A Guide to Exploring Akureyri by Rental Car

Akureyri, known as the "Capital of North Iceland," is a charming town nestled at the head of Iceland's longest fjord, Eyjafjörður. It is a hub of culture, nature, and adventure. While its city center is a delight to explore on foot, a rental car is your key to discovering the full splendor of Akureyri and the vast, dramatic landscapes of North Iceland. The freedom to create your own schedule is essential for a true Icelandic journey.

A self-drive tour gives you the flexibility to move from the town's vibrant botanical gardens to the powerful waterfalls and geothermal wonders that define the region. This guide provides a complete overview for exploring Akureyri and its surroundings by car. We'll cover the top attractions in town, must-see day trips, and practical driving advice to make your adventure seamless. With a reliable vehicle from Höldur, you can easily shift from urban discovery to epic natural exploration.

Related: Coolcation in Iceland: Self-Drive Your Summer Escape to the North.

Why Rent a Car for Your Akureyri Trip?

While Akureyri offers a walkable and inviting downtown area, renting a car provides significant advantages that elevate your trip from a simple visit to an immersive Northern Iceland experience.

• Unmatched Flexibility: Forge your own path. Linger at the majestic Goðafoss waterfall or make an unplanned detour to a charming fishing village along the coast. You are in full command of your itinerary.
• Convenience and Comfort: A rental car streamlines all your travel logistics. Transport your luggage with ease, pack extra layers for Iceland's unpredictable weather, and travel comfortably no matter the conditions outside.
• Access to Remote Beauty: North Iceland's most spectacular sights, including geothermal fields, volcanic craters, and remote coastlines, are often inaccessible by public transport. A car brings them within your reach.
• Cost-Effective for Groups: For families or groups, renting a car is often more economical than booking separate seats on organized tours for every excursion you wish to take.

Exploring Akureyri's Top Attractions by Car

A car allows you to navigate efficiently between Akureyri’s key landmarks, many of which are spread out. You can cover more ground in less time and easily visit attractions both in and just outside the town center.

Akureyrarkirkja

This striking Lutheran church stands prominently on a hilltop, offering a commanding view over the town center and fjord. Designed by the famous state architect Guðjón Samúelsson, its art deco style and impressive stained glass windows make it a must-see. Driving to the church is simple, and street parking is available nearby, allowing you to easily visit this iconic symbol of Akureyri.

Akureyri Botanical Garden (Lystigarðurinn)

One of the northernmost botanical gardens in the world, this peaceful oasis is a testament to the surprising hardiness of plant life just south of the Arctic Circle. The garden contains nearly every plant species native to Iceland, along with thousands of other high-latitude and high-altitude plants. Driving here is convenient, and ample parking makes for a relaxed visit to this beautiful public park.

The Old Town

Just south of the city center lies Akureyri's oldest part, featuring beautifully preserved and colorful wooden houses dating back to the late 19th century. Drive down to the area near the Akureyri Museum and Nonni's House to soak in the history. It provides a picturesque glimpse into the town's past as a major trading post.

Kjarnaskógur Forest

Located just south of the town, Kjarnaskógur is Akureyri's largest recreational area. This sprawling forest has over a million trees and an extensive network of trails for walking and cycling. In winter, it transforms into a popular spot for cross-country skiing. Driving here is the only practical way to visit, and the large parking areas make it an easy and popular destination for both locals and travelers.

Hlíðarfjall Ski Resort

For those who love winter sports and skiing, the Hlíðarfjall Ski Resort is a must-visit destination. Just a 15-minute drive from Akureyri, this resort offers stunning views of the town and surrounding mountains. With a variety of slopes for all levels, it's perfect for both beginners and experienced skiers. In addition to skiing, visitors can also try their hand at snowboarding or take a ride on the ski lifts for panoramic views.

Unforgettable Day Trips from Akureyri

The true benefit of your rental car shines when you venture out of town. Akureyri is the perfect starting point for exploring some of Iceland’s most breathtaking natural wonders.

Before heading farther afield, consider a visit to Laufás, a beautifully preserved turf house farmstead located just a short drive northeast of Akureyri. Set amidst stunning fjord scenery, Laufás offers a unique insight into traditional Icelandic architecture and rural life from past centuries. The historic site also houses a charming church and museum, making it a rewarding cultural stop as you explore the region. Nearby, you'll find the enchanting Christmas Garden, open year-round and filled with festive decorations, local treats, and Icelandic Christmas folklore—an ideal spot for families or anyone seeking a bit of holiday magic during their travels.

