Renting a Car in Iceland in Winter: Is It Worth it?
Are you wondering if renting a car in Iceland in winter is a good idea?
When I planned a trip to Iceland in February, I went back and forth on whether or not we should rent a car. I had so many questions like is it safe? Does it make sense from a cost perspective? Will I be able to handle the winter conditions?
We did end up renting a car for our trip, but I don’t think that’s the right decision for everyone.
So in this post, I’ll cover everything you need to know about renting a car in Iceland in winter to help you decide whether or not it’s the right choice for you!
Iceland Trip Planning at a Glance
Don’t have a lot of time? Here’s a quick mini guide to Iceland to help plan your epic adventure!
Where to Stay:
– Hotel Von (Budget/Moderate)
– Canopy by Hilton (Moderate)
– Tower Suites Reykjavik (Luxury)
– Igloo Hotel (ICONIC!!)
Places to Eat & Drink:
– Messinn for seafood
– Fjallkonan for cocktails
– Kol for a gourmet meal
– Bæjarins Beztu Pylsur for the famous Icelandic hot dogs!
Things to Do:
– Chase the Northern Lights
– Visit the South Coast waterfalls
– Drive the Golden Circle
– Hike to an ice cave
– Go on a food tour in Reykjavik
Renting a Car in Iceland in Winter: Everything You Need to Know
To start off this guide, let’s discuss the pros and cons of renting a car during Iceland in winter! This will help you understand the entire picture.
Then, you can decide what’s most important to you in terms of cost, safety, flexibility, etc. to help you decide!
Pros of Renting a Car in Iceland in Winter
Flexibility and Freedom
Winter in Iceland brings some of the most awe-inspiring natural wonders, like hiking to ice caves and finding frozen waterfalls. However, many of these adventures are located far from the capital city of Reykjavik where most people stay!
Renting a car means you can create your own itinerary and go where you want, allowing you to linger longer at popular sites or chase the Northern Lights on your own schedule.
For example, when we visited Iceland, we specifically visited Seljalandsfoss and Skógafoss waterfalls early in the day to avoid the giant tour buses that arrived. If you book a tour, you are typically stuck with whatever schedule they assign.
Renting a car also allows you the flexibility to be a little spontaneous in your days. You might be driving down the road and see some Icelandic horses. If you’re in your own car, you can pull over and take photos of them! (Like we did).
However, if you are on a tour with a schedule to keep, you probably won’t get this opportunity.
Similarly, having your own car will let you change your plans if bad weather arrives. You might have one activity planned for the day that gets rained out (or snowed out..). If you have a car, you can simply adjust your plans and do something else.
If you’re going on a tour though, that tour might just get cancelled and moved to another day and you might be stuck in town.
Access to Unique Locations
Guided tours are convenient, but they mostly cover the main tourist sites like the Golden Circle, Reykjavik, and the Blue Lagoon.
There are tours that journey to further areas like Vik and Katla Ice Cave or some “hidden” hot springs. But there aren’t many that go beyond that from Reykjavik in winter.
In addition, none of these destinations will be hidden or empty since you’ll be with a tour group! Of course, you could get around this by booking a private tour, but this can be a little pricey!
Renting a car, on the other hand, enables you to go further, reaching lesser known spots that the tour buses don’t go.
It also allows you to stay outside of Reykjavik if you want to! We personally stayed in Reykjavik for the first four nights, and on our last night, we stayed in this iconic igloo hotel in Hella. It was a magical experience, and one we wouldn’t have had if we didn’t have our own car!
➡️ Read Next: Ultimate Iceland Winter Packing List! ☃️🧣
Ideal for Budget-Conscious Groups
Iceland is not a cheap destination by any means, and tour costs can add up quickly if you’re traveling with a partner or a group.
On the other hand, renting a car and splitting costs for rental, fuel, and insurance can be significantly cheaper than booking separate tours, especially if you’re staying in Iceland for more than a few days.
In fact, I compared exactly how much it would cost for us to rent a car and explore on our own versus use private transportation and book tours for our excursions, which you can find later in this post.
To help you decide, I recommend doing something similar for your own trip so you can compare costs!
Cons of Renting a Car in Iceland in Winter
Now let’s talk about the cons of renting a car in Iceland during winter, because it’s not all sunshine and rainbows. In fact, it’s mostly snow and wind and rain!
Challenging Winter Road Conditions
Icelandic winter roads can be demanding, especially if you’re not experienced with winter driving. Snowstorms, icy patches, and high winds are common and can make driving hazardous.
In addition, Iceland’s weather changes rapidly, so it’s essential to be prepared for reduced visibility and slippery driving conditions on icy roads at all times.
