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Iceland Ring Road Driving Guide 2026

admin — Sun, 03 May 2026 21:43:01 +0000

Iceland Road Trip Route 1, Iceland Updated May 2026 11 min read

Iceland Ring Road Driving Guide 2026

The Ring Road — officially Route 1, or Hringvegur in Icelandic — is one of the world's great drives. One loop around an entire country: volcanoes, glaciers, black sand beaches, fjords, waterfalls, and more open road than you will know what to do with. For most visitors, the journey begins the moment they pick up their rental car at Keflavík International Airport and pull out onto the highway heading east.

This guide is written by the team at Project Car Rental, a locally-owned company based right at KEF. We drive these roads every week across every season. What follows is honest, practical advice — the kind we give customers before they leave our car park.

In This Guide

The basics — distance, direction, starting point
How many days do you really need?
The seasons — and why they change everything
What car do you need for the Ring Road?
Must-see stops by region
Road rules and driving tips
Fuel and gas stations
Frequently asked questions

The Basics: Distance, Direction and Starting Point

Route 1 circles the entire island, hugging the coast and connecting every major region. It is 1,332 km (828 miles) long. Driven nonstop under ideal conditions it takes around 17–20 hours — but nobody drives it that way, and you should not try.

Ring Road Quick Facts

Length: 1,332 km (828 miles)
Nonstop drive time: ~17–20 hours
Recommended trip length: 7–14 days
Road surface: Mostly paved; one gravel stretch in East Iceland
Single-lane bridges: Yes — yield to oncoming traffic
Speed limits: 90 km/h paved, 80 km/h gravel, 50 km/h in towns
Headlights: Required at all times, every season, by law

Clockwise or counterclockwise?

Most people drive clockwise — heading east from Reykjavík along the South Coast first. This puts the most iconic stops in the opening days of the trip, which gives the holiday an immediate strong start. The East Fjords and North Iceland then feel like a genuine discovery as the journey continues.

Counterclockwise works equally well and has one practical advantage: arriving at South Coast highlights later in the week, when the majority of clockwise drivers have already moved on, means slightly fewer people at the popular waterfalls and beaches.

Where does the Ring Road start?

Route 1 is a loop, so there is no fixed starting point. Most travellers begin in Reykjavík or pick up their rental car at Keflavík International Airport and join the road directly from there. The first major South Coast stops — Seljalandsfoss, Skógafoss — are less than two hours from KEF, making it easy to arrive, collect the car, and reach something spectacular on day one.

How Many Days Do You Really Need?

Minimum

Possible but very rushed. Long driving days, one-night stops almost everywhere, and no room for bad weather or spontaneity.

Sweet Spot

A comfortable pace with time to breathe, linger at highlights, and absorb the quieter regions properly.

Ideal

Two weeks lets you add Snæfellsnes Peninsula, spend extra nights chasing northern lights, and genuinely slow down.

The most common mistake on the Ring Road is underestimating Iceland's weather. A storm can close a road, reduce visibility to nothing, or make a long driving day genuinely unsafe. Setting out on a 7-day itinerary with zero flexibility is a recipe for a stressful holiday. Building in at least one buffer day costs nothing on the planning side and changes the entire experience.

"Seven days is technically possible. But ten days is where the Ring Road stops feeling like a schedule and starts feeling like Iceland."

The Seasons — and Why They Change Everything

This is the most important section in this guide. The Ring Road is a completely different trip depending on when you drive it. The season you choose affects the daylight you have, the road conditions you face, what you can see, and — critically — what car you should be driving.

June – August

Near 24-hour daylight (midnight sun)
All roads, hikes and attractions open
Warmest, most predictable driving conditions
Peak crowds at popular stops
Highest prices for cars and accommodation
Northern lights not visible

2WD handles summer conditions well

September – October

Autumn colours and dramatic golden light
Northern lights begin returning
Noticeably fewer tourists, lower prices
Weather turns fast — storms arrive without warning
Route 1 can ice over overnight in October
Highland roads closing from late September

4WD strongly recommended from September

November – February

Best season for northern lights
Ice cave tours accessible
Only 4–5 hours of daylight per day
Route 1 regularly icy, especially North and East
Snowstorms can close roads for hours
Lowest prices of the year

4WD essential — no exceptions

March – May

Days getting rapidly longer
Waterfalls at full power from snowmelt
Fewer crowds than summer
Snow still possible on Route 1 in March and April
Black ice common on bridges and exposed coastal stretches

4WD gives significant peace of mind

The Stretch Most Guides Don't Warn You About

The East Iceland coastal section and the exposed roads around Akureyri in the North are the most challenging stretches of Route 1 in winter. Even when the South Coast is clear and dry, these sections can be icy, wind-swept, and completely different driving conditions. Always check road.is before setting out each morning.

Local Tip: The September Sweet Spot

September is one of the best months for the Ring Road. The northern lights are back, summer crowds have thinned, accommodation is cheaper, and Iceland turns gold and amber. The weather is mixed — but that is part of the drama. Just make sure you have a 4WD.

What Car Do You Need for the Ring Road?

Many guides say: "Route 1 is paved, so a 2WD is fine for the Ring Road." In summer, that is fair. The road is dry, the conditions are predictable, and a standard car handles it comfortably.

But the Ring Road that most visitors are dreaming of — with northern lights overhead, fewer tourists, dramatic winter landscapes, and snow-capped volcanoes — is a different road in different conditions. And Route 1 in those conditions is not the same road.

From September onwards, Route 1 ices over regularly. The North and East sections in particular are exposed and can be treacherous after a night of frost. Bridges are the first to ice, and often stay icy after the road surface has cleared. A sudden snowstorm in the East Fjords, a crosswind on the coastal section near Höfn, a steep descent out of Akureyri on a frozen morning — these are all situations where 4WD with proper all-season tyres makes a real, tangible difference to how safe and in control you feel.

The Honest Advice

Visiting June–August? A 2WD car handles the Ring Road perfectly well in those conditions. If you are visiting September through May — especially for northern lights, lower prices, or to avoid peak crowds — choose a 4WD. The grip and stability on icy roads is not a marketing point. It is what keeps you moving safely when the weather does what Iceland's weather does.

At Project Car Rental, the Dacia Duster 4WD is the most popular choice for Ring Road trips from our fleet. It is practical, well-suited to Iceland's roads, and comfortable across long driving days. The Toyota RAV4 is the larger option for those wanting more space. Both come with CDW insurance included and no deposit required — no surprises when you pick up the car.

Must-See Stops Around the Ring Road

Route 1 passes through four distinct regions, each with a completely different character. These are the highlights worth planning around:

South Coast

Seljalandsfoss & Skógafoss

Two of Iceland's most famous waterfalls within 30 minutes of each other. Seljalandsfoss has a path that takes you behind the curtain of water — wear full waterproofs. Skógafoss is wider and more powerful, with over 500 steps to a viewing platform at the top. Both are worth the stop even in poor weather.

Reynisfjara Black Sand Beach

Near the village of Vík, this is Iceland's most dramatic beach — black volcanic sand, towering basalt columns, and powerful Atlantic waves that arrive without warning. Never turn your back on the ocean here. Sneaker waves are a genuine danger and claim lives every few years. Stay well back from the waterline.

Jökulsárlón Glacier Lagoon

Icebergs calving from Breiðamerkurjökull glacier float through a black-water lagoon and out onto the beach beyond. One of Iceland's most extraordinary sights — and genuinely as impressive in person as every photograph suggests. The adjacent Diamond Beach, where ice washes up on black sand, is steps from the car park.

East Iceland

The East Fjords

The quietest and least-visited section of the Ring Road, and one of the most beautiful. Narrow roads wind between steep fjords, small fishing villages, and wild coastline. Egilsstaðir is the main town and a good overnight base. The East rewards those who slow down — do not rush through it to get to the North.

North Iceland

Mývatn

A geothermal wonderland of craters, lava fields, steaming vents, and the warm Mývatn Nature Baths. One of the most geologically active and visually surreal landscapes in the country. Plan at least half a day, ideally more.

Goðafoss — Waterfall of the Gods

Just west of Mývatn, Goðafoss is historically significant as the place where Iceland's chieftain threw his Norse idols into the falls when the country adopted Christianity in the year 1000. Wide, powerful, and right off Route 1 — one of the easiest major stops on the entire Ring Road.

Akureyri

Iceland's second-largest town and a welcome full stop after the East Fjords. Good restaurants, a botanical garden that surprises at this latitude, and easy access to whale watching in Eyjafjörður. Worth a proper evening stay rather than a drive-through.

West Iceland

Snæfellsnes Peninsula

Not on Route 1 itself, but an easy detour on the return to Reykjavík. The glacier-capped Snæfellsjökull volcano, Kirkjufell mountain, dramatic lava coastlines and sea caves make this one of the best day trips in Iceland — or a strong final overnight before heading back to KEF.

Road Rules and Driving Tips

Drive on the right. If you normally drive on the left, take extra care at junctions, roundabouts, and when pulling out of car parks.
Headlights on at all times. This is Icelandic law — 24 hours a day, every season, no exceptions.
Speed limits are enforced. 90 km/h on paved roads, 80 km/h on gravel, 50 km/h in towns. Speed cameras are common and fines are significant.
Single-lane bridges. Slow right down and check for oncoming traffic before committing. These appear regularly, sometimes unexpectedly, throughout the Ring Road.
Check road.is every morning. The Icelandic Road Administration updates conditions in real time. This is not optional — it is the most important habit to build on any Iceland road trip.
Do not drive off paved roads. Off-road driving is illegal in Iceland and carries heavy fines. The highland terrain and moss are extremely fragile and take decades to recover from vehicle damage.
Sheep on the road. From late spring through autumn, sheep roam freely and treat the road as their own. Slow down and wait — they will move eventually.

