Do You Need To Rent A Car In Iceland?

If you’re traveling to Iceland, you’ll definitely want to leave the city and venture out to the country’s jaw-dropping landscapes. So, this begs the question: do you need to rent a car in Iceland?

This blog post is sponsored by Lava Car Rental, an Icelandic car rental company specializing in new and cheap rental cars in Iceland. All thoughts are my own.

In this article, you’ll learn everything about renting a car in Iceland — if its necessary, where to rent, other transportation options and more — leaving you confident in your Iceland ground transportation choice.

Let’s get started with the basics.

How do tourists get around Iceland?

Tourists get around Iceland in two primary ways: car rentals and bus tours.

Car rentals are the most popular way for tourists to get around Iceland. Because there are so many incredible, diverse landscapes to visit around the island, most tourist opt for a rental car.

We’ll talk about why I recommend renting a car in a moment.

On the contrary, the best alternative to getting around Iceland is joining an Iceland bus tour, such as this South Iceland day trip, if you are uncomfortable driving abroad or are only stopping in Reykjavik for a short period of time.

Although you won’t have to worry about driving or navigation on a bus tour, you won’t be able to make any spontaneous stops or diversions from the tour’s designated route either, which is a definite bummer.

Do you need a car to get around Iceland?

Whether you opt for your own car, a bus tour or another private driver, yes, you need a car to get around Iceland. Iceland’s main tourists spots are very spread out. It can take a couple hours just to drive from one popular attraction to the next.

For example, the drive from Reyjavik to Vik (the town near popular destinations like Kirkjufjara Beach and Skógafoss waterfall) is over 2.5 hours long.

Granted, the long drives are always stunning and promise to keep you entertained throughout.

Regardless, if you want to see as much of Iceland as possible, you’ll need a vehicle.

Is it recommended to rent a car in Iceland?

Yes, it is highly recommended to rent a car in Iceland.

Although you can hire private drivers or bus tours, it is better to rent a car in Iceland because you’ll have the freedom to make spontaneous road trip stops (which you’ll want to do), adjust your Ring Road road trip itinerary to the unpredictable Icelandic weather, and overall see a lot more of Iceland on your trip.

For instance, you’ll be able to road trip around the full Ring Road and/or Golden Circle, as well as spontaneously stop to see the lupines, waterfalls, glaciers and rare moss fields that you will drive past.

Where To Rent A Car In Iceland

During our June trip to Iceland, I worked with Lava Car Rental, an Icelandic car rental company specializing in new and cheap rental cars, to bring the best Ring Road road trip itineraries and Iceland travel guides to you.

What I loved most about Lava Car Rental, besides their impeccable Icelandic branding and fun volcano logo, was how affordable and easy it was to rent a car with them.

You can expect their car rentals to cost well under $100 USD per day (some for under $50 USD and around $100 USD for 4×4 vehicles). For Iceland, that’s an impressive rate. You can barely buy a meal at a restaurant in Iceland for that price.

Furthermore, even though off-site car rental pickups can seem intimidating or like too much work after a long flight, Lava Car Rental’s free Keflavik airport shuttle to the car rental pickup site was pretty seamless.

In fact, they even have a flight tracker that will track the arrival of your flight so that their shuttle will be ready for you upon arrival.

If you don’t see the shuttle (located right outside the P1 parking lot doors) within five minutes, call their office and they’ll happily send a shuttle for you.

Then, once you pick up your Lava Car Rental car (or campervan), you’re ready to explore Iceland.

They’ll give you gas discounts on your key fob, too. Be sure to use the discounts (by tapping the petrol station fob on the gas pump’s card reader before inserting your bank card) because gas in Iceland is expensive!

What kind of car do I need in Iceland?

In Iceland in summer, any economy car rental will do. Although 4×4 vehicles are necessary on some roads, you will not need a 4×4 vehicles if you just plan on visiting the main Iceland tourist spots.

Even if you do encounter some bumpy roads, you should be fine in a 2WD vehicle. We easily drove on roads in our 2WD Dacia Jogger from Lava Car Rental where 4×4 vehicles were recommended.

For example, if you’re hoping to visit Studlagil Canyon (which I highly recommend) and don’t want to walk the full six miles out-and-back to the canyon, you can easily take the bumpy “4×4 recommended” road to a closer parking lot in a 2WD car. It’s a little rocky, but we had no problems.

Just make sure to avoid the F-roads (steep mountain roads into the highlands), on which you need a 4×4 to drive by law.

Additionally, off roading is illegal in Iceland, so don’t rent a 4×4 thinking you’ll be able to.

In Iceland in winter, on the other hand, a 4×4 car is recommended, as roads can be snowy and unmaintained.

Do you need an SUV in Iceland?

You do not need an SUV in Iceland.

Like I mentioned earlier, we rented a Dacia Jogger from Lava Car Rental, which is very spacious but not intended to be used as an SUV. And, we had no troubles navigating Iceland.

More Iceland Car Rental FAQs

Is it easy for Americans to drive in Iceland?

Yes, it is very easy for Americans to drive in Iceland. In Iceland, they drive on the right side of the road, and intersections are very similar to US intersections.

You can read Iceland’s driving rules here to make sure you’re as prepared and comfortable to drive in Iceland as possible before your trip.

Can you drive in Iceland with a US license?

Yes, you can driving in Iceland with a valid US driver’s license.

Although an international driver’s permit is always recommended, it is not required in Iceland.

We drove in Iceland with just our US license — no international driver’s permit (IDP) — and we had zero issues.

Have any more questions about whether or not to rent a car in Iceland? Send me a DM over on Instagram. I’m happy to help!

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