Planning Your Iceland Road Trip: 20 Tips for Driving Through the Land of Fire and Ice
If you’re thinking about, or already planning, an Iceland road trip, then kudos to you! We think renting a car (or campervan!) is the absolute best way you can travel through Iceland!
Why should you rent a car in Iceland? I’m glad you asked!
Having the flexibility to go where you want, explore on your own terms, make your own plans, and drive to wherever the day takes you is so key in a country that’s known for its unpredictability. It’s hard to plan anything too far in advance in Iceland. Weather and conditions can change fast and plans may have to change. Or, chances are you’ll learn about something super cool and want to make a detour, or go somewhere off the beaten path that a tour company just doesn’t visit. Our favorite places we visited in Iceland were exactly these random less traveled places! Driving in Iceland is a great way to have this kind of flexibility.
Ready to rent a car for your Iceland trip now? Yes! But hang on just one second…
The flexibility and freedom of having your own car does come with a price. Driving in Iceland can be a little stressful and confusing, especially if you’re not familiar with the country and you don’t know what you’re getting in to. Being prepared is key before embarking on your Iceland road trip, no matter how long or short.
We spent two weeks driving all over Iceland…and when I say all over, I mean it! We squeezed a lot into our Iceland road trip, from traversing the entire ring road, to venturing down deserted F roads into the Icelandic highlands, to driving into less traveled corners of the country like the remote West Fjords. And we learned a lot about driving around this breathtaking country.
And after all of that, we’ve put together what we think are the most valuable things to know before heading out on any Iceland road trip. We’ll cover everything you need to know about driving in Iceland, from planning your route, to renting a car, choosing insurance, finding gas, knowing road conditions, what to look out for, and everything in between.
So… buckle up! And let’s go!
Article Contents
Planning Your Iceland Road Trip
You might thinking, “I’m ready to hit the open road and see where the wind takes me!”. And while Iceland is a great place for doing just that, you’ll have to have some general plans for your road trip so you know what you’ll be getting yourself into… so let’s go over a few general tips for what to know before you embark on your grand Icelandic road trip!
1. Decide where you want to go in Iceland
Ok, this might seem kind of obvious, but the first step before planning any sort of Iceland road trip is figuring out where you want to go.
Now, I don’t mean making an hour by hour itinerary that’s set in stone (yes, I’m totally guilty of doing this before any trip). Because in Iceland, that’s pretty impossible. For one, the weather is Iceland is so unpredictable, so trying to plan for anything too far in advance is really difficult. Second, you’ll likely be driving along and spot something cool or unexpected along the way, or you love a place so much you want to spend more time there. This happened to us a lot. So, it’s a great idea to pad in some flexibility into your road trip itinerary.
With that said, you’ll need to have some idea about places your heart is set on…all those must-see destinations that are the reason you’re going to Iceland. One reason for this is so you can have a map of your travels, have a general location of where all the places on your itinerary are, and be able to connect the dots in a way that makes sense.
The main reason for planning out your road trip route in advance, though, is so that you can see what types of roads you’ll be driving on and what type of vehicle you’ll need.
There are two main types of roads in Iceland:
The first are paved roads and smooth gravel roads that are accessible to 2 wheel drive cars. Popular Iceland road trip routes, such as the ring road, the Golden Circle, and the Snaefellsnes Peninsula, fall into this category.
The second is F road travel. F roads are rough gravel roads in Iceland that venture into the interior parts of the country, known as the highlands. They are only open in the summer months when they are clear of snow, and absolutely require that you have a 4x4 vehicle by law.
Once you figure out what things you want to see and where they are, you’ll have a better understanding of whether a 2WD or a 4x4 vehicle is needed.
We can say this: Although renting a 4x4 can be a bit more expensive than a 2WD car, we think the price is absolutely worth it, and we highly recommend getting a 4x4 vehicle if you can. Having a 4x4 opens up more opportunities to see some amazing parts of Iceland that would otherwise be inaccessible. Places like Landmannalauger and the Fjallabak Nature Reserve were some of the most beautiful places we visited in Iceland.
For the rest of this article, we’ll go over everything about renting a car in Iceland and give you tips and advice for driving both the ring road and the rougher F roads.
