The Arctic Coast Way is Iceland's northernmost scenic route, unveiled in 2019 to connect some of the country's most remote yet breathtaking regions. It weaves through six peninsulas from Hvammstangi in the west to Bakkafjörður in the east, linking towns and villages that proudly retain their cultural heritage and close-knit communities.
Travel Iceland, Iceland information

Discover the Arctic Coast Way in Iceland with Höldur Car Rental

06.06.2025

When most travellers dream of Iceland, they picture dramatic waterfalls, black sand beaches, and the Golden Circle. But for those yearning to venture beyond the crowds, the Arctic Coast Way offers a quieter, more intimate journey through Iceland's untouched northern edge.

This scenic route stretches across the far north of Iceland, tracing over 900 km of coastline shaped by ancient glaciers and the roaring Arctic Ocean. With Höldur Car Rental, your Arctic adventure begins with the freedom to chart your own course, uncovering serene fjords, sleepy fishing villages, and the ethereal dance of the northern lights. Here, we explore why this road less travelled should be your next unforgettable journey.

What is the Arctic Coast Way?

The Arctic Coast Way is Iceland's northernmost scenic route, unveiled in 2019 to connect some of the country's most remote yet breathtaking regions. It weaves through six peninsulas from Hvammstangi in the west to Bakkafjörður in the east, linking towns and villages that proudly retain their cultural heritage and close-knit communities.

This is a route made for discovery. Think of it as a treasure map to hidden hot springs, windswept cliffs, volcanic landscapes, and vibrant coastal life. It's a dream for photographers, adventurers, and anyone seeking a deep connection with nature.

Arctic Coast Way Signpost

Why Choose the Arctic Coast Way for Your Iceland Road Trip?

Travelling the Arctic Coastway offers a profound contrast to more tourist-trodden paths. Here are just a few reasons to choose this route:

  • Tranquillity and Space: With fewer visitors, the Coast Way offers an authentic and peaceful Icelandic experience.

  • Spectacular Natural Diversity: From jagged fjords to basalt cliffs and arctic tundra, the landscapes are astonishingly varied.

  • Rich Cultural Encounters: Enjoy warm welcomes in villages where traditions remain alive and storytelling is a way of life.

  • Wildlife Wonders: Encounter wildlife such as whales, seals, puffins, and reindeer in their natural habitats.

Eyjafjordur

Top Attractions Along the Arctic Coast Way

Stunning Natural Landscapes

  • Eyjafjörður & Skjálfandi Bay: Towering fjords and mirror-calm waters, ideal for kayaking or simply admiring from a viewpoint.

  • Midnight Sun & Northern Lights: In summer, the sun barely sets. In winter, the skies become a stage for aurora borealis magic.

Cultural and Historical Highlights

  • Húsavík: Known as the whale capital of Iceland, this charming town offers whale-watching tours and a fascinating whale museum.

  • Siglufjörður: Once Iceland's herring fishing hub, now home to the Herring Era Museum and vibrant summer festivals.

  • Arctic Henge: A modern-day stone monument in Raufarhöfn, inspired by Nordic mythology and perfectly aligned with the midnight sun.

Wildlife Encounters

  • Whale Watching: Húsavík and Dalvík offer some of the best whale sightings in Europe.

  • Birdlife & Puffins: The cliffs of Melrakkasletta and Lundey island are rich with puffins, Arctic terns, and seabirds.

Drangey island

Benefits of Renting a Car for the Arctic Coast Way

Freedom and Flexibility

  • Choose your own pace. Stop for spontaneous photo ops, a picnic by the sea, or a hike into the highlands.

  • Discover remote places unreachable by tour buses or public transport.

Comfort and Safety

  • Höldur offers modern vehicles, including 4x4s and eco-friendly hybrids, perfect for northern roads.

  • Our team provides up-to-date road guidance and local driving tips for Iceland's ever-changing conditions.

Cost-Effectiveness

  • Save on expensive guided tours by exploring independently.

