04-04-2025
Many visitors are aware of the benefits of renting a car if they plan to drive longer distances while in Iceland, but you may be wondering, do you need a car in Reykjavík? The answer depends largely on what you plan to do, but overall, renting a car is one of the best ways to maintain optimal flexibility during your trip.
If you plan to solely stay in the city or prefer to do tours rather than drive yourself on vacation, renting a car isn’t always absolutely necessary. However, you will be giving up some level of freedom and be restricted to where you can travel by public transport or spend time on tours, making the set stops and nothing more.
While staying in Reykjavík to visit museums, shows, and other features, you likely won’t need to spend money on a rental car for that portion of your trip. The city has a fairly compact layout, with many sites visitors want to see located within easy walking distance of the city center.
In addition to easily walking to many locations, you can also catch the local public bus to get around the city or even to the outskirts. While the public buses don’t visit most of the natural sites around the country, they are an excellent option for getting around the city.
There are plenty of times when renting a car in Reykjavík makes perfect sense. Even if you think you don’t need a car if you’ll be staying in Reykjavík, there’s so much to see in Iceland. You don’t have to drive around the country to find plenty of things to see and do within driving distance of the city. Reaching these destinations will be challenging or expensive if you don’t have a rental car.
As you consider whether you need a rental car in Reykjavík, it’s beneficial to understand the benefits of doing so. While you may think you can easily get around needing a rental car, your trip will be more limited. If you want to make the most of your trip, you must consider the possibility of renting a car and driving yourself.
The top reason many tourists choose to rent a car is to enjoy the freedom of adventuring anywhere they wish with few or no restrictions. While certain rental cars can’t drive on specific roads, you will have much more freedom and flexibility than you would have using tours or public transportation.
Another reason you should consider renting a car, even if you’re staying in the city, is for comfort and convenience. Public transportation has set schedules and destinations, which can make it challenging to reach the places you want when you’re ready to go. A rental car is also considerably more comfortable than spending a lot of time on a city bus.
In addition to enjoying more freedom, renting a car will give you access to areas that you may not find on tour itineraries. Tours often go to the most popular sights and skip many of the smaller or more out-of-the-way locations. Renting a car gives you the ability to go wherever you wish, creating a fully custom itinerary and allowing you to avoid the crowds.
If you have no plans to go outside the city or prefer to take tours, there are some drawbacks to driving in Reykjavík. In fact, some visitors choose to pick up their vehicle later or drop it off sooner so they don’t have to deal with driving in the city or needing a designated driver. Here’s why you should consider reducing your rental period.
Because Reykjavík is so compact, it’s one of the few places in the country where you will encounter traffic that can slow you down. Reykjavík is one of the most populated areas in Iceland, so you will deal with locals commuting to work and going about their daily lives in addition to tourists, creating more traffic.
In addition to the possibility of encountering traffic, driving in the city comes with additional costs. Parking in the city is generally not free unless you are parking overnight. These fees can quickly add up. Renting a car while you are in the city can also increase the overall cost of renting your vehicle, but returning it early or picking it up late can help you save a little money in the long run.
If you will be visiting Iceland in the winter and don’t have much winter driving experience, it can be more trouble to rent a car. Iceland isn’t a good place to learn or practice your winter driving if you aren’t already used to it. In these situations, staying in the city and taking tours is often the more reasonable option to help you enjoy a safe trip to the country.
Once you get your answer to “Do you need a car in Reykjavík,” you will need to decide which vehicle will best suit your needs. There are various factors to consider to ensure you make the best decision for what you need and how much you are looking to pay for your rental.
One of the first factors you should consider in choosing a rental car is how many people will be traveling with you. A solo traveler or couple needs a smaller vehicle than a family of four or five people. You will also need to consider how much luggage you will have to give you plenty of space without feeling cramped.
The next factor is your itinerary. If you intend to drive mainly on the Ring Road and other paved roads with minimal detours on basic gravel roads, any vehicle will suffice. However, if you are traveling in the winter or want to drive the F-roads in the summer, you will need a suitable 4x4. Your rental company can recommend the most appropriate vehicle for your itinerary.
Finally, consider your budget. Rental companies often have a significant array of vehicles across various price points to help you choose one that will keep your travel costs within your budget.
After you select the appropriate rental car for your plans, you will get the choice of various insurance options and add-ons. These factors can increase your costs but will ensure you have a safe trip and have everything you need to reduce your stress.
Many people recommend opting for full insurance to give you complete peace of mind. When you purchase the highest insurance from your rental company, you can often return your car without worrying about whether you will be charged for even the most minor damage. However, keep in mind that even the highest insurance can have some exceptions.
Other add-ons may be available with your rental car, such as a WiFi box to keep you connected no matter where you go. If you want a second driver or have a child and need a car seat, you can add these on with your rental as well.
If you choose to rent a car during your stay in Reykjavík, the following tips will help you get around with as little stress as possible. Here’s what you need to know about driving around the city.
Sometimes, driving around Reykjavík can feel confusing, or it may be challenging to navigate the one-way streets without losing track of where you are. Having a GPS system can help you find the locations you want within the city. The Parka app can also help you find parking, allowing you to get around the city with less stress.
Remember to always wear a seatbelt and avoid using your phone without a hands-free device while driving. Both carry significant fines if caught. There is also zero tolerance for driving after drinking. The legal limit is quite low at 0.02 BAC, but if you have any alcohol in your system, you generally will not be allowed to continue driving.
