Essential Iceland Travel Tips: What to Know Before You Go

Iceland offers some of the most dramatic landscapes on Earth, from thundering waterfalls and vast glaciers to active volcanoes and the ethereal northern lights, it's a destination that promises adventure. But a trip to this unique island requires careful planning. This guide covers everything I've learned from visiting Iceland, from budgeting and transportation to what to pack, ensuring your Icelandic journey is as smooth as it is spectacular.

Budgeting for Your Trip: Navigating an Expensive Destination

It's no secret that Iceland is one of the most expensive countries to visit. Being prepared for the costs is crucial for a stress-free trip. Food, gas, and accommodations will be your biggest expenses there. You can save money by shopping at budget grocery stores like BONUS! and preparing your own meals, especially if you're renting a campervan or staying in an apartment with a kitchen. I brought a few of my own camp meals which saved me a lot of money as well.

Eating out can be costly, even a simple meal at a mid-range restaurant often exceeding what you might expect to pay elsewhere. A great local tip is to enjoy the famous Icelandic hot dogs (pylsur), which are a delicious and affordable option. When it comes to activities, look for free natural attractions like hiking and visiting public waterfalls, but be sure to budget for can't-miss experiences like glacier hikes or a soak in a geothermal lagoon.

Best Time to Visit: The Magic of the Shoulder Seasons

While summer (June to August) offers the Midnight Sun and access to all roads, it's also the busiest and most expensive time. Winter (November to March) is prime time for the northern lights but comes with cold weather and limited daylight. For the best balance, consider visiting during the shoulder seasons.

In spring, you'll see the country come back to life, with lengthening days and melting snow revealing green landscapes. In autumn, the crowds thin out, and the stunning fall colors provide a beautiful backdrop for your adventures. Best of all, September marks the beginning of the aurora season, giving you a chance to see the northern lights without the deep winter chill. During these periods, you'll generally find lower prices on flights, accommodations, and rentals.

Be flexible as the weather can change at a moment's notice. We visited in September and had bright sun, thick fog, and rain all in the same day.

Picking Your Flight: Getting to Iceland

When flying to Iceland, particularly with Icelandair, it's important to plan your luggage carefully. Icelandair is known for strictly enforcing their carry-on and personal item size requirements, which could result in unexpected fees or inconvenience at the gate. Even if your carryon suitcase never is an issue on a domestic flight, make sure to check the sizing exactly as they make people put it in the sizer. To avoid issues, it is often simpler and more convenient to pack within the carry on guidelines or check a bag instead. I used the away carryon (not the bigger carry on). This not only ensures compliance with their guidelines but also allows you to travel lighter through the airport, making your experience smoother and more enjoyable.

Another hack that I used was packing my large puffer jacket in a travel pillow cover and also using a portable travel vacuum sealer.

How to Get Around: Choosing Your Vehicle

Getting around Iceland is an adventure in itself. Your transportation choice will largely depend on your itinerary and the time of year you visit.

Public Transportation

Within Reykjavik, the public bus system, Strætó, is efficient for getting around the city. And it's much more affordable and readily available than taxis. However, once you venture outside the capital, public transport becomes limited and infrequent, making it an impractical option for exploring the country's natural wonders.

Renting a Car

For most travelers, renting a car offers the ultimate freedom and flexibility. Iceland does not require an IDL, just a regular driver's license in English works for car rental companies. A standard 2WD vehicle is perfectly suitable for driving the famous Ring Road (Route 1) during the summer months. This main highway circles the island and connects most of the major towns and attractions.

If your plans include exploring Iceland's rugged interior Highlands or navigating remote gravel roads, a 4x4 vehicle is essential. The Highlands are only accessible via designated "F-roads," which are unpaved, mountainous tracks that often involve river crossings. These roads are only open during the summer and are legally restricted to 4x4 vehicles. We rented a 4x4 camper car since a lot of the places we wanted to check out were only accessible by those roads and it was well worth it!

If you plan on driving, keep an eye out for speed cameras and make sure you aren't drinking since the legal limit is .05 instead of the usual .08 and they sometimes have DUI checkpoints.

Parking App

To make parking in Iceland easier and more convenient, I highly recommend downloading the Parka app. This app allows you to find, pay for, and manage parking directly from your phone. Many of the urban areas, especially in Reykjavík, have designated parking zones that require payment, and the Parka app eliminates the need to use physical parking meters. It's straightforward to use and will save you a lot of time and hassle during your trip.

