Iceland Travel Guide for First Time Visitors

Iceland Travel Guide: Essential Information for First Time Visitors

📌 Schengen Visa: Depending on your nationality, you might need to apply for a Schengen Visa. Travelers from the USA, Canada, Australia, and most European countries can enter Iceland without a visa for stays of up to 90 days.

📌 Travel Insurance for Iceland: When traveling to Iceland, it’s a good idea to get travel insurance to cover various potential issues, such as trip cancellations, medical emergencies, lost baggage, or unexpected events due to Iceland’s unpredictable weather. 

📌 Icelandic Currency: Iceland’s currency is the Icelandic króna (ISK). It’s abbreviated as ISK and the symbol is kr. You’ll typically see prices listed in króna when you’re in Iceland.

📌 Payment mode in Iceland: Iceland is known for being a cashless society. Most businesses, from small cafes to larger establishments, accept credit and debit cards, and contactless payments are widely used.

📌 Power plug and voltage: Iceland uses a 230 volt (V) power supply at a frequency of 50 hertz (Hz). The standard plug types in Iceland are C and F, both of which have two round pins. Don’t forget to bring a suitable adapter for your electronics.

📌 Travel eSIM: I have used Holafly eSIM in different countries, and I can personally vouch for its reliability. In Iceland, it provided a seamless way to stay connected with unlimited data. Just set it up once and enjoy uninterrupted connectivity without worrying about data limits. Plus, you can keep your physical SIM in place, so you’ll still receive texts and OTPs for online transactions.

📌 Language: The official language of Iceland is Icelandic, a North Germanic language that has remained largely unchanged since medieval times. Most Icelanders are fluent in English, making it easy for tourists to communicate.

Driving in Iceland: What You Need to Know

Driving in Iceland is the best way to explore, but it comes with a lot of logistical considerations. We had to factor in the weather, road conditions, the right type of car and tires, and which parts of the island we could realistically cover in a day. After spending seven days on a self-drive tour at the tail-end of winter, I’ve learned a lot. Here are the most important things to know before renting a car and hitting the road.

Renting a Car in Iceland: Book with a Local Company

There are tons of third-party websites where you can compare rental car prices in Iceland. These sites are great for getting a general idea of rates and available options. However, after doing my own research, I found that it’s better to use them for comparison but book directly with a local rental company.

Why? Local companies often offer better customer service, clearer insurance terms, and more flexible cancellation policies. Plus, you avoid the extra fees that some third-party platforms sneak in. Iceland’s road conditions can be unpredictable, so having direct support from your rental provider can make a big difference if you need assistance.

There are several highly rated car rental companies in Iceland, but based on my experience, I highly recommend Blue Car Rental. This local company offers a wide selection of vehicles, from electric cars like Teslas to compact options like the Toyota Yaris, all the way up to rugged SUVs like the Toyota Land Cruiser. Their fleet is well-maintained, and their pricing starts at around 100 EUR per day, depending on the vehicle type.

DISCLAIMER: You can use my discount code PROJECTGORA to book your rental car. Just to be clear, I didn’t receive a free rental car in Iceland. Our group paid for the rental, including all the added coverage. This is simply an affiliate link, so it doesn’t cost you anything extra, but it helps me earn a small commission, which I use to support and run this blog. Thank you for your support!

Types of Car Insurance to Consider

When renting a car in Iceland, it’s important to understand the different types of car rental insurance available. Here’s a breakdown of the most common options:

1. Collision Damage Waiver (CDW) – Covers damage to the vehicle’s body in the event of a collision. It also provides coverage for injuries to the driver and passengers.
2. Super Collision Damage Waiver (SCDW) – An upgrade to the CDW that reduces the amount you’re responsible for if an accident occurs, lowering your liability.
3. Theft Protection (TP) – Covers the vehicle in case it’s stolen, but it does not cover any personal belongings inside.
4. Gravel Protection (GP) – Protects against damage to the vehicle caused by gravel or rocks, especially common on Iceland’s rugged roads.
5. Sand and Ash Protection (SAAP) – Covers damage caused by sand, ash, or other natural materials, which can be particularly important in Iceland’s volcanic environment.
6. Tire Protection – Covers the repair or replacement of tires and wheels damaged by road hazards, like sharp objects or rough terrain.

With Blue Car Rental, we opted for their highest coverage plan, which included a zero-liability waiver. This waiver eliminates any out-of-pocket expenses for damages, covering everything included in CDW/SCDW, Gravel Protection (GP), Theft Protection (TP), Tire Protection, and Sand and Ash Protection (SAAP). It also extends to additional risks such as damage to the underside of the car, wind-blown doors, and water-related damages.

Choose the right car for your Iceland Road Trip

The right car depends on your Iceland Itinerary and the season. Here are some considerations:

• Winter Tires: Make sure your car is equipped with winter tires if you’re visiting between October and April.
• Size and Comfort: If you’re traveling with multiple people or a lot of luggage, opt for a larger vehicle, like an SUV or van, for comfort and space.
• Fuel Economy: If you’re sticking to the main roads and want to save on fuel costs, a smaller 2WD vehicle will work fine. However, for off-road adventures, prioritize a sturdy 4×4, even if it costs a little more.

For our trip, we chose the Toyota RAV4, as we’re a group of five and needed the space and comfort for the long drives. It was an ideal choice for our winter road trip in Iceland due to its 4WD capabilities. It handled snow, black ice, and fierce winds like a pro.

Gas Stations in Iceland: Where to Fill Up

When driving in Iceland, knowing where to find fuel is essential, especially in remote areas. This might feel like next-level planning, but knowing gas stations along the Ring Road is a game-changer. Don’t wait until your tank is almost empty to fill up. You might be miles away from the nearest station! Here are main fuel companies across Iceland, each offering different services:

1. N1 Gas Stations – the most widely available fuel station chain in Iceland, with locations in both major cities and smaller rural areas. Many of their gas stations operate 24/7, but staff may not always be present. Be sure to have a credit or debit card with a PIN, as self-service pumps are the only option during off-hours.
2. Olís Gas Stations – another popular fuel station chain, primarily found along the Ring Road and in the Westfjords. Olís often features convenience stores, grocery sections, and even restaurants like Quiznos and Grill 66 inside their stations.
3. Orkan Gas Stations – operates 73 self service gas stations around Iceland, providing no-frills, automated approach for road trippers. You’ll need to pay at the pump before refueling, and they accept all major credit cards, as well as Apple Pay and Google Pay.

Recommended Guided Tours in Iceland

Before you dive into planning your Iceland adventure, I’m guessing you might prefer a guided tour. Honestly, I do too. Sometimes, it’s just nice to sit back and enjoy the experience, knowing all the details are taken care of. Plus, certain attractions in Iceland require a guide, both for nature conservation and visitor safety. So, here are my top recommended guided tours in Iceland. Ones I’ve personally experienced and would gladly suggest for first-time visitors! 🙂