For example, when we were driving from Reykjavik to Vik, we encountered a crazy snow storm that was blowing snow across the highway, making it extremely difficult to see. Luckily, we made it to our destination safely since we had experience driving in those conditions.
However, we found out later that the conditions were even worse further north and there were many cars and tour buses involved in accidents that day! So, understand that the weather and road conditions are no joke.
Black ice is another concern, particularly in the early morning or after dark. Although rental cars in Iceland typically come equipped with studded winter tires, driving on icy roads still requires caution and experience. If winter driving feels intimidating to you, guided tours may be a safer option.
Parking in Reykjavik
Another thing to consider when deciding if you should rent a car in Iceland is the parking situation in Reykjavik. As the capital city, parking is somewhat limited in Reykjavik, especially during the summer months.
However, since we visited during the winter, we were able to find parking near our hotel each day and evening on our trip to Iceland. The furthest we had to walk to our car was maybe 5 minutes, so it was totally doable.
Most street parking near hotels in Reykjavik requires payment. Reykjavik has a zone-based parking layout, with the most central streets costing the most money. This Reykjavik parking guide does a great job explaining the layout, how to pay, etc.
Some of the street parking was in well-marked rows that were easy to get in and out of. However, some were along the narrow streets that required parallel parking, which can be a little dicey with snow on the ground. Because our rental car had the right tires, we managed just fine!
Overall, the parking situation in Reykjavik was totally doable for us, and I wouldn’t really consider it a con, aside from the small added costs. But, it does require some more logistics during your trip, so it’s something to consider!
Potential for Road Closures
One of the biggest risks of renting a car in winter is that Iceland’s road network is frequently impacted by weather. Snowstorms and avalanches can lead to sudden road closures, especially on high-altitude or remote roads. Even Route 1, the main ring road, can experience temporary closures due to poor weather conditions.
Road closures could potentially alter or delay your plans, especially if you’re trying to reach remote areas. Keep in mind that some destinations, like the Westfjords and the Highland region, become virtually inaccessible during winter.
Additional Insurance and Planning Costs
While renting a car can be economical, there are additional costs to consider in winter. Winter driving insurance packages can be costly. Options such as gravel protection and sand-and-ash insurance are highly recommended due to Iceland’s windy and often abrasive conditions.
Sandstorms and volcanic ash can cause significant damage, which won’t be covered by basic insurance. We didn’t know about this until we arrived in Iceland!
In addition, renting a car in Iceland in winter means more time and planning required to monitor weather updates, road conditions, and daylight hours.
Cost Comparison: Tours vs. Car Rental
Now that you understand the pros and cons of renting a car in Iceland during winter, I wanted to provide a deeper look into the costs associated with renting a car versus taking tours!
Before our trip, I wrote out all the activities we had planned and compared costs of each based on if we had a car or had to take a tour or private transportation. For example, if you don’t have a car, you’ll need to not just factor in your tours, but also transportation from the Keflavik airport!
Here are the results for our trip! This is based on two people for a 5 day trip to Iceland in winter. I recommend you do the same for your trip to help you decide.
Rental Car Costs 🚙
Base Cost of Rental Car: $200
Roadside Assistance & Extra Driver: $80
Gas Costs: $150 (gas is expensive!)
Total Cost for Renting a Car: $430
Split between two: $215/person
Private Transfer Costs 🚌
Roundtrip Airport Transfer Bus: $53/person
Private Transfer to Sky Lagoon: $30/person
Golden Circle Day Tour: ~$80/person
South Coast Day Tour: ~$150/person
Total Cost for Private Tours: $313/person
Based on these results, it was actually cheaper for us to rent a car with DiscoverCars.com than to book tours for our trip to Iceland. This is partially because the rental car was so cheap!
Of course, if you have more than 2 people, these numbers will skew quickly, as the tour costs add up per person. But with a rental car, the more people you have, the cheaper it becomes since you can split the cost of the rental, insurance, and gas!
Make sure to book your Iceland rental car with DiscoverCars.com for the best prices!! 🚙❄️
Other Things to Know for Driving in Iceland in Winter
Road Closures
In Iceland’s winter months, road closures due to snow, ice, and high winds are common, especially in more remote or mountainous areas. It’s important to check road conditions daily during your trip.
The Icelandic Road and Coastal Administration’s website (road.is) provides real-time updates on road closures, road conditions, and weather warnings.
Some of the common road closures and safety considerations in winter include:
- Highland Roads (F-roads): Closed throughout the winter season.
- Westfjords Region: Known for frequent closures due to heavy snowfall, this area can be challenging to access in winter.