Weather Can Change in Minutes

Iceland's weather does not give much warning. A drive that starts in clear sunshine can become a whiteout within 20 minutes on exposed sections in the North or East. If conditions deteriorate, pull over somewhere safe and wait it out. No itinerary is worth a dangerous drive.

Fuel and Gas Stations on the Ring Road

Fuel stations appear every 50–100 km on busier stretches of Route 1, but there are gaps of 150–200 km in parts of East and North Iceland. The rule is simple: never let the tank drop below half.

Main chains: N1, Orkan, ÓB, Atlantsolía — most have 24-hour self-service pumps
Self-service pumps require a PIN-enabled credit or debit card — check yours works with a PIN before travelling
Many stations have a café or small shop attached — useful for a coffee and a road.is weather check
Fuel is more expensive in Iceland than most of Europe — budgeting around 320–340 ISK per litre is a reasonable estimate

Practical Tip

Fill up every time you pass through a town — even if the tank is mostly full. In winter, a road closure or unplanned detour can add 60–80 km to a journey. A full tank is one less thing to manage when conditions get interesting.

Frequently Asked Questions

How long is the Iceland Ring Road?

Car Hire at Reykjavik Airport — What You Actually Need to Know

admin — Wed, 22 Apr 2026 21:39:15 +0000

Planning Your Trip 6 min read Updated April 2026

Car Hire at Reykjavik Airport — What You Actually Need to Know

Keflavík International Airport (KEF) — where almost every international flight to Iceland actually lands, and where your rental car will be waiting.

Car hire at Reykjavik Airport is one of the most searched phrases by visitors planning a trip to Iceland — and it comes with a catch that catches thousands of people out every year. Your international flight almost certainly does not land at Reykjavik Airport. It lands at Keflavík International Airport, about 50 kilometres southwest of the city. These are two completely different airports, and mixing them up when booking a rental car is one of the most common — and most avoidable — mistakes visitors to Iceland make.

Here's everything you need to know — which airport you'll actually arrive at, why the confusion happens, and how to pick up your rental car without any stress.

In this guide

Car hire at Reykjavik Airport — two airports, one common mistake
Why everyone gets confused
Car hire at Keflavík Airport (KEF) — what to expect
Car hire at Reykjavik Airport (RKV) — is it possible?
Picking up your car at KEF — step by step
Common questions

Car Hire at Reykjavik Airport — Two Airports, One Common Mistake

Most countries have one main airport that everyone flies into. Iceland has two airports near the capital — and they serve completely different purposes. Understanding the difference takes about 30 seconds and will save you a lot of confusion.

Your international flight

Keflavík Airport

KEF

Iceland's main international airport
~50 km southwest of Reykjavik
Serves flights from North America, Europe, and beyond
Open 24/7 with full car rental facilities
Free shuttle from terminal to rental car area
The airport you want for picking up a rental car

Domestic flights only

Reykjavik Airport

RKV

Small domestic airport in the city centre
3 km from downtown Reykjavik
Serves domestic routes and a few flights to Greenland and the Faroe Islands
Limited car rental options, business hours only
Not where international travellers land
Not where you want to book your rental car

Quick check: look at your flight ticket

If your ticket shows airport code KEF — you're landing at Keflavík. If it shows RKV — you're on a domestic or regional flight landing in Reykjavik city. Almost every international flight to Iceland is KEF. When in doubt, check the airport code, not just the city name.

Why everyone gets confused

This isn't a careless mistake — the confusion is built into how Iceland's airports are marketed and named. There are a few reasons it catches so many visitors out:

Airlines list the destination as "Reykjavik"

When you book a flight to Iceland, your ticket and booking confirmation will typically say Reykjavik as the destination — not Keflavík. Icelandair, WOW Air before it, and most international carriers have always marketed KEF as "Reykjavik" because that's the capital city visitors are heading to. The airport code (KEF) is there if you look, but the city name says Reykjavik — naturally leading many people to assume they're landing in or near the city itself.

Keflavík Airport is officially called "Reykjavik-Keflavik"

To add to the confusion, KEF's official full name in many booking systems and aviation databases is "Reykjavik Keflavik International Airport." Even official documentation blurs the lines. If you see "Reykjavik Airport" in a car hire comparison site, it almost always means KEF — but it's easy to assume they mean the domestic one in the city.

The two airports are only 50 km apart

On a map, both airports appear to be "near Reykjavik." But 50 km matters when you've just landed after an overnight flight and your rental car is at the wrong location. The drive between KEF and RKV takes about 45 minutes — that's not a quick walk across the terminal.

Don't book your rental car at RKV if you're on an international flight

Some car hire comparison sites list both KEF and RKV as separate pick-up locations. If you accidentally book at RKV when your flight lands at KEF, you'll arrive at Keflavík with no car — and a 45-minute taxi ride between you and your booking. Always double-check the pick-up location code before confirming.

Car hire at Keflavík Airport (KEF) — what to expect

KEF is well set up for car hire. It's one of the most straightforward airport pick-ups in Europe — the process is simple, and you can be on the road quickly after landing.

Where the rental companies are

The larger international brands — Hertz, Avis, Budget, Europcar — have desks inside the arrivals hall at KEF. Smaller local companies, including Project Car Rental, operate a free shuttle service from the arrivals hall to their nearby office. The shuttle takes just a few minutes and runs continuously when flights are arriving.

Local vs. international rental companies

The companies with desks inside the terminal pay significantly higher fees for that space — and those costs are passed on to customers. Local Icelandic rental companies based just outside the airport typically offer better value for the same or better service, with the minor trade-off of a short shuttle ride. For most visitors, the choice to book with a local company is a straightforward one.

Project Car Rental at KEF — how our pickup works

Project Car Rental is a local family business operating at Keflavík Airport since 2020. Here's what pickup looks like:

Land at KEF, clear customs, collect your bags
Exit the arrivals hall — our shuttle will be waiting
Short drive to our office (a few minutes)
Sign your paperwork, collect your keys, and go
No deposit required — nothing held on your card

What's included at KEF

From January 2026, all car rental companies in Iceland are required to collect a government road usage fee (kílómetragjald) of ISK 1,550 per day — this applies regardless of which company you book with. Beyond that, what's included varies significantly by company. At Project Car Rental, CDW basic insurance and the airport shuttle are included in the base price. Always check what's included before you compare headline daily rates.

Car hire at Reykjavik Airport (RKV) — is it possible?

Yes — but it's rarely the right choice for international visitors. There are a small number of rental companies operating at RKV, but the selection is limited, availability is business-hours only, and if your flight landed at KEF you'd need to get yourself to Reykjavik city first before picking up your car.

The only scenarios where renting from RKV makes sense are if you're already staying in Reykjavik for a few days before starting a road trip, or if you're arriving on a domestic flight from elsewhere in Iceland. For everyone else — anyone landing at KEF and heading straight into an Icelandic adventure — pick up your car at Keflavík.

Seljalandsfoss waterfall on Iceland's South Coast — about 90 minutes from Keflavík Airport and one of the first great stops on a Ring Road trip.

Picking up your car at KEF — step by step

The process at Keflavík is smooth once you know what to expect. Here's what the first hour after landing looks like if you've booked with a local company:

Step	What happens	Time
1. Land and clear customs	KEF is compact — from touchdown to baggage claim is typically 20–30 minutes for international arrivals	~25 min
2. Exit arrivals hall	If you're with a company inside the terminal, head to their desk. If you're with a local company, exit the arrivals hall — the shuttle will be visible outside	~5 min
3. Shuttle to rental office	A short ride to the rental office just outside the airport perimeter	~5–10 min
4. Check-in and paperwork	Present your driving licence and booking confirmation. Go through the car condition check and sign the rental agreement	~10–15 min
5. On the road	Collect your keys and go. The Blue Lagoon is 20 minutes away. Reykjavik is 45 minutes. The Ring Road is waiting	You're off

What to have ready at pickup

Your driving licence — from your home country. If it's not in the Latin alphabet, bring an International Driving Permit too
Your passport — for ID verification
Your booking confirmation — a screenshot on your phone is fine
A payment card — for any extras or insurance upgrades you choose at pickup

Common questions

No — they are two completely separate airports. Keflavík International Airport (KEF) is Iceland's main international airport, located about 50 km southwest of Reykjavik. Reykjavik Airport (RKV) is a small domestic airport in the city centre, serving internal Icelandic routes and a small number of regional flights to Greenland and the Faroe Islands. If you're flying to Iceland from abroad, you will land at KEF.

Book your car hire at Keflavík Airport (KEF). That's where your international flight will land, and picking up your car there means you're on the road immediately — no transfer to the city, no backtracking. When booking online, look for KEF as the pick-up location code, not RKV.

Airlines and booking systems have always listed Keflavík as "Reykjavik" in their destination fields, because Reykjavik is the capital city and the destination most passengers are heading to. Keflavík's full official name in many systems is "Reykjavik Keflavik International Airport," which adds to the confusion. The airport code on your ticket is the reliable indicator — KEF means Keflavík, RKV means Reykjavik domestic.

About 50 km, which is roughly a 45-minute drive on Route 41 under normal conditions. If you pick up your rental car at KEF, you can drive directly to Reykjavik — or bypass it entirely and head straight to the South Coast, the Golden Circle, or wherever your itinerary begins.

It depends on the company. Many rental companies at KEF — particularly the larger international brands — place a significant deposit hold on your credit card at pickup, sometimes €500–€2,000 depending on your insurance level. Project Car Rental requires no deposit. The full amount shown at booking is what you pay — nothing extra is held on your card during the rental.

Yes — local rental companies at Keflavík provide free shuttle buses from the arrivals hall to their offices, which are located just outside the airport perimeter. The shuttle takes about 5–10 minutes and runs continuously around flight arrival times. Project Car Rental's shuttle is included at no extra cost.

For the Ring Road and most popular routes — including the Golden Circle and South Coast — a 2WD is technically sufficient in summer. However, a 4WD is required by law on F-roads (the highland tracks), and it's strongly recommended year-round for peace of mind on Iceland's varied road surfaces. Most visitors opt for at least a medium 4WD like a Dacia Duster. It makes the whole trip easier and opens up more options.

