Is Renting a Car in Iceland Worth It? A Practical Look for Travellers

Iceland has a way of pulling you off the beaten path. One minute you’re standing beside a famous waterfall, the next you’re spotting a hidden hot spring with no one else around. That freedom is exactly why so many travellers ask the same question: is renting a car in Iceland actually worth it?
The short answer is yes. For most visitors, it’s one of the best decisions you can make. But like anything, it depends on how you plan to travel.
Freedom to Explore at Your Own Pace
Public transport in Iceland is limited, and tours tend to follow fixed schedules. When you rent a car in Iceland, you get full control over your itinerary. Want to stop every five minutes for photos along the South Coast? Go for it. Feel like chasing the Northern Lights at midnight? You can.
This flexibility is especially valuable in Iceland, where weather and light conditions change quickly. Having your own vehicle means you can adapt on the spot rather than sticking to a rigid plan.
Access to Iceland’s Hidden Gems
While guided tours cover popular sights like the Golden Circle or Jökulsárlón Glacier Lagoon, many of Iceland’s most memorable places are off the main routes. Remote beaches,
lesser-known waterfalls, and quiet hiking trails are far easier to reach by car.
For travellers who want to experience more than just the highlights, driving opens up a completely different side of the country.

Cost Considerations
At first glance, renting a car in Iceland can seem expensive. However, when you break it down, especially if you’re travelling as a couple or group, it often works out competitively compared to booking multiple tours.
You also save on things like transport between locations and gain the option to choose more budget-friendly accommodation outside major tourist hubs.
Driving in Iceland: Easier Than You Might Think
Despite the dramatic landscapes, driving in Iceland is generally straightforward. The main roads, including the Ring Road, are well-maintained and clearly signposted.
That said, conditions can vary depending on the season. Winter driving requires extra caution, and some highland roads (F-roads) are only accessible in summer with 4×4 vehicles. A bit of planning goes a long way, but you don’t need to be an expert driver to feel comfortable.

When It Might Not Be Worth It
There are a few cases where renting a car may not be necessary. If you’re staying in Reykjavík for a short trip and planning to book guided tours, you can get by without one. Similarly, solo travellers on a tight budget might find tours more convenient.
But for anyone wanting flexibility, independence, and deeper exploration, these situations are the exception rather than the rule.
The Verdict
So, is renting a car in Iceland worth it? For most travellers, absolutely.
It’s not just about getting from A to B, it’s about the experience along the way. The freedom to stop wherever you like, change plans on a whim, and discover places that aren’t in every guidebook makes a huge difference.
If you’re considering renting, it’s worth looking at local companies like Lava Car Rental: a trusted Icelandic provider with strong reviews online, conveniently located 5 minutes from Keflavík International Airport, so you can pick up your car right after landing and start your journey without delay.
In a country where the journey is just as breathtaking as the destination, having your own vehicle turns a good trip into an unforgettable one.
Remember, never travel without travel insurance! And never overpay for travel insurance!
I use HeyMondo. You get INSTANT quotes. Super cheap, they actually pay out, AND they cover almost everywhere, where most insurance companies don't (even places like Central African Republic etc!). You can sign-up here. PS You even get 5% off if you use MY LINK! You can even sign up if you're already overseas and traveling, pretty cool.
Also, if you want to start a blog...I CAN HELP YOU!
Also, if you want to start a blog, and start to change your life, I'd love to help you! Email me on johnny@onestep4ward.com. In the meantime, check out my super easy blog post on how to start a travel blog in under 30 minutes, here! And if you just want to get cracking, use BlueHost at a discount, through me.
Also, (if you're like me, and awful with tech-stuff) email me and my team can get a blog up and running for you, designed and everything, for $699 - email johnny@onestep4ward.com to get started.
Do you work remotely? Are you a digital nomad/blogger etc? You need to be insured too.
I use SafetyWing for my digital nomad insurance. It covers me while I live overseas. It's just $10 a week, and it's amazing! No upfront fees, you just pay week by week, and you can sign up just for a week if you want, then switch it off and on whenever. You can read my review here, and you can sign-up here!





As you know, blogging changed my life. I left Ireland broke, with no plan, with just a one-way ticket to Thailand
and no money. Since then, I started a blog, then a digital media company, I've made
more than $1,500,000 USD, bought 4 properties and visited (almost) every country in the world. And I did it all from my laptop as I
travel the world and live my dream. I talk about how I did it, and how you can do it too, in my COMPLETELY FREE
Ebook, all 20,000
words or so. Just finish the process by putting in your email below and I'll mail it right out to you immediately. No spam ever too, I promise!