Planning an Iceland Ring Road trip? Driving around Iceland on Route 1 is one of the best ways to experience the country’s waterfalls, glaciers, black sand beaches, volcanic landscapes, and charming coastal towns.
The Iceland Ring Road, also known as Route 1, stretches approximately 1,332 km (828 miles) around the island, connecting many of Iceland’s most famous attractions.
Whether you’re planning a 7-day road trip or a longer adventure, renting a car gives you the freedom to explore Iceland at your own pace.
And the good news? An Iceland road trip doesn’t have to be expensive. With a cheap car rental in Iceland from Firefly, you can explore the Ring Road while keeping your travel budget under control.
In this guide, we’ll cover:
- What the Iceland Ring Road is and how long it takes to drive
- The best time of year for a Ring Road trip
- How to choose an affordable rental car in Iceland
- The best attractions along Route 1
- Tips for planning a budget-friendly Iceland road trip
- Frequently asked questions about driving Iceland’s Ring Road
What is the Ring Road in Iceland?
The Ring Road is Iceland’s main national highway, officially known as Route 1. It forms a loop around most of the country, connecting Reykjavík with South Iceland, East Iceland, North Iceland, and West Iceland.
Most of the Ring Road is paved and accessible to ordinary passenger cars in suitable conditions. However, winter weather, strong winds, and temporary road closures can affect driving throughout the year.
The Ring Road does not travel through Iceland’s Highlands or around the Westfjords. These areas require separate routes and additional travel time.
Iceland Ring Road Quick Facts
| Feature | Details |
| Official road name | Route 1 |
| Total distance | Approximately 1,332 km |
| Recommended trip length | 7-10 days |
| Best time to visit | June to August |
| Starting point | Reykjavík or Keflavík Airport |
| Road surface | Mostly paved |
| is a 4×4 required? | No, not for normal summer condition |
| Winter driving | More challenging 4×4 recommended |
How Many Days Do You Need to Drive Iceland’s Ring Road?
Although driving the entire Ring Road without stopping would take roughly 17–20 hours in good conditions, this is not a practical way to experience Iceland.
For most visitors, 7 to 10 days is a good amount of time to explore the Ring Road.
- 5 days: A rushed itinerary with limited sightseeing time.
- 7 days: Enough time to visit many of the major attractions.
- 10 days: A more comfortable itinerary with additional sightseeing opportunities.
- 14 days: Ideal for exploring smaller towns, scenic detours, and less-visited attractions.
If you’re travelling on a budget, a 7-day Ring Road itinerary can be a good balance between rental car costs, accommodation expenses, and sightseeing.
Booking an affordable car rental in Iceland also helps you manage the total cost of your trip.
When is the Best Time to Drive Iceland’s Ring Road?
The best time to drive Iceland’s Ring Road is generally June to August, when daylight hours are long, temperatures are milder, and road conditions are usually more favourable.
However, the Ring Road can be explored throughout the year when weather and road conditions allow. Spring and autumn offer fewer crowds, while winter brings snowy landscapes and opportunities to see the northern lights. Winter driving can be challenging due to snow, ice, and unpredictable weather.
If you’re planning a budget road trip, travelling outside the peak summer season may help you find cheaper accommodation and more affordable car rental in Iceland.
For a detailed seasonal comparison, read our guide to Best Time to Drive Iceland’s Ring Road
Choosing the Best Cheap Rental in Iceland for the Ring Road
Choosing the right rental car for your Iceland Ring Road trip depends on the season, weather conditions, and roads you plan to drive.
If you’re looking for a cheap car rental in Iceland, both 2WD and 4×4 vehicles can be good options, depending on your travel plans.
2WD Rental Cars: Best for Summer Road Trips
A 2WD rental car is usually the most affordable option for driving Iceland’s Ring Road during summer.
Route 1 is mostly paved, meaning you don’t need a 4×4 to explore its main attractions when road conditions are good.