Picking up at Keflavík? We'll be there.

Local family business at KEF since 2020. No deposit, CDW included, free airport shuttle. We know Iceland — and we'll make sure you start your trip the right way.

Check availability →

The post Car Hire at Reykjavik Airport — What You Actually Need to Know appeared first on Project car rental.

Gas Stations in Iceland – Everything You Need to Know

admin — Wed, 15 Apr 2026 21:49:32 +0000

Driving in Iceland 6 min read Updated April 2026

Gas Stations in Iceland – Everything You Need to Know

Gas stations in Iceland are well spaced on the Ring Road — but in the remote north and the Westfjords, the gaps get long.

Fuelling up in Iceland is straightforward once you know what to expect — but there are a few things that catch visitors off guard every single year. Wrong fuel in the tank. Cards that don't work at unmanned pumps. Running low in the middle of nowhere. This guide covers all of it, so you can focus on the road ahead rather than worrying about what's under the bonnet.

In this guide

The main gas station chains
Fuel prices in Iceland 2026
Petrol or diesel — getting it right
How to pay at the pump
The half-tank rule
Remote stretches to watch out for
The gas station hot dog

Gas stations in Iceland – the main chains

You'll see the same names over and over on your road trip. Here's what to know about each:

The largest network in Iceland. If there's a small town, there's usually an N1 nearby. Many stations are open 24/7 and have a shop, hot food and restrooms. The hot dogs are legendary — more on that below.

Orkan

Self-service focused and often slightly cheaper. Strong presence around Reykjavík and along the Ring Road. Popular with locals. Good app for tracking prices.

Olís

Full-service stations with shops. Often has Olís and the budget brand ÓB side by side — ÓB is automated and usually a few króna cheaper per litre.

ÓB

Olís's budget, self-service brand. No frills, just fuel — and often the cheapest pump around. Unmanned, so card with PIN required at all times.

All four accept credit and debit cards. N1 and Orkan also have their own prepaid fuel cards which can be useful for longer trips — ask about them at a manned station when you arrive.

Fuel prices in Iceland 2026

Good news for 2026 — fuel prices in Iceland dropped significantly at the start of the year. Iceland removed fuel taxes from petrol and diesel and replaced them with a distance-based road tax (kílómetragjald). The result is that what you pay at the pump is noticeably lower than in previous years.

As of early 2026, expect to pay roughly 200–225 ISK per litre for both petrol and diesel, depending on the station and region. Prices in and around Reykjavík tend to be slightly lower than in remote areas — the further from the capital, the more it costs to get the fuel there, and that gets passed on.

Tip — check prices before you fill up

Fuel prices vary between stations. The Orkan app and gasvaktin.is both show live prices at stations near you. Worth a quick check, especially in Reykjavík where the difference between the cheapest and most expensive station can add up over a longer trip.

Petrol or diesel — getting it right

This is the one that causes real problems. Putting the wrong fuel in your rental car is expensive, not covered by insurance, and entirely avoidable.

Before you leave the car rental pick-up, check the fuel cap or the label inside the fuel flap — it will say bensín (petrol) or dísill (diesel). Save it in your phone. Check it every single time you fill up.

At the pump — handle colours

In Iceland, green handles are generally petrol and black handles are generally diesel — the opposite of what you'll find in the US. But colours can vary between stations, so always rely on the label on the pump itself, not the handle colour alone.

If you realise you've put the wrong fuel in: do not start the engine. Starting the car circulates the wrong fuel through the system and can cause serious engine damage. Call your rental company immediately.

How to pay for gas in Iceland

Iceland is almost entirely cashless, and gas stations are no exception. Most pumps — especially the unmanned ones you'll find in smaller towns and remote areas — are card only. Here's what works and what doesn't:

Payment method	Works at pump?	Notes
Credit/debit card with PIN	Yes	Most reliable option. PIN is required — signature is not accepted at unmanned pumps.
Contactless / tap to pay	Sometimes	Works at newer pumps and manned stations. Not reliable at older unmanned pumps.
Cash	No	Not accepted at the pump. You can use cash inside a manned shop to buy a prepaid fuel card.
Prepaid fuel card	Yes	Available at N1 and Orkan stations. Useful as a backup for remote areas.

Travelling from the US?

Most American cards are chip-and-signature, not chip-and-PIN. Unmanned pumps in Iceland require a PIN — without one, your card won't work. Contact your bank before you travel to set up a PIN, or bring a debit card which will have one by default.

The half-tank rule

This is the single most practical piece of advice for driving outside Reykjavík: never let your tank drop below half. When you hit 50%, fill up at the next station you see.

On the Ring Road the main stretches are well covered, but gaps of 80–100 km are normal and not unusual. In bad weather, with strong headwinds or on gravel roads, your fuel consumption goes up. Running out of fuel in a remote area is not just inconvenient — in winter it can be genuinely dangerous, and a tow from somewhere remote is extremely expensive.

The half-tank rule — when it matters most

Leaving Reykjavík heading north or east
Driving through the Westfjords
The stretch between Mývatn and Egilsstaðir in the northeast — long highland desert with no services
Any F-road or highland route
Winter driving anywhere outside the capital

Some stretches of Iceland's northeast can go 100 km or more without a fuel stop — the half-tank rule is not an exaggeration.

Remote stretches to plan ahead for

Most of Iceland's Ring Road is well served by gas stations, but a few areas deserve extra attention:

Northeast Iceland — Mývatn to Egilsstaðir: The longest gap on the Ring Road. Fill up before you leave Mývatn, no exceptions.
The Westfjords: Beautiful and remote. Stations exist but are spread out. Plan each day's drive around fuel stops.
Highland F-roads: No fuel at all once you're in. Fill up before you enter and carry a spare can if you're doing long highland routes.
East Iceland: Stations are less frequent than the south and west. Don't rely on finding one when you need it.

A quick search for "N1 near me" or checking the Orkan app as you drive is all you need to stay on top of it. Most Icelandic gas stations are clearly signposted from the road.

The Icelandic gas station hot dog

We'd be doing you a disservice if we didn't mention this. The hot dog — pylsur in Icelandic — is a genuine institution here. N1 stations across Iceland serve them, and they are better than they have any right to be: a lamb and pork sausage in a steamed bun, topped with crispy fried onion, raw onion, ketchup, sweet mustard and remoulade.

Don't drive past an N1 without trying one. It's one of those Iceland things that sounds unremarkable and somehow becomes a highlight of the trip. Former US presidents have eaten them. So can you.

How to order like a local

Ask for it "með öllu" — pronounced "meth öl-lu" — which means "with everything." That gets you the full works: crispy onion, raw onion, ketchup, sweet brown mustard and remoulade. You're welcome.

Planning a road trip around Iceland?

Pick up your rental car at Keflavík Airport — no deposit, CDW included, local family business since 2020.

Check availability →

The post Gas Stations in Iceland – Everything You Need to Know appeared first on Project car rental.

Minivan Rental Iceland – 9-Seater Van Hire for Groups & Families

admin — Sat, 11 Apr 2026 09:42:06 +0000

Car Rental Iceland 6 min read Updated 2026

Minivan Rental Iceland – The Smart Choice for Groups and Families

There is simply no better way to travel Iceland with a group than in a single, roomy van. One vehicle, everyone together, luggage sorted, and space to breathe after a long day on the road. We've seen it time and again with our customers — once you've done a group trip this way, squeezing into two separate cars feels like a step backwards.

If you're travelling to Iceland with family or friends and wondering whether a minivan makes sense — this guide is for you.

In this guide

Why a minivan makes sense in Iceland
Picking up at the right airport
Our 9-seater vans
Minivans and F-roads
Tips for driving a large van in Iceland
Common questions

Why a minivan makes sense in Iceland

Iceland is a road trip destination. Almost everything worth seeing requires you to get in a car and drive — sometimes for several hours at a stretch. When you're travelling as a group of five, six, seven or more people, the question of how to get around quickly becomes the most important logistics decision of your trip.

Most groups default to renting two smaller cars. It works, but it comes with real drawbacks: you spend the whole trip trying to stay together on the road, someone always ends up alone in one vehicle, and the combined cost often ends up higher than a single van anyway.

A minivan solves all of this at once. Everyone travels together — which is actually the whole point of a group trip. You have a single booking, a single pick-up, and one driver or a rotation of drivers sharing one vehicle. The luggage fits properly. And on a long drive to Jökulsárlón or the Westfjords, being able to stretch out and enjoy the scenery together is genuinely part of the experience.

"Once you've done a road trip in a 9-seater, going back to splitting the group across two cars feels like a waste. Iceland is meant to be shared — and that starts with the journey."

One thing to get right before you arrive: the airport

This catches a surprising number of visitors off guard, so it's worth spelling out clearly. Iceland has two airports near the capital:

Keflavík International Airport (KEF) — this is where your international flight arrives. It's about 50 km southwest of Reykjavík and handles almost all flights from Europe and North America. You can check arrivals, departures and flight status on the Keflavík Airport website.
Reykjavík Airport (RVK) — this is a small domestic airport right in the city centre. It serves internal Icelandic flights and a handful of routes to Greenland and the Faroe Islands. Your international flight does not land here.

We pick up at Keflavík International Airport — which is where you'll be arriving. We mention this because it's genuinely one of the most common sources of confusion we see from visitors booking car rental in Iceland. If you search "Reykjavík airport car rental" and book something there, you may find yourself waiting at the wrong place entirely.

Pick-up location

We offer pick-up and drop-off at Keflavík International Airport (KEF) — Iceland's main international airport, 50 km from Reykjavík.

Look for our meet-and-greet when you arrive. We'll sort the paperwork and get you on the road as quickly as possible.