The tips listed here are still totally applicable to campervan driving through Iceland as well, so feel free to stick around here, too!
Ok, so we mentioned F roads…let’s get more into these…
2. Paved versus F roads in Iceland
If you’re planning on sticking to the ring road, there’s good news. The ring road route is pretty straight forward, well- paved, and can be easily driven with a 2 wheel drive vehicle (in the summer months, anyway…we’ll get into more about the different times of year in our next tip).
But, any time you want to deviate off the ring road, even if it’s just a short diversion, the road will likely get rough. Most roads off the ring road are unpaved gravel or dirt roads.
Some of these roads are labeled as F roads that we described above. These are the very rough, rocky, bumpy, washboarded roads that lead to the interior of Iceland and absolutely 100% require a 4 wheel drive vehicle.
Driving on these roads is quite an adventure. They’re long, they’re barren, they’re deserted, and they truly make you feel like you’re heading to the middle of nowhere (and you basically are!). After a while, these roads can get mentally exhausting to drive on, as you are sometimes on the road for hours at a time, all the while having to stay incredibly focused to actively avoid all the obstacles and potholes along the way. So make sure you or someone with you is a driver that’s up to the task. Driving in Iceland left us both pretty exhausted by the end of our trip!
F-road into the Icelandic highlands
Not an F road, but gravel roads off the ring road can still get a little rough.
Aside from F roads, there are many roads off the ring road that aren’t labeled as F roads, but are still unpaved and very rough. Don’t be surprised if you find yourself on several of these roads during an Iceland road trip, even if you’re going to a popular tourist destination!
You can drive on these with a 2WD car, but just be prepared for a slow going and bumpy ride. In some cases, these roads were even worse than some of the F roads we had been on! During our second week in Iceland, we had a 2WD campervan and opted to turn around in some cases because the road got so rough and we didn’t feel comfortable taking a non- 4x4 down the road.
3. The best time to drive in Iceland
Every season in Iceland has something special to offer, even winter! When you visit Iceland really depends on what you’re looking to do. Do you want to hunt the Northern Lights? Whale watch? Hike? Drive the ring road? Explore an ice cave? All of these activities are highly dependent on the time of year.
But, when it comes to driving, there are some things to be aware of:
The best time to drive in Iceland is between late spring to early autumn. This is when the roads are free from snow and ice, making driving conditions safest.
Once the first snow hits, usually sometime in November, the roads can become hazardous. In the winter, unpredictable road conditions necessitate a 4x4 vehicle, even for ring road travel, and a confident driver comfortable in winter conditions. If you are traveling to Iceland in winter and aren’t comfortable with driving in these conditions, there are plenty of tours to choose from that will take you to all of the popular places.
With that said, if you want to drive in Iceland and want the most flexibility and opportunity during your Iceland road trip, we would highly suggest coming in that ideal window from around May to September.
Remember: Always check the status and conditions of the roads in every season here and here.
A note about F roads: F roads that go to the highlands are only open in the summer months when they’re clear of snow. They usually open up in mid-June and close sometime around mid-September. If you want to check out the highlands in the winter, you’ll have to hop on a Super Jeep tour instead.
Renting a Car in Iceland
Ok, so you’ve planned your Iceland road trip route and know all the places you want to hit. Great! The next task? Renting a car.
There are so many options in Iceland when it comes to renting a car, and it can be a bit overwhelming. Which company should you rent from? Should you get the extra insurance? What type of car should you rent?
We’ll share some tips for renting a car in Iceland that we’ve learned through our own experiences!
4. How to pick a rental car in Iceland
Because driving around Iceland is such an awesome and popular way to explore the country, it’s no surprise that there are tons of options for renting a car in Iceland.
You might be wondering, how do I even choose? We hear ya, and we’ll try here to give you some helpful hints about what to look out for when choosing a car to rent in Iceland.
First, standard more well-known companies, like Enterprise and Hertz, exist in Iceland, but they are a bit more expensive than other options. However, if you’re used to working with them and want the security and reliability of a well-established rental company, then go for it! With these companies, you can expect to pay about $50 per day and up for smaller 2WD cars, and well over $100 per day for mid-sized 4x4s.
