Is it worth renting a car if I stay in Reykjavík?
If you’re staying in Reykjavík and wondering whether to rent a car, the short answer is: only if you plan to explore beyond the city limits. Within the city itself, a rental car is usually more trouble (and cost) than it’s worth.
When a car is not worth it in Reykjavík
- Reykjavík is compact and walkable: Most major sights—like Hallgrímskirkja, Harpa, and the Old Harbour—are within a 20-minute walk of each other.
- Parking is limited and expensive: Metered parking zones dominate downtown, and finding a free spot is rare. Many hotels don’t offer included parking.
- Local buses are reliable: The city’s bus network (Strætó) is efficient and affordable. You can reach nearly all neighborhoods and suburban areas without a car.
- Taxis and rideshares exist—but they’re pricey: For late-night or airport trips, a taxi or Flybus is more cost-effective than keeping a car parked for days.
When renting a car is worth it
- Day trips beyond the city: Want to visit the Golden Circle, Snæfellsnes, or South Coast? Then a rental is your key to freedom. Public transport to rural areas is sparse or non-existent.
- Flexible itinerary: Prefer to avoid organized tours and stop wherever you want for hot dogs or waterfalls? A rental car gives you that freedom.
- Travelling with kids or gear: Families, photographers, or outdoor adventurers often find a car more comfortable than being herded onto buses.
- Staying outside Reykjavík: If your hotel or Airbnb is in the suburbs or nearby towns like Mosfellsbær or Hafnarfjörður, a car may be practical—especially in winter.
Smart alternatives to renting a car
If you’re staying in Reykjavík and only want one or two excursions, consider:
- Organized day tours: Operators like Reykjavik Excursions or GetYourGuide offer pickup from most hotels and let you avoid driving in unpredictable weather.
- Airport transfers: Take the Flybus or private transfer service instead of keeping a rental car idle all week.
- E-bike or scooter rentals: Great for summer months, and lets you cruise the coastal paths or visit nearby attractions like Grotta lighthouse or Perlan.
4 Key Takeaways
- Within Reykjavík, you don’t need a car – the city is easy to navigate on foot or by bus.
- Parking is a pain and adds to cost – especially downtown.
- If you plan day trips or nature adventures, a car is worth it – but not for just lounging around the city.
- Tours and transfers may be cheaper and easier – especially if weather or parking stresses you out.
🎯 Planning to explore beyond Reykjavík?
Compare car rental options here to find the best price and vehicle for Iceland’s roads.
Got questions about driving in Iceland, winter tires, or road conditions?
▶️ Check out our next guide: “Do I need a 4×4 to drive the Golden Circle?”
