Renting a Car in Iceland: Everything You Need to Know for an Epic Road Trip

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 t...