Your other option is to rent a car from smaller local car rental companies in Iceland. We found many of these rental companies by browsing through Guide to Iceland. This site will select cars from a variety of local Icelandic rental companies and will usually quote you a pretty good price. You can find small basic cars for $30-40 per day and 4x4 SUVs starting around $50-$60 per day.
However, our advice here is to not just automatically go with whatever is the cheapest. Do your research on the company and read reviews before renting a car in Iceland. After doing some of our own research, several of the more inexpensive companies that we came across had consistently poor reviews when it came to quality and customer service. Many people complained of getting really beat up cars that had broken parts or that broke down a few days into the trip, or about getting nickeled and dimed when bringing the car back at the end of the rental.
Trust us, we are the king and queen of frugality and saving money over here, but when it comes to renting a car in Iceland, you don’t want to cheap out too much. You don’t want to have to waste precious time you could use to be getting well on your way down the ring road by having to return the car to the lot to get a repair or replacement. And you definitely don’t want to have to constantly stress about every ding from every stone that hits the side of your car possibly costing you a surprise bill of hundreds of dollars for minor damage that is virtually impossible to avoid on Iceland roads. Remember, in Iceland you’ll be driving on some rough roads from time to time, even if you plan on sticking primarily to the ring road, so you’ll definitely want to have a reliable car with a company that understands that nicks here and there are inevitable.
Because of this, we ended up going with a slightly higher priced company but one that got much better overall reviews and we were really happy with them. We had great and quick customer service with them and had no complaints with our 4x4 SUV that we rented from them for a week, and we would happily recommend them.
Some important things to consider when choosing a car rental company in Iceland:
Any extra hidden costs: Does the rental include extra drivers at no cost? What kind of insurance does it include and how much are the add-on policies? Usually companies will offer standard CDW insurance in their base price.
Airport pick-up and drop-off: Is the company located at the airport or in Reykjavik? As the capital city is a good 45 minutes drive from the airport, it’s a good idea to pick up your car from a company right at the airport to save time, money, and hassle. We often found that prices from the airport were actually cheaper than renting from a place in Reykjavik. Some companies may be located near the airport rather than right at the airport, so make sure they provide a shuttle between the airport and their building.
Perks: Does the company offer any additional bonuses or perks that could be useful on your road trip? Gas discount cards at the pump? Coupons for free coffee (yes, that’s a thing!)? Discounts for attractions around Iceland?
Note: Definitely make sure you get a rental with unlimited mileage. You’ll be racking up those miles in Iceland, probably more than you plan for.
Overall, we recommend perusing Guide to Iceland for ideas of what kinds of cars, companies and prices are out there, and then digging in a little deeper to get a sense of company reviews and the benefits of renting from each company.
5. Rent a manual vehicle if possible, and one that takes diesel
If you know how to drive a manual car, stick with that. They are much more common in Iceland, and cheaper to rent.
Similarly, try to rent a car that takes diesel. Diesel is slightly cheaper in price than gas, and gets a bit better mileage, too. Hey, every penny counts when you’re in one of the most expensive travel destinations, am I right?
6. Renting a car in Iceland’s off season is cheaper
Generally, travelling in shoulder seasons is cheaper no matter where you go. Iceland is no exception.
The summer months of June, July, and August are the busiest months, and thus the most expensive times for car rentals in Iceland.
But, here’s a little tip. We noticed that as soon as we selected September dates on rental websites, car rental prices dropped pretty significantly! And the further you get into the off season, the lower the prices go. Play around with the dates a bit and see how the prices change month to month.
We also noticed that some companies might have last minute fall or winter deals as well. So keep your eyes peeled for those.
You might be thinking, well up above you just told me that the summer months are the best times for driving in Iceland, but now you’re telling me to rent a car in the off season?
I know I might sound like I’m contradicting myself here, but it really is a matter of your preference and your budget here. Sure, summer months are the best time to drive because of weather and clear roads, and that’s why most people come during this time, and why it’s the most expensive time.