A 2WD rental car is a great choice for:
Summer road trips from June to August Couples and solo travellers Visitors staying on the Ring Road and suitable paved roads Travellers looking for cheap car rental in Iceland
Choosing a 2WD vehicle can help you save on rental costs and fuel, leaving more of your budget for exploring Iceland.
4×4 Rental Cars: Best for Winter and Challenging Conditions
If you’re planning to drive Iceland’s Ring Road during winter, a 4×4 rental car is recommended.
Snow, ice, strong winds, and changing weather conditions can make driving more challenging, especially in North and East Iceland.
A 4×4 rental car is a good choice for:
- Winter road trips in Iceland
- Travelling during unpredictable spring and autumn weather
- Drivers who want additional traction in snowy conditions
- Exploring Iceland’s F-roads during summer with a suitable 4×4 rental car approved for F-road driving
Although 4×4 vehicles generally cost more than 2WD cars, they can be a worthwhile choice for more demanding driving conditions. Remember that four-wheel drive does not guarantee safety on icy roads.
Looking for affordable car rental in Iceland? Firefly Iceland offers budget-friendly 2WD and 4×4 rental cars, including older, well-maintained vehicles that help keep rental prices lower.
Why Choose Firefly for Cheap Car Rental in Iceland?
If you’re searching for cheap car rental Iceland options, Firefly offers an affordable way to explore the country without spending more than necessary on transportation.
Older, Well-Maintained Rental Cars at Lower Prices
One of the reasons Firefly can offer cheaper car rental prices in Iceland is its vehicle fleet.
Unlike rental companies that focus on providing the newest car models, Firefly uses older, well-maintained rental cars.
These vehicles are maintained for rental use, allowing Firefly to offer more affordable prices while providing practical transportation for your Iceland adventure.
For travellers who care more about exploring Iceland than driving the latest car model, this can be a smart way to save money.
Affordable Rental Cars for Different Road Trips
Whether you’re planning a summer Ring Road adventure or a shorter trip around South Iceland, Firefly offers budget-friendly vehicle options, including economy cars and 4x4s.
Convenient Keflavík Airport Pickup
Many visitors begin their Iceland road trip at Keflavík International Airport (KEF).
Firefly offers a free shuttle service from the airport to its nearby rental location at Flugvellir 11, making it convenient to collect your vehicle and begin your journey.
Spend Less on Your Car and More on Iceland
Choosing a budget car rental in Iceland can free up more money for experiences such as glacier tours, geothermal baths, whale watching, and local restaurants.
With Firefly, you can focus your budget on the places you want to see rather than paying extra for a newer rental vehicle.
Iceland Ring Road Map: Route and Best Attractions
The Ring Road connects some of Iceland’s most beautiful natural attractions.
Most travellers start in Reykjavík and drive counterclockwise through South Iceland before continuing east and north.
Here’s a regional breakdown of the best places to visit along the Ring Road and nearby detours.
Best Ring Road Attractions in South Iceland
South Iceland is one of the most popular regions for road trips, thanks to its waterfalls, black sand beaches, glaciers, and dramatic coastline.
Many attractions are located directly beside Route 1 or require only a short detour.
Seljalandsfoss Waterfall
Seljalandsfoss is one of Iceland’s most famous waterfalls, known for the walking path that allows visitors to walk behind the falling water when conditions permit.
It’s a great first stop when driving east from Reykjavík.
Skógafoss Waterfall
Skógafoss is a powerful waterfall approximately 60 metres high. It’s easily accessible from the Ring Road and is one of the most photographed waterfalls in Iceland.
Reynisfjara Black Sand Beach
Located near Vík, Reynisfjara is famous for its black volcanic sand, basalt columns, and impressive sea stacks.
However, the beach is also known for dangerous sneaker waves. Stay well away from the water and follow all warning signs and safety instructions.
Vík
Vík is a small coastal village surrounded by dramatic landscapes.
It’s a convenient place to stop for food, fuel, and accommodation while exploring South Iceland.
