Northbound or Southbound? Find Your Perfect Iceland Car Rental with Zero

Let’s be honest. The hardest decision about your Iceland trip isn’t whether to pack wool socks or waterproof ones (spoiler: both). It’s choosing which direction to drive first. Should you go northbound to chase wild fjords, geothermal secrets, and fewer tourists? Or southbound to hit every Instagrammable waterfall, glacier, and puffin hotspot in a single road trip? Either way, your perfect Icelandic adventure starts with one key move: renting a car with Zero Car Rental.

With full insurance, zero excess, a seamless keybox pickup at KEF Airport, and roadside assistance built into every rental, Zero is the no-hassle launchpad for your journey—north, south, or somewhere gloriously off-grid.

First things first: Why rent a car in Iceland at all?

If you’re hoping to “do Iceland” by bus, you might find yourself stuck in a Reykjavik café wondering where all the volcanoes went. Iceland is built for self-drive exploration. Whether you’re navigating fjord roads, pulling over to pet shaggy horses, or making emergency hot spring detours, a car gives you freedom, flexibility, and a whole lot more fun.

Still on the fence? We’ve broken it all down for you in this no-fluff guide to renting a car in Iceland.

Northbound: For the solitude seekers and midnight sun chasers

Going north is like entering Iceland’s hidden back room—less tourist traffic, more local flavor, and landscapes that look straight out of a Viking saga. Northern Iceland offers a raw and untamed beauty that speaks to adventurers looking for more than photo ops—it offers experiences. From dramatic coastal cliffs to geothermal oases tucked between lava fields, every turn reveals a piece of the country many travelers miss. And with fewer crowds, you often have these wonders all to yourself.

This is the land of the midnight sun in summer, where golden light stretches into the early hours and the wildlife—foxes, whales, and seabirds—go about their ancient routines undisturbed. In winter, this same region becomes a stage for the northern lights, with the dark skies over remote villages putting on breathtaking shows.

The north is also a cultural experience: charming turf-roofed farms, sagas etched in stone, and locals who might invite you in for coffee and stories. Want to unwind in nature without being elbow-to-elbow with tourists? Head to the geothermal Mývatn Nature Baths, a quieter (and arguably better) alternative to the Blue Lagoon.

If you’re craving something a little more epic, explore the vastness of the highlands that skirt the north. Places like Askja caldera and Herðubreið volcano require 4WD and a dose of courage, but they reward with landscapes so otherworldly, NASA once used them to train astronauts.

And don’t forget the fjords of the northeast. The winding roads leading into towns like Bakkagerði (home of the elf queen, allegedly) make for cinematic driving. Birdwatchers can spot puffins, while solitude seekers might spend hours simply watching waves crash on ancient rock.

Driving in the north is less about checklists and more about discovery. The joy is in the unexpected—a waterfall with no name, a herring-era museum run by a retired fisherman, or a roadside hot pot with a view of nothing but sheep and sky.

Highlights of a Northbound Route:

• Akureyri: The “Capital of the North” with charming cafés and epic whale watching.
• Mývatn: Boiling mud pools, lava fields, and a lake that smells like science class.
• Húsavík: Arguably the best place in Europe to see whales (and sing the Jaja Ding Dong).
• Dettifoss: Europe’s most powerful waterfall—stand near it and feel like a soggy ant.

The roads up north are long, wild, and empty in the best way. Perfect for travelers who like their trips quiet, quirky, and surrounded by nature.

Best vehicle for the job? One of our fuel-efficient SUVs with 4WD. Full insurance and 24/7 roadside assistance come standard, because the North doesn’t mess around.

Southbound: For the waterfall hoppers and glacier lovers

If this is your first time in Iceland, head south. Yes, it’s more popular—but for good reason. The south coast is Iceland's greatest hits album: dramatic landscapes, bucket-list landmarks, and a road so scenic it’s practically a moving postcard. This is the route for travelers who want maximum wow with minimum detours.

