Renting a car in Iceland gives you the freedom to go where you want, when you want, and build a bespoke self-drive itinerary that fits your travel style and budget. Whether you’re chasing waterfalls, exploring the Ring Road, or planning a short stopover, driving yourself is one of the best ways to experience the country.
Before you hit the “Book now” button, here are seven important things you should know before renting a car in Iceland.
1. Driving in Iceland is pretty easy
Iceland has a population of around 390,000 people, making it one of the most sparsely populated countries in Europe, with roughly 3 to 4 inhabitants per square kilometer. As a result, roads are rarely crowded.
Outside Reykjavík, traffic is light, and in more remote regions such as the Westfjords, you may find long stretches of road with very little traffic at all. Many visitors find driving in Iceland calmer and less stressful than in most European destinations.
2. Give Yourself Time to Get Used to the Icelandic Roads
If this is your first time driving in Iceland, it’s important to adjust your driving style, especially on gravel roads, which are common outside urban areas.
Gravel roads require:
- Longer stopping distances
- Lower speeds
- Extra caution at blind summits and bends
You should also be careful when crossing single-lane bridges, which are common in rural Iceland, if another vehicle is approaching, slow down and let one car pass at a time. When in doubt, stop and wait.
3. You Need to Be Organized to Get the Best Deal
Car rental demand in Iceland is high, particularly during the summer months (June to August). If you are traveling on a budget, booking early is the best way to secure the cheap car rental in Iceland.
Leaving it late often means:
- Higher prices
- Limited availability
- Fewer small and economy cars
Firefly Iceland focuses on cheap rental cars, but early reservations always offer the best value.
4. You Don’t Need to Shell Out for a 4×4
A common misconception is that you need a 4×4 rental car in Iceland for every trip. In reality, most travelers do not.
If your itinerary mainly includes:
- Reykjavík and nearby attractions
- The Ring Road (Route 1)
- Paved main roads
Then a 2WD car is usually more than sufficient. SUVs and 4×4 vehicles are more expensive, so always choose your car based on where you plan to drive.
5. Why Some Vehicles Are Not Allowed on F-Roads
Iceland’s Highlands are crossed by rough mountain routes known as F-roads. These roads are only open in summer and are subject to strict regulations.
F-roads often include:
- Deep potholes
- Loose gravel
- Steep gradients
- Unbridged river crossings
By law, a 4×4 vehicle with high clearance is required on F-roads. Driving a non-approved vehicle on F-roads can invalidate your rental insurance and may result in fines.
If you don’t want to rent a 4×4, it can be cheaper and safer to park nearby and explore alternative transport options.
6. Iceland is Small, But You’ll Want More Time Than You Think
In theory, you can drive all the way around Iceland’s 1,332 km Ring Road in less than a day without stopping in reality, that would mean missing almost everything that makes Iceland special.
Once you’re on the road, you’ll want time to stop for:
- Waterfalls and viewpoints
- Short walks, hikes and photo stops
- Unexpected sights along the way
As a general rule, allow at least 10 days to drive the full Ring Road comfortably, and more if you want a relaxed pace.
7. You Don’t Have to Pick Up Your Rental Car at the Airport
Many travelers assume they should rent a car as soon as they land at Keflavík International Airport (KEF). While this is convenient, it’s not always necessary.
If you plan to:
- Spend a few days in Reykjavík
- Explore the city on foot
- Use local transport initially
It can be cheaper to take the airport bus into the capital and pick up your rental car in Reykjavík later.
FAQ: Renting a Car in Iceland
- Do I need a 4×4 to drive in Iceland?
No. A 4×4 is only required if you plan to drive F-roads or Highland routes. For the Ring Road and most popular attractions, a 2WD car is usually sufficient.
- Is driving in Iceland safe for tourists?
Yes. Driving in Iceland is generally safe if you follow speed limits, check weather and road conditions, and take extra care on gravel roads and single-lane bridges.
- When is the cheapest time to rent a car in Iceland?
The cheapest prices are usually found outside peak summer season, especially in spring and autumn. Booking early also helps secure better rates year-round.
- Can I rent a cheap car at Keflavík Airport?
Yes. Firefly Iceland offers cheap car rentals at KEF Airport, with a range of cheap options for self-drive trips.
- How many days do I need for an Iceland road trip?
Short trips can work in 3-5 days, but for a Ring Road journey, 10 days or more is strongly recommended
Ready to Start Your Iceland Self-Drive Trip?
Renting a car in Iceland gives you the freedom to explore at your own pace, whether you’re driving the Ring Road or visiting nearby attractions. By choosing the right car for your route and booking early, you can keep costs down and travel with confidence.
Firefly Iceland offers cheap, reliable car rentals in Iceland, with convenient pick-up at Keflavík Airport and Reykjavík. Book your rental car today and secure the best price before availability runs out.