Fjaðrárgljúfur Canyon
This beautiful canyon features steep green cliffs and a winding river.
It’s a popular photography destination, although access can be restricted during certain weather or environmental conditions.
Jökulsárlón Glacier Lagoon
Jökulsárlón is one of Iceland’s most famous natural attractions.
Here, large icebergs break away from Breiðamerkurjökull glacier and float through a beautiful glacial lagoon.
Diamond Beach
Located across the road from Jökulsárlón, Diamond Beach is famous for pieces of glacial ice scattered across its black sand.
It’s one of the most memorable stops on an Iceland Ring Road itinerary.
Other South Iceland Attractions Worth Visiting
If you have extra time, consider adding these stops:
- Eyjafjallajökull volcano
- Skaftafell and Svartifoss waterfall
- Hveragerði geothermal town
- Laugarvatn Fontana geothermal baths
- The Golden Circle, including Þingvellir, Geysir, and Gullfoss
- Kerið volcanic crater
- Secret Lagoon in Flúðir
Budget travel tip: Many of South Iceland’s most beautiful natural attractions can be visited without purchasing an organized tour, although parking or entrance fees may apply.
Best Ring Road Attractions in East Iceland
East Iceland is one of the quieter regions along the Ring Road.
Here, you’ll find small fishing villages, dramatic fjords, mountain scenery, and fewer crowds than in South Iceland.
Vestrahorn Mountain
Located near Höfn, Vestrahorn is a dramatic mountain overlooking the black sand beaches of Stokksnes.
It’s a popular photography location, although access to the Stokksnes area requires a fee.
Höfn
Höfn is a charming fishing town famous for its seafood, particularly langoustine.
It’s also a convenient overnight stop when travelling between South and East Iceland.
Seyðisfjörður
Seyðisfjörður is a colourful village surrounded by steep mountains.
Its rainbow-painted street and distinctive blue church make it a popular stop. The village is reached by a scenic detour from Egilsstaðir.
Hengifoss Waterfall
Hengifoss is one of Iceland’s tallest waterfalls, known for its distinctive red clay layers between dark basalt rock.
Reaching the waterfall requires a hike, so allow extra time.
Hallormsstaðaskógur Forest
One of Iceland’s largest forests, Hallormsstaðaskógur offers walking trails, picnic areas, and a different landscape from the country’s open volcanic terrain.
Budget travel tip: East Iceland is an excellent region for scenic drives and free outdoor activities. Pack snacks and plan fuel stops, as services can be spread far apart.
Best Ring Road Attractions in North Iceland
North Iceland offers volcanic landscapes, geothermal areas, waterfalls, whale watching, and charming towns.
It’s one of the most rewarding regions to explore during a longer Iceland Ring Road trip.
Akureyri
Akureyri is Iceland’s largest town outside the capital region and an important centre for North Iceland.
It’s a good place to stock up on groceries, enjoy local restaurants, and explore nearby attractions.
Goðafoss Waterfall
Known as the Waterfall of the Gods, Goðafoss is a beautiful horseshoe-shaped waterfall located close to Route 1.
It’s one of the easiest major attractions to visit in North Iceland.
Lake Mývatn
The Lake Mývatn area is known for volcanic landscapes, lava formations, geothermal activity, and birdlife.
Popular nearby attractions include:
- Dimmuborgir lava formations
- Hverir geothermal area
- Krafla volcanic area
- Víti crater
- Leirhnjúkur lava fields
Dettifoss Waterfall
Dettifoss is one of Europe’s most powerful waterfalls.
The waterfall is located in Vatnajökull National Park and can be reached via connecting roads, although road access varies by season.
Húsavík
Húsavík is one of Iceland’s best-known whale-watching destinations.
Visitors can join whale-watching tours, explore the harbour, or visit the town’s whale museum.
Ásbyrgi Canyon
Ásbyrgi is a spectacular horseshoe-shaped canyon in North Iceland.
