Iceland is one of those destinations that’s just dying for you to rent a car and explore. Of course, you can see Iceland on organized tours, but having your own wheels gives you a completely different experience.

There are waterfalls tumbling off cliffs, black-sand beaches, glaciers, steaming geothermal areas, tiny fishing villages, and viewpoints that seem to appear out of nowhere around every bend.

With a rental car, you can stop when you want, stay longer when you find somewhere you love, pull over for that random waterfall that wasn’t even on your itinerary, and get away from the crowds.

For us, that’s what a road trip is all about!

But driving in Iceland isn’t the same as renting a car somewhere like Spain or Canada.

The weather can change quickly, gravel roads are common, there are some unusual road rules to know about, and as of 2026, there’s also a new kilometer-based road charge to factor into your budget.

Here’s everything you need to know about renting a car and planning a road trip around Iceland.

Why Having a Car Is the Best Way to See Iceland

If you’re planning on seeing much more than the capital of Reykjavík, I really think renting a car in Iceland is the best way to travel around.

The country’s main attractions are spread out, and many of the best stops are surrounded by miles of open countryside.

Public transportation outside Reykjavík is limited compared with much of Europe, so without a rental car, you’ll most likely end up relying on organized tours.

Tours are great if you don’t want to drive, but having your own car gives…

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