An Iceland Road Trip: Best Routes & Key Information

In this guide, we'll walk you through everything you need to know to make your Icelandic road trip successful. From the essentials of renting a car and choosing the right vehicle to the best road trip routes in the country, understanding the country's unique road network, fuel prices, and weather patterns, we've got you covered. Plus, we'll provide packing tips to prepare you for Iceland's ever-changing climate.

So, buckle up and get ready for an unforgettable journey through one of the world's most breathtaking landscapes.

Best Road Trips in Iceland

There are many things to consider when planning a road trip around Iceland, but we know that your main concern is "What route should I choose?" For that reason, we will start with the meat of the article first, and then we'll cover the rest of the information. Here are your best options:

The Ring Road

The Ring Road is Iceland’s backbone. Its actual name is Route 1, and goes around the whole country. Many travelers choose to make it entirely, stopping at certain attractions along the road. It’s very common to pick Reykjavik as the starting and finishing point of this road trip. It usually takes six or seven days to make it whole, making stops in major attractions and not feeling too rushed. The total length of the road is 1,332 kilometers (828 miles).

The Golden Circle

This is, perhaps, the most iconic route in Iceland. Located in the southwest of the country, not far from Reykjavik, the Golden Circle is a scenic loop that connects some of the main attractions in this region. It consists of three major stops, but many secondary ones can be added. It has a length of 300 kilometers (190 miles).

One of the main stops is Þingvellir National Park, one of the three national parks in the country. This place is not only beautiful but also a place of historic significance. Then we have the Geysir Geothermal Area, home of the famous Strokkur geyser. Here, geothermal energy can be witnessed like in no other place. The final main stop is Gullfoss, one of Iceland’s most iconic waterfalls.

Other secondary stops are worth a visit. There’s another gorgeous waterfall, Brúarfoss. You can also stop for a relaxing geothermal bath in the Secret Lagoon or Laugarvatn Fontana.

Iceland's South Coast

Driving along the South Coast of Iceland makes for an amazing 2-3 day road trip. Starting from Reykjavik, you’ll pass some of the most incredible spots in the country. There’s Seljalandsfoss, where you can actually walk behind the waterfall, and Skógafoss, which is huge and often has rainbows if the sun’s out. Reynisfjara, the black sand beach, is another highlight with its cool basalt columns and roaring waves—just be careful not to get too close to the water. You can also stop by Sólheimajökull glacier for a hike or explore Dyrhólaey for awesome views and puffins if it’s summer.

For a place to crash, Vík is a great option. It’s small but has cozy places to stay. If you’re not driving that far in one day, you can stop in Hella or Hvolsvöllur earlier—they’re quieter but still close to some cool spots.

The Diamond Circle

The northern counterpart of the Golden Circle. The Diamond Circle is a route that takes you to the best in this less-visited region of Iceland. It consists of five main stops, all of them impressive.

There are two magnificent waterfalls in this loop. The first one is Dettifoss, Europe´s second most powerful waterfall. Here, you can feel the water shake the ground, and standing in front is humbling. The other one is called Goðafoss, or “waterfall of the gods.” Perhaps not as impressive in size as Dettifoss, but the turquoise color of the water often leaves visitors speechless.

The next stop is Mývatn, a lake surrounded by a spectacular landscape. This area is known for its geothermal activity, with plenty of hot springs and volcanic craters. A little bit further north, we can find the Ásbyrgi Canyon, a surprising geological feature.

The fifth and final stop of the Diamond Circle is Húsavík, known as “the whale-watching capital of Iceland.” Many boat tours depart from its harbor, allowing you to see these huge mammals in their natural habitat.

Requirements to Rent a Car in Iceland

Before hitting the open road, it's crucial to understand the requirements for renting a car in Iceland. Here's what you need to know:

Age Requirements

The minimum age to rent a car in Iceland varies depending on the vehicle type. For standard cars and smaller vehicles, drivers must be at least 20 years old. For larger or luxury models, the minimum age is typically 23. Additionally, it’s required that drivers have held a valid driver's license for at least one year.