Right after leaving Keflavík Airport, you’re treated to a steady stream of jaw-dropping sights. Vast lava fields from centuries-old eruptions flank the roads, and steam rises from hidden geothermal vents. Every hour feels like a new highlight reel. It's a drive where the view changes with every curve, offering one photogenic marvel after another.

Beyond the natural beauty, the south is where Iceland’s contrasts are on full display—icy glaciers and fiery volcanoes coexist just kilometers apart. Visit the LAVA Centre in Hvolsvöllur to understand the seismic drama beneath your tires, then head east toward the rolling tongues of Vatnajökull glacier, the largest in Europe.

Summer travelers can enjoy midnight hikes and fields of blooming lupines, while winter brings snow-dusted waterfalls and ice cave tours that look like you’ve stepped into a fantasy novel. And speaking of fantasy, parts of this region were featured in Game of Thrones—so expect dramatic vibes at every turn.

If you like charming towns with good food and better stories, don’t miss places like Hella, Kirkjubæjarklaustur, or Höfn (hello, langoustines). The locals are friendly, and even the gas stations serve surprisingly decent hot dogs and strong coffee.

Want something more offbeat? Try a glacier hike on Sólheimajökull, explore the mossy canyon of Fjaðrárgljúfur, or drive inland to discover Þórsmörk, a rugged valley named after Thor himself.

And yes, puffins. If you're here between May and August, Dyrhólaey cliffs become prime puffin real estate—just bring a zoom lens and a bit of patience.

In short, South Iceland is a choose-your-own-adventure playground packed with visual overload, Icelandic legends, and natural spectacles that will ruin waterfalls for you anywhere else. You’ll get wall-to-wall scenic overload from the minute you leave KEF.

Top Southbound Stops Include:

• Seljalandsfoss & Skógafoss: Two iconic waterfalls you can (mostly) walk behind or up.
• Reynisfjara: Black sand beaches with basalt columns and wave warnings.
• Vík: The southernmost village with charm, cliffs, and great hot chocolate.
• Jökulsárlón: Glacier lagoon + diamond beach = Insta heaven.

Pro tip: These routes are usually well-maintained, so even our smaller rentals or electric vehicles will do the trick. You can read our Ultimate Guide for International Travelers to get a better sense of road rules, gas stations, and driving etiquette.

Not sure which way to go? Make it a loop.

Why settle for just half the experience when you can have it all? Iceland’s Ring Road (Route 1) is a 1,332-kilometer ribbon of adventure that circles the island and connects many of its most famous sights—along with plenty of hidden gems in between. Whether you start north or south, a full loop gives you the ultimate mix of landscapes, cultures, and unforgettable roadside surprises.

The Ring Road doesn’t include detours to areas like the Westfjords or Snæfellsnes Peninsula—but those are well worth adding if time allows.

If you’ve got 7–10 days, a full circuit is more than doable—and with Zero’s unlimited mileage, there’s no need to obsess over distance. Take your time. Pull over for every waterfall. Chase sunsets that never end. Grab coffee at that random gas station café that turns out to be run by a former fishing captain with the best pancakes on the island.

Driving the loop means you get the best of both worlds: the southern showstoppers and the northern serenity. You’ll go from lava beaches to snow-capped peaks, from glacier tongues to geothermal lagoons, and from bustling towns to ghostly valleys where it’s just you and the wind.

Want help planning it? Check out our Zero-hassle itinerary for 2025. It covers routes, time-saving tips, and where to stop for the best views, meals, and spontaneous swims.

Need-to-know tips for a Ring Road adventure:

• Time it right: Summer offers long days and easy roads, while fall and winter bring the magic of northern lights and quieter travel.
• Bring layers: The weather can flip moods faster than a teenager.
• Use common sense: Don’t camp where you’re not allowed. Don’t feed the horses chocolate (yes, it happens). And always, always respect the signs.

Just remember: speed limits are in kilometers per hour, sheep have right of way, and F-roads require a 4x4 (no exceptions, no negotiations, and no trying to convince the rental car it’s a monster truck).

No detour is ever truly wrong in Iceland—just unexplored.