How to Get Around Iceland: Complete Rental Car Guide

I spent 10 days exploring Iceland and let me tell you—figuring out how to get around is one of the most important parts of planning your trip. This is a country where the landscapes change every five minutes, the weather can turn on a dime, and the best experiences are often the ones you stumble upon unexpectedly.

During my time there, I got tons of questions about driving in Iceland, if it’s worth it to rent a car, and whether you can visit without one. So I put together this guide to answer all those questions and help you figure out the best way to get around Iceland based on your travel style and itinerary.

Spoiler: renting a car is usually the best move. It gives you the flexibility to go off the beaten path, make random stops at hot springs and waterfalls, and actually experience Iceland at your own pace—not on someone else’s schedule.

But there are a few caveats (looking at you, one-lane bridges and surprise speed cameras). Whether you’re planning a short stopover or a full Ring Road adventure, here’s everything you need to know about how to get around Iceland without overspending or missing the good stuff.

What’s the best way to get around Iceland? Rent a car!

If you want freedom, flexibility, and access to Iceland’s hidden gems, the best way to get around Iceland is by renting a car.

Having your own vehicle lets you explore at your own pace, visit places outside of the main tourist stops, and save money in the long run by skipping expensive day tours. Most travelers visiting beyond Reykjavik opt for a rental, and for good reason—it opens up the entire Ring Road, the Westfjords, and even the rugged Highlands during summer.

If you’re only staying in Reykjavik or visiting for just a few days, it may not be worth the cost. But for the vast majority of trips, especially those lasting more than three days, renting a car in Iceland is 100% the move.

Money-saving tip: Use AutoSlash to compare rental car prices and make sure to book early—especially during high season.

What’s it like driving in Iceland?

Honestly? Driving in Iceland is easy, but it comes with a few quirks you’ll want to know before hitting the road.

Weather and Road Closures

Iceland’s biggest wild card is the weather. Road closures due to wind, snow, or ice can happen any time of year, though they’re more common from October through April. Check the official road conditions map daily at road.is and use the vedur.is site to monitor the weather. I recommend checking both the night before and the morning of each drive.

Speed Cameras and Limits

Speed limits are strictly enforced with automatic speed cameras. If you go even a few km/h over the limit, you could be hit with a fine in the mail weeks later. Stay within posted limits—it’s not worth the risk (or the unexpected expense).

One-Lane Bridges

One of the more surprising parts of driving in Iceland? Single-lane bridges. Only one car can go at a time, so yield to whoever is closer or already crossing. I found these a little nerve-wracking at first, especially with locals flying through them like pros. But you’ll get the hang of it quickly.

Where to Rent a Car in Iceland

You can rent a car from Keflavik International Airport or in Reykjavik, depending on your itinerary. Most travelers pick up their car at the airport when they land to immediately start exploring beyond the capital.

Best Car Rental Companies in Iceland

You’ll find international brands like Budget, Hertz, and Enterprise, as well as local companies like Blue Car Rental and Lotus. I recommend:

• AutoSlash: Best for comparing multiple companies and applying coupons
• Budget: Personally used on my trip—super easy pickup and drop-off
• Blue Car Rental: Known for excellent service and Iceland-specific advice

Credit card tip: Use a card with primary rental car insurance (like the Chase Sapphire Preferred or Reserve) to skip the expensive insurance add-ons.

What type of car should I rent?

This depends on the season and your itinerary.

Summer (May–September)

If you’re sticking to the Ring Road and main routes, a regular 2WD car will do just fine. But for extra peace of mind—and access to gravel roads or light F-roads (unpaved mountain roads)—a small SUV with AWD is a great choice.

Winter (October–April)

Snow and ice are common, especially in northern and inland areas. You’ll want an AWD or 4×4 vehicle with winter tires. Many rental companies automatically include these during colder months.

How to save money when renting a car in Iceland?

I’m not going to lie – renting a car can be expensive in Iceland, especially during peak season. But it’s still cheaper than booking guided tours every day. A lot cheaper.

Here are some tips to help you save money when renting a car:

• Use AutoSlash to compare rental companies and rebook if prices drop
• Book early, especially in summer or during Northern Lights season
• Decline insurance if your credit card offers primary coverage
• Limit your time in Reykjavik, where parking fees are high and a car isn’t needed
• Travel with friends to split the cost of the rental and fuel
• Avoid automatic cars if you’re comfortable driving manual—manuals are cheaper

Alternatives to Rental Cars in Iceland: Campervans

Campervan Rentals

Renting a campervan can be a fun way to explore Iceland and save money on accommodations. You’ll have the freedom of the road and your sleeping quarters in one. Just be aware of campground rules and weather-related limitations, especially in colder months.

Is It Easy to Navigate Iceland?

Yes! Most roads are well-marked, Google Maps works great (just download maps offline), and signage is straightforward. You won’t need GPS if you have a smartphone, but I do recommend bringing a car charger.

Also note: Gas stations are often self-service and located far apart in rural areas. Always fill up before heading into more remote regions.

More Iceland Travel Tips + Inspiration

• Check out my complete Iceland packing list for everything you need for your visit
• Be sure to take a trip to Vik, Iceland on your trip to Iceland
• Explore more of Iceland with my complete one week itinerary