Car Rental & Road Information: Finding Your Way in Iceland

What is the best way to travel around Iceland? How do you navigate the Ring Road? Does Iceland have any specific road signs? How do you drive on mountain roads in the Highlands? Discover all you need to know about renting a car and driving in Iceland.

Iceland has grown a lot in popularity over the last decade, with incredible growth in infrastructure and added road access to popular sights, but unfortunately, public transport is still lacking and not considered an easy way to travel around the island.

That is why renting a car in Iceland is the most popular way to travel around the island. It is a budget-friendly way to freely explore the country, allowing you to travel between regions at your own pace, stay at the best hotels around the Ring Road, and join the most amazing tours along the way.

What Type of Rental Vehicle Should You Choose to Drive in Iceland?

Iceland's road conditions are very different during the summer and the winter months. That is why it is important to select the best rental vehicle for you, taking into account what season you plan to visit Iceland.

During the winter months, renting a 4x4 vehicle is the preferable option, as this type of car has more traction in snow and ice and is more powerful due to its bigger motor and higher weight.

If you plan to visit in the summertime and stay on the paved roads of the Ring Road, renting a cheap and small car is enough. During the summer months, most standard vehicles are capable of taking you to the destinations you want to explore, as the road conditions are generally favorable for travel.

If however, you do plan to drive in the Icelandic Highlands, you would need to rent a 4x4 car, as these roads are only accessible with four-wheel drive cars and only open during the summer.

Before venturing out, it is highly recommended to check the official Icelandic road conditions website to stay informed about the latest road conditions and any closures that may affect your journey. Road conditions in Iceland can change rapidly due to weather and other factors, so staying updated while you travel is important.

• Learn more about How to Drive Safely in Iceland

• Explore the Ultimate Guide to Driving in Iceland

Where Do You Pick Up a Rental Car in Iceland?

When traveling to Iceland, it is recommended to book your rental car beforehand, especially during the busy summer months. Where you pick up your car will depend on which rental company you booked with and where you selected to pick up the vehicle.

Depending on which rental car company you selected, you might just walk up to the rental car office service desk at the arrivals terminal in Keflavik International Airport and get your keys to the car there, or there might be a person waiting in arrivals holding a sign with your name and/or the name of the rental company who will transfer you to the nearby car rental offices outside of the airport terminal.

If you prefer to head directly to the city after you land at Keflavik airport, you can book a transfer to go from the airport directly to your accommodation in Reykjavik. You can then have your rental car delivered to your accommodation in the city, but you must make such arrangements with your car rental company prior to your arrival as these types of deliveries often come with an extra cost.

The locations for pick up and drop off of car rental vehicles at Keflavik International Airport can be seen on the map below:

Where Do You Drop Off Your Rental Car?

Before heading to the airport at the end of your trip in Iceland make sure to leave with enough time before your flight departure to return your rental car. Returning a rental vehicle can take some time, depending on how busy the rental car office is and where it is located.

Some rental car offices are located close to the Keflavik International Airport, in a nearby building about 0.31 miles (500 meters) before you arrive at the airport. If the rental company you selected is located in that building, as you approach the airport, instead of heading straight to departures, turn right following the sign that says 'Car Rental Returns'. This is a square block, so if you do not find your company, just go round again.

If you have any trouble returning your car, contact the phone number that is on the detailed voucher you received at the time of booking and you will obtain the support you need.

Is GPS Reliable in Iceland?

The rental car you decide to book might be equipped with GPS, which is a well-known navigation system used all over the world. But in Iceland, it might be a bit harder to use, and here is why.

Not every location in Iceland has a proper postal address; this is due to the fact that often the house or store you are driving to in the countryside is the only one in the area. So, to avoid getting lost, it is important to choose “Point of Interest” instead of “Address” when trying to input a location using your GPS system in Iceland.

It is also important to type in the name of the location with precision so as not to get lost, as there are many places in Iceland that share the same name, such as the most famous street in Reykjavik, Laugavegur main street, which shares a name with the famous Laugavegur hiking trail in the Highlands as well as Laugavegur street in Siglufjordur town, in the north of Iceland.

If you prefer to use your phone for navigation during your trip it is highly recommended to add Wi-Fi to your preferences while choosing your rental car in Iceland. Wi-Fi is usually very reliable and available almost everywhere you travel around the island.

Why Doesn't Every Location in Iceland Have an Address?

With the exception of the city of Reykjavik and the town of Akureyri, Iceland is still a very rural place. Infrastructure is often simple, and there may only be one or two roads that take you to any given location.