Our 9-seater vans

We run two 9-seater vans in our fleet: the Toyota Proace and the Renault Trafic. Both are automatic, spacious and well-suited to Icelandic road conditions — comfortable on long highway stretches and perfectly capable on the paved roads that connect all the major tourist destinations.

Both vans seat up to 9 people with luggage space. They're an ideal fit for:

Families with children travelling with prams, car seats and holiday kit
Friend groups doing a Ring Road or South Coast trip together
Extended families combining multiple generations in one vehicle
Small tour groups or sports teams

Being automatic makes a real difference in Iceland. You're often driving in changing weather conditions, on unfamiliar roads, with passengers keeping an eye on maps or wildlife. Not having to think about a gear stick is one less thing to manage — and on a long trip, that adds up.

Minivans and F-roads

One important limitation to know upfront: our 9-seater vans are not suitable for F-roads. F-roads are Iceland's highland tracks — unpaved, rocky, often with river crossings — and they require a proper 4WD vehicle with high ground clearance. A minivan, however capable on tarmac, is not built for that terrain.

The good news is that F-roads are only a consideration if you're specifically planning to drive into the highlands. The vast majority of Iceland's most popular destinations — the entire Golden Circle, the South Coast, Snæfellsnes, the Reykjanes Peninsula, the Ring Road — are all fully accessible on paved roads and perfectly suited to a minivan.

If your group wants to combine highland driving with a group trip, one option is to split the itinerary: use the van for the main road trip and join a guided highland tour for the F-road section. It's often the easiest solution.

What's accessible in a minivan?

Golden Circle (Þingvellir, Geysir, Gullfoss)

South Coast (Seljalandsfoss, Skógafoss, Reynisfjara, Jökulsárlón)

Snæfellsnes Peninsula

Reykjanes Peninsula

Ring Road (full circumnavigation)

F-roads and highland tracks

Tips for driving a large van in Iceland

If you've never driven a vehicle this size before, a few things are worth knowing before you set off:

Width and parking

Icelandic roads are generally wide and well-maintained on the main routes, but some older bridges on the Ring Road are single-lane — you'll need to yield and cross one vehicle at a time. Parking at popular attractions can also be tighter than you'd expect. Take it slowly in car parks and don't assume you'll fit where a small car would.

Wind

Iceland's wind can be fierce, particularly on the south coast and in exposed highland areas. A large van has a lot of surface area and can feel the crosswind more than a smaller car. This isn't a reason to worry — just something to be aware of, especially when opening doors. Strong winds can catch a door and damage it against the vehicle next to you.

Share the driving

Iceland's roads are scenic but distances are long. If you have multiple licensed drivers in the group, add them to the rental and take turns. A full Ring Road is around 1,400 km — that's a lot for one person to absorb alone, and sharing the driving means everyone stays fresher and more present for the experience.

Fuel stops

Petrol stations become less frequent once you leave the capital region. Fill up whenever you're above half a tank — especially before heading east or into less-visited areas. A 9-seater has a larger tank than a small car, which works in your favour, but it also means a full fill-up costs more than you might expect.

Common questions about minivan rental in Iceland

Do I need a special licence to drive a 9-seater?

No. A standard category B driving licence covers vehicles up to 9 seats including the driver, which is exactly what our vans are. No special licence or additional training is needed.

Can we pick up at Keflavík and drop off somewhere else?

We offer pick-up and drop-off at Keflavík International Airport only. This keeps things simple and reliable — you know exactly where to find us, and we can give your vehicle the proper check it deserves before and after your trip.

Is a 9-seater van covered by standard car rental insurance in Iceland?

Yes — standard insurance options apply to our vans just as they do to our other vehicles. Make sure you understand what your chosen cover includes, particularly around gravel damage (which is common in Iceland) and sand and ash damage if you're travelling on the south coast.

How far in advance should we book?

9-seater vans are in shorter supply than regular cars in Iceland — there simply aren't as many of them. If you're travelling in summer (June–August), book as early as you can. We've seen groups miss out because they left it too late and there was nothing available at short notice.

Ready to book your group van?

Check availability for our Toyota Proace and Renault Trafic 9-seaters. Locally owned, pick-up at Keflavík Airport.

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The post Minivan Rental Iceland – 9-Seater Van Hire for Groups & Families appeared first on Project car rental.

How Much Does Car Rental in Iceland Cost in 2026?

admin — Fri, 10 Apr 2026 18:18:08 +0000

Planning Your Trip 7 min read Updated April 2026

How Much Does Car Rental in Iceland Cost in 2026?

Iceland car rental prices vary a lot depending on vehicle type, season, and what's included — here's what you actually need to budget for.

How much is car rental in Iceland? It's one of the most common questions we get — and the honest answer is: it depends. A basic 2WD in the shoulder season is very different from a 4WD in July. And the sticker price is rarely the full picture. This guide breaks down what you'll actually pay, what the fees are that nobody warns you about, and how to get the most out of your budget.

In this guide

Typical daily prices by car type
What a week actually costs
Fees people don't expect
Insurance — what you need and what it costs
How much does season affect price?
How to keep costs down
Common questions

Typical daily prices by car type

Prices below are a realistic guide for 2026, based on direct booking with a local Icelandic rental company. Aggregator sites sometimes show lower headline prices but add fees at checkout — we'll cover that below.

Car type	Low season (Oct–Apr)	High season (Jun–Aug)
Small 2WD (e.g. Toyota Yaris)	From ~$45/day	From ~$70/day
Medium 4WD (e.g. Dacia Duster)	From ~$70/day	From ~$110/day
Premium 4WD (e.g. Toyota RAV4)	From ~$90/day	From ~$140/day
9-seat minivan (Toyota Proace / Renault Trafic)	From ~$120/day	From ~$180/day

These prices assume: CDW included, no deposit, airport pickup

At Project Car Rental, CDW basic insurance and airport shuttle are included in our base price. Some companies advertise lower daily rates but charge separately for these — always compare the full checkout price, not just the daily rate.

What a week actually costs

Most Iceland trips are 7–10 days, which is roughly how long it takes to drive the Ring Road at a comfortable pace. Here's a realistic total budget for a 7-day trip with a medium 4WD — the most popular choice for Iceland:

Item	Estimated cost
Dacia Duster 4WD × 7 days (high season)	~$770
Road tax (ISK 1,550/day × 7)	~$87
Gravel protection insurance upgrade	~$70–$105
Fuel (Ring Road ~1,300 km, diesel)	~$110–$150
Realistic total	~$1,080–$1,160

That's for the car only — not accommodation, food, or activities. For a couple splitting the cost, that's around $540–$580 each for a week of total freedom on the road.

Fees people don't expect

This is the part that catches people out. Iceland has a few mandatory or near-mandatory charges that don't always appear in the headline price.

Road tax (kílómetragjald)

From January 2026, all rental companies in Iceland are required by law to collect a government road usage fee of ISK 1,550 per rental day — regardless of how many kilometres you drive. At current exchange rates that's roughly $12–13 per day, or around $87 for a 7-day trip. This is a government charge, not a rental company markup, and applies everywhere in Iceland.

Airport pickup fee

Some rental companies charge a separate fee for picking up at Keflavik Airport, or run a paid shuttle service. At Project Car Rental, airport pickup and our shuttle are included at no extra cost. Worth confirming with any company before you book.

Additional driver fee

Most companies charge per extra driver — typically $10–20 per day. If you're planning to share driving, factor this in when comparing prices.

Young driver surcharge

Drivers under 25 (sometimes under 23) are usually charged an additional daily fee by most rental companies. Typically $10–15/day. Always check the minimum age policy and surcharge before booking if this applies to you.

Watch out for deposit holds

Many rental companies place a large deposit hold on your credit card at pickup — sometimes €500–€2,000 depending on your insurance level. This ties up funds on your card for the duration of the trip. At Project Car Rental, we require no deposit. Worth checking before you pick up your car.

Insurance — what you need and what it costs

Basic CDW (Collision Damage Waiver) comes included with most reputable Icelandic rental companies. But basic CDW has a high excess — meaning if you damage the car, you're liable for a large amount before the insurance kicks in. Here's how the options typically work:

Insurance level	Excess if damage occurs	Daily cost
Basic CDW (included)	Up to 450,000 ISK (~$3,200) — you pay this if the car is damaged	Included
Medium / reduced excess	Reduced excess	~4,000 ISK/day
Full / zero excess	0 ISK — fully covered	~6,000 ISK/day
Gravel protection (add-on)	0 ISK for gravel and windscreen damage	~4,000 ISK/day

The basic excess is higher than most people expect

450,000 ISK sounds abstract until you realise it's over $3,000 sitting on the line if something goes wrong. A single gravel chip on the windscreen, a scratch from a narrow road, or a bumper scrape — with basic cover, that's coming out of your pocket. Iceland's roads are genuinely demanding. Upgrading your insurance isn't about being cautious, it's about travelling without that weight on your mind.

Gravel protection is worth it in Iceland specifically

Gravel roads are everywhere outside the Ring Road, and stones get thrown up constantly — especially by oncoming traffic. Windscreen chips and body scratches from gravel aren't covered by basic CDW. If you're going anywhere near the highlands, South Coast gravel detours, or the Westfjords, gravel protection is one of the more sensible things you can add.

How much does season affect price?

Quite a lot. July and August are peak season in Iceland and prices for popular 4WDs can be 40–60% higher than in October or March. Here's a rough guide:

Season	Months	Price level	Notes
Low season	Nov – Mar	Lowest	Northern lights, shorter days, some F-roads closed
Shoulder season	Apr – May, Sep – Oct	Moderate	Good value, unpredictable weather, quieter
High season	Jun – Aug	Highest	Midnight sun, F-roads open, book well in advance

If your dates are flexible, May and September are the sweet spot — reasonable prices, good weather, and most highland routes accessible. And you won't be queueing at Skógafoss with half of Europe.

Shoulder season in Iceland — lower prices, emptier roads, and genuinely stunning colours.

