Driving in Iceland, especially during the summer months, is easy and convenient. However, this is not the case during the winter months, and it is even more important to strictly follow safe driving rules.

Public Transportation

It is very difficult for tourists to rely on local public transportation, as buses do not reach every site and this is not a convenient way to get around. However, there are several local companies that operate bus lines to almost every tourist attraction, and even to places that cannot be accessed with a standard private car. From Reykjavik's Central Bus Terminal, BSI, buses depart daily that will take you to almost anywhere in Iceland, even during the winter months. The bus company offers a "smart pass", which provides travel discounts and is recommended for those planning to travel frequently by bus. For full details and detailed bus schedule information, visit the NAT website. Additional bus companies include Reykjavik Excursions and Gray Line Iceland. Another company offering bus trips to tourist attractions—such as the Blue Lagoon, the Glacier Lagoon, the Golden Circle, and more—is BusTravel.
Ticket price: An adult fare costs 150 ISK. Children ages 4-11 pay half price, and travel is free for children under 4.

Car Rental

The most recommended option for traveling in Iceland is renting a car.
Cars can be rented at the airport or in Reykjavik at slightly lower prices.
The Ring Road (Route 1) encircling the island is paved, well-maintained, and suitable for any vehicle.
Beyond this road, there are several other paved main roads, mainly in the Reykjavik area and the Golden Circle.
In contrast, there are many gravel roads; some are in good condition and can be driven with an ordinary car, while others are very rough and passable only by 4x4 vehicles. On these roads, marked with the letter F, driving a regular vehicle is strictly prohibited (car rental companies do not insure regular cars on these roads). These roads are mostly located in the interior highlands of Iceland.
The cost of renting a 4x4 vehicle is significantly higher than a standard car. If most of your trip is planned around areas along the Ring Road, you can rent a regular car and use public transportation or guided tours for trips into the central interior highlands.

 

Recommended car rental companies and providers:

♦ Car rental from the reliable and convenient Booking website: Booking.com

 

 

Local car rental company websites:

Rental in the Reykjavik area:

cheap car hire Iceland  (the company also operates at the airport)
Car rentalsBlue Car Rental  (the company also operates at the airport)
Hertz
Route1 Car Rental
ATAK Car Rental

Rental at the airport

Budget
Avis

Drivers in Iceland are requested to observe the following safety rules:
Driving in Iceland is on the right side of the road.
Headlights must be on at all times, during every trip and at any hour.
Wearing seatbelts is mandatory in both front and rear seats.
The speed limit on paved main highways is 90 km/h.
The speed limit on gravel roads is 80 km/h.
The speed limit in populated/urban areas is 50 km/h.
Watch out for numerous animals along the roadsides. Sheep and horses often roam near the roads and occasionally jump onto the roadway, so it is best to slow down near them.
Rental car companies strictly forbid driving standard two-wheel-drive vehicles on F-roads; plan your route accordingly.
To rent a car in Iceland, the minimum driving age is 21; for a 4x4/jeep, the minimum age is 25.
Road condition updates in Iceland - Vegagerdin

Flights

There are no direct flights from Israel to Iceland, but local airlines Icelandair (Icelandair) and Iceland Express (Iceland express) operate year-round flights to Iceland from a selection of destinations in Europe. Icelandair maintains Code Sharing agreements with several airlines, including El Al, and a single ticket can be purchased from Israel all the way to Iceland. 

Here are several recommended providers for searching and booking flights and cars:

Expedia
A great and reliable website for hotels, flights, and car rentals

 

Travelocity car rental, flight, and hotel bookings

 

 

European Airlines

Besides the local companies, there are several mostly European airlines flying to Iceland:

Air Berlin
Austrian Airlines
Delta (from the US)
German Wings
Lufthansa
SAS
Transavia
International flights to Iceland land at Keflavík Airport.
Keflavík is located about a 40-minute drive from the capital city, Reykjavik. Travelers choosing to head into Reykjavik on arrival day can do so via a shuttle bus departing from the airport. The shuttle is called FlyBus and departs for the city 40 minutes after every flight arrival. The bus stops at the Central Bus Terminal (BSI) in the city center and in the adjacent suburbs, Hafnarfjörður and Garðabær.

For a higher fare, you can also purchase tickets for the Flybus+ shuttle, which drops passengers off at several key hotels across the city. Full details, fares, and ticket purchases - https://www.re.is/flybus

In addition, there are several local airlines operating domestic flights between various destinations across the country:
Icelandair
Eagle Air
Norland Air

 

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Travel Destinations in Iceland
Attractions in Iceland