Renting a Car vs. Guided Tours in Iceland: What’s the Best Way to Explore the Land of Fire and Ice?
When planning a trip to Iceland, one of the first decisions you’ll face is how to get around. Should you rent a car and create your own road trip adventure? Or would it be better to join a guided tour and let the experts lead the way?
Both options have their perks, but depending on your travel style, time of year, and budget, one might suit you better than the other. Here’s what to consider when deciding between renting a car or going with a guided tour in Iceland.
🛣 Renting a Car: Freedom & Flexibility (With a Few Caveats)
Renting a car in Iceland can be an amazing way to see the country, especially if you’re the kind of traveler who loves stopping at random waterfalls, chasing sunsets, or following your own rhythm. The Ring Road—Route 1—circles the entire island and connects you to some of the most iconic sights like Jökulsárlón Glacier Lagoon, the black sand beaches of Vik, and the famous Golden Circle.
Pros of renting a car:
- Total control over your itinerary
- Great for exploring off-the-beaten-path spots
- You can go at your own pace
But keep in mind:
Driving in Iceland isn’t always a peaceful cruise. Winds can be insanely strong—we’re talking about gusts strong enough to knock your car door out of your hand (or even off the hinges). Gravel roads are common outside of the main routes, and flying stones can easily crack windshields, which leads to another point: car insurance is notoriously expensive in Iceland. Most basic coverage won’t include damage from gravel or sandstorms, so you’ll need to pay extra for full protection—and even then, not everything is covered.
On top of that, if you’re visiting in winter, icy roads, limited daylight, and unpredictable weather can add serious stress to your journey.
🧭 Guided Tours: Stress-Free Adventures
If you’d rather not deal with the logistics (and risks) of driving in unfamiliar, sometimes extreme conditions, guided tours offer a worry-free way to experience Iceland. Whether you’re joining a small group or booking a private guide, tours cover just about everything: transportation, planning, and even a bit of storytelling along the way.
Benefits of guided tours:
- No need to navigate or stress over road conditions
- Learn local insights and folklore from experienced guides
- You won’t miss the key highlights (or get lost in the middle of nowhere)
- Many tours include entry fees, meals, and gear (for glacier hikes, northern lights chasing, etc.)
One of the best parts? You can sit back, enjoy the view, and let someone else deal with the schedule. This is especially helpful if you’re short on time—you can pack a lot into a few days without feeling rushed or overwhelmed by planning.
Plus, tours run year-round and often adapt to weather conditions, which means you’re less likely to have your day derailed by an unexpected storm or road closure.
🚐 Tour Ideas to Consider
If you’re leaning toward guided tours, Iceland has a ton of options to choose from. From Golden Circle day trips to multi-day south coast adventures and northern lights night tours, there’s truly something for every type of traveler.
You can even find glacier hikes, ice cave explorations, volcano tours, and geothermal spa experiences—all without needing to figure out the logistics yourself.
🚗 So, What’s Best for You?
If you’re confident behind the wheel, visiting in summer, and love spontaneous stops, renting a car might be right up your alley. Just be prepared for variable road conditions and higher insurance costs.
But if you’d rather sit back and focus on the experience (and not on dodging gravel or deciphering Icelandic road signs), guided tours might be your best bet. Especially if you’re short on time, visiting in winter, or just want a more relaxed, informative trip.
Whichever option you choose, Iceland is a place that will leave you speechless—in the best way. 🌋✨
Our Top Pick: An 8-Day Iceland Tour You’ll Never Forget
If you’re ready to explore Iceland without the hassle of planning every detail, we highly recommend an 8-day guided tour that hits the perfect balance of iconic sights and hidden gems. This type of tour typically includes:
- The Golden Circle (Thingvellir National Park, Geysir, Gullfoss)
- The stunning South Coast (Seljalandsfoss, Skógafoss, and black sand beaches)
- A day at Jökulsárlón Glacier Lagoon and nearby Diamond Beach
- Vatnajökull National Park with optional ice cave adventures (seasonal)
- Exploring the East Fjords, known for the stunning mountain ridges and unique wildlife
- Dimmuborgir – a vast area of uniquely shaped lava fields and Lake Mývatn along with the Goðafoss waterfall
- The small town of Hauganes and a boat ride to Eyjafjörður Fjord for whale watching
- The Grábrók Crater – a two-thousand-year-old volcanic crater (also an excellent place to catch the Northern Lights)
- Exploring Snæfellsnes peninsula
- Comfortable accommodation and transportation included
It’s the ideal option for travelers who want to see it all—without the stress of driving or itinerary building. You’ll be guided by local experts, meet other travelers along the way, and have a front-row seat to Iceland’s most magical moments.
Book now: The 8-Day Small Group Tour Around Iceland from Reykjavik