How to keep costs down

Book directly with the rental company

Booking directly with a local Icelandic company means you're dealing with someone who actually knows the cars, the roads, and your route. You get better service, clearer answers, and often a better price. No middleman, no surprises at pickup.

Book early for summer

Good 4WDs for July and August get booked out months in advance. If you're travelling in peak season, the earlier you book the better — both for availability and price. Last-minute summer availability is limited and expensive.

Don't skimp on insurance

Basic CDW leaves you exposed to a very large excess if anything goes wrong. Iceland's roads — gravel, narrow passes, unpredictable weather — mean the risk is real. Upgrading to reduced excess or adding gravel protection is worth it for peace of mind. The daily cost is modest; the potential downside without it is not.

Choose the right size car

A 9-seat minivan is spacious but costs significantly more to rent and to fuel. If you're travelling as two or three people, a medium 4WD does everything you need at a much lower daily rate. Only upgrade to a larger vehicle if you genuinely need the space.

No deposit saves you more than you think

A large deposit hold doesn't cost you money directly, but it freezes funds on your card for the entire trip. If you're travelling on a budget, that blocked €1,000 can cause real problems at the wrong moment. No-deposit rentals are worth factoring into your comparison.

Common questions

No — Project Car Rental does not require a deposit. You can book your car online and pick it up at Keflavík Airport with no upfront deposit and no credit card hold. Many rental companies in Iceland place a hold of €500–€2,000 on your card at pickup, which can tie up a significant amount of your travel funds for the duration of your trip. That's not how we operate. Pricing is transparent, and the amount shown at booking is what you pay.

Yes — with Project Car Rental you pay for your booking online with no deposit required, and there is no additional hold placed on your card at pickup. Free cancellation is also included, so if your plans change you're not locked in. Renting a car in Iceland doesn't have to come with financial strings attached.

Not as common as you might expect. Most larger rental companies in Iceland — and many of the international brands operating at Keflavík Airport — require a deposit hold ranging from a few hundred to over a thousand euros, depending on your insurance level. Smaller local companies are more likely to offer no-deposit options. It's always worth checking the full terms before booking, not just the headline daily rate.

Is car rental in Iceland expensive compared to Europe?

Yes — generally more expensive than mainland Europe, especially in summer. Iceland is a remote island with high import costs, and peak-season demand drives prices up. That said, having your own car is almost essential for exploring Iceland properly, and the cost per day spread over a week is usually very reasonable compared to organised tours.

Do I need a credit card?

Most rental companies require a credit card — either for a deposit hold or as a payment method. At Project Car Rental we don't require a deposit, but we do take payment by card. Debit cards are accepted for payment but not always accepted for a deposit hold by companies that require one.

Is fuel expensive in Iceland?

Yes. Current diesel prices in Iceland are around 261 ISK per litre — roughly $1.90/litre at today's rates. That's higher than much of Europe and significantly higher than North America. A Ring Road trip in a diesel 4WD covering around 1,300 km will typically cost $110–$150 in fuel depending on the vehicle.

Can I pay in USD or EUR?

Most Icelandic rental companies price in ISK but accept payment in major currencies. Your card provider will apply the exchange rate at the time of payment. We display prices in ISK with USD and EUR equivalents on our booking page.

Are there any discounts available?

Direct booking discounts, early bird pricing in low season, and longer-rental discounts are all worth asking about. We don't use discount codes or aggregator promotions — our pricing is straightforward and the same whether you book two months ahead or two weeks out.

Ready to check prices for your dates?

No deposit, CDW included, free airport shuttle. Local family business since 2020 — we know Iceland and we'll give you straight answers.

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The post How Much Does Car Rental in Iceland Cost in 2026? appeared first on Project car rental.

Driving Iceland in April — What the Roads Are Actually Like

admin — Tue, 07 Apr 2026 21:39:56 +0000

Driving in Iceland 5 min read Updated April 2026

Driving Iceland in April – What the Roads Are Actually Like

April in Iceland brings longer days and thawing landscapes — but the roads tell a different story.

Driving Iceland in April is genuinely one of the most rewarding times to visit — the northern lights are still possible, the waterfalls are running full, and the tourist crowds haven't arrived yet. But April is also when Iceland's roads are at their roughest. A winter of frost, ice and snowploughs leaves the road network battered, and the combination of potholes, gravel sections and unpredictable weather catches a lot of visitors off guard. Here's what to actually expect.

In this guide

Road conditions in April
Weather and what it means for driving
Road closures and F-roads
Which car to rent in April
Practical tips for April driving
Common questions

Road conditions in April — the honest picture

Iceland's main roads are open year-round, but April is the month when the damage from winter becomes most visible. The freeze-thaw cycle of the preceding months leaves the road surface cracked, uneven and dotted with potholes — particularly on rural roads and in the east and north of the country where winter is longest.

What this means in practice:

Potholes are everywhere — especially on secondary roads and gravel sections. Drive slower than you think you need to, particularly at night.
Gravel patches appear where road crews have patched the worst damage. Your windscreen is at higher risk from flying gravel in April than in summer.
Road works are common from April onwards as the annual repair cycle begins. Expect delays and temporary traffic management on some routes.
Uneven surfaces — some stretches feel like mild off-roading even on paved roads. This is normal and not a sign you've taken a wrong turn.

Gravel protection insurance matters in April

Windscreen and bodywork damage from gravel is one of the most common insurance claims in Iceland — and April is peak season for it. Make sure your rental includes gravel protection before you set off, especially if you're driving in the east or north.

Weather and what it means for driving

April weather in Iceland is genuinely unpredictable. You can have a clear, calm morning and a full storm by afternoon. Average temperatures hover between 2°C and 8°C, but wind and rain can make it feel much colder — and at higher elevations, snow is still possible throughout the month.

What to watch for

Black ice — still a real risk in April, especially at night and on shaded stretches of road. Drive gently and avoid sudden braking.
Strong crosswinds — Iceland's wind is not to be underestimated. On exposed coastal roads and mountain passes, gusts can push smaller vehicles sideways. Slow down and keep both hands on the wheel.
Snow on high passes — mountain roads like the ones through the East Fjords or in the north may still have snow in April. Check conditions before you go.
Rapidly changing visibility — fog, rain and low cloud can reduce visibility to near zero very quickly, particularly in the south and west.

Always check road.is before you drive

The Icelandic Road and Coastal Administration's website at road.is gives real-time road conditions, closures and weather alerts. Check it every morning before you set off — it takes 30 seconds and could save your trip.

Road closures and F-roads in April

This is the part most visitors don't know about until it affects their plans. Iceland closes roads when conditions make them unsafe — and in April, closures happen regularly, sometimes for days at a time.

F-roads are closed in April

The highland F-roads — including routes to Landmannalaugar, the Kjölur route and the Westfjords mountain passes — are closed in April without exception. These routes only open once the snowmelt is complete and the ground has dried enough to support vehicles safely, typically from late June. Attempting to drive an F-road in April is illegal, will void your rental insurance, and carries real fines.

Other roads that may be affected

East Fjords mountain roads — the passes between fjords can close due to snow or avalanche risk in April
Westfjords routes — some of the more remote roads in the Westfjords may still be closed or have restricted access
Northern highland approaches — routes into the interior from the north are typically still closed

Don't rely on Google Maps for closures

Google Maps does not show Icelandic road closures in real time. A route that looks open on the map may have been closed by authorities hours earlier. Always verify on road.is before committing to a route.

Which car to rent in Iceland in April

For the Ring Road, South Coast, Golden Circle and most popular destinations in April, a standard car is perfectly adequate. You don't need a 4WD to visit the main attractions — but there are good reasons to consider one.

Vehicle type	Best for	April considerations
Standard car	Ring Road, South Coast, Golden Circle	Fine for paved routes — just drive carefully on rough sections
Dacia Duster (4WD)	Gravel roads, Westfjords, mountain passes	More confidence on rough post-winter surfaces and in bad weather
RAV4 or larger 4WD	Remote areas, East Fjords passes	Higher clearance for uneven surfaces; better in snow on high passes

If you're planning to drive anywhere beyond the main tourist routes — particularly in the Westfjords, East Fjords or north of the country — we'd recommend a 4WD for April. The roads are rougher, the weather is more unpredictable, and the extra confidence is genuinely worth it.

Practical tips for driving Iceland in April

Check road.is every morning — conditions change fast and closures can appear overnight
Drive slower than the limit on rough sections — the speed limit is a maximum, not a target
Fill up whenever you can — fuel stations are sparse in the east and north; don't rely on finding one when you need it
Give yourself extra time — road works, potholes and weather-related delays are common; don't plan tight connections
Carry a physical map — phone signal disappears on rural roads and in many areas of the interior approaches
Pack warm layers — even if the forecast looks mild, conditions can change quickly at any elevation
Be patient with other drivers — some roads narrow to single lane; Icelanders are used to this and will wave you through

The upside of April driving

Despite the road conditions, April has real advantages. Traffic is light — you'll have waterfalls like Seljalandsfoss and Skógafoss almost to yourself on weekdays. Accommodation is easier to book and cheaper. And the light is extraordinary — 15+ hours of daylight by the end of the month, with long golden hours morning and evening.

Common questions about driving in Iceland in April

Is April a good time to rent a car in Iceland?

Yes — with realistic expectations. The main routes are all open, the scenery is spectacular, and you'll avoid the peak summer crowds. Just accept that roads will be rougher than in July, some mountain routes will be closed, and weather will require more flexibility in your plans.

Do I need snow tyres in April?

Your rental car will have appropriate tyres for the season — you don't need to think about this. All Icelandic rental cars are fitted with winter or all-season tyres through the spring. What matters is how you drive on them: gently, with more stopping distance than you think you need.

Can I drive to Landmannalaugar in April?

No. The F208 route to Landmannalaugar is a highland F-road and is closed until late June at the earliest. Attempting it in April in any vehicle is illegal and will void your insurance. If Landmannalaugar is on your list, plan for late June to September.

