car hire in iceland

There aren't any trains, so the public transport is buses or internal flights if heading to the north / east. There are plenty of buses doing tours around the main tourist places. I guess it depends if you want to spend extra time somewhere - I don't know how it compares tour bus vs regular service buses. There are also some 4x4 buses that would let you access some of the roads you can't do in a normal hire car, but if you want to stay somewhere (not just a day tour or trip) then you'll need to plan well in advance as accomodation in remoter places is limited and books up very early (6-12 months in advance).

Car hire can run out in the peak season so that also needs planning.....

Done a short trip just using yours, and another one with a hire car. If you hire a car you need to be wary of cover for driving on unpaved roads, of which there are many in the north. You often need to take extra cover out if driving to these areas.

OTOH you could hire one of these

100% you need a car if you are doing anything other than staying in the city and taking organised trips, you dont however need a 4x4 unless you are there in winter or early spring (all cars come with studded tyres Nov-Apr). We rented from Geysir Car Rental, can recommend them but do seriously consider the extra insurance for sand/ash/gravel protection. A lot of the roads are narrow with wide gravel shoulders that kick up stones when you pass other traffic.

We paid for the extra insurance which meant that when we returned the car they didnt even check for damage, which inveitably there was, unlike the other customer there at the time that hadn't - they got the full Europcar going over!

Its an amazing place though, would go back in a heartbeat.

Most people manage with a shopping trolley, no?

It is entirely possible to use public transport, including to the interior. Over the years (many visits) we have:

Only used public transport. Fine if you are good at forward planning. Not good for being impetuous.

Hired a normal (non 4x4) and stayed on tarmac.

Combined both methods above.

We took our own Mundano estate once. I do not recommend this at all.

Hired a 4x4. Brilliant especially if you want to camp or use the mountain huts.

You can also hire a 4x4 with roof tent and all camping equipment. My son is out there as we speak doing this on his honeymoon.

If you do hire a vehicle get the extra insurance cover.

Park into the wind. standard cover you get with hire cars doesn't cover damage caused by the doors being caught ripped forward/off by the wind.

Hired a car, just a regular car for tarmac not a superjeep. Was fine for doing everything we wanted to do and we stayed in self-catering places. Next time will hire a 4x4/ superjeep thing and camp/hut it. Sixt or something near to the airport I think. All fine and they upgraded the car size too.

We used Sad cars, terrible name excellent company. They used older cars and they were aware of the roads, so their only instruction was don't crash it, aside from that, don't worry about it. Was from another recommendation on here many moons ago.

Another Sad Cars user here. Picked up the most dented, worn out Subaru I've ever seen. No point checking it for damage when returned as nothing short of rolling it would be noticed.

But, it was fine. Great fun not having to worry about denting it, and was fun parking it next to all the smart, modern hire cars at the attractions. Also looked like a local.

Bloody love the idea of Sad Cars.  That's what I want, every time!  I think our Mondeo Estate wouldn't look out of place in their car park.

When we picked up from Sad cars they described the car as 'experienced' which I thought was an ace way of putting it.

We hired a Ford Ecosport. 4x4 with studded tyres. It was great. Though not much space in the boot due to the rear Diff.