Renting a car in Iceland is one of the best ways to experience the country’s dramatic landscapes at your own pace. From waterfalls and glaciers to tiny fishing villages and black sand beaches, having your own vehicle gives you the freedom to stop wherever and whenever you like. Here are some practical tips for renting a car in Iceland, with a special focus on exploring the west and staying with Ourhotels.is at Hvítá Inn, Stykkishólmur Inn and Ísafjörður Inn.
First, choose the right car for the season and the areas you plan to visit. In summer, a small 2WD car is usually enough for the main roads and the classic Ring Road. If you’re planning to explore the Westfjords or more remote gravel roads, a 4×4 is strongly recommended, especially outside the summer months. In winter, a 4×4 with good winter tires is almost essential, as snow, ice and strong winds are common. When staying at Hvítá Inn in Borgarfjörður, a regular car is fine in summer for visiting nearby attractions like Hraunfossar and Barnafoss, but if you’re heading further into the highlands or towards rougher tracks, upgrade to a 4×4 for safety and comfort.
Always check what is included in your rental insurance. Basic insurance is usually mandatory, but in Iceland you’ll see several add-ons: Gravel Protection (GP), Sand and Ash Protection (SAAP), and sometimes extra coverage for wind damage. Gravel protection is very useful if you plan to drive in areas like the Snæfellsnes Peninsula or the roads leading to the Westfjords, where loose stones can easily chip paint and windshields. When driving between Stykkishólmur Inn and Ísafjörður Inn, you’ll likely encounter gravel sections, so consider this coverage. Sand and ash damage is more common in the south, but it’s still worth understanding what your policy covers before you set off.
Driving conditions in Iceland can change quickly, so planning and flexibility are key. Before you start your day, check road conditions at road.is and weather forecasts at vedur.is. This is especially important if you’re driving towards the Westfjords and Ísafjörður Inn, where mountain passes can be closed or icy, even in late spring or early autumn. In the west, around Hvítá Inn and Stykkishólmur Inn, roads are generally well maintained, but heavy rain, fog or strong winds can still affect visibility and driving comfort. If conditions look bad, adjust your plans and don’t be afraid to slow down or wait it out—distances may look short on the map, but Icelandic roads often demand more time than you expect.
Respecting local driving rules will keep you safe and help protect Iceland’s fragile nature. Off-road driving is strictly illegal and heavily fined; always stay on marked roads and tracks. Speed limits are usually 90 km/h on paved rural roads, 80 km/h on gravel roads and 50 km/h in towns and villages. You’ll pass through small communities like Borgarnes on your way to Hvítá Inn, and Stykkishólmur when staying at Stykkishólmur Inn, so watch for sudden speed limit changes and pedestrian crossings. Sheep often graze freely near the roads in summer, especially in the countryside around Borgarfjörður and on the way to Ísafjörður, so be prepared to slow down if they wander onto the road.
Fuel planning is another important part of renting a car in Iceland. In the more populated west, around Hvítá Inn and Stykkishólmur Inn, gas stations are fairly regular, but once you head into the Westfjords towards Ísafjörður Inn, they become more spread out. Fill up when you can, especially before long stretches between towns. Many stations are self-service and require a card with a PIN, so make sure your payment method works in Iceland. Staff at Ourhotels.is properties are happy to point out the nearest fuel stops and help you plan your driving days so you’re never caught low on gas in a remote area.
Navigation is straightforward if you combine a GPS or map app with a bit of local advice. Mobile coverage is generally good in the west and along main routes, but can be patchy in some fjords and mountain passes. Download offline maps before you leave Reykjavík, and ask the reception at Hvítá Inn, Stykkishólmur Inn or Ísafjörður Inn for tips on scenic detours, viewpoints and lesser-known stops. Local knowledge can turn a simple drive into a memorable road trip, whether it’s a quiet hot spring in Borgarfjörður, a hidden viewpoint over Breiðafjörður near Stykkishólmur, or a dramatic coastal road in the Westfjords.
Parking is usually easy and often free outside the busiest tourist spots. In small towns like Stykkishólmur and Ísafjörður, you can usually park close to your accommodation or the harbor without trouble. Some popular natural attractions now have paid parking; keep a small card or digital payment method handy. When staying with Ourhotels.is, you’ll find convenient parking at Hvítá Inn, Stykkishólmur Inn and Ísafjörður Inn, making it simple to load and unload your luggage and head out early for day trips.
One of the biggest advantages of renting a car in Iceland is the flexibility to design your own itinerary. With Ourhotels.is as your base in the west, you can easily create a multi-day road trip. Start at Hvítá Inn in Borgarfjörður to explore waterfalls, lava fields and geothermal areas just a short drive from Reykjavík. Continue to Stykkishólmur Inn on the Snæfellsnes Peninsula, using your car to circle the peninsula’s black beaches, cliffs and the Snæfellsjökull glacier area. From there, drive north and east into the Westfjords, ending at Ísafjörður Inn, where you can explore dramatic fjords, quiet fishing villages and some of Iceland’s most untouched landscapes. Having your own car lets you stop for photos, picnic by the sea or linger at a viewpoint as long as you like.
Finally, think about comfort and safety for long days on the road. Dress in layers, keep water and snacks in the car, and bring sunglasses for low, bright sun that can reflect off snow or water. In winter, keep an extra warm layer and a charged phone with you. If you’re unsure about a route—whether it’s a mountain pass to Ísafjörður or a gravel shortcut on Snæfellsnes—ask the staff at your Ourhotels.is accommodation. They drive these roads every day and can advise you on the best and safest options for the current conditions.
Renting a car in Iceland opens up a world of freedom and discovery, especially in the west and the Westfjords. By choosing the right vehicle, understanding insurance, checking conditions and using local advice from places like Hvítá Inn, Stykkishólmur Inn and Ísafjörður Inn, you can enjoy a safe, memorable road trip. With Ourhotels.is as your comfortable base along the way, you’re perfectly placed to explore some of Iceland’s most beautiful regions at your own pace.