What's the biggest risk driving in Iceland in April?

The combination of rough road surfaces and unpredictable weather. Potholes damage tyres and suspension — drive slowly on unfamiliar roads. And sudden weather changes, particularly in the mountains and the north, can catch drivers out. Stay informed via road.is and don't push on into conditions you're uncomfortable with.

Are petrol stations open in April?

Yes — all main routes have fuel stations, but they can be far apart in rural areas. In the East Fjords and northern Iceland, gaps of 100+ kilometres between stations are possible. Fill up whenever you're below half a tank on remote routes.

Planning to rent a car in Iceland in April?

Locally owned and operated since 2020. No deposit, transparent pricing, and honest advice about what your trip actually needs.

Check April availability →

The post Driving Iceland in April — What the Roads Are Actually Like appeared first on Project car rental.

4WD Car Rental in Iceland – F-Roads, Rules and What You Need to Know

admin — Sun, 05 Apr 2026 13:48:25 +0000

Driving in Iceland 6 min read Updated April 2026

4WD Car Rental in Iceland – F-Roads, Rules and What You Need to Know

A proper 4WD opens up Iceland's highlands, F-roads and remote interiors — here's what you need to know before you book.

If you're planning to go beyond the Ring Road in Iceland, 4WD car rental is worth taking seriously — not just an AWD crossover, but a vehicle that's genuinely built for gravel, river crossings, and highland tracks. This guide covers what the rules actually are, what kind of 4WD you need for different routes, and how to avoid the most common mistakes travellers make when booking.

In this guide

Do you actually need a 4WD?
F-road rules and what's legal
Which 4WD for which route?
Insurance — what to watch out for
Best routes for a 4WD rental
Common questions

Do you actually need a 4WD?

It depends entirely on where you're going. For the Ring Road, the Golden Circle, South Coast waterfalls, and most popular tourist sites — a standard 2WD car is fine. These are all paved roads with no special vehicle requirements.

You need a 4WD if you want to:

Drive any F-road (legally required by Icelandic law)
Access the highlands — Landmannalaugar, Kjölur and other highland destinations
Attempt river crossings on mountain tracks
Travel through the Westfjords on gravel mountain passes in spring or autumn
Drive in winter conditions off the main highways

4WD vs AWD — they're not the same

Many rental cars marketed as SUVs have AWD (all-wheel drive), which is fine for gravel roads and light conditions. True 4WD — with low-range gearing and locking differentials — is what you need for F-roads and river crossings. Always confirm which system your rental has before booking.

F-road rules and what's legal

F-roads are Iceland's highland mountain tracks, marked with an "F" prefix (F35, F208, F26 etc.). By Icelandic law, only 4WD vehicles are permitted on them — no exceptions. Getting caught on an F-road in a 2WD results in a fine, and more importantly, your rental insurance is immediately void.

What else you need to know about F-roads

Seasonal access only — most F-roads open in late June and close in mid-September, depending on snowmelt and weather. Some don't open until July. Never assume a road is open — always check road.is before you go.
River crossings — many highland routes include unbridged rivers. You must stop, assess the depth and current on foot, and only cross if it's clearly safe. Water damage from a crossing gone wrong is not covered by any rental insurance.
No services — no fuel, no phone signal in many areas, no rescue nearby. You're on your own out there, which means preparation matters.
Tyre pressure — on rough gravel, slightly reducing tyre pressure improves traction and reduces puncture risk. Ask us for the recommended PSI before you go. Reinflate immediately when you return to paved roads.
F249 is widely restricted — this route to Þórsmörk is restricted by most rental companies in Iceland, including us. It's not just a Project Car Rental policy — the river crossings on F249 are considered too dangerous for standard 4WD rentals.

Important

Off-road driving — leaving marked tracks entirely — is illegal in Iceland and carries heavy fines. Tyre tracks in Icelandic moss can take decades to recover. Stick to marked roads at all times.

F-road signs mark the start of highland routes — 4WD required by law beyond this point.

Which 4WD for which route?

Not all 4WDs are equal, and the right vehicle depends on what you're planning to do. Here's a practical breakdown:

Route type	Suitable vehicle	Notes
Ring Road + gravel detours	Any 4WD or AWD SUV	Dacia Duster, Yaris Cross etc.
F208 to Landmannalaugar	Medium 4WD	Dacia Duster handles this well in summer
F35 Kjölur route	Medium 4WD	Long gravel stretches, no major river crossings
Westfjords mountain passes	Medium to high 4WD	Steep gravel passes, exposed in bad weather

Always check with us before heading to the highlands

Not all F-roads are permitted under our rental agreement. Some highland routes — including F249 and F26 — are restricted regardless of vehicle type. Always confirm with us which routes are covered before you go. Driving on a restricted road voids your insurance and carries significant fines.

For most travellers doing the popular highland routes — Landmannalaugar, Þórsmörk, Kjölur — a well-equipped medium 4WD like the Dacia Duster is perfectly capable in normal summer conditions. For the more remote and technically demanding routes, a larger vehicle with higher clearance is the safer choice.

Insurance — what to watch out for

Standard rental insurance does not cover F-road driving. Before heading into the highlands you need to confirm your policy explicitly includes gravel and highland coverage. This is one of the most common and expensive mistakes travellers make.

Insurance type	Covers F-roads?	Worth having?
Basic CDW	No	Minimum required — not enough for highland travel
Gravel protection	Partial	Yes — gravel damage to windscreen and bodywork is common
Sand and ash protection	Yes	Yes — essential in southern and central Iceland
F-road / highland cover	Yes	Required if driving any F-road

River crossings

No rental insurance covers water damage from a river crossing. This is standard across all Icelandic rental companies. If you attempt a crossing and flood the engine, you're liable for the full repair cost — which can run to tens of thousands of euros.

Best routes for a 4WD rental

Landmannalaugar — the classic highland trip

The most popular highland destination in Iceland and the one most travellers do with a Dacia Duster or similar 4WD. The F208 route involves river crossings and rough gravel, but is well within a medium 4WD's capability in normal summer conditions. The reward is extraordinary — coloured rhyolite mountains, natural hot springs, and hiking trails you won't find anywhere else. Open roughly late June to September.

Kjölur route (F35) — the easier highland crossing

The Kjölur route connects north and south Iceland through the interior, passing between Langjökull and Hofsjökull glaciers. Compared to Landmannalaugar, it has fewer river crossings and is generally more manageable. A great option if you want the highland experience without the most technical driving. Usually accessible from mid-June.

Westfjords

Iceland's least-visited region and genuinely remote. The main roads are paved but many of the best destinations — Hornstrandir, Dynjandi, the Látrabjarg bird cliffs — involve steep gravel mountain passes. A 4WD gives you much more confidence here, especially in shoulder season when the passes can be slippery.

Landmannalaugar is accessible by 4WD from late June — one of Iceland's most spectacular highland destinations.

Common questions

Can I drive an F-road in an AWD car?

No. Icelandic law requires true 4WD on F-roads — AWD is not sufficient and you risk a fine and voiding your insurance. If you're unsure whether your rental is 4WD or AWD, ask the rental company before you pick up the car.

What licence do I need?

A standard full driving licence from your home country is valid in Iceland, including for 4WD and F-road driving. An international driving permit is not required for most nationalities. Minimum age for 4WD rentals is typically 20–23 depending on the company.

What happens if I get stuck in the highlands?

Call 112 — Iceland's emergency number. Always tell someone your route before heading into the highlands and keep your rental company's number saved. Staying with your vehicle is the right call while you wait for help.

Is the Dacia Duster good enough for F-roads?

For most popular F-roads in normal summer conditions — yes. The F208 to Landmannalaugar and the Kjölur route are both well within the Duster's capability. Always confirm with us which routes are permitted under your rental agreement before heading into the highlands.

Is there a road usage fee in Iceland?

Yes — from January 2026, Iceland introduced a government road usage fee (kílómetragjald) of ISK 1,550 per rental day, regardless of kilometres driven. This applies to all rental companies in Iceland and is collected at pick-up. It is non-refundable.

Do I need to book a 4WD in advance?

In July and August — yes, definitely. Good 4WDs sell out weeks in advance during peak season. If you're travelling in June or September you have more flexibility, but booking early is always worth it to get the specific vehicle you want.

Looking for a 4WD rental in Iceland?

Locally owned, Iceland expert since 2020. No deposit required, transparent pricing, and honest advice about which vehicle suits your route.

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The post 4WD Car Rental in Iceland – F-Roads, Rules and What You Need to Know appeared first on Project car rental.

Renting a Dacia Duster in Iceland – What You Actually Need to Know

admin — Sun, 05 Apr 2026 08:20:27 +0000

Car Rental 7 min read Updated April 2026

Renting a Dacia Duster in Iceland – What You Actually Need to Know

The Dacia Duster is one of the most practical and popular rental cars in Iceland — here's everything you need to know before you pick up the keys.

The Dacia Duster has quietly become one of the most popular rental choices in Iceland — and for good reason. It's genuinely capable on gravel roads and F-roads, fits four adults and their luggage comfortably, and costs less to run than most comparable SUVs. But there are a few things worth knowing before you book, especially if you're planning to head off the Ring Road.

This guide covers everything from F-road rules and fuel range to the routes where the Duster really shines. No fluff — just what you actually need to know.

In this guide

Is the Duster right for your trip?
F-roads — what the Duster can and can't do
Fuel, range and charging up in remote areas
Best routes for a Dacia Duster
What to pack in the boot
Common questions

Is the Dacia Duster right for your trip?

The honest answer is: for most Iceland itineraries, yes. The Duster hits a sweet spot that's hard to find in other rental categories — it has proper 4WD (not just AWD), decent ground clearance, and enough space for two weeks of luggage without feeling cramped.

