Iceland is a country with some of the most beautiful and untouched landscapes in the world. Whether you’re hiking through lava fields or relaxing in natural hot springs, getting around requires planning. Transportation in Iceland varies depending on your travel style, time, and budget. I’m going to break down the different ways you can get around, from public transport to car rentals. Let’s get straight into it.
Public Transportation in Iceland
Public transport in Iceland is mostly limited to buses and is primarily centered around Reykjavik. If you’re planning to stay in the capital area, buses are reliable and affordable. The bus company, Strætó, operates all the buses. You can use their app to plan routes and buy tickets.
A single fare within Reykjavik costs around 490 ISK ($3.50 USD). You’ll need exact change if you pay onboard, or you can use a contactless payment method. If you’re planning to stay in the city for a few days, the Reykjavik City Card offers unlimited travel on Strætó buses, as well as free access to some museums and pools.
Buses Outside Reykjavik
Outside the capital, public transport becomes more limited. There are bus routes linking small towns and tourist spots, but they run less frequently. Some buses cover long distances, like the ones going to Akureyri or along the South Coast. However, they’re not ideal for spontaneous trips, as schedules tend to be infrequent and might not fit well with specific tours or activities.
Bus trips between major towns can cost you between 2,500 ISK and 9,000 ISK ($18-65 USD), depending on the distance. If you’re exploring more remote locations like the Westfjords or the Highlands, public transport may not be a reliable option due to limited services.
Taxis in Iceland
If you’re not up for renting a car, taxis can be an option in Reykjavik and some of the larger towns. They’re not as prevalent as in other European cities, but you’ll find them around bus stations, hotels, or in downtown areas.
Keep in mind that taxis in Iceland are expensive. A short ride within Reykjavik could easily cost you 2,000 ISK ($14 USD) or more, depending on the time of day and distance. Most taxis accept credit cards, so you don’t need to worry about having cash on hand.
Calling a taxi can be done via phone or by using an app like Hreyfill Taxi, the main taxi company in Reykjavik. It’s worth noting that hailing a cab off the street is less common here.
Airport Taxis
Taxis between Keflavik International Airport and Reykjavik can be costly. A one-way ride will likely set you back around 16,500 ISK ($120 USD). While convenient for some, it may not be the most budget-friendly option if you’re traveling alone. Most travelers use airport shuttle services or buses instead.
Rideshare Services in Iceland
Iceland doesn’t have ridesharing services like Uber or Lyft, so don’t expect to open your app and call a cheap ride. Everything is done the old-fashioned way through taxis or public buses. This might feel a bit less convenient if you’re used to rideshare services in other countries, but it’s easy enough to adapt.
Renting a Car in Iceland
Renting a car is one of the most popular ways for tourists to explore Iceland. Given that public transport beyond Reykjavik is limited and taxis are expensive, having your own vehicle offers a lot of freedom. If you’re planning to visit places like the Golden Circle, the Ring Road, or the Highlands, renting a car makes a lot of sense.
How to Rent a Car
Renting a car in Iceland is straightforward. Major international companies like Hertz, Europcar, and Avis operate here, as well as Icelandic companies like SADcars and Go Iceland. You can rent a car either online or directly at Keflavik airport when you land. Booking in advance will generally save you money.
You’re going to need a valid driver’s license from your home country. You don’t need an international driver’s license, as long as your license uses the Roman alphabet. Most rentals are equipped with automatic transmission, but manual transmission cars are available as well.
Cost of Renting a Car
Renting a car isn’t cheap, but with enough planning, it can be affordable. Basic cars start around 5,500 ISK ($40 USD) per day in the off-season, but prices can skyrocket during summer. For a 4×4, expect to pay at least 10,000 ISK ($70 USD) per day on the low end. Travel insurance companies often recommend renting a 4×4 if you plan on exploring beyond main roads.
Gas is pricey, too. Be prepared to spend about 290 ISK ($2 USD) per liter of fuel, which is close to $8 per gallon. Most gas stations offer self-service and accept credit cards with a PIN.
Driving in Iceland
Driving in Iceland is safe for careful and experienced drivers, but the weather and road conditions can sometimes be unpredictable. Roads in Reykjavik and along the Ring Road are paved and generally easy to navigate. However, once you go off the beaten path, especially into the Highlands, you’ll encounter gravel roads and river crossings—not ideal unless you’ve rented a 4×4.
Winter Driving
If you’re visiting in winter (October to March), driving can be challenging. Snow, ice, and strong winds are common. It’s important to check the weather forecast regularly and monitor road conditions using websites like road.is.
Roads can close due to sudden weather changes, and black ice is a serious hazard. Winter tires are mandatory during these months, and they’re usually standard with rented cars.
F-Roads: What You Need to Know
F-Roads are highland mountain tracks that require a 4×4 vehicle. They’re marked with an “F” in front of the road number and are generally open only during the summer months (June to September). These roads are not for beginners. Many rental companies won’t allow you to take standard cars on F-Roads, so make sure you’re aware of your rental agreement’s restrictions.
Airport Transfers
Getting from Keflavik International Airport to Reykjavik is fairly straightforward. Most travelers opt for airport shuttles, which are cheap and reliable.
Airport Shuttle Buses
The Flybus and Airport Express are the most popular bus services from Keflavik Airport to Reykjavik. These shuttles run timed to flight arrivals and departures. Ticket prices are around 3,500 ISK ($25 USD) for a one-way trip. You can either buy tickets online, from kiosks at the airport, or through your hotel. Both companies offer hotel drop-off and pick-up services for an additional fee.
The bus journey from the airport to Reykjavik takes about 45-50 minutes. It’s a stress-free option if you don’t want to worry about driving as soon as you land.
Private Transfers
If you’re traveling with a big group, private transfers are available but expensive. You can book them through local companies or your hotel. They usually charge between 15,000 and 30,000 ISK ($110-200 USD), depending on the size of your vehicle and the number of passengers.
Is Driving in Iceland Safe?
Driving in Iceland is safe, but you do need to stay cautious. The main risks come from unpredictable weather and rural roads. Always check the weather forecast and road conditions before you head out, especially if you’re in remote areas. Also, keep an eye out for signs warning of animals, especially sheep, which often wander near the roads in rural areas.
Speed limits are strictly enforced, and cameras are widespread. On paved roads, the limit is often 90 km/h (55 mph), while gravel roads generally have a limit of 80 km/h (50 mph). Stick to these limits to avoid fines, which can be steep.
Final Tips
Knowing how you’re going to get around Iceland is key to enjoying your trip. If you’re staying in Reykjavik, public buses are reliable, but as soon as you head to more remote areas, renting a car is your best option. Taxis are convenient but expensive, and rideshares aren’t available.
Iceland’s natural beauty is stunning—but also remote. Driving yourself allows you to stop wherever you’d like and truly take it all in. Just make sure you’re prepared, especially if you’re visiting during the winter months.
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