For that reason, some country hotels and businesses have no postal address. They may only use the name of the farm and the name of the county in which the farm is located. It is simply the only business in that area, and the locals know where to go and where to make deliveries, so there is no need for an address.

How Does the Ring Road of Iceland Work?

The Ring Road of Iceland, also known as Route 1, makes a full circle around the island. This easily navigatable road is 98% paved and will take you directly to a myriad of the most popular towns, like, for example, the town of Vik, and iconic locations such as Lake Myvatn.

It is important to note that the Ring Road has a speed limit that never exceeds 55 m/h (90 km/h), and the lanes are only two and sometimes single lanes when it comes to bridges. Also, beware of free-roaming sheep as they often abruptly run over the road and damage to the vehicle caused by animals is not covered in insurance packages.

• Click here for a selection of summer self-drive tours in Iceland

• Click here for a selection of winter self-drive tours in Iceland

How to Face Problems Driving in Iceland

To avoid any issues during your road trip in Iceland, it is recommended to always check the official road conditions website before heading out; there, you can find a live map with all the road closures and current road conditions.

It is also highly recommended to download the Safetravel App before you start your trip; the app lets you send your GPS location to emergency services if needed to make it easier to find you if you need assistance. In case of an emergency, always call 112 to reach the emergency services.

If you have an issue with your navigation, you can stop at a gas station and ask for directions or purchase a paper map if needed. Icelanders are friendly people, so don't be shy and ask for assistance if needed.

Road signs in Iceland should also be easy to spot, with large, bold text and bright yellow color and most of the main locations today have tourist boards with a full description in English and a map to help you find your way.

If you don't have access to the internet while driving, you can always call (+354) 1777 for road information, available in English. To go directly to information about road conditions and weather, dial (+354) 1778.

The Road Signs of Iceland and Their Meanings

In addition to navigational signs to get you to your next location, there are other signs that indicate terrain and other road issues. See them in the picture below with explanations of their meaning in English.

Additionally, you might notice a looped square symbol with a blue background. This sign indicates a location of cultural interest or national heritage and it's been around in the Nordic countries since the late 1960s.

• Learn more about Road Signs in Iceland

Driving the F-Roads of Iceland

The word for mountain in Iceland is fjall. Mountain roads, therefore, are marked with an F before their number on the far left of the road sign in question. Because of this, when you read about many Highland destinations in Iceland, these roads are referred to as F-roads.

How Do You Drive on the Mountain Roads of Iceland?

Mountain roads are only accessible with a 4x4 vehicle, and these roads are only open during the summer. Rental cars that are not 4x4/4WD are not allowed on the F-roads by law, and rental four-wheelers are only allowed at the driver's own risk.

If you are found driving an F-road in an inappropriate vehicle, you will face a very hefty fine on top of any fees you may be charged for towing or assistance. This means that if any damage occurs, the driver is responsible for any necessary repairs, regardless of insurance coverage.

For your own safety, always check the road conditions before driving and don't feel shy to ask locals their opinions of the road conditions. You can also keep up-to-date on the ever-changing weather on the homepage of the Icelandic Met Office or with the Vedur app.

If you are not comfortable driving on these roads yourself but still want to experience the incredible Icelandic Highlands, there are many Super Jeep tours that can take you all over the country in modified 4x4 vehicles designed to handle the rough roads, driven by experienced local drivers.

Off-road driving is illegal in Iceland and may result in a big fine and up to 4 years in jail, so always stay on the designated roads and F-roads. Driving off-road leaves irreversible track marks in the delicate terrain of this beautiful country, so no matter what, you should never be tempted to take shortcuts across any open plains.

• Learn more about F-Roads in Iceland

Where Are the F-Roads Located in Iceland?

Mountain roads, or F-roads, are generally located in the center of the country or in smaller, hard-to-access areas of the coast. See all the F-roads in Iceland marked in red on the map below.

You can also pick up a paper booklet called Mountain Roads at Tourist Information Centres and in the offices of the Icelandic Tourist Board.

The mountain roads lead to beautiful sights and locations in the Highlands but they can be a challenge. It is wise to consider all your options before venturing onto the Icelandic roads and plan your trip ahead with as much information as possible.

• Discover a selection of Highland tours in Iceland

• See also: Weather in Iceland & Best Time to Visit

If you have any further inquiries about renting a car or driving in Iceland, don't hesitate to reach out, and we will gladly assist you in planning your trip to Iceland. Drive safe!