According to Icelandic folklore, it was created by the hoofprint of Sleipnir, the eight-legged horse of the Norse god Odin.
Other North Iceland Attractions
If your itinerary allows, consider visiting:
- Hljóðaklettar rock formations
- Siglufjörður fishing town
- Mývatn geothermal bathing facilities
- North Iceland’s scenic coastal routes
Budget travel tip: North Iceland has plenty of free natural attractions. You can save money by combining sightseeing stops with grocery shopping and self-catering accommodation.
Best Places to Visit in West Iceland
The western section of the Ring Road brings you back towards Reykjavík.
Although Route 1 only passes through part of West Iceland, several beautiful destinations are worth adding to your itinerary.
Borgarnes
Borgarnes is a convenient stop between Reykjavík and North Iceland.
The town offers restaurants, shops, fuel stations, and views across Borgarfjörður.
Snæfellsnes Peninsula
The Snæfellsnes Peninsula is often called Iceland in Miniature because of its varied landscapes.
It’s not part of the Ring Road itself, but it makes an excellent addition to a longer itinerary.
Popular attractions include:
- Kirkjufell Mountain: One of Iceland’s most photographed mountains.
- Snæfellsjökull National Park: Home to a glacier-covered volcano.
- Búðir Black Church: A striking black church surrounded by lava fields.
- Arnarstapi: A small village known for its coastal cliffs.
- Djúpalónssandur Beach: A black pebble beach with historic lifting stones.
- Hellnar: A peaceful coastal village with beautiful scenery.
Westfjords: An Optional Extended Road Trip
If you have additional time, consider exploring the Westfjords.
This remote region is not part of the Ring Road, and visiting it requires several extra days.
Highlights include Dynjandi waterfall, Rauðisandur beach, Látrabjarg cliffs, Ísafjörður, and Drangsnes hot pots.
The Westfjords have narrow, winding roads and some gravel sections, so choose your rental vehicle carefully.
How to Save Money on an Iceland Ring Road Trip
Iceland can be an expensive destination, but there are several ways to reduce the cost of your road trip.
1. Choose a Cheap Car Rental in Iceland
Your rental car is often one of the main expenses of a self-drive holiday.
Choosing an affordable rental company like Firefly can help reduce your overall travel costs.
Firefly’s older, well-maintained rental vehicles are a practical choice for visitors who want reliable transportation without paying extra for the newest models.
2. Book Your Rental Car Early
Rental car prices can increase during popular travel periods, particularly in summer.
Booking in advance can give you more vehicle options and help you find a cheaper car rental in Iceland.
3. Choose the Right Vehicle Size
If you’re travelling as a couple during summer, you may not need a large SUV.
A small economy car can be a more affordable option and may also reduce fuel costs.
However, always choose a vehicle suitable for your route and expected road conditions.
4. Save Money on Food
Eating at restaurants every day can quickly increase your travel budget.
Consider shopping at supermarkets, preparing packed lunches, and choosing accommodation with cooking facilities.
5. Visit Free Natural Attractions
Many of Iceland’s best attractions, including waterfalls, beaches, and scenic viewpoints, can be visited without paying an entrance fee.
However, some locations charge for parking or facilities.
6. Plan Your Fuel Stops
Fuel stations can be far apart in some rural areas.
Plan your route and avoid unnecessary detours to save both time and fuel.
7. Compare the Total Rental Cost
When searching for a cheap rental car, don’t compare the daily rental price alone.
Check what’s included, such as mileage, insurance, additional driver fees, and any other charges.
The cheapest advertised price isn’t always the cheapest final rental cost.
Important Driving Tips for Iceland’s Ring Road
Before starting your road trip, keep these important driving tips in mind.
Check road conditions: Visit umferdin.is for road conditions and closures.
Monitor the weather: Use vedur.is for weather forecasts and warnings.
