect to pay around 23EUR/27USD per day for a small car which is about 15% less than 2 years ago. Harder competition among the car rental companies at is one of the main reason for this development. But as the graph below shows, car rental prices in Iceland are still higher than on continental Europe.