It's particularly well suited to:

The Ring Road and all main highways
Gravel detours and secondary roads (F-roads included, with the right insurance)
Couples or families of up to four travelling with full bags
Longer trips where fuel economy matters

Where it's less ideal: if you're planning to cross deep glacial rivers or tackle the most technical highland routes in early summer, you may want to look at a larger 4WD rental. But for the vast majority of travellers — including those doing the Golden Circle, South Coast, Snæfellsnes or the Diamond Circle — the Duster handles everything comfortably.

Quick specs

Engine: 1.5L turbo-diesel | Drive: 4WD | Ground clearance: 21 cm | Seats: 5 | Boot: 478L (seats up)

F-roads — what the Duster can and can't do

F-roads are Iceland's highland mountain tracks, and by law only 4WD vehicles are permitted on them. The Dacia Duster qualifies — but there's more to it than just the vehicle type.

What you need before driving an F-road

4WD-approved insurance — standard rental insurance doesn't cover F-roads. Make sure your policy explicitly covers highland driving.
Check road.is — F-roads open at different times each year depending on snowmelt. Some don't open until late June. Never assume a road is open.
River crossings — some highland routes include unbridged river crossings. Always stop, assess the depth and current on foot first, and only cross if it's clearly safe. This is not covered by any insurance if it goes wrong.

Important

Driving on an F-road in a 2WD vehicle is illegal and can result in heavy fines. Even with a 4WD, entering a closed F-road is an offence. Always check road.is before heading into the highlands.

Where the Duster handles F-roads well

The F208 to Landmannalaugar and the F35 (Kjölur route) are both well within the Duster's capability during normal summer conditions. These are the most popular highland routes and are regularly driven by Dusters without issue.

Routes like the F26 (Sprengisandur) or F88 (to Askja) are more demanding — longer, more remote, and with more river crossings. The Duster can do them, but they require more experience and preparation. If you're planning one of these longer highland routes, it's worth reading our full guide to 4WD rental in Iceland before you go.

F-roads are only open from roughly June to September — always check road.is before you go.

Fuel, range and charging up in remote areas

One of the Duster's practical advantages is its fuel economy. The 1.5L diesel averages around 5.5L/100km — roughly 43 mpg — which gives you a real-world range of around 900–1,000 km on a full tank. In Iceland, that matters.

Region	Fuel station frequency	Tip
Ring Road (main stops)	Every 50–100 km	No issues — fill up when convenient
South Coast & Westfjords	Every 80–150 km	Don't let it drop below half a tank
Highland F-roads	None	Fill up completely before entering — no exceptions
Snæfellsnes Peninsula	A few stations around the peninsula	Fill up in Borgarnes or Stykkishólmur

Good to know

Most Icelandic fuel stations are automated and accept international cards. N1 and Orkan stations are the most widespread. Download the N1 or Orkan app if you want to pay at the pump without going inside.

Best routes for a Dacia Duster

The Duster genuinely earns its keep on routes that mix paved roads with gravel detours — which is most of Iceland, honestly. Here are the routes where it works best.

The Golden Circle

The classic three-stop circuit — Þingvellir, Geysir, Gullfoss — is an easy half-day or full-day loop from Reykjavík. Most of it is paved, but there are worthwhile gravel detours to places like the Secret Lagoon and Kerið Crater that the Duster handles without a second thought. A great first drive to get comfortable with the car.

The South Coast to Vík

Seljalandsfoss, Skógafoss, Reynisfjara black sand beach, Fjaðrárgljúfur canyon — this route along Route 1 packs in some of Iceland's most dramatic scenery. All paved, very accessible, and the Duster's boot fits everything you'd need for a couple of nights away. Park early at busy spots — Reynisfjara especially fills up fast in summer.

Snæfellsnes Peninsula

Often called "Iceland in miniature" because it has a bit of everything — glacier, lava fields, dramatic coastline, fishing villages. Route 54 is mostly paved, with a few gravel sections on the western tip. The Duster is ideal for the narrow coastal lanes out to Djúpalónssandur and Arnarstapi.

The Highland Routes (summer only)

If you're visiting between late June and September and want to go beyond the Ring Road, the F208 to Landmannalaugar is the most rewarding highland route the Duster is built for. Coloured rhyolite mountains, natural hot springs and hiking trails that you won't have seen anywhere else. Check road.is, fill up completely, and go.

The 2023 Dacia Duster Extreme SE — one of the models available through Project Car Rental.

What to pack in the boot

The Duster's 478L boot (seats up) is genuinely generous for a compact SUV. Four adults can travel with full-sized bags and still have space for the extras Iceland demands. Here's what we'd always recommend having:

Waterproof layers — Iceland weather changes fast. Waterproof jacket and trousers, even in summer.
Sturdy footwear — proper waterproof boots for lava fields and river banks.
Extra food and water — especially if heading into the highlands or Westfjords where shops are scarce.
Offline maps — download Maps.me or Google Maps offline before you leave. Signal drops out on highland routes.
Power bank — your phone will be working hard as a camera and GPS all day.
Spare tyre check — confirm your rental includes a spare. Most do, but worth verifying.

Winter trips

If you're visiting between October and April, ask us about snow tyres and whether your dates require snow chains. Winter driving in Iceland is manageable — but preparation matters. See our driving in Iceland guide for the full picture.

Common questions

Do I need a special licence to drive the Dacia Duster in Iceland?

A standard full driving licence from your home country is fine for Iceland, including for driving on F-roads. An international driving permit isn't required for most nationalities, but check with us if you're unsure.

Is the Duster covered for F-roads with standard insurance?

No. Standard rental insurance covers the Ring Road and paved roads. If you're planning to drive F-roads, you'll need to add gravel and highland coverage. We'll walk you through the options when you book.

Can four adults and their luggage fit comfortably?

Yes — four adults with full-sized suitcases fits without issue. If you're travelling with bulky outdoor gear as well (camping equipment, ski bags), a roof box is worth considering.

What happens if we break down in a remote area?

All our rentals include 24/7 roadside assistance. In a genuine emergency, call 112 — Iceland's emergency number. Always let someone know your route if you're heading into the highlands.

Is the Duster available year-round?

Yes, we have Dusters available in all seasons. Winter models come fitted with snow tyres as standard. Book early in summer — it's one of our most popular vehicles and fills up fast, particularly in July and August.

Ready to book your Dacia Duster?

Locally owned, Iceland expert since 2020. No deposit required, transparent pricing, and we actually answer the phone.

Check availability →

The post Renting a Dacia Duster in Iceland – What You Actually Need to Know appeared first on Project car rental.

Road Tax in Iceland

admin — Mon, 30 Mar 2026 16:43:02 +0000

Driving in Iceland 5 min read Updated January 2026

Road Tax in Iceland – What Every Driver Needs to Know in 2026

As of January 1, 2026, Iceland has introduced a new road tax that affects every driver on Icelandic roads — including rental car customers. If you're planning a trip to Iceland in 2026 or beyond, here's exactly what the road tax in Iceland means for you, how much it costs, and why you don't need to worry about it.

In this guide

What is the Iceland road tax?
How much does it cost?
Why did Iceland introduce it?
How it works for rental cars
What happened to fuel prices?
Frequently asked questions

What is the Iceland road tax?

Iceland's new road tax — officially called kílómetragjald (kilometre charge) — is a government-mandated fee based on how far you drive. It replaces the old system where road funding came from fuel taxes at the pump.

The tax applies to all vehicles using Icelandic roads — petrol, diesel, electric and hybrid — regardless of whether you're an Icelandic resident or a tourist renting a car. The Icelandic Parliament (Alþingi) passed the legislation on December 18, 2025, with the tax coming into full effect on January 1, 2026.

The key point for tourists

You don't have to do anything. Your rental car company handles all the reporting and payment to the Icelandic tax authorities on your behalf. The fee simply appears as a clear line item when you book.

How much does the road tax in Iceland cost?

The government base rate is 6.95 ISK per kilometre for standard passenger cars. However, rather than tracking every kilometre you drive, Project Car Rental simplifies this with a flat daily fee:

1,550 ISK

per rental day — flat rate, unlimited kilometres

This covers the government road tax plus a small administration fee for handling the reporting. The advantages of a flat daily rate are:

No surprises — you know the exact cost before you travel
Unlimited kilometres — drive the Ring Road, the highlands, wherever you want
No paperwork — we handle all reporting to Icelandic authorities
Included upfront — shown clearly at the time of booking

Rental period	Road tax total	Approx. EUR
3 days	4,650 ISK	~€31
5 days	7,750 ISK	~€52
7 days	10,850 ISK	~€73
10 days	15,500 ISK	~€104
14 days	21,700 ISK	~€145

Why did Iceland introduce this road tax?

Iceland's road network is expensive to maintain — and the old system of funding it through fuel taxes was breaking down. Here's why:

Electric vehicles and hybrids don't buy fuel, so they weren't contributing to road upkeep
Increasingly fuel-efficient cars meant less tax revenue per kilometre driven
Between 2006 and 2025, fuel tax revenue per kilometre dropped by 43%

The new system is fairer — everyone who uses the roads contributes, regardless of what powers their car. The more you drive, the more you pay. If you barely drive, you pay very little.

How the road tax works for rental cars

When you rent a car with Project Car Rental, the road tax is handled completely on your behalf:

The 1,550 ISK daily fee is shown clearly at the time of booking
The total is collected when you pick up your car
We report your vehicle's road usage to the Icelandic Tax Authority
You drive freely — no odometer checks, no forms, no extra charges at return

Important to know

The road tax does not cover other fees you may encounter during your trip, including:

• Tunnel fee at Vaðlaheiðargöng (tunnel.is)

• Parking fees in Reykjavík and at tourist destinations

• National park entrance fees

• Any traffic fines

What happened to fuel prices in Iceland?

Here's the good news: when the road tax came in, fuel prices dropped significantly. Because fuel taxes were removed from the pump, the cost of petrol and diesel fell by roughly 90–95 ISK per litre in early January 2026.

