The Ultimate Guide to Van Rental in Iceland

Passenger van on Iceland road.
See Iceland's stunning scenery with a Passenger Van. 

If you're planning an adventure in Iceland, renting a van is a great choice. With a van rental you can discover stunning landscapes, charming towns, and hidden gems at your own pace. 

While many people choose camper vans, this guide focuses on renting passenger vans. Whether it’s  for a few days or longer Iceland road trips, these vans are perfect for groups, families, or anyone who wants to travel comfortably and in style.

Here’s what you need to know about van rental in Iceland. We will cover the benefits, tips for renting, and the best places to visit.

 

Why Rent a Van in Iceland?

Iceland is a land of extremes. With dramatic waterfalls, glaciers and volcanic landscapes found all over the island. That’s why you need a rental car if you want to see all that Iceland offers. Renting a van, or a passenger vehicle, in Iceland offers such benefits, especially for groups or families. Let’s explore this further.

 

  1. Space and Comfort

Renting a van in Iceland is great for groups of friends or family trips. Passenger vans can seat 7 to 9 people comfortably. This gives everyone enough space to relax during the ride. With more legroom than a regular car, you won’t feel cramped on long drives between sights. 

You’ll also have extra room for luggage, which is important for long trips around the island. Whether you need winter gear for ice caves or hiking gear for summer, having enough storage space is a big advantage in Iceland.

 

  1. Cost-Efficiency

If you're traveling in a group, van rental in Iceland can be more affordable than renting multiple smaller cars. Splitting the cost of the vehicle, fuel, and insurance between travelers will cut down on individual travel expenses. 

So, not only does a van rental in Iceland offer more room, it will also save you money.

 

  1. Convenience and Flexibility

Like all rental cars in Iceland, a van lets you create your own schedule. Plus, you have the opportunity to visit unique places that public transport may not reach. Iceland’s public transport network is relatively limited, particularly in rural areas. Renting a van gives you complete control over when and where you travel.

 

Moreover, a passenger van offers enough comfort for long drives without the commitment to camping. So, you’ll have the convenience of a spacious ride during the day. While enjoying the luxury of Iceland’s hotels or guesthouses during the night.  

  1. Safe and Reliable Travel

Iceland’s road conditions can be unpredictable, especially during the winter months. While some routes, like the famous Ring Road, are well-maintained, others, such as gravel roads in the Highlands, can be more challenging. It’s a good idea to check out both road and weather conditions daily to ensure a safe journey. 

 

Passenger van under the northern lights in Iceland
Witness the nothern lights when renting a van in Iceland.

Where to Go: Must-Visit Places in Iceland

Once you’ve picked up your van rental at Keflavik international airport the adventure truly begins! Whether you have a few days or a week, these amazing places are easy to reach with your van and should be at the top of your travel list.

 

  1. The Golden Circle

No trip to Iceland is complete without driving the Golden Circle. This 300-kilometer loop includes three famous attractions: Þingvellir National Park, the Geysir geothermal area, and Gullfoss waterfall. The beauty of having a van is that you can take your time, stop for pictures, and enjoy along the way.

 

Þingvellir National Park is a UNESCO World Heritage site. It is where the North American and Eurasian tectonic plates meet. The park is a historical and natural wonder, with hiking trails that provide stunning views.

The Geysir Geothermal Area is home to the famous Strokkur geyser. It shoots boiling water into the sky every 5 to 10 minutes.

Gullfoss Waterfall is one of Iceland's most iconic waterfalls, where the Hvítá river cascades into a rugged canyon.

  1. Reykjavík

Iceland’s capital is the perfect place to start or end your road trip. Although the drive from the airport is short, renting a van in Iceland helps you get around the city and nearby areas more easily. I recommend visiting Hallgrímskirkja church for the best view of Reykjavik. As well as exploring the city’s lively café culture and art galleries.

Reykjavík is also a great starting point for day trips to nearby attractions. One popular spot is the Reykjanes Peninsula. It is famous for its geothermal activity and stunning landscapes, including the famous Blue Lagoon.

 

  1. South Coast

One of the most scenic drives in Iceland is along the south coast, where you’ll encounter iconic natural landmarks.

 

Seljalandsfoss and Skógafoss Waterfalls: These two stunning waterfalls are not far from each other. Skógafoss is one of the biggest waterfalls in the country. Seljalandsfoss lets you walk behind the waterfall for a new view.

Black Sand Beach in Vík: The volcanic sand and towering basalt columns at Reynisfjara Beach create a striking contrast to the North Atlantic Ocean. Just be cautious of the powerful waves!

Jökulsárlón Glacier Lagoon: Just a few hours' drive from Reykjavík, this stunning glacier lagoon has floating icebergs. 

  1. Snæfellsnes Peninsula

Often called “Iceland in a nutshell,” the Snæfellsnes Peninsula has a bit of everything. You can find waterfalls, black sand beaches, volcanic craters, and views of glaciers. Drive your van to Kirkjufell mountain. It is one of Iceland’s most photographed landmarks. You can also explore the historic fishing villages along the coast.

Men standing in the side door of a passenger van rental car.
Experience the comfort of van rental in Iceland.

 

Tips for Van Rental in Iceland

Before hitting the road, there are a few key things to keep in mind about van rental in Iceland.

 

  1. Book Early

Van rentals in Iceland are in high demand, especially during the summer months. Booking early not only ensures you get the vehicle size you need, but it can also save you money.

 

  1. Insurance

Road conditions can be tricky, particularly in rural areas. I highly recommend purchasing a full coverage insurance for your van rental. It is by far the safest and best option when driving in Iceland. 

 

  1. Fuel Costs

Iceland can be expensive, and fuel is no exception. Be prepared for high gas prices, especially in more remote areas. Keep in mind that fuel stations are spread out in rural regions, so plan your refueling stops carefully.

 

  1. Driving Conditions

Iceland has strict road safety laws, and it’s important to drive according to the conditions. Many rural roads are gravel, and in winter, snow and ice can make driving challenging. Always check weather conditions before setting off, and remember that off-road driving is illegal.

 

Conclusion

Van rental in Iceland offers travelers the perfect combination of flexibility, comfort, and adventure. You can admire the waterfalls on the south coast. You can drive the Golden Circle. You can explore the rugged Snæfellsnes Peninsula. A van allows you to enjoy Iceland at your own pace.

 

With the ability to travel in comfort and explore, renting a van is one of the best ways to discover the magic of Iceland. So gather your group, pack your bags, and get ready to hit the road—adventure awaits!

If you want to read more about renting a van in Iceland, please check out our blog about Driving in Iceland and Practical Info. 

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