Driver's License and International Driving Permit (IDP)

If your driver's license is in the Latin alphabet (e.g., English, Spanish), you can rent a car in Iceland without needing an International Driving Permit (IDP). However, if your license is in a non-Latin alphabet (e.g., Russian, Chinese), you'll need to have a valid IDP or a certified translation of your license. Regardless, always carry your original driver's license, as copies are not accepted.

Payment Methods and Deposits

If you want to rent a car in Iceland, you’ll need a credit card in the driver's name to secure the rental and hold a deposit. This deposit acts as a security measure and is typically released upon the safe return of the vehicle. The hold on your credit card can last between 10 to 20 business days. If you don't have a credit card, you can use a debit card to purchase a premium insurance package.

Insurance

While basic insurance coverage is typically included in the car rental, it's highly recommended to consider additional insurance options due to Iceland's unique driving conditions. Upgrading your insurance can cover damages to the undercarriage, windscreen, and weather-related issues like ash or sand damage. Assess your travel plans and the areas you'll be driving in to determine the level of coverage that best suits your needs.

What Car Should I Choose?

Selecting the right vehicle is crucial for a comfortable and safe journey through Iceland's diverse terrains. Consider the following factors when choosing your rental car:

Assess Your Travel Plans

• Route and Terrain: If you plan to stick to paved roads and the Ring Road, a standard 2WD vehicle may be enough. However, if you're venturing into the Highlands or exploring F-roads (mountain roads), a 4x4 vehicle is mandatory.
• Season: Winter conditions can be harsh, with snow and ice making roads a bit difficult to navigate. In such cases, a 4x4 vehicle provides better traction and stability.
• Group Size and Luggage: Ensure the vehicle has adequate space for all passengers and their luggage. You’ll probably need a larger vehicle or a van if you’re traveling with a group or carrying bulky equipment.

Vehicle Options and Pricing

Here's a breakdown of vehicle categories and their approximate daily rates:

• Small Economy Cars: Ideal for solo travelers or couples sticking to paved roads. There are many vehicles in this category, with prices starting from 6,841 ISK (€45 or $46) per day.
• Midsize and Family Cars: Suitable for small families or groups needing more space. These cars start at 8,376 ISK (58€ or $60) per day and offer a balance between comfort and affordability.
• 4x4 or four-wheel drive: Essential for accessing remote areas and F-roads. You can get these vehicles from 7,851 ISK (€54 or $56).
• Passenger Vans: For larger groups or those requiring extra space, options start at 7,753 ISK (€53 or $56).

Additional Considerations

• Fuel Efficiency: Fuel prices in Iceland are high, so opting for a fuel-efficient vehicle can lead to significant savings.
• Transmission: Both manual and automatic vehicles are available. If you're uncomfortable driving a manual transmission, ensure you book an automatic in advance, as they may be in limited supply.
• Extras: Some vehicles come equipped with things like GPS, Wi-Fi, or child seats. Consider adding these features if they are what your travel needs.

The Roads in Iceland

Iceland's road network offers a unique driving experience, and understanding it could have a huge influence on your trip. They are a mix of well-maintained highways and rugged mountain tracks.

Ring Road

As we mentioned, The Ring Road, or Route 1, is the country's main road. It encircles the whole island, connecting major towns and attractions. it’s predominantly paved and accessible to all vehicle types. However, it’s advisable to still proceed with caution, as there can be sudden weather changes and narrow bridges along the route.

Gravel Roads

Out of the Ring Road, many rural areas have gravel roads. Navigating these requires caution, especially for those who are not used to these surfaces. While a 4x4 vehicle isn't always necessary on gravel roads, it's strongly recommended that you drive at reduced speeds to maintain control and prevent potential damage from loose stones that can chip your windshield or scrap the paint.

Urban Roads

Urban roads, particularly in Reykjavik and other significant towns, are generally in good condition and are quite easy to navigate. These roads are paved and well-maintained, though traffic signs and parking regulations can be strict.

F-roads

We finally get to the infamous F-roads, which give access to some of the country's most remote and breathtaking landscapes. These mountain roads are gravel tracks that lead to the Highlands and require a 4x4 vehicle due to their rough, unpaved nature and frequent river crossings. F-roads are typically open only during the summer months, from late June to early September, as they become impassable due to snow and ice in the winter.