For a truly unique adventure, consider a day trip to Grímsey Island, the only part of Iceland located within the Arctic Circle. Reaching Grímsey involves a scenic drive to Dalvík, followed by a ferry or a short flight from Akureyri. On the island, you can cross the Arctic Circle itself—a memorable milestone for many travelers—and experience extraordinary wildlife, including thriving bird colonies and dramatic coastal vistas. Grímsey’s peaceful landscapes and the once-in-a-lifetime opportunity to step beyond the Arctic Circle make this an unforgettable addition to your North Iceland itinerary.

The Diamond Circle

This magnificent 250-kilometer (155-mile) circuit is North Iceland’s answer to the Golden Circle. It encompasses some of the country's most diverse and dramatic scenery. A rental car allows you to experience it all at your own pace. Key stops include:

• Goðafoss Waterfall: The "Waterfall of the Gods" is one of Iceland's most spectacular cascades. It’s easily accessible from the Ring Road and has parking on both sides of the river, offering different perspectives.
• Lake Mývatn: A geological wonderland of volcanic and geothermal activity. Spend a day exploring its highlights: the pseudo-craters at Skútustaðagígar, the Dimmuborgir lava formations (the "Dark Castles"), and the powerful Námaskarð geothermal area with its bubbling mud pots and fumaroles.
• Dettifoss Waterfall: Europe's most powerful waterfall by volume. Feel the ground tremble as glacial water thunders into a massive canyon. A 4x4 vehicle is recommended, especially for accessing the west side road or if traveling outside of summer.
• Húsavík: Known as the whale-watching capital of Iceland, this picturesque town is a fantastic addition to the Diamond Circle route.

The Arctic Coast Way

For those seeking an off-the-beaten-path adventure, a drive along a section of the Arctic Coast Way is a must. This route winds through 900 kilometers of stunning coastline, remote fjords, and charming fishing villages. From Akureyri, you can easily explore the Tröllaskagi Peninsula (Troll Peninsula). This leg of the journey offers:

• Siglufjörður: Once the herring fishing capital of the Atlantic, this beautifully restored town is now home to the award-winning Herring Era Museum. The drive through mountain tunnels to reach it is an experience in itself.
• Ólafsfjörður: Another scenic fishing town nestled between dramatic mountains and the sea.
• Dramatic Coastal Views: The road clings to the coastline, offering endless opportunities to stop and admire the breathtaking views of the North Atlantic.

Practical Tips for Driving in Akureyri

Driving in and around Akureyri is generally easy, but a few local tips will ensure a smooth experience.

• Parking: Downtown Akureyri is divided into parking zones P1 and P2. P1 is closest to the core shopping and dining areas, with a higher hourly rate than P2. Payment is required in these zones Monday through Friday between 10:00 and 16:00. The most convenient way to pay is via mobile apps such as EasyPark or Parka, which allow you to select your parking zone and manage your session digitally. Physical pay stations are also available in the town center. Always check local signage for time limits and zone details.
• Road Conditions: The main roads in Akureyri and the Ring Road (Route 1) are paved and well-maintained. However, roads leading to more remote areas or through mountain passes can be gravel. In winter, conditions can change rapidly. Always check road conditions on road.is before setting out. A 4x4 vehicle is recommended for winter travel and for accessing F-roads (highland roads, open only in summer).
• Driving Rules: Iceland drives on the right. Headlights must be on 24/7, all year round. The general speed limit is 50 km/h in urban areas, 80 km/h on gravel roads, and 90 km/h on paved rural roads. Iceland has very strict laws against driving under the influence of alcohol.

 

Choosing Höldur for Your Akureyri Adventure

Akureyri is not only the gateway to North Iceland—it is also the founding town of Höldur, Iceland's largest car rental company. Our deep roots in the region have shaped the standard for service, allowing us to deliver a level of expertise, responsiveness, and support in North Iceland that is far beyond the reach of any other car rental provider.

As the country’s most experienced car rental company, Höldur is dedicated to your safety, comfort, and peace of mind. With convenient pick-up locations at Akureyri Airport (AEY) and Downtown, you can begin your journey the moment you arrive. Choose from our extensive fleet—ranging from economical 2WD cars for summer road trips to robust 4x4 SUVs prepared for all weather and highland conditions. Our ongoing commitment to safety, environmental responsibility, and vehicle care ensures you travel with confidence, wherever the adventure takes you.

Discovering Akureyri and the wonders of North Iceland with a rental car provides a unique sense of freedom and adventure. It allows you to create a personalized and memorable journey, from the cultural heart of the town to the wild, untamed nature that makes this region so special.

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