If you’re looking to get lower prices but also take advantage of some summer activities, such as hiking in the highlands, we highly recommend trying to visit Iceland at the very end of summer or very early fall (like the first week or so of September). Doing this will allow you to take advantage of lower prices, but you’ll still be able to easily drive around the ring road, and traverse into the highlands on the F-roads, which generally don’t close until mid-September or so. This is what we did and it worked out great for us. We even got lucky and got a glimpse of the Northern Lights!
7. Get the extra insurance on your rental car
When renting a car in Iceland, the rental will most likely include basic CDW insurance. But you’ll have the option to purchase different types of additional insurance, including theft, extra collision, sand and ash, and gravel.
We highly suggest going with the gravel insurance, no matter where you plan to drive in Iceland. Like we said above, you’re highly likely at some point to drive along rough gravel roads, even if just planning a ring road itinerary without F roads. Dings and nicks from tiny stones and dirt is pretty much unavoidable. Having the extra insurance will not only help protect you but give you some peace of mind, so you can stress less and enjoy Iceland more!
Tips for Driving in Iceland
You’ve planned your route, you’ve chosen your vehicle. Next up…braving the Iceland roads! Ok, they aren’t that bad! There’s just a few things that are good to know in advance so you’re as prepared as can be…
8. Navigation while driving in Iceland
It’s pretty easy to navigate around Iceland, even if you don’t speak Icelandic (and chances are you don’t!). The signs are very clear and self-explanatory. Here are a few common signs that you’ll encounter when driving along the ring road just to help get you oriented.
From left to right across the top row and then bottom row, these signs depict the following:
Campground symbol
The symbol marking a tourist attraction
A typical directional sign you’ll encounter along the road. Numbers in the white boxes indicate the route number you’ll be on if you take the specific turn, and the numbers after the town names indicate the distance in kilometers to that location.
A typical sign you’ll see for things like information centers, hotels, and restaurants
The sign that indicates you’re leaving a city/town (the same picture without the red slash indicates you are entering a town)
Another directional sign, where the white number at the top indicates the route you’re currently on, and gives the distance in kilometers to different towns.
Whenever you enter a new area, there’s usually well labelled signs in pull offs or at the start of new roads that often include maps for the area.
9. Always be on the lookout!
When driving in Iceland, it’s especially important to always keep your eyes peeled, especially when driving around the ring road.
One of the main things you’ll have to watch out for is sheep! Sheep are everywhere in Iceland. Literally everywhere.
Little white puffballs speckle the landscape, even cliff faces. They have no fear! Including of the road. Always be prepared to brake for them…they could be standing in the middle of the road around a corner, or just dart out suddenly. Not only will this be incredibly sad and cause lots of uninsured damage to your car, but you’ll also have to pay a 500 ISK fine to the owner of said sheep.
In addition to sheep, watch out for bikers as well as other people parked along or stopped in the road, or even standing in the middle of the road (please don’t do this – there are plenty of pull offs and picnic areas to take pictures from!). There are lots of blind turns and hills in Iceland, so it’s important to be super vigilant.
You’ll often also encounter single lane bridges. When you get to these, it’s good to know that the car closest to the bridge has the right of way. You would stop and let that car go and any other cars behind it before you cross yourself.
10. Watch out for that Icelandic wind!
Iceland is notorious for its crazy weather, which includes lots of wind. A common tip that rental companies give to their customers is to be cautious when opening car doors, and they really mean it!
Never keep a car door open if you’re not actively getting in or out, and try to park headfirst into the wind if you can. Many rental damages occur when high winds break the door right off the hinges!
11. Filling up the gas tank
If you’re sticking to the ring road, finding gas stations and filling up the tank shouldn’t be an issue. Just to be safe, fill up whenever you go through a major town.
Before going to any remote parts of the country, such as the West Fjords or into the highlands, definitely make sure you start on a full tank. Gas stations are few and far between or even nonexistent in some of these places.
A note about gas stations: We noticed four different gas stations in Iceland – Orkin, Oli’s, AO, and N1- and all were roughly the same price around the ring road and prices stayed consistent during our entire two weeks there. But no matter which gas station you’re at, it will be expensive… that’s unavoidable. Expect to pay somewhere between $7.00 and $7.50 USD per gallon! This will be one of your biggest expenses when driving through Iceland, so budget accordingly!
