Europe > 🇮🇸 Iceland
The city by city Car or no Car advice for Iceland can be broken down into three similar questions - do you need a car in Iceland; is it worth it (based on costs), and ultimately - should you rent one? (a balance of the two).🚆 🚌⛴️ Do we need to rent a car in Iceland?
These scores are based on the quality of public transport and other travel options. If these are good enough to see the main points of interest, then you don’t need to rent a car.
💰💶💳 Is it worth hiring a car in Iceland?
These scores reflect the practical factors that affect whether renting a car is convenient, good value, and stress-free.
🏙️ Main Cities in Iceland
| CITY | IATA | Score |
|---|---|---|
| Bíldudalur | BIU | |
| Húsavík | BGJ | |
| Norðfjörður | NOR | |
| Reykjavík | KEF |
Should You Rent a Car in Iceland? 🚗🔥
Iceland is a land of volcanoes, glaciers, waterfalls, black-sand beaches, and geothermal wonders. While tours are widely available, most of the country’s natural attractions lie far from the capital and require travel across long stretches of open road. So, should you rent a car in Iceland? For many travellers, yes—especially if you want freedom to explore beyond Reykjavik and follow your own schedule.
On the face of it, Iceland might seem like a destination where tours can cover everything. Reykjavik has excellent tourism infrastructure, and many visitors never leave the comfort of organised excursions. However, Iceland’s most breathtaking landscapes are found in remote regions, national parks, and coastal drives. Renting a car allows you to reach these locations independently, making the car or no car decision more complex than it may first appear.
🚶 When You Don’t Need a Car
If you plan to stay mainly in Reykjavik or join organised day tours, you can explore Iceland without renting a vehicle.
| Travel Style | Why a Car Isn’t Needed | Best Transport Option |
|---|---|---|
| City stays | Reykjavik is compact and walkable | Walking, bus, taxi |
| Golden Circle day tours | Transport is provided | Coach or minibus |
| Northern Lights excursions | Guided tours include pickup | Tour vehicle |
| Short stopover | Ideal for travellers with limited time | Airport shuttle + tours |
➡ Reykjavik-based travel is easy, and tours frequently depart from the city.
🚗 When Renting a Car Is the Best Option
To access Iceland’s remote natural wonders, renting a car gives you complete flexibility and the ability to explore at your own pace.
| Benefit | What You Can Explore |
|---|---|
| Scenic freedom | Drive the famous Ring Road |
| Flexibility | Stop at waterfalls, glaciers, hot springs |
| Adventure access | Explore black-sand beaches, fjords, and national parks |
| Seasonal travel | In summer, access remote areas during long daylight hours |
🚙 Popular Self-Drive Routes
| Route/Region | Highlights | Driving Notes |
|---|---|---|
| Ring Road (Route 1) | Full loop around Iceland | Paved and accessible |
| Golden Circle self-drive | Geysir, Thingvellir, Gullfoss | Easy day trip |
| South Coast | Waterfalls, glaciers, black beaches | Popular route |
| Westfjords & Highlands | Dramatic wilderness | 4×4 recommended |
🚦 Driving in Iceland – What to Expect
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You drive on the right-hand side
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Roads are well-maintained on major routes, but gravel roads are common in rural areas
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Weather can change quickly, with strong winds and icy conditions
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F-Roads (mountain tracks) are only open in summer and require 4×4 vehicles
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Fuel stations are widely available on main roads but limited in remote areas
Car Rental Information
Car rental agencies such as Hertz, Budget, Avis, Europcar, and local companies operate from Keflavik International Airport and Reykjavik. A 4×4 is recommended if you plan to drive inland or during winter months.
🚕 Alternatives to Renting a Car
| Transport Type | Best For | Notes |
|---|---|---|
| Guided tours | Major attractions | Hassle-free, but fixed schedules |
| Buses | Reykjavik and some towns | Limited service in rural areas |
| Domestic flights | Remote regions | Good for Akureyri or Westfjords |
| Taxi | Local travel only | Very expensive for long distances |
🚂 Iceland Never Had a Public Railway Network
Iceland is one of the only countries in Europe without a conventional passenger railway system. However, a few small railways did exist historically, mainly for industrial or construction purposes.
🧭 Conclusion
Renting a car in Iceland is the best way to experience the country’s dramatic landscapes, giving you the freedom to explore at your own pace and discover locations that tours may skip. However, if your trip focuses on Reykjavik and popular guided tours, you can comfortably enjoy Iceland without driving. Ultimately, the decision comes down to whether you want a structured tour-based trip or an independent road adventure across one of the world’s most scenic countries.