Getting Around Iceland: The Transport That Actually Exists
Rental car parked on a gravel pull-off along the Ring Road with mountains behind
Rent a car — outside Reykjavik, there is no train, no metro, and only 3 real alternatives that matter.
What actually exists
Iceland has no railway at all. Zero. The country's transport reality is four things: a rental car (or camper), the Strætó public bus network which mostly serves Reykjavik and the capital region, a shrinking intercity coach network run by operators like Reykjavik Excursions and Sterna, and domestic Icelandair flights from Reykjavik Domestic Airport to Akureyri, Egilsstadir and Isafjordur. The Flybus links Keflavik Airport to Reykjavik for about 3,999 ISK. Everything else you read about — trains, trams, rideshare apps — does not exist here in any usable form.
Uber and Lyft do not operate in Iceland. Taxis exist in Reykjavik and Akureyri and are metered, expensive, and best booked by phone through Hreyfill or BSR. Outside the capital region, taxis are functionally unavailable for spontaneous rides. If you are picturing hopping between Vik, Hofn and Myvatn by public transport, understand that summer coaches run maybe once a day and winter service to many stops disappears entirely.
When a car is not the answer
If you are staying only in Reykjavik for 2 or 3 days, skip the rental. Parking in 101 costs 275-600 ISK per hour on weekdays, downtown is walkable end to end in 25 minutes, and Strætó bus 1 gets you to Hafnarfjordur or Kopavogur for 630 ISK. Day tours to the Golden Circle, South Coast and Snaefellsnes pick up at hotels and cost 10,000-20,000 ISK — cheaper than a car plus fuel plus parking for a single day.
If you are doing the Ring Road, camper vans from Kuku or Happy Campers run 15,000-25,000 ISK per day in summer and solve accommodation at once. In winter, rent a proper 4x4 with studded tyres, not a camper. Domestic flights make sense if you want to skip the long east-coast drive: Reykjavik to Egilsstadir takes 1 hour by air versus 9 hours by road.
The F-road rule people ignore
F-roads — the mountain roads with an F prefix like F26 or F208 to Landmannalaugar — legally require a 4x4 and are closed from roughly October through late June. Your rental contract voids all insurance the moment a 2WD touches an F-road, and river crossings are not covered by any insurance regardless of vehicle. People wreck cars on F35 every summer thinking it looks fine. If Landmannalaugar or Thorsmork is on your list, either rent a proper 4x4 like a Dacia Duster or Land Cruiser, or take a highland bus from Reykjavik Terminal for around 10,000 ISK each way.
Before you book
What people ask before booking Reykjavik.
Yes. The Flybus and Airport Direct both run coaches timed to every arriving flight, cost about 3,999 ISK one way, and take 45-50 minutes to the BSI terminal with hotel drop-off available for a small supplement.
Not really. Strætó runs limited long-distance routes in summer only, and Sterna operates seasonal passes, but timetables assume you overnight in each town. Budget 5-7 days of patience and expect gaps with no return service the same day.