12. Don’t speed in Iceland!
Iceland takes speeding very seriously.
In general, speed limits for paved roads is 90 km/h, for gravel is 80 km/h, and 50 km/h through towns, unless otherwise marked. The speed limits are marked very clearly and often. And honestly, I think the speed limits are more than fast enough! Especially with everything on the road that you have to keep an eye out for.
Watch out for the notorious speed cameras, found mostly throughout Reykjavik, more touristy parts of the ring road, and in tunnels. These are marked with a warning sign a few hundred meters in advance. They are while or blue signs with a camera image on them, as shown above. We hear they’re pretty strict on the limit, and going over just a few km/h can cost you a few hundred dollars in fines. Yikes. We even heard that if you’re physically pulled over by a police officer, they can require payment right on the spot via credit card!
Despite this, a lot of locals have lead feet and can get pretty aggressive (and it’s not just us saying that…early on in our trip we were warned by a friendly local in a grocery store to watch out for this!). You’re sure to be tailgated and passed quite often if you travel on the ring road. Our advice? Just let it happen. They know the roads and the speed traps better than you. Take your time, enjoy the scenery around you, and don’t be pressured to speed up!
13. Keep your distance from other cars on the road
This is especially true when driving on any F or gravel roads. Make sure you keep a safe distance from the car in front of you because a lot of damage can happen from that car flinging back stones and gravel at yours…totally avoidable if you keep enough space between you!
14. Avoid rivers
This goes back to one of your first tips about planning your route for your Iceland road trip. Particularly when it comes to the F roads, make sure you know of any river crossings and avoid these! Definitely do not attempt to cross any river with a simple 4x4 vehicle, because the moment you touch that water, insurance no longer applies and any damaged incurred is 100% your responsibility. There are tons of stories out there about stranded drivers and damaged car engines because people have attempted to cross these rivers without experience or the right vehicle.
As an example, there are multiple routes into Landmannalauger. All but one have river crossings, so you need to make sure you know the right way to go to avoid these. (By the way, that’s in our Landmannalauger guide!)
Tips for Being Prepared on the Road
15. Expect some hidden costs while driving along the ring road
Yes, driving the ring road on your own and getting out and experiencing Iceland’s natural beauty is one of the best and cheapest ways of experiencing the country. But, it does have some small hidden costs you should be aware of.
Some national parks (Skaftafell and Thingvellir) and attractions (such as the Vestrahorn, the famous Seljalandsfoss, and the Kerid Crater along the Golden Circle) have a small fee to park. In some cases there is a machine in the parking lot where you enter your information, and in other places, such as Skaftafell National Park, you’re required to pay online.
In the more touristy areas, especially along the southern coast, you’ll have to pay a fee to use the bathroom, both at gas stations and at tourist attractions. These can be as high as 500 ISK per person.
There is also currently one toll along the ring road. It’s at the Vaðlaheiðargöng Tunnel in Northern Iceland just before you enter Akeuryi from the east. This will cost you 1500 ISK for a one-way trip through the tunnel, but it can be easily avoided by a quick 15 minute detour off the ring road. It’s much more scenic, too!
The moral of the story here is, always be sure to have some small krona on you for any little unexpected costs that might pop up. Most of the time, you can use a card, but we always like to have just a little bit of cash to be safe.
16. Buy a sim card
You’ll definitely want to have some internet connectivity and cell service on your Iceland road trip, especially for emergency purposes. But it’s also good to have so that you can be flexible and look up things on the fly…things like campground locations or information on specific destinations. It’s also useful to have some connectivity to book last minute trips, check daily road and weather conditions, and just research things on the fly.
It’s good to have this kind of flexibility in Iceland. We booked buses and a tour just days before we actually needed them, because we were monitoring weather and road conditions each day while in Iceland.
You can rent Wifi with your car rental at an extra per day fee, but we recommend purchasing a sim card at the airport. It’s a much cheaper option.
Siminn, Nova and Vodafone all provide cell service in Iceland. Siminn seems to have the most extensive coverage, but we used Nova and had no issues, expect in the highlands, which we expected.
How much data should you get? We got a 1 GB sim card which actually ended up being more than enough. We used it sparingly throughout the day to look up weather and scout out campgrounds. But, many places throughout Iceland, such as campgrounds and grocery stores, actually have free Wifi, so you won’t even have to use your data all that much.
17. Be prepared for the elements
You’ll get wet in Iceland. Trust us on this one! Make sure you’re prepared with the right gear. Rain pants were a life saver for us! As were a rain and wind proof coat and waterproof shoes. This kept us dry during a week of non-stop wind and rain.
Plus, even if it’s not raining (lucky you!), if you plan on visiting popular waterfalls you’ll also get very wet, and you’ll be happy to be wearing some waterproof gear!
Rainy windy weather is just something you have to expect in Iceland, it’s the norm. We recommend checking the weather every day and be prepared to be flexible with your plans. Often times, you can wait it out a bit and the rain will stop. Other times, you’ll just have to go with it. Even in pretty hard rain, the more touristy and popular attractions were still busy and crowded with people. If you want to see something in Iceland, sometimes you’ll just have to suck it up and get wet, because chances are, it will rain quite a bit and there’s no avoiding it. All the more reason to be prepared with the right gear!
Where to Go on an Iceland Road Trip
Ok, all the logistics are out of the way. Now it’s time for the good stuff! Where to go! When you rent a car in Iceland, your options are limitless! Our final few tips for driving in Iceland are our favorite tips on the list and ones you can really have fun with!
18. Best places to go in Iceland
Iceland might be a small country, but there is a ton to see, and unless you’re there for an extended period of time, you won’t get to cover it all (though we tried our hardest!). For a one or two week trip, it might be best to stick to one area and really fully explore it. Trying to pack too much in might seem rushed, and really take a hit on your wallet gas-wise! (Speaking from experience…)
Here are a few ideas to get the wheels turning (pun intended…):
Ring road: By far, one of the most popular road trips in Iceland is to drive the perimeter of the entire country. Doing this really gives you a glimpse into all the variety and beauty Iceland has to offer. This is a good option if you have, at the very least, 7 days. Check out all our favorite spots along the ring road to help you plan!
The Golden Circle: Another popular tourist route. This can be done in just a day! Learn more with our Golden Circle guide.
The Snaefellsnes Peninsula: This is Iceland in Miniature! A day trip around this piece of Iceland can be a good substitute for those who don’t have the time for the entire ring road. See why in our one day itinerary for the Snaefellsnes Peninsula!
Westfjords: For those who really want to get off the beaten path, head to the Westfjords! A truly remote section of Iceland, the Westfjords offers seclusion, epic scenery, and hidden gems like red sand beaches!
The Highlands: For some epic scenery and hiking, venture into Iceland’s interior. Landmannalauger is an out of this world destination filled with colorful rhyolite mountains and steaming geothermal vents. Check out our favorite hike in Landmannalauger to see if you want to add it to your list (trust us, you will!).
19. Be flexible!
Be prepared to be flexible! (Is that an oxymoron?) I know I’ve already said this but it bears repeating.
You might hit bad weather and need to cancel or adjust plans. Or, you might be driving along the ring road, see something super cool that you didn’t know about before, and want to check it out…there’s a pretty good chance that a random dirt road or tourist attraction sign will catch your eye and your curiosity.
Remember, in Iceland, it’s good to have some sort of rough itinerary about what you want to see and the stops you want to make, but you also need to incorporate some wiggle room in there for the unexpected.
20. Don’t be afraid to get off the beaten path, and have fun…you’re in Iceland!
We know there are a ton of famous and popular attractions in Iceland. And we aren’t discouraging you from visiting them…there’s a reason they’re so popular, and you should definitely check them out!
But while you’re driving through Iceland, you’ll learn about new spots, find new roads, see random signs for cool names. There are so many things off the tourist path right off the ring road. Look for those side roads and random tourist symbols and try visiting a couple of these. If you haven’t heard of it, probably not many others have and you’re bound to see something cool. It’s so much fun and super rewarding to find a hidden gem that’s all your own!
Let’s chat!
We hope these tips help as you’re thinking about renting a car and planning your road trip through Iceland. Let us know if you have any questions or have anything to add to this list in the comments below! We would love to hear from you!
