Iceland's breathtaking landscapes, from towering glaciers and active volcanoes to scenic coastal roads and cascading waterfalls, are best explored by car. Driving in Iceland may seem intimidating for first-timers, but with the proper preparation, you'll quickly gain confidence and enjoy the freedom of the open road.
This guide offers key tips for first-time car renters in Iceland. We’ll walk you through everything you need to know, from local driving laws to picking the perfect vehicle, ensuring a smooth and enjoyable journey. Whether you're exploring the Golden Circle or venturing into the rugged highlands, we have all the tips you need.
One of the best ways to experience Iceland is by car. Renting a car allows you to travel at your own pace, explore hidden gems, and stop at stunning locations that may not be easily accessible by public transport. While buses and organised tours are options, having your vehicle offers the freedom to take detours, visit smaller villages, or spend extra time at your favourite spots.
With Iceland’s well-maintained road network, driving is generally straightforward, even in remote areas. Most popular tourist routes are easily accessible, and with a rental car, you can explore lesser-known spots that many tourists overlook. If you want to drive the famous Ring Road, head out to volcanic craters, or visit black-sand beaches, renting a car is the best option.
Selecting the right car is crucial when renting a vehicle in Iceland. Your choice of car should depend on the type of terrain you plan to explore, the time of year, and the number of people in your group. For those visiting in the summer, a standard 4x4 SUV is ideal if you plan to drive off the main roads. These vehicles offer better control on gravel paths and in remote areas. However, if you are sticking mainly to paved roads, a smaller, more fuel-efficient car will be fine.
In winter, driving conditions can be challenging, especially in the highlands or remote areas. Snow, ice, and strong winds are common during the colder months, so you may opt for a 4x4 for better traction and stability. The extra cost of a 4x4 can be worth it for the peace of mind it provides during winter travel. If you're travelling with family or friends, consider renting a larger car with more space for passengers and luggage. Iceland’s terrain is known for being rugged, and comfort during long drives is key to enjoying the journey.
Before you get behind the wheel, it’s essential to familiarise yourself with the local driving laws. Iceland has strict traffic regulations that must be followed to ensure road safety. Here are some of the key rules you should know:
Iceland also has specific road rules regarding speed and weather conditions, so always pay attention to road signs and the weather forecast. If you’re unsure about driving laws, don’t hesitate to ask the rental company for clarification.
Iceland is known for its unpredictable weather, so be prepared for changing conditions. You may encounter rain, wind, and chilly temperatures even in the summer. In the winter, conditions can be even more challenging, with snow, ice, and limited daylight hours.
Always prepare for the unexpected, and remember that driving in Iceland requires patience and caution. If you’re uncomfortable with winter driving, you may want to reconsider certain areas or take guided tours.
Iceland’s road system is relatively easy to navigate, with well-maintained highways and rural roads. However, not all roads are paved, especially in more remote areas. Gravel roads are frequent in rural areas and can be challenging to drive on, especially during poor weather conditions. Here are some road types and routes you should know about:
Be mindful of road conditions and check for updates on any potential hazards or closures before heading out on your trip. Many rental companies provide road condition information, so always ask about the latest updates.
Fuel stations in Iceland are easy to find, especially in urban areas, but they can be sparse in remote regions, so always keep an eye on your fuel gauge. Make sure to fill up your tank whenever you pass a fuel station, particularly if you’re heading into the countryside or travelling on the Ring Road. Iceland’s fuel stations often offer self-service, so ensure you have a credit card that works with the system. Some remote stations only accept cards with a chip and pin, so it's always a good idea to have one with you. Remember that petrol in Iceland is relatively expensive, so plan accordingly.
Parking in Iceland is straightforward, but it's important to follow the rules to avoid fines. In cities like Reykjavik, you'll find parking garages and outdoor spaces, usually requiring payment. Always check parking signs for time limits or fees. In rural areas, parking is typically free, but adhere to local signage. If parking in more popular tourist spots or near natural attractions, be aware that spaces may be limited, especially during peak tourist season. It’s always a good idea to arrive early to secure parking.
When renting a car in Iceland, insurance is a key consideration. Most rental cars come with basic insurance that covers theft, collision damage, and third-party liability. However, it’s crucial to understand the terms of your coverage and whether you need additional protection. There are several types of insurance you may want to consider:
Be sure to ask your rental company about the insurance options available to you and what’s included in your rental package. Consider purchasing additional coverage if you're concerned about the deductible or want to reduce out-of-pocket costs.
When returning your rental car, ensure it’s in the same condition as when you picked it up. Check for any damage or dirt that may need cleaning. Most rental companies require the vehicle to be returned with a full fuel tank, so remember to refuel before dropping it off. If you plan to return the car outside office hours, ask the rental company about after-hours drop-off procedures. Many agencies have key drop boxes for convenient returns.
If you plan to rent a car in Iceland, look no further than Finalrentals! We offer various vehicles to suit every need, from compact cars to rugged 4x4s for those seeking adventure in the highlands. Our simple booking process, reliable rides, and competitive prices ensure a stress-free experience from start to finish. Whether you’re exploring Reykjavik, visiting the Golden Circle, or venturing off the main roads, Finalrentals and discover the wonders of Iceland on your terms. Start your adventure today! Rent a Car in Iceland with Finalrentals and explore this magnificent country at your own pace.
