Traveling around Iceland in a small rental car is one of the best ways to truly experience the country’s raw beauty, freedom, and hidden corners. While many visitors imagine they need a large 4×4 to explore, the reality is that a compact car is often more than enough—especially if you’re planning to follow the main roads, explore charming towns, and enjoy comfortable stays along the way.
A small rental car gives you flexibility, affordability, and ease of driving, particularly on Iceland’s well-maintained Ring Road and major regional routes in the west. You’ll save on fuel, parking is easier, and navigating narrow village streets or scenic viewpoints becomes much simpler. For many travelers, this is the perfect balance between independence and comfort.
When planning a road trip in West Iceland, combining a small rental car with well-located accommodation can turn a simple journey into a memorable adventure. That’s where Ourhotels.is comes in. With welcoming inns in some of the most beautiful and strategic locations in the region, you can explore at your own pace during the day and relax in comfort each evening.
A natural starting point for many itineraries is Borgarfjörður, a region rich in history, hot springs, and dramatic landscapes. Staying at Hvítá Inn, just outside Borgarnes, puts you in the heart of West Iceland. From here, your small rental car becomes your gateway to waterfalls like Hraunfossar and Barnafoss, the historic site of Reykholt, and the geothermal wonders of Deildartunguhver. The roads in this area are generally good and accessible for small cars in summer and much of the shoulder seasons, making it easy to explore without stress. After a day of driving and sightseeing, returning to the comfort of Hvítá Inn offers a peaceful countryside atmosphere and a chance to recharge.
From Borgarfjörður, many travelers continue toward the Snæfellsnes Peninsula, often called “Iceland in Miniature” for its incredible variety of landscapes—glaciers, black sand beaches, cliffs, lava fields, and charming fishing villages. A small rental car is ideal here: distances are manageable, parking at viewpoints is straightforward, and you can stop frequently for photos without worrying about maneuvering a large vehicle. In the picturesque town of Stykkishólmur, the Stykkishólmur Inn by Ourhotels.is is a perfect base. The town itself is walkable, with colorful houses, a beautiful harbor, and easy access to boat tours on Breiðafjörður Bay. With your compact car, you can spend the day circling the peninsula, visiting places like Kirkjufell mountain, Djúpalónssandur beach, and the Snæfellsjökull National Park, then return to Stykkishólmur Inn for a cozy evening in a friendly, small-town setting.
For those who want to venture even farther into the Westfjords, a small rental car can still be a great option, especially in the summer months when road conditions are at their best. The drive to Ísafjörður is one of the most scenic in Iceland, with winding roads along fjords, steep mountains, and quiet villages. While some gravel roads exist in the Westfjords, many of the main routes to Ísafjörður are accessible to smaller vehicles in good weather—just remember to drive carefully, check road conditions, and allow extra time. Once you arrive, Ísafjörður Inn offers a comfortable and convenient place to stay in the heart of the region’s largest town. From there, you can explore nearby fjords, hiking trails, and viewpoints, all easily reached with your rental car.
Traveling Iceland in a small rental car also encourages a slower, more immersive style of travel. Instead of rushing from one famous landmark to another, you can stop at lesser-known viewpoints, pull over for a short walk, or linger in a café in a small town. West Iceland and the Westfjords are full of such moments: a quiet shoreline at sunset, a local swimming pool with hot tubs and mountain views, or a roadside farm shop selling homemade treats. Staying at properties like Hvítá Inn, Stykkishólmur Inn, and Ísafjörður Inn helps you connect these experiences into a smooth, enjoyable route.
To make the most of your journey, it’s wise to plan ahead. Check seasonal road conditions, especially if you’re traveling outside of summer. Book your accommodation in advance through Ourhotels.is so you know you’ll have a warm, welcoming place to stay at each stop. Pack layers of clothing, as Icelandic weather can change quickly, and always keep an eye on the forecast before setting out each day. With a small rental car, you’ll have the freedom to adjust your plans if the weather shifts—perhaps spending more time in a cozy town, or choosing a different scenic drive.
Ultimately, exploring Iceland in a small rental car is about freedom and connection: freedom to choose your own pace and route, and connection to the landscapes and communities you pass through. By pairing that flexibility with comfortable, well-situated stays at Ourhotels.is locations like Hvítá Inn in Borgarfjörður, Stykkishólmur Inn on the Snæfellsnes Peninsula, and Ísafjörður Inn in the Westfjords, you can enjoy the best of West Iceland—beautiful drives, authentic local experiences, and restful nights—all in one unforgettable trip.