- Route 1: While generally open year-round, sections of Route 1, especially in the north, can close temporarily during severe weather. Always have a backup plan and check for the latest updates.
We personally only went as far as Vik from Reykjavik during our winter trip to Iceland, but some people drive the entire Ring Road.
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Winter Driving Tips
Here are some general winter driving tips to keep you safe during your trip to Iceland!
Hopefully you already know most of these. If you have never driven in winter weather before, I don’t recommend doing it for the first time in Iceland.
- Drive Slowly and Maintain Distance: Icelandic winter roads are often icy. Slow down and increase your following distance, especially on narrow or winding roads. Sudden braking or rapid steering adjustments can lead to skidding, so drive cautiously and never slam on the brakes (tap instead).
- Stay Updated on Conditions: Checking weather and road conditions each morning is crucial. Local websites like safetravel.is provide comprehensive weather and road updates, helping you plan each day based on current conditions.
- Keep Your Headlights On: Iceland’s winter days are short, and the low light can make it harder for other drivers to see you. Keep your headlights on during the day and night to increase visibility.
- Watch for One-Lane Bridges: Iceland has several one-lane bridges, particularly on Route 1. Always yield to oncoming traffic and proceed slowly across these narrow bridges to avoid accidents.
Types of Cars for Winter Driving
Choosing the right car is essential for a safe and comfortable winter driving experience in Iceland. Most car rentals companies in Iceland will prepare you for the winter weather by offering four wheel drive (4×4) SUVs.
A 4×4 vehicle offers greater traction on icy roads and provides higher ground clearance, which is helpful when navigating rough terrain or deep snow.
In addition, studded or snow tires are a must, offering extra grip on ice and snow. Verify with your rental company that the vehicle is equipped with these tires before you confirm your reservation.
If you’re sticking to Reykjavik and the Golden Circle, a smaller 2wd car/SUV might suffice. However, for any plans involving the South Coast or Northern Iceland, opt for a 4×4 for added safety.
Iceland Winter Activities
If you’re planning a trip to Iceland in the winter, there are some epic activities that you should take part of!
Below I’ll touch on a few of my favorite things to do in Iceland in winter and give my recommendation on whether or not you should drive.
Chasing the Northern Lights
Of course, most people travel to Iceland during the winter to see the Northern Lights, which are typically visible from September – April. However, longer nights in the heart of winter give you more chances of seeing them.
Even if you rent a car during your winter trip to Iceland, I actually recommend booking a tour, at least for one night, to chase the Northern Lights. This is for a few reasons!
First, tour guides in Iceland know all the best spots to see the Lights and are professionals at reading the aurora forecast information. They typically do these tours multiple nights a week, so they are very experienced at looking for the Lights.
In addition, most tours have several buses or trucks that go out each night to slightly different spots, and the drivers communicate with each other during the trip. So, if one group sees the Lights, the tour guides can let each other know!
Speaking of trucks, some Northern Lights tours are in huge 4×4 vehicles that can go off-roading and get to the really remote spots. I highly recommend booking a small group Northern Lights tour for this reason! They can get to way better places than the large tour buses or your normal vehicle could.
And lastly, going on a Northern Lights tour means you get to sit back and enjoy the ride and look for the Lights instead of being worried about driving in the snow in the pitch black darkness!
Read my complete guide to Booking an Iceland Northern Lights tour here!
Driving the Golden Circle
Another very popular activity to do in Iceland in both winter and summer is driving the Golden Circle. This 190-mile route covers 3 of Iceland’s most popular tourist attractions: Thingvellir National Park, Geysir Hot Spring, and Gulfoss Waterfall.
This is a very popular route, and it’s totally doable to do with your own rental car in the winter. We found that the roads along the route were well-maintained, and we didn’t encounter any bad weather luckily.
We loved being able to experience the Golden Circle at our own pace thanks to our rental car. For example, we found that the Geysir Hot Spring was a little overrated, so we didn’t stay long. We probably would’ve been annoyed if we were on a tour and had to be there for an hour!
Another reason why we loved exploring the Golden Circle on our own was because of where we stopped for lunch: Fridheimar Tomato Farm. In fact, this might have even been on our favorite spot on the Golden Circle!!
This tomato farm doubles as a restaurant, where you get to eat unlimited tomato soup in the middle of a greenhouse. They also had tomato beer and cocktails and plenty of other dishes to try!
We absolutely loved this place and recommend everyone visit there! So, if you do decide to book a tour for the Golden Circle instead of renting a car, make sure your tour includes a stop at this tomato farm like the one below!