When parking in Reykjavík, you will either need to pay to park on the street or in a surface parking lot. The closer to the city center, the more expensive the parking fees will be. There are also several parking garages in Reykjavík. These garages can sometimes be more expensive, but they are conveniently located and offer some protection from the elements.
Iceland is known for its unpredictable weather, no matter what time of year you visit. When you choose to rent a car during your stay in Reykjavík, you will need to prepare to drive in many weather conditions. The best thing you can do to ensure your safety is to regularly check the weather and road conditions before starting your journey in the morning.
Weather warnings and road closures are serious business in Iceland. The good news is that if you are staying in Reykjavík, you will have access to plenty of things to do if you do encounter a day where traveling isn’t advised. It’s easy to get to museums, restaurants, shows, shops, and more when you’re staying in the city itself.
In addition to paying attention to the weather and road conditions, you should also be aware of local driving laws and customs that may differ from your home country. Iceland drives on the right-hand side of the road and does not allow a right turn on red as is common in some countries. Many of the road signs should be familiar because they are fairly standard.
Another important difference from some other countries is the roundabout rules. In a two-lane roundabout, the interior lane gets the right of way. Cars should choose the outer lane to take the first exit and the inner lanes for the second or third exits. If you miss your exit, signal your intention to remain in the roundabout until you’re ready to leave it. Never change lanes inside the roundabout.
Following the speed limit is also extremely vital in Iceland. The roads are not built for speed and don’t have a shoulder in most areas. With a low speed limit of just 90 kph on most major paved roads, 80 kph on gravel roads, and 30 or 50 kph in cities and towns, it may seem low, but the fines for speeding can be quite severe.
Some other rules to be aware of include not stopping in the middle of the road or along a roadway without a designated stopping point. You should also keep your headlights on at all times. Don’t leave the switch on automatic because some vehicles don’t illuminate the rear lights in this setting.
If you simply aren’t comfortable renting a car or don’t want to spend your time driving in the country, there are alternatives to driving in Reykjavík. The following will help you choose between renting a vehicle or opting for one of the alternatives.
If you are looking for ways to get around Reykjavík itself, public transportation and walking are excellent options. Many city hotels are conveniently located to many of the city’s attractions, shops, and restaurants. You can easily hop on a city bus for a low cost or walk wherever you need to go. However, if you want to see sights outside the city, you will need another option.
Another popular option for those who choose not to rent a car is guided tours. Many operators pick up in Reykjavík from numerous bus stops located close to the hotels. These guided tours visit many of the most popular sights within driving distance, including the Golden Circle, South Coast, and Snæfellsnes. You will find many tour options to fit your time constraints and budget.
If you would rather not take tours, you do have some ride-sharing options. While Uber and other similar services don’t operate in Iceland, taxis, hitchhiking, and using Facebook groups to coordinate travel with locals or other tourists can help you get where you want to go without renting a car or taking a tour. These options can be challenging and may not work as you plan, requiring more flexibility.
The answer depends on your plans, your budget, and your comfort level driving in a foreign country or during adverse weather. If you still have questions about whether you should rent a car, the following FAQs can help you along in your decision.
In short, a car is not absolutely necessary to explore Reykjavík’s city center, but that doesn’t mean you shouldn’t consider having one at all during your trip. You can easily and cheaply get around the city, but once you’re ready to explore nature and other parts of the country, you will need to rent a car or use tours to see everything you want to see.
The Golden Circle is one of the most popular day trips from Reykjavík by car. This well-paved route takes you to three of the most iconic sights in Iceland: Thingvellir National Park, Gullfoss, and Geysir. There are numerous other stops along the route to make the day as long or short as you wish.
The South Coast up to Vík is another common choice for visitors. You will encounter numerous waterfalls, such as Seljalandsfoss and Skógafoss, along with various hikes, towns, and other sights to make a full day of it. Some visitors choose to stay near Vík instead of driving back to the city on the same day.
Snæfellsnes is another great day trip available from Reykjavík. Taking the full loop provides a little bit of everything Iceland has to offer in one compact location. While it can be a long day starting and ending in the city, it’s a great option to enjoy volcanoes, glaciers, waterfalls, and black sand beaches in one day.
With a car, you can create numerous other day trips based on what you would like to see. There are plenty of options for hiking, viewing waterfalls, and enjoying hot springs, all within easy driving distance of Reykjavík.
The rules for renting a car in Iceland can be stricter than renting in other countries. While you don’t need specific experience driving in Iceland, you will need to have held your driver’s license for at least one year prior to renting a vehicle in the country. You should also be at least 20 years old. Some rental companies require a higher age limit for 4x4s or charge a fee for younger drivers.
If you are traveling in the winter, you will need prior winter driving experience. Winter driving conditions in Iceland are different than in many other places, but you should have a basic understanding of navigating icy roads and snowy weather to keep yourself safe on the road in Iceland.
Do you need a car in Reykjavík? The answer is maybe. While some visitors are perfectly happy taking tours or seeing the sights within the city, if you want to maintain flexibility and comfort and see more of the country, renting a car is the best solution. You will spend a similar amount of money on taking tours and will get to enjoy the country at your own pace.
When you rent a car in Iceland, you can either stay in the city and take day trips or travel around the country, seeing everything you want and spending as much or as little time at each stop, giving you the ultimate flexibility.