Car hire
Car hire in Iceland: the Ring Road, the Golden Circle and the south coast
Waterfalls right by the road, black sand beaches and icebergs drifting in a lagoon. Iceland is one of the best countries in the world for a road trip. Here are the routes, the rules and the insurance you should know about.
Iceland is made for a road trip. Most of what people travel there for, the waterfalls, geysers, glaciers and black beaches, sits right beside the road, and buses outside Reykjavík are infrequent. With car hire in Iceland you decide when to stop, and you can have a waterfall to yourself at seven in the morning before the coaches arrive.
The country is sparsely populated, the weather changes quickly and distances are greater than they look on the map. Plan relaxed daily stages, and check the weather and road conditions every morning.
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How to choose the right hire car in Iceland
An ordinary car is fine for the Ring Road and the Golden Circle in summer.
Four-wheel drive is required on the F-roads in the highlands, and adds peace of mind in winter.
Insurance: Consider gravel protection and sand and ash protection, especially on the south coast.
Collect the car at Keflavík, the airport outside Reykjavík, where many companies have desks or shuttles.
The Golden Circle
The Golden Circle is the classic day trip from Reykjavík: Þingvellir National Park, where two tectonic plates meet, the geothermal area at Haukadalur and the Gullfoss waterfall. Read more in the Golden Circle and the Blue Lagoon.
Collect your car in Reykjavík
Pick up the car at the airport or in town and leave Reykjavík early, so you reach Þingvellir before most other visitors.
Car hire: See car hire in Reykjavík
ION Adventure Hotel
A hotel in the lava fields near Þingvellir.
Where to stay on the Golden Circle: ION Adventure Hotel
A modern hotel out in the lava fields, well away from the city lights. Great for northern lights in winter and as a base for the Golden Circle.
Book your stay: See rooms at ION Adventure Hotel
The south coast: waterfalls, black beaches and the glacier lagoon
Along the south coast are the Seljalandsfoss and Skógafoss waterfalls, the black beach at Vík and, further east, the Jökulsárlón glacier lagoon, where icebergs drift out to sea. These are long driving days, so consider spending a night along the way.
Collect your car at Keflavík
The airport is on the Reykjanes peninsula. From here you can drive straight to the south coast without going through central Reykjavík.
Car hire: See car hire at Keflavík
Fosshotel Glacier Lagoon
A south coast hotel between the glaciers and the sea.
Where to stay on the south coast: Fosshotel Glacier Lagoon
On the south coast with the glaciers as a backdrop, not far from Jökulsárlón. A good place to sleep when you drive the south coast over several days.
Book your stay: See rooms at Fosshotel Glacier Lagoon
The Ring Road around Iceland
The Ring Road (Route 1) runs just over 1,300 kilometres around the whole island. Allow at least a week to drive it all, and ideally more if you want to hike and take detours to the Snæfellsnes peninsula and the fjords in the east and north. In winter, parts of the road can close in bad weather.
Hotel Borg
An Art Deco hotel on Austurvöllur in Reykjavík.
Where to stay in Reykjavík: Hotel Borg
A classic Art Deco hotel on Austurvöllur square, right in the centre. Good for the first and last night, before you collect or return the car.
Book your stay: See rooms at Hotel Borg
What you need to know about driving in Iceland
Weather and roads: Check road.is for road conditions and safetravel.is for safety advice every morning. The weather can change fast, especially in winter.
F-roads: Highland roads are marked F, open only in summer and require four-wheel drive.
Off-road driving is illegal and carries heavy fines.
Single-lane bridges and sheep: Many bridges have only one lane, and sheep roam freely by the road in summer.
Fuel: Stations can be far apart outside the towns. Fill up when you can.
When should you book your hire car?
For summer: book early, as both cars and south coast accommodation fill up quickly.
In winter: choose four-wheel drive and studded tyres, and plan shorter stages.
Compare the insurance, not just the price.
Frequently asked questions about car hire in Iceland
Do I need four-wheel drive in Iceland?
In summer an ordinary car is fine for the Ring Road, the Golden Circle and the south coast. If you plan to drive the F-roads in the highlands, four-wheel drive is required. In winter, four-wheel drive and studded tyres give more security on ice and snow.
How long is the Ring Road in Iceland?
The Ring Road (Route 1) is just over 1,300 kilometres. Most people spend at least a week on the full loop, and often ten days or more if they include Snæfellsnes and the fjords.
What insurance do I need for a hire car in Iceland?
On top of standard cover, many people choose gravel protection, because stone chips are common, and sand and ash protection on the south coast, where strong winds can blast sand at the car. Read the terms carefully.
Is it safe to drive in Iceland in winter?
It can be, but it takes more planning. Days are short, roads can be icy and some routes close in storms. Choose four-wheel drive, check road.is and safetravel.is every morning and keep to shorter stages.
Where do I collect my hire car in Iceland?
Most people collect the car at Keflavík airport, where many companies have desks or shuttle buses. You can also pick up in Reykjavík if you are spending your first days in the city.