  • Enjoy road trip packages, GPS add-ons, and inclusive insurance from Höldur Car Rental.

Kalfshamravik

Practical Tips for Driving the Arctic Coast Way

Planning Your Journey

  • Best Time to Visit: Summer (June-August) for long days and accessible roads; Winter (October-March) for northern lights and a true Arctic vibe.

  • Suggested Itinerary: 5 to 10 days allows a relaxed loop, connecting major villages and natural highlights.

Road Safety and Navigation

  • Always check www.road.is and vedur.is for road and weather conditions.

  • Be cautious of single-lane bridges, gravel roads, and sudden weather shifts.

  • Carry paper maps as backup in remote areas.

Essentials to Pack

  • Warm, layered clothing, waterproof outerwear.

  • Chargers, headlamp, emergency blanket, and snacks.

  • Icelandic SIM card or GPS.

The Arctic Henge

 

Why Choose Höldur Car Rental for Your Arctic Coast Way Adventure

Reliability and Service Excellence

With over five decades of experience and the quality guarantee of Europcar, Höldur ensures top-tier service wherever your adventure takes you. From Keflavík International Airport to Akureyri and beyond, pick-up and drop-off locations are easy and convenient.

  • Choose from compact cars, SUVs, 4x4s, and eco-conscious models.

  • Enjoy 24/7 customer support and road assistance.

Commitment to Sustainability and Safety

Husavik

FAQs About Driving the Arctic Coast Way in Iceland

What is the best vehicle type for the Arctic Coast Way?

A 4x4 or SUV is recommended, especially outside of summer months. Höldur offers several models ideal for northern terrain.

Can I start my Arctic Coast Way trip from Keflavík Airport?

Absolutely. Höldur Car Rental offers vehicle pick-up directly at Keflavík International Airport for a seamless start.

Are roads open year-round?

Most are accessible in summer, but some may close in winter due to snow or ice. Always check road conditions daily.

Is it safe to drive in Iceland as a visitor?

Yes, but it's vital to stay informed and follow local driving guidance. Höldur provides safety briefings and travel tips.

Are there petrol stations along the route?

Yes, but they may be far apart. Refuel regularly in towns like Sauðárkrókur, Húsavík, Akureyri, and Raufarhöfn.

Do I need a special licence?

A valid EU or international driving licence is sufficient.

What are some hidden gems on the Arctic Coast Way?

Consider Kópasker for seclusion, Melrakkasletta for birdlife, and the geothermal pools in Drangsnes.

How can I plan a sustainable trip?

Choose low-emission vehicles, shop locally, stay in eco-friendly lodgings, and minimise waste.

Can I sleep in the rental car?

No, overnighting in cars is not permitted unless in designated campsites with facilities.

Are car rentals expensive in Iceland?

Rates vary by season, but Höldur offers competitive pricing, extras, and long-term discounts.

Ready to Begin Your Arctic Coastway Adventure?

From the thunder of distant waterfalls to the quiet magic of Arctic villages, the Arctic Coastway is Iceland at its most authentic and awe-inspiring. And with Höldur Car Rental, you're not just renting a car — you're choosing peace of mind, reliability, and the freedom to explore this northern frontier your way.

 

Map of europcar locations in Iceland

When you book with Holdur Car Rental you´ll get:

  • Our Basic Protection Package. This includes third-party loss.
  • Collision damage waiver (CDW)
  • Personal Accident Insurance (PAI)
  • The option to upgrade your vehicle cover
  • -5 ISK Fuel Discount off every liter at N1 gas stations
  • Studded Winter Tyres during the snowy season at no additional cost
  • Flexible cancellation, with a 100% up to 48 hours prior to pick-up

Plan Your Iceland Road Trip Today

Exploring Iceland by car is an experience like no other. To make the most of your trip, choose a rental vehicle that aligns with your driving skills, travel plans, and preferences. Höldur offers a diverse selection of manual and automatic rental cars, from budget-friendly options to 4x4 SUVs tailored for Iceland’s rugged landscapes.

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