Iceland was a dream — raw, surreal, and unlike anywhere else I’ve been. Over 12 days, we circled the island, witnessed nature at its most untamed, and learned a lot through experience (and a few minor hiccups!).
This post isn’t a travel brochure — it’s a collection of honest, real-world tips that I wish someone had told me before landing.
If you’re planning a trip to Iceland, especially a road trip, these essentials might just save you time, money, and unexpected surprises.

🛒 Grocery & Essentials

• Iceland has three major supermarket chains spread island-wide:
  • Bónus – cheapest and well-stocked
  • Krónan – clean layout, good for everyday groceries, slightly pricier
  • Netto – convenient and widespread
• Opening hours vary by location and are shown under the store logo (e.g., 10–22).

---

---

🍷 Alcohol

• Alcohol is sold only in Vínbúðin, the state-run liquor stores.
• You’ll find them even in remote towns, but they have limited hours and are closed on Sundays and holidays.

---

---

⛽ Fuel & Petrol Stations

• Two main petrol stations throughout the island: N1 and Olís.
• Most are self-service and open 24/7.
• Smaller attached convenience stores like Nesti sell snacks, coffee, etc.
• Note: Even if you fuel for a small amount, a higher amount might be temporarily blocked on your card.
  • This is a fraud prevention measure.
  • The correct amount is debited in 3–4 business days.

---

---

🚗 Driving in Iceland – First-Hand Insights

• You can easily drive in Iceland with your home country’s license as long as it’s written in English (or Roman script). An International Driving Permit (IDP) is not necessary.
  • In our case, they didn’t even check our license, maybe because we booked the car online — but others we saw were asked for their license, so keep it handy.
    
    
• Foggy conditions can suddenly appear and make driving extremely difficult.
  • Look out for the yellow roadside dividers — they help you stay in lane when visibility is poor.
    
    
• Roads may look easy, but they demand your full attention.
  • There’s usually just one lane in each direction, so be cautious while overtaking.
    
    
• The scenery is stunning and hypnotic — roads, mountains, streams, and waterfalls everywhere — but with no honking or much traffic, you could get too relaxed and sleepy.
  • A moment’s lapse could mean falling off the raised road edge (which can be 2–3 feet high!).
    
    
• High winds are common — be very careful while opening car doors, or the wind might yank the door or even unhinge it.
  
  
• Full insurance is strongly recommended.
  • Iceland has loose gravel almost everywhere, and even normal driving can crack your windshield.
  • It happened to us — but thankfully, we had zero waiver, so we didn’t pay a thing. Absolute lifesaver!

---

⚠️ Road Rules & Safety in Iceland

• Speed limits in Iceland:
  • 50 km/h – urban areas
  • 80 km/h – gravel rural roads
  • 90 km/h – paved rural highways
• Iceland often gives advance warnings about speed cameras — which I haven’t encountered elsewhere as of yet!
  • On roads, look for signs with “munun eftir”, which indicate a speed camera ahead, so slow down.
• GPS devices may show police alerts ahead, based on updates from other users.
• Although we read about sheep crossing roads, we didn’t encounter any during our full Ring Road trip.
  • Most farmlands are fenced with nearly invisible wire fencing to keep animals in.

---

---

🅿️ Parking in Iceland

• While most attractions are free, you’ll often need to pay for parking, especially near popular spots.
  • Most parking lots have touchscreen booths where you can type in your car’s number plate and pay directly.
  • If you forget or skip the parking fee, be warned — you might end up with a hefty fine.
    
• In cities and tourist areas, parking is divided into zones:
  • P1 – Most expensive (e.g. Reykjavik city center)
  • P2 & P3 – More affordable and usually nearby
    
• We stayed on Laugavegur (Reykjavik’s main shopping street) and had to park in P1, where:
  • Parking was paid Monday to Friday, 10 AM to 6 PM (timings may vary depending on the area).
  • You can only park for 3 hours at a stretch, so we had to check in repeatedly.
    
• Parking is free on Saturdays, Sundays, and from 9 PM to 9 AM in most zones.
  
• Download the Parka app — it’s a lifesaver for self check-in and payments.
  

---

---

🚗 Car Rentals

• There are many car rental options starting right at the airport, including big international brands like Hertz and Europcar.
• Local car rental companies are just as reliable and often more affordable.
• We rented our car from Blue Car Rental for the entire trip — no complaints, smooth experience throughout.
• Blue Car Rental provided a pocket Wi-Fi device with free island-wide internet, which was super helpful.
• Their office is about a five-minute walk from the airport, which might be a little inconvenient with luggage.
  • But one person can go to pick up the car while others wait inside.
  • We walked with our luggage and found it to be an easy, breezy stroll—not tiresome at all.

---

---

🌧️ Weather

• Iceland’s weather can change within minutes.
• Always carry a raincoat or poncho — must-haves for Iceland’s unpredictable climate.
• You can also buy them at local departmental stores once you land.

---

---

🐦 Birdwatching & Wildlife

• If you’re visiting in summer (bird nesting season), bring binoculars.
  • Birds like puffins nest far off cliffs and are hard to spot with the naked eye.

---

---

🍽️ Food & Dietary Needs

• Iceland is vegetarian- and vegan-friendly.
  • Most restaurants offer a few plant-based options.
  • Many places are willing to adjust dishes if you ask.

---

---

💸 Money, Shopping & VAT Refunds

• Iceland uses a comma instead of a dot for decimals (e.g., 3,5 instead of 3.5).
• If you’re buying something over ISK 12,000 (check updated rules online), you’re eligible for a tax refund.
  • Collect it from the airport counter before departure, or
  • Drop documents in the VAT dropbox if it’s outside office hours.

---

---

🧖‍♀️ Blue Lagoon

• The Blue Lagoon is better clubbed with arrival or departure since it’s closer to Keflavík Airport.
• It’s about 50 km from Reykjavík, so making a separate trip from the capital can be a long detour.
• When visiting the Blue Lagoon, it’s a good idea to bring your own towel, bathrobe, and a plastic bag for your wet swimsuit — even though the changing rooms have water extractors, having a bag makes it easier to carry damp clothes.

---

---

🌋 Extra Essentials & Local Insights

• Iceland sits on the Mid-Atlantic Ridge, where the North American and Eurasian tectonic plates meet — one reason it’s so geologically active.
  • During our visit, we felt many tremors. Locals believe they can signal upcoming volcanic activity.
• Iceland has a huge number of waterfalls, but very few forests.
  • It was heavily deforested by Vikings centuries ago.
  • Reforestation is ongoing, but trees are still rare on the landscape.
• Thanks to geothermal heating, homes in Iceland enjoy cheap and abundant hot water.
  • But it often smells of sulphur — so if you get a chemical smell in the shower, it’s not chlorine, it’s just natural sulphur from underground.