Your Essential Guide to Iceland: Currency, Culture, and Car Rental Tips

Planning a trip to the Land of Fire and Ice? Iceland offers some of the world's most spectacular landscapes, from cascading waterfalls to otherworldly glaciers. However, navigating this Nordic island nation requires some preparation, especially when it comes to understanding the local currency, essential phrases, and transportation options. Whether you're landing at Keflavik International Airport and considering a self-drive adventure, this comprehensive guide will equip you with everything you need to know for an unforgettable Icelandic journey.

Understanding Iceland's currency is crucial for any visitor, as the country operates independently from the European Union's monetary system. Additionally, learning a few key Icelandic phrases can enhance your travel experience and help you connect with locals. Most importantly, securing reliable transportation from Keflavik Airport opens up endless possibilities for exploring Iceland's natural wonders at your own pace.

Iceland Currency: The Icelandic Króna Explained

What Currency Does Iceland Use?

Iceland uses the Icelandic króna (ISK), not the Euro despite being a European country. The currency symbol is "kr" and it's subdivided into 100 aurar (singular: eyrir). This might surprise first-time visitors who assume all European destinations accept Euros, but Iceland maintains its monetary independence.

The Icelandic króna has been the country's official currency since 1885, making it one of the oldest currencies still in use today. Understanding this currency system is essential for budgeting your trip effectively, especially when planning activities like car rental at Keflavik Airport.

Currency Exchange and Icelandic Króna Rates

Currency exchange rates for the Icelandic króna fluctuate daily against major currencies. As of recent years, the exchange rate typically hovers around 130-140 ISK per US dollar, though these rates can vary significantly based on economic conditions.

You can exchange money at several locations:

• Keflavik International Airport currency exchange counters
• Icelandic banks in Reykjavik and other towns
• Some hotels and tourist centres
• ATMs throughout the country (most convenient option)

Most reputable services accept major credit cards, reducing the need for currency exchange when renting a vehicle. However, carrying some cash can be handy for smaller businesses.

Iceland Money Exchange to Dollars and Other Currencies

When converting Iceland money to dollars or other foreign currencies, consider exchange rates and fees carefully. Banks typically offer the most competitive rates, whilst airport exchanges may charge higher fees for convenience. Many travellers find using ATMs provides the best combination of convenience and fair exchange rates.

Credit and debit cards are widely accepted throughout Iceland, including at most car rental locations at Keflavik Airport. Visa and Mastercard work almost everywhere, making them preferable to carrying large amounts of cash.

Fascinating Iceland Facts

Geographic and Natural Wonders

Iceland sits strategically between Europe and North America, making it a unique destination with diverse geological features. The island spans approximately 103,000 square kilometres, roughly the size of South Korea, yet houses only around 370,000 residents.

The country experiences dramatic seasonal variations in daylight. Summer months bring nearly 24-hour daylight, perfect for extended road trips from your Keflavik car rental, whilst winter offers magical Northern Lights viewing opportunities alongside just 4-5 hours of daylight.

Cultural Iceland Facts

Iceland boasts one of the world's highest literacy rates, with the country publishing more books per capita than anywhere else globally. This literary tradition dates back to medieval sagas, creating a culture deeply rooted in storytelling and education.

The country operates on renewable energy almost entirely, with geothermal and hydroelectric power providing over 99% of electricity needs. This environmental consciousness extends to many aspects of Icelandic life, including sustainable tourism practices.

Common Phrases in Icelandic

Essential Greetings and Courtesy

Learning basic Icelandic phrases enhances your travel experience and shows respect for local culture. Here are essential expressions:

Greetings:

• Halló (HAL-low) - Hello
• Góðan daginn (GO-than DAH-ginn) - Good day
• Bless (bless) - Goodbye (informal)

Courtesy phrases:

• Takk fyrir (tahk FIH-rirr) - Thank you
• Afsakið (AHF-sah-kith) - Excuse me/Sorry
• Skilur þú ensku? (SKIL-urr thoo EN-skoo) - Do you understand English?

Useful Travel Phrases

When exploring Iceland by rental car from Keflavik, these phrases prove particularly helpful:

Directions and locations:

• Hvar er...? (kvarr air) - Where is...?
• Bílastæði (BEE-lah-stai-thee) - Car park
• Bensínstöð (BEN-seen-stuth) - Petrol station

Emergency phrases:

• Hjálp! (hyowlp) - Help!
• Síminn minn virkar ekki (SEE-minn minn VEER-karr ek-ki) - My phone doesn't work

Most Icelanders speak excellent English, particularly in tourist areas and car rental locations at Keflavik Airport. However, attempting basic Icelandic phrases often leads to warmer interactions and insider tips about hidden gems worth visiting.

Exploring Iceland: The Case for Car Rental at Keflavik

Why Choose Car Rental at Keflavik International Airport

Renting a car at Keflavik Airport provides unmatched freedom to explore Iceland's diverse landscapes. We are one of three authorized in-terminal car rentals at Keflavik airport