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The core decision: rent a car, or don't?
For most itineraries outside Reykjavik, a rental car is genuinely the best way to see Iceland — public transport between towns is limited, and the freedom to stop at every waterfall you pass is a big part of the appeal. That said, a car isn't automatically the right call for everyone.
Rent a car if: you're comfortable driving in variable weather, want flexibility over pace and stops, and are visiting outside deep winter (or are experienced with winter/snow driving).
Skip the car if: you're staying mainly in Reykjavik and joining day tours, visiting only in the darkest winter months without winter-driving experience, or traveling solo and would rather split costs and commentary with a group tour.
Flybus and airport transfers
The Flybus and similar scheduled coach services meet every arriving flight at Keflavík Airport and run to Reykjavik's main bus terminal (BSÍ) and, with the upgraded ticket, directly to your hotel. This is the default choice for visitors without a rental car, and tickets are usually cheaper booked online in advance than on the day.
Driving yourself: what to know
- Ring Road (Route 1) is paved and well-maintained; most F-roads (highland routes) are gravel, require 4x4 vehicles, and are only open roughly June–September.
- Fill up more often than you think you need to — fuel stations can be far apart outside the Reykjavik area.
- Always check road.is and vedur.is (the Icelandic Met Office) before setting out, particularly October–April.
- Speed limits are lower than many visitors expect (90 km/h on paved rural roads, 30–50 km/h in towns) and are enforced with speed cameras.
- Single-lane bridges and blind hills are common on rural roads — slow down and yield appropriately.
Public transport: Strætó buses
Strætó runs the public bus network within and around Reykjavik, plus some longer regional routes. It's a reasonable, affordable way to get around the capital area, but regional coverage thins out fast once you're outside Southwest Iceland, which is why most out-of-town visitors either rent a car or book organized tours instead.
Guided tours and day trips
If you'd rather not drive, day tours from Reykjavik cover almost every major highlight — the Golden Circle, South Coast, Snæfellsnes, glacier walks, ice caves and northern lights hunts all run as scheduled small-group or coach tours, typically with hotel pickup included. This is also the simplest way to access activities that require specialist vehicles or guides, like glacier hiking or ice cave tours, regardless of whether you also have a rental car for the rest of your trip.
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