Do You Need to Rent a Car in Iceland?

Alexandra

Feb 1, 2025

Alexandra

Feb 1, 2025

Alexandra

Feb 1, 2025

It’s a question that tourists often ask: should they rent a car for their time in Iceland? The answer isn’t straightforward: it depends a lot on where you want to go and how much time you have at your disposal. Other factors, such as the time of year you plan to come, might also have a bearing on your final decision, as might your driving experience. In this article, we’ll take a look at what kinds of things affect whether you need to rent a car in Iceland or not.

Do you plan to base yourself in Reykjavik?

Reykjavik, as Iceland’s capital, unsurprisingly has the densest concentration of public transport in the country. Getting to and from the airport is straightforward as there are a number of operators that run coaches, such as Icelandia’s FlyBus. Once in the capital, many of its visitor attractions are concentrated in the downtown area of Reykjavik, and these, by and large, are walkable. City buses crisscross the urban area, and these make longer journeys possible, for instance, if you plan to visit Árbær Open Air Museum on the edge of the city. Strætó operates these public transport routes and you can take a look at its website to find more information about routes and timetables. 

Are you intending to use one base as a hub for tours?

A significant proportion of visitors are keen to base themselves in one place and take tours each day to the surrounding countryside. Reykjavík is the obvious choice for this, with the highest number of tour operators. It’s perfectly doable to reach the Golden Circle or Reykjanes Peninsula year-round, and so long as there’s sufficient daylight, tours operate slightly further afield, for example, to the Snæfellsnes Peninsula or even as far east as Jökulsárlón Glacier Lagoon. To a lesser extent, Akureyri can be approached in the same way, as there are tour operators based in the town that can take you out into the surrounding countryside. There are a few direct flights that deliver you straight there, but also domestic connections from Reykjavik’s city airport.

What time of year do you plan to come to Iceland?

The amount of daylight you’ll encounter varies hugely between midsummer and the depths of winter. While you can expect almost 24 hour daylight in June and July, you’ll be looking at around 4 to 5 hours in December. This can have an impact on your decision to self-drive or not. If you rent a car, you can use that winter daylight to go only where it suits you, and not waste precious time somewhere that interests you less. In summer, having your own set of wheels means you can sightsee at busy spots early or late in the day to dodge the worst of the crowds. However, taking a tour means you’ll have downtime on the bus while you travel to and from your destinations, particularly if there’s no one in your party who can share the driving. Using the journey as rest time means you’ll have the stamina to cover more ground if that’s important to you. 

What’s your experience of driving in inclement weather?

Iceland’s weather is notoriously unreliable at the best of times, so it’s understandable that some travelers feel uneasy at the prospect of driving when there’s a greater chance of ice, snow, and other inclement conditions. While many main roads are well-maintained, melting snow can refreeze as ice and when coupled with strong winds, this can make for challenging driving conditions. Rental cars are fitted with winter tires, but if you’re unused to being behind the wheel in this sort of environment, you may find driving stressful. However, forecasts are clearly communicated so you can prepare accordingly. There’s also a useful road conditions map from www.umferdin.is/en, which is updated in real-time. 

Do you like to be spontaneous and explore on your own?

One of the greatest advantages of renting a car in Iceland is the freedom it gives you to explore on your own. You can set your own pace, detour spontaneously if a side road unexpectedly takes your fancy and, so long as you’ve rented the right kind of vehicle, pretty much go where you please. If you plan to loop the ring road, you won’t even need to hire a 4x4, though the extra traction and clearance can pay dividends if you’re keen to head off the beaten track in the countryside. So long as you’re sensible, gravel roads shouldn’t be a problem and in any case, it’s possible to add insurance that will cover you in the event of stone chips.

How flexible would you like to be?

Many of Iceland’s truly magical locations remain firmly off the beaten track. Hidden canyons, tucked-away waterfalls, isolated fjords, and remote beaches all come within reach if you rent your own car. As well as being able to venture to parts of Iceland that relatively few visitors see, choosing to rent a car in Iceland gives you the flexibility not only to set your own pace but to change your mind on the fly. While group tours work to fixed plans, if you’ve opted for a self-drive itinerary – we’ve put together a selection on our website to get you started – then you’re in charge. You might decide to stay longer in one place or make only a brief stop in another. Though it’s possible to research places up front thanks to social media and a wealth of online information, you never really know how you feel about a place until you’re there in real life.

What kind of budget are you working with?

It’s worth doing some calculations about how much it will cost you to take guided tours to the places in which you’re interested and then compare this to the price you’ll pay for a car to drive yourself. Remember to factor in the cost of fuel or of charging an electric vehicle. If there are several of you, it’s likely to work out much cheaper to share the cost of a rental vehicle. This can be a really attractive proposition if you are trying to stick to a tight or fixed budget. You might also find that having your own wheels means you can stay out of town without it being too inconvenient. Also, countryside guesthouses and cabins can work out cheaper than hotels in the heart of urban areas. Iceland has a reputation for being expensive so self-drive can therefore be an effective way of keeping the cost of your trip within budget. 

As you can see, there are a number of things to consider before opting to rent a car or not. In our opinion, to get the most out of your Iceland vacation, you will regret not renting a car. But why not figure out a rough itinerary and see how it would pan out using tours or as a self-drive itinerary. Then you can take a look at availability for your planned dates and figure out what works best for you. Your Icelandic adventure is just a few clicks away.  

FAQ: Do you need to Rent a Car for Iceland Trip

Should I rent a car while visiting Iceland?

It depends on your travel plans. Renting a car gives you the freedom to explore Iceland's stunning landscapes at your own pace, especially if you plan to visit off-the-beaten-path locations. However, if you’re staying in Reykjavik and only plan to take day tours, you may not need a car.

Can I get around Reykjavik without a car?

Yes! Reykjavik has good public transport, and many attractions are within walking distance in the city center. You can also use buses, taxis, and tour operators to get around easily.

Is it hard to drive around in Iceland?

Driving in Iceland can be challenging, especially in winter when roads can be icy. While main roads are well-maintained, be prepared for unpredictable weather conditions. If you're not used to driving in inclement weather, it’s important to stay informed about road conditions and forecasts.