Weather conditions play a significant role in driving safety across all road types in Iceland. Remember that the country's climate can be unpredictable, changing road surfaces, but we’ll explain more about this later.

Gas Prices

When planning a road trip through Iceland, it's essential to consider fuel costs, as the country is known for having some of the highest gas prices in Europe. This is mainly due to high taxes, fuel importation costs, and environmental policies to reduce carbon emissions.

As of late 2024, the average price for a liter of gasoline in Iceland hovers around 300 ISK per liter, equivalent to approximately €1.97 or $2.20. Diesel is generally cheaper than gasoline, with prices ranging between 240 ISK and 270 ISK per liter, translating to €1.58 to €1.77 or $1.76 to $1.97.

Fuel prices in Iceland are generally the same throughout the country, but slight variations can occur depending on the region and the supplier. Gas prices are higher in more remote areas where transportation and supply costs are elevated. For instance, gas stations in Reykjavik and other major cities may offer more competitive prices than those in less populated regions.

Several major gas station companies operate in Iceland, each offering different services and benefits. N1, the largest fuel provider in Iceland, has stations almost everywhere in the country, including remote areas.

The Weather's Influence on the Roads

Iceland’s weather is quite unpredictable and can change in minutes. Even in summer, you may encounter rain, wind, and bright sunshine all within the same hour.

Wind is one of the biggest challenges, particularly in open areas like the South Coast. Gusts can be strong enough to make steering difficult for small cars. If the wind is too strong, there can be road closures.

In winter, snow and ice are common on the roads. Some of them can become slippery, especially in the early morning or late evening. Black ice is a major hazard, so always drive slowly and carefully.

Fog and heavy rain are common in coastal areas and can reduce visibility significantly. Always use your headlights and maintain a safe distance.

Before setting out, check the road conditions and the weather forecast to see how your journey may be affected.

What to pack for a road trip in Iceland

If you’re planning a road trip through Iceland, packing well can make all the difference in your travel experience. The key to staying comfortable is layering your clothing, which allows you to adapt to sudden weather changes.

Clothing Essentials:

• Base Layers: Start with thermal underwear that wick moisture away from the skin, keeping you dry and warm.
• Mid Layers: Add insulation with fleece or wool sweaters, which trap body heat without adding excessive bulk.
• Outer Layers: Top off with a waterproof and windproof jacket and pants to protect you against rain and strong winds, common all year round.
• Accessories: Don't forget a warm hat, gloves, and a scarf to protect against the cold, especially during the winter months.

Footwear:

• Hiking Boots: Sturdy, waterproof hiking boots with good traction are essential for exploring Iceland's rugged terrains and slippery surfaces.
• Casual Shoes: Pack comfortable shoes for driving and casual outings.

Additional Essentials:

• Swimwear: Even if at first might sound strange, Iceland is renowned for its geothermal pools and hot springs, so bring a swimsuit to enjoy these natural wonders.
• Towel: A quick-drying travel towel is handy for visits to hot springs or unexpected rain showers.
• Reusable Water Bottle: Iceland's tap water is among the purest in the world; carrying a reusable bottle helps you stay hydrated and reduces plastic waste. You can safely fill up your bottle straight from the tap or even streams.
• Backpack: A lightweight, waterproof daypack is useful for carrying essentials during excursions.
• Camera: Iceland's landscapes are breathtaking; a good camera will help you capture the memories.
• Sleeping bag: If you plan to stay in campsites during your road trip, don’t forget a good sleeping bag that can endure low temperatures. Even if you’re staying in huts, many of them don’t provide bed clothing.

Conclusion

A road trip in Iceland is more than just a journey; it’s an immersive experience through one of the planet’s most extraordinary landscapes. By understanding the requirements for renting a car, choosing the right vehicle, familiarizing yourself with road conditions, and being prepared for Iceland's weather, you’ll set yourself up for an unforgettable adventure. With careful planning, your Icelandic road trip will be a memory you'll treasure forever. So, start planning, hit the road, and let the magic of Iceland unfold before you.

Frequently Asked Questions About Road Trips in Iceland