Iceland’s wild beauty draws visitors from around the world. From the Northern Lights and the Blue Lagoon to volcanic fields, glaciers, and waterfalls, the landscape feels like another planet. And the best way to take it all in? A road trip, where you’re free to travel at your own pace, stop when something catches your eye, and explore beyond the usual tourist routes.
But driving in Iceland isn’t always straightforward. Weather conditions can change in an instant, rural roads may be rough or unpaved, and some local driving rules might catch visitors off guard. Whether you’re planning a day trip from Reykjavík or a complete circuit of the Ring Road, knowing how to prepare is key. Mistakes here aren’t just inconvenient—they can lead to accidents, fines, or getting stranded far from help. To make sure your trip runs smoothly, here’s what every traveller should know before hitting the road.
If you’re visiting Iceland during the busy summer months between June and August, you’ll soon notice that tourism is booming. Many visitors rent cars to explore the countryside, and vehicles can quickly become fully booked. This is especially true for certain types of cars like 4x4s, which are often required for mountain roads. To avoid disappointment, it’s best to book your vehicle in advance. Booking early not only gives you more options but also helps you secure better prices. Last-minute bookings can be stressful and expensive, especially in peak season when demand is high.
Planning is not just about reserving a car, it’s also about thinking through your trip in detail. Consider where you will be travelling, the time of year, and the length of your journey. Some routes in Iceland require careful preparation, such as the famous Ring Road, which takes you around the entire island. Popular routes like the Golden Circle can be done in a day, but it’s still wise to plan for rest stops, meals, and even an overnight stay if needed. Planning makes your trip easier and helps you avoid unexpected issues.
Choosing the right vehicle is one of the most important steps when planning a road trip in Iceland. While main highways like Route 1 (the Ring Road) are paved and well-maintained year-round, many other roads are not. Once you venture beyond the main routes, you’ll likely encounter gravel tracks, steep mountain passes, and rough F-roads.
F-roads lead to Iceland’s Highlands and remote areas and are usually open only in summer. They often involve river crossings, loose gravel, and uneven terrain. Driving these roads legally requires a 4x4 vehicle. Attempting them in a two-wheel-drive car could lead to fines, vehicle damage, or getting stranded. Even in summer, sudden rain or snow can make conditions dangerous.
Winter driving adds extra challenges. Snow, ice, and uncleared roads are common, especially outside main towns. Although rental cars come with winter tyres, careful driving is still essential. If you’re unsure about winter conditions, it’s safer to stick to the main roads or join a guided tour.
Many tourists overlook the fine print when renting a car, especially regarding insurance. In Iceland, this can be risky due to the country’s unique weather and road conditions. Basic insurance usually covers collision damage, but extra protection is often recommended. Gravel protection is helpful because many Icelandic roads are unpaved, and stones can easily damage your car. Sand and ash protection is also advised, especially in the south, where volcanic ash and sandstorms can harm the vehicle’s exterior.
Some companies offer a Super Collision Damage Waiver (SCDW) to reduce your liability in case of an accident. Theft protection is usually included, but always check the details before signing. Ask the rental company to explain all coverage clearly. Having the right insurance gives you peace of mind, so you can focus on enjoying your trip without worrying about extra costs. For more details on staying protected, read our blog Stay Protected on Iceland’s Roads with This Essential Insurance Guide.
Driving in Iceland comes with unique rules that might be different from what you're used to at home. Understanding the local laws is essential for staying safe and avoiding costly fines. Here are the key regulations every tourist should know before hitting the road:
Iceland is known for having some of the most unpredictable weather on the planet. In one day, you might experience sunshine, rain, snow, and strong winds, all within a few hours. That’s why it’s essential to check the weather forecast before setting out each day. If you are driving in winter, be especially cautious. Snowstorms can close roads suddenly, and black ice is a common hazard. Even in summer, some mountain roads may be impassable after heavy rain or landslides. Always stay updated on conditions, and if in doubt, consider postponing your journey or choosing a safer route.
Iceland is a country with large areas of wilderness and few towns outside Reykjavík and Akureyri. Petrol stations can be few and far between in remote areas, so it’s smart to fill up your tank whenever you have the chance. Even if you still have half a tank of fuel, it’s better to be safe than sorry. Most petrol stations in Iceland are self-service and accept credit or debit cards. Some stations are unmanned, especially in rural areas, so it’s helpful to carry a payment card with a PIN. Don’t assume you’ll find another petrol station just around the corner, on some routes, there may not be another one for hours.
Iceland’s environment is unique but fragile. The moss that covers much of the lava fields, for example, can take decades to grow back if it is damaged. For this reason, off-road driving is strictly illegal. Driving off marked roads or tracks causes permanent harm to the landscape and can result in hefty fines. Always stick to marked routes and park only in designated areas. This not only protects nature but also keeps you safe from hazards like soft ground, which could trap your vehicle. Respecting the environment ensures that Iceland remains beautiful for future visitors to enjoy.
When you collect your vehicle, take time to carefully inspect before leaving the rental location. Look for scratches, dents, tyre wear, or any other damage. Use your phone to take photos or videos of the car from all angles. Ensure the rental company is aware of any issues you find so that you won’t be held responsible for damage that was already there. Check the condition of the tyres and make sure the spare tyre, jack, and necessary tools are in the vehicle. In Iceland’s remote areas, having the proper equipment can make a big difference if you run into trouble.
Iceland has areas where there is no mobile phone signal, particularly in the Highlands and other remote regions. For this reason, it’s wise to plan your route before you start your trip. Download offline maps to your phone or carry a paper map just in case. This will help you stay on track, even if you lose reception. Having a clear plan also means you’ll know where to stop for food, fuel, and rest. Driving long distances in Iceland can be tiring, and it’s better to take your time than to rush.
Renting a car is one of the best ways to experience Iceland’s incredible landscapes at your own pace. Whether you're exploring the Golden Circle or taking on the Highlands, choosing the right vehicle and the right rental partner makes all the difference. Here’s why Final Rentals is a reliable option for your journey:
For more helpful advice on preparing for your drive, take a look at What You Need to Know Before Hitting the Road in Iceland.
Exploring Iceland by car is one of the best ways to experience the country’s natural beauty and unique landscapes. By following this guide of dos and don’ts, you’ll be well-prepared for a safe and unforgettable trip. Plan, respect the local laws, and take care of both your vehicle and the environment. Ready to hit the road? Rent a car in Iceland with Final Rentals and start your adventure today!
