I spent 10 days visiting Iceland and loved it! During my trip, I got so many questions about how I felt driving around the island and what the best way to get around Iceland is, too. So I thought it would be helpful to answer your most common questions so you can have an epic trip to Iceland, too! Here’s my guide on how to get around Iceland:

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

The best way to get around Iceland is booking a rental car for the duration of your trip. Rental cars give you the freedom to travel around the island at your own pace while saving thousands of dollars on individual tours, too. 

Be sure to check out my guide to five easy ways to save money on your next car rental!

If you plan on traveling outside Reykjavik (which I highly recommend) renting a car is the best way to get around. You’ll have so much freedom to stop in random cafes, explore off-the-beaten-path waterfalls, and eat some of the best foods around the island. However, if you’re planning a quick trip and staying in the capital you might find that renting a car isn’t necessary. My best advice? Do the math and decide if renting a car is cheaper. (It probably is.)

What’s it like driving in Iceland?

Driving in Iceland is very, very easy. Your largest concern is weather, where roads can close due to high winds and/or snow and ice storms. You can use Iceland’s website to track the road conditions and ensure you’ll be able to travel each day. I recommend checking the evening before and morning of each day since the roads and weather determine what activities you can do every day.

Also keep in mind when driving in Iceland the speed limit. Main roads include automated speeding cameras, where you’ll get a ticket without even realizing it. It’s best to stick to the speed limit every time you drive to ensure you’re not surprised by an additional expense.

Finally, though Iceland has great road conditions, bridges are usually single lane. Which is a bit of a learning curve. I found this to be the most stressful part of driving, mostly because many tourists just don’t know what to do while the locals are driving fast through it regardless if someone is waiting on the other side.

Best rental car company in Iceland

Iceland is home to many rental car companies you’re familiar with, like Enterprise and Budget. I recommend using AutoSlash to compare your prices and get the best deal. You can also use your Chase Sapphire card’s primary rental car coverage benefits and avoid paying the additional insurance premiums through the rental agency, too.

Personally we rented with Budget on my trip to Iceland and had no problems! They were really easy to work with, made the process of both picking up and dropping off the car very easy, and gave us a lot of helpful information about driving in Iceland before giving us the rental.

What type of car should I rent?

After doing a lot of research for my own trip, I recommend booking a AWD small SUV. You’ll feel much more comfortable if the roads get a little slick and give you the flexibility to go on some smaller roads and trails for hiking, too.

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 your rental car options and get the best deal every time
• Use a car with primary rental car coverage, like the Chase Sapphire Preferred, to deny additional rental car coverage at the airport while still being covered
• Limit your days staying in Reykjavik since you’ll pay around $25 a day parking and don’t necessarily need a car around the city

How do I get around without a car?

It is possible to get around Iceland without a rental car but it’s much more difficult. You’ll need to book guided day tours with transportation (many tours don’t include transportation but can arrange it) or hire a driver. You’ll pay 5x the amount and have a lot less freedom to enjoy Iceland the way it should be seen.

Explore on. -K