	2025 (before)	2026 (after)
Petrol price (approx.)	~300 ISK/litre	~200 ISK/litre
Road tax	Included in fuel	1,550 ISK/day flat
Net cost change	—	Broadly similar overall

For most travellers, the overall cost of driving in Iceland is broadly unchanged — you just pay for road usage differently. The flat daily rate actually makes budgeting easier, since you know your total cost upfront regardless of how far you drive.

Frequently asked questions about the Iceland road tax

Do I have to do anything to pay the road tax?

No. Project Car Rental handles everything. The fee is collected at pick-up and we manage all reporting to the Icelandic authorities. You just drive.

Does the road tax apply to electric rental cars?

Yes. The 2026 system applies to all vehicles regardless of fuel type — petrol, diesel, electric and hybrid. EVs have actually been subject to a distance-based fee since 2024 and are now fully aligned with other vehicles.

Is the road tax included in the rental price?

It is shown as a separate line item so you can clearly see the cost — but it is collected upfront at the time of booking/pick-up. There are no surprise charges when you return the car.

Can I drive as many kilometres as I want?

Yes — our flat daily rate covers unlimited kilometres. Whether you drive 50 km or 500 km in a day, the road tax cost stays the same.

Does the road tax cover parking fees and tunnel tolls too?

No. The road tax only covers road usage. Parking fees, the Vaðlaheiðargöng tunnel fee, and national park entrance fees are separate and paid directly by you.

Did fuel get cheaper in Iceland because of the road tax?

Yes — petrol and diesel prices dropped by approximately 90–95 ISK per litre when the fuel taxes were removed at the start of 2026. This helps balance out the new daily road tax fee.

Ready to explore Iceland?

Transparent pricing, no hidden fees. The road tax is included clearly at booking — no surprises.

Book your car now →

The post Road Tax in Iceland appeared first on Project car rental.

Parking in Iceland – what you need to know to avoid fines

admin — Thu, 18 Jul 2024 22:06:33 +0000

Driving in Iceland 8 min read Updated April 2026

Parking in Iceland – What You Need to Know to Avoid Fines

Parking in Iceland can be confusing — our guide makes it simple.

Parking in Iceland catches a lot of travellers off guard — the rules are more specific than you'd expect, and the fines are real. From free parking in Reykjavik to popular tourist destinations that charge on arrival, this guide covers everything you need to know so you can enjoy your trip without any nasty surprises.

In this guide

Common fines to avoid — and how much they cost
What to do if you get a fine
Parking zones in Reykjavík
Free parking in Iceland
Getting your number plate right
The tunnel fee
Parking at popular destinations
Parking in Akureyri
Airports
Camping rules
Useful apps and links

Common fines in Iceland — and how much they cost

Iceland enforces its traffic and parking laws strictly. The most common fines tourists receive are:

Parking fines — parking in a paid zone without paying
Toll fines — not paying the tunnel fee within 24 hours
Off-road driving — one of the most serious offences in Iceland, with heavy fines
Illegal parking — parking in disabled bays, on roadsides, or blocking access
Overnight camping outside campsites — illegal and strictly enforced
Speeding — speed cameras are common across Iceland

Good to know

Always keep your parking receipt and take note of the zone you're parked in. Parking enforcement in Iceland is thorough — a quick check before you walk away saves a lot of hassle.

How much are parking fines in Iceland?

Fines vary depending on the type of violation and the location, but they are not cheap — and if left unpaid for more than 28 days they typically double. The simple rule: if in doubt, check the sign and pay. It costs far less than a fine.

What to do if you get a parking fine in Iceland

Don't ignore it — fines don't disappear just because you've left Iceland. Check the ticket for a reference number and payment instructions. Most Reykjavík fines can be paid online via the link on the ticket, or in person at a local bank such as Íslandsbanki, Landsbankinn or Arion Bank. Paying within 3 days usually gets you a discount on meter fines.

A note from Project Car Rental

We always encourage our customers to read through this guide before their trip — a little preparation goes a long way. Iceland is a beautiful country and we want you to enjoy every moment of it without any unnecessary stress or surprises. Drive safely, park smart, and have an amazing trip!

Parking in Iceland – Reykjavík zones explained

Downtown Reykjavík uses a colour-coded zone system with four zones radiating outward from the city centre. The closer to the core, the more expensive — but also the more likely to become free outside business hours.

Zone	Colour	Area	Paid hours	When it's free
P1	Red	City centre core — Laugavegur, Austurstræti	Mon–Sat 09:00–21:00, Sun 10:00–21:00	Evenings, public holidays
P2	Orange	Inner city	Mon–Sat 09:00–21:00, Sun 10:00–21:00	Evenings, public holidays
P3	Green	Outer centre	Mon–Fri 09:00–18:00	Weekends & evenings — free
P4	Blue	Peripheral & residential areas	Mon–Fri 08:00–16:00	Weekends & evenings — free

A P1 parking ticket is valid in all zones. A P4 ticket is only valid in P4. The easiest way to pay is via the Parka or EasyPark apps — add your plate once and pay by the minute from your phone.

Parking zone signs are clearly displayed on lamp posts throughout Reykjavík — always check before you walk away.

Free parking in Iceland

There is plenty of free parking in Iceland if you know where and when to look. Here is a practical breakdown.

Free parking in Reykjavik

All paid zones in Reykjavik become free outside their active hours. The best zones for free parking are P3 and P4 — both are free on weekends and evenings, which covers most of the time visitors actually need to park.

When Reykjavik parking is free

P3 zones: Free on Saturdays, Sundays and all public holidays
P4 zones: Free on weekends and outside 08:00–16:00 on weekdays
All zones: Free on most public holidays
All zones: Free after 21:00 every day

If you are staying overnight in Reykjavik and arrive in the evening, check whether your street is in a P3 or P4 zone — there is a good chance parking is already free when you arrive and again the next morning before 08:00 or 09:00.

Free parking outside Reykjavik

Outside the capital, most of Iceland has no paid parking at all. Small towns, villages, and rural roads are generally free. The exception is popular tourist destinations, where parking fees have been introduced to manage visitor numbers. Always check for a payment sign or machine when you arrive at a new location — do not assume it is free just because it is outdoors or looks remote.

Some sites that are currently free include many of the smaller waterfalls and viewpoints along the Ring Road, most roadside pull-offs in rural Iceland, and street parking in smaller towns like Vík, Selfoss, and Höfn.

Local tip

If you are exploring Reykjavik for a day, park in a P3 or P4 zone and walk or take the bus into the centre. You save on parking costs and avoid driving around looking for a city centre space.

Getting your number plate right

A surprisingly common mistake when parking in Iceland is entering the wrong number plate when paying through an app or machine. You have paid — but for the wrong car — and you will still get a fine.

Icelandic number plates explained

Icelandic number plates follow the format: 3 letters + 2 numbers (e.g. ABC 12). The most common mix-up is confusing the letter O with the number 0. Save the plate in your phone notes as soon as you pick up the car — and double-check before confirming any payment.

Vaðlaheiðargöng – The tunnel fee

There is currently one toll tunnel in Iceland: Vaðlaheiðargöng in north Iceland, near Akureyri. There is no booth — you must pay online at tunnel.is.

You can pay up to 24 hours before or 24 hours after driving through. If you forget, the fine goes to the rental company — and then to you.

The Vaðlaheiðargöng tunnel in north Iceland — pay online at tunnel.is within 24 hours.

Parking at popular tourist destinations

Many of Iceland's most visited natural sites now charge for parking to manage visitor numbers and maintain the sites. Always assume you need to pay and check before you leave your car. Different sites use different apps:

Payment method	Destinations
Parka app	Brúarfoss, Fjaðrárgljúfur, Jökulsárlón, Reynisfjara, Skaftafell, Sólheimajökull, Stuðlagil, Fagradalsfjall and more
Check-it	Þingvellir National Park, Seljalandsfoss, Seal beach
Sannir	Hverir við Námaskarð, Kirkjufellsfoss, Viking Park, Laufskálavarða

Top tip

Download Parka, EasyPark, Check-it and Sannir before you travel. Phone signal at many natural sites is poor — having the apps set up in advance saves a lot of stress.

Parking in Akureyri

Downtown Akureyri has paid parking managed through the Parka and EasyPark apps. One fun local detail: Akureyri's traffic lights show red hearts instead of red circles — a small gesture of warmth that was introduced during hard times. Keep an eye out for them when you drive through.

Parking at Iceland's airports

If you need to park at Keflavík International Airport in your rental car, parking is managed through Autopay via the Keflavík Airport website. This does not apply to picking up or dropping off a rental — only to longer stays.

Book in advance at kefairport.com.

Keflavík International Airport — book parking in advance at kefairport.com.

Camping and overnight parking rules

Wild camping — sleeping in your car or tent outside a designated campsite — is illegal in Iceland and strictly enforced. Fines are issued to the rental company and passed on to you.

Iceland has an excellent network of campsites across the whole country, so you are never far from a legal spot. Check camping.is for a full map.

Planning a flexible trip around Iceland?

All our rental cars can be picked up and dropped off at Keflavík Airport — including early morning and late night arrivals. We are a local family business and we know Iceland well. Check availability here →

Useful parking apps and links

Download these before your trip — they cover the vast majority of paid parking across Iceland:

Parka

Covers most tourist destinations and all Reykjavík zones. Pay by the minute, extend remotely.

parka.app →

EasyPark

Works in Reykjavík, Akureyri and city parking garages.

easypark.is →

Check-it

Used at Þingvellir, Seljalandsfoss and other key sites.

checkit.is →

Sannir

Covers Kirkjufellsfoss, Hverir, Viking Park and others.

sannir.is →

Service	Website
Tunnel fee	tunnel.is
Keflavík Airport parking	kefairport.com
Campsite map	camping.is

Ready to explore Iceland?

Book your rental car with Project Car Rental — locally owned, Iceland expert since 2020.

Book your car now →

The post Parking in Iceland – what you need to know to avoid fines appeared first on Project car rental.