Follow speed limits: The general maximum speed limit is 90 km/h on paved rural roads and 80 km/h on gravel rural roads, unless signs indicate otherwise.
Keep headlights on: Iceland requires drivers to use headlights while driving, including during daylight hours.
Never drive off-road: Off-road driving is illegal in Iceland and can cause serious environmental damage.
Be careful in strong winds: Icelandic winds can be powerful enough to affect vehicle handling and damage car doors.
Allow extra travel time: Weather, road conditions, and sightseeing stops can make journeys longer than expected.
Know your rental restrictions: Some roads require suitable 4×4 vehicles, and not every rental car is permitted on F-roads.
Frequently Asked Questions About Iceland’s Ring Road and Cheap Car Rental
- Can you drive Iceland’s Ring Road in a cheap rental car?
Yes. During summer and in suitable road conditions, most of Iceland’s Ring Road can be driven in a standard economy rental car. You don’t necessarily need an expensive SUV or 4×4 to complete the route.
- What is the cheapest way to rent a car in Iceland?
Booking early, comparing total rental prices, travelling outside peak periods, and choosing a smaller vehicle can help reduce rental costs. Firefly is a budget car rental company in Iceland that offers older, well-maintained vehicles at affordable prices.
- Why is Firefly car rental cheaper in Iceland?
Firefly offers lower rental prices partly because its fleet consists of older, well-maintained vehicles rather than focusing on the newest models. This helps keep rental costs down while providing practical cars for exploring Iceland.
- Is a cheap car rental in Iceland reliable?
An affordable rental car can be a reliable option when it is properly maintained and suitable for your travel plans. Firefly’s budget-friendly vehicles are maintained for rental use, making them a practical option for travellers who don’t need the latest car models.
- Do you need a 4×4 to drive Iceland’s Ring Road?
No, a 4×4 is not generally required for driving the Ring Road during summer in good conditions. However, a 4×4 is recommended for winter travel, and certain mountain roads require an approved 4×4 vehicle.
- How long does it take to drive the Ring Road in Iceland?
The Ring Road is approximately 1,332 km long. While the driving itself could take around 17–20 hours without stops in favourable conditions, most travellers should allow at least 7–10 days to enjoy the attractions along the way.
- Can you drive the Ring Road in winter?
Yes, when road conditions allow. However, snow, ice, storms, and temporary road closures can make winter driving challenging. A suitable vehicle, flexible itinerary, and regular weather checks are essential.
- Is it better to drive the Ring Road clockwise or counterclockwise?
Both directions are possible. Many travellers choose to drive counterclockwise from Reykjavík, visiting South Iceland first. However, the best direction depends on the weather forecast, road conditions, and your itinerary.
- Where can I find cheap car rental at Keflavík Airport?
Firefly Iceland offers affordable car rental near Keflavík International Airport. Travellers can use the free airport shuttle to reach the Firefly rental location at Flugvellir 11.
- How much does an Iceland Ring Road trip cost?
The total cost depends on your travel dates, rental car, fuel, accommodation, food, and activities. Choosing a budget rental car, staying in self-catering accommodation, and visiting free natural attractions can help reduce expenses.
Conclusion: Explore Iceland’s Ring Road for Less with Firefly
Driving Iceland’s Ring Road is one of the best ways to discover the country’s waterfalls, glaciers, volcanic landscapes, black sand beaches, and charming towns.
Whether you’re planning a week-long summer adventure or a longer road trip, choosing the right rental car can make a big difference to your travel budget.
At Firefly Iceland, we believe exploring Iceland shouldn’t require an expensive rental car.
That’s why we offer cheap car rental in Iceland with older, well-maintained vehicles, helping travellers enjoy affordable and practical transportation without paying extra for the newest car models.
From economical cars for summer road trips to 4×4 options for more demanding conditions, Firefly makes it easier to explore Iceland while keeping costs under control.
Ready to explore the Ring Road? Find your affordable rental car with Firefly Iceland and start planning your Iceland road trip today.