Filling Up Gas

When driving in Iceland, it's important to know how to fill up gas at the country's many self-service gas stations. Most stations require a credit or debit card with a PIN to operate the pumps, so ensure your card is compatible before your trip. You’ll often have the option to prepay by selecting an amount or filling the tank completely, with the final charge adjusted after pumping. Pay attention to whether your rental car uses gasoline (bensín) or diesel (dísel). Many stations are open 24/7 but the attached convenience stores are not.

Car Insurance

When renting a car, car insurance is an essential consideration to ensure peace of mind during your trip. Most rental companies offer a range of insurance options, including collision damage waivers (CDW), personal accident insurance, and theft protection. While the basic insurance is typically included in the rental price, it often comes with a high deductible. You may want to purchase additional coverage to reduce this liability or check whether your credit card or travel insurance policy provides rental car insurance. Always review the terms and conditions carefully, as exclusions may apply to specific scenarios or types of damage, such as water damage or dents from wind blown car doors. And be on careful lookout for sheep running across the road, if you hit one you have to call the local authorities and car rental company so they can alert the appropriate farmer. Seriously.

Icelandic Customs and Culture: Iceland Travel Tips

Icelandic customs and culture are deeply rooted in the country's history and natural surroundings. A key element of Icelandic culture is their connection to the land. Locals have a strong appreciation for nature and sustainable living, with practices like geothermal energy use and eco-friendly habits being commonplace. When visiting a natural hot spring, be prepared for showering everything off before entering. This way it keeps lotion, hair products, etc. out of the natural geothermal water. When hiking, make sure to stay on marked paths since the moss can take up to 25 years to grow in the harsh temperatures.

Shopping in Iceland

Shopping in Iceland offers a blend of traditional craftsmanship and modern design, making it a unique experience for visitors. Icelandic stores often feature handmade wool products, but you have to look closely to ensure it's not a synthetic blend.

If you want to purchase souvenirs in Reykjavik, the shops along the rainbow street tend to be more expensive so be sure to walk around and compare prices. And if you're planning on purchasing snacks or Icelandic liquor to take home, it's actually cheaper to get it at the Duty Free shop at the airport than in town.

Suggested Packing List for Iceland

Iceland's weather is notoriously unpredictable, and you can often experience all four seasons in a single day. The key to staying comfortable is layering.

Clothing Essentials

• Waterproof and Windproof Outer Layer: A high-quality rain jacket and pants are non-negotiable, no matter the season. Weather can be very unpredictable there and forecasts are often incorrect.

• Insulated Jacket: A down or synthetic insulated jacket will keep you warm.

• Fleece or Wool Mid-layers: These are perfect for trapping heat. Icelandic wool sweaters (lopapeysa) are a fantastic, locally made option that you can purchase as well to have a practical souvenir from your trip!

• Thermal Base Layers: Long-sleeved shirts and leggings made of merino wool or a synthetic blend will wick away moisture and keep you dry.

• Waterproof Hiking Boots: Sturdy, comfortable, and broken-in boots with good ankle support are a must for navigating uneven terrain. My favorite hiking boots are my Thesus Weekend Boot.

• Warm Socks: Pack several pairs of wool or synthetic hiking socks.

• Hat, Gloves, and Scarf: Essential for protecting you from the wind and cold, even in summer.

• Swimsuit: Don't forget this! You'll want it for the Blue Lagoon, Secret Lagoon, or any of the numerous local hot springs and pools. But don't bring a white one since it can get stained from the hot spring minerals.

• Reusable Water Bottle: Iceland's tap water is some of the purest in the world. Save money and reduce plastic waste by refilling your bottle. My favorite is Owala's FreeSip Away water bottle - literally have every feature I could ever want.

• Sunglasses: The sun can be surprisingly strong, especially when reflecting off glaciers or water.

• Sunscreen: Protect your skin from the sun, particularly at high elevations. I like to carry a powdered sunscreen for easy application on the go.

• Daypack: A small backpack is useful for carrying water, snacks, and extra layers on your daily excursions.

• Camera: To capture the stunning scenery.

• Portable Charger/Power Bank: Keep your devices charged while you're on the go.

• Sleep Mask: An absolute necessity if you're visiting in the summer and need darkness to sleep during the Midnight Sun.

A trip to Iceland is an opportunity to connect with nature in its rawest form. With thoughtful planning around your budget, travel time, and transportation, you can navigate the country's challenges with ease. By packing smart and embracing the island's unpredictability, you'll be well-prepared for an unforgettable journey with these Iceland travel tips.