Should You Rent a Car in Iceland?

Yes! Before my Iceland trip, I did a lot of research into renting a car and got scared off by a lot of horror stories online. Now that I’ve done it, I can confirm that driving in Iceland, at least on the main roads, is pretty easy and pretty much essential considering most of the country is incredibly remote. Without a car, you’d be stuck paying tour companies too much money for something you could go and enjoy on your own schedule. Here are some of my tips and notes on car rentals.

You probably don’t need four-wheel drive.

We were completely fine in our dinky two-wheel drive car. If traveling in winter, rental car companies should give you a car with studded tires, and we had no trouble navigating some snow and ice with those. That being said, we did mostly stick to the ring road and other main roads in Reykjavík, the South Coast, and Snæfellsnes Peninsula. To access Iceland’s more rugged F roads, which are only open in summer, you do need a 4×4 vehicle. We also visited in mid-March, so we did experience some snow, but not too much. I’d imagine it may be more helpful to get a four wheel drive vehicle if visiting during a harsher month.

Always check the weather and road conditions.

Before heading out on a drive, always check the weather and road conditions. Weather in Iceland can be pretty tricky, and it’s very possible to experience sunshine, rain, and snow all in a matter of minutes. Luckily, the ring road is usually kept in pretty good conditions, but it’s always better to be prepared and adjusting plans if needed. More remote and northern areas like the northern part of the country and the Westfjörds can sometimes be difficult or impossible to access at times due to weather. We did not travel to those areas, so I can only speak from what I’ve heard from Icelanders and other travelers.

The hardest part about driving in Iceland is the many roundabouts in Reykjavík.

Luckily we only saw these in Reykjavík, but we could never quite figure them out since they’re often two lanes. This was genuinely the hardest part about driving in Iceland for us! Thankfully, Reykjavík isn’t a very large city, and the traffic wasn’t too bad.

Don’t be afraid of the one-way bridges.

I remember being terrified to encounter the one-way bridges on the highway that I had read about online. Then I got to Iceland and realized that even the ring road, the one major highway in the country, has very little traffic. Be cautious when approaching the one-way bridges, but don’t fret too much.

Do be aware of gas prices.

Gas prices in Iceland are terribly high. We would spend around $80 filling up the tank for our small rental car. Luckily, gas stations had some of the cheapest (and good quality) food. Also, be sure to keep an eye on your tank and fill up even when the tank isn’t close to empty. Sometimes you might drive for hours without seeing a gas station.

Watch out for speed traps.

Iceland does have a number of speed traps set up. Some of them look somewhat like U.S. speed traps with a big box with a camera. Others, however, will just give you a smiley face or a frowny face depending on your speed. Always watch your speed when you encounter these so you don’t get surprised with an expensive speeding ticket when you get home.

Be cautious but not too afraid of beating up the car a little bit.

According to our rental car company, the #1 reason people get charged for car damage is for car doors flying open and damaging the vehicle during Iceland’s notoriously high winds. We definitely experienced some extremely windy spots, so be careful opening car doors when you experience those. Otherwise, I would be careful, but you’ll probably be ok. We did drive on a few gravel roads while in Iceland, which resulted in some rocks hitting the undercarriage. We also got the inside of the vehicle incredibly dirty and muddy from all of our outdoor adventures. I think we even left a small chip in the windshield from a rock. But we were completely fine and received no additional charges from the rental company.

In the end, I would 100% recommend renting a car in Iceland. It’s the most accessible way to travel throughout the country and the best way to take things at your own pace and truly enjoy all the country has to offer.

Have you driven around Iceland? What was your experience like? Please share in the comments below!

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