9-Hour Golden Circle, Tomato Farm and Kerið Crater Tour from Reykjavik🍅❄️🚌
Exploring Hot Springs
Another fun winter activity in Iceland is soaking in the many hot springs and thermal pools! Thanks to its volcanic landscape, Iceland is full of different hot springs around the entire country.
We personally visited the Sky Lagoon on our winter trip to Iceland, which we loved. It’s only 15 minutes from downtown Reykjavik, which made it easy to drive to!
However, if you don’t have a car, GetYourGuide has options that include transportation and the entrance ticket.
The most famous hot spring in Iceland is the Blue Lagoon, which is located about 45 minutes away from Reykjavik, closer to the airport and the Sundhnúkur volcano, which has caused it to close a few times in 2024.
Although it is a bit further, it’s still easy to get to the Blue Lagoon via car in winter thanks to the well-maintained roads.
However, similar to the Sky Lagoon, you can buy a Blue Lagoon ticket that includes transportation on GetYourGuide.
If you want to visit more off-the-beaten-path hot springs while visiting Iceland during winter, your options for tours become much more limited.
There are several Golden Circle tours that also include a stop at the “Secret Lagoon”. However, multiple tours offer this, so I am not sure how much of a secret it actually is!
There is also this tour to Hvammsvik Hot Spring, which is a bit lesser known and won’t have as many crowds! It’s located about an hour north of Reykjavik.
Outside of those tours, you’ll really need your own car (or book a customized private tour) to explore the lesser known hot springs throughout Iceland!
Frequently Asked Questions
Is it safe to rent a car in Iceland in Winter?
Yes, in general it is safe to rent a car in Iceland in winter. However, this completely depends on the type of driver you are, the type of car you rent, and the winter conditions you encounter. Iceland is known for its extreme weather, which includes snow, wind, and rain. This extreme weather can make driving challenging in the winter, depending on the area.
Can you drive in Iceland in winter?
Yes, you can drive in Iceland in winter. However, it is recommend that you have winter driving experience and rent a vehicle that is equipped to handle winter road conditions in Iceland.
What kind of car is best for Iceland in winter?
The best kind of car for Iceland in winter is a 4×4 SUV. A 4×4 vehicle offers greater traction on icy roads and provides higher ground clearance, which is helpful when navigating rough terrain or deep snow. It is also recommended that your car have snow or studded tires.
Do you need to rent a car in Iceland in winter?
You don’t need to rent a car in Iceland in winter! Plenty of people skip the rental car in winter and rely only on guided tours and private transportation to get around. However, this may be a more expensive option depending on how many people you have and what tours you do.
Is it expensive to rent a car in Iceland?
This depends on what time of year you visit Iceland and what kind of car you rent! Winter is low season in Iceland so rental cars are much cheaper than if you were to visit in the summer months. Our rental car for 5 days in February was only $200!
Where to rent a car in Iceland?
The best place to rent a car in Iceland is from the airport. This way you can pick up your car upon arriving and hit the ground running. However, it’s important to know that some rental car companies require you to take a shuttle from the airport to their main location.
Should You Rent a Car in Iceland during Winter? Final Thoughts
I hope this blog post has helped you decide if you should rent a car in Iceland during winter! As you can see, renting a car in Iceland during winter is a personal decision that depends on your driving confidence, comfort with winter weather, budget and desire for flexibility.
Renting a car can add an adventurous element to your trip, granting you access to many incredible sites, but it also requires careful planning, knowledge of winter driving, and adaptability in the face of unpredictable weather.
We personally decided to rent a car because we had experience driving in winter weather, it was cheaper, and we didn’t want to stick with tour schedules every day!
So, it is up to you and your personal preference when it comes to deciding! Either way, I know you will have a fabulous time in Iceland during the winter!
➡️ Once you’ve got that done and you’re ready to continue planning your trip to Iceland, check out my guide on Exploring Iceland’s Golden Circle in Winter, one of the most popular day trips from Reykjavik!
Read More Iceland Blog Posts Below! ⬇️🇮🇸❄️
Visiting Iceland In February: Everything To Know!
13 Incredible Things to Do in Iceland in the Winter!
Ultimate 5 Day Iceland Winter Itinerary
Renting A Car In Iceland In Winter: Is It Worth It?
The Only Iceland Winter Packing List You Need!
How To Spend One Epic Day In Reykjavik
A Guide To Exploring Iceland’s Golden Circle In Winter
Is an Iceland Northern Lights Tour Worth It? Things to Know!
The Most Magical Stay at an Iceland Igloo Hotel!
An Epic Glacier Hike To The Katla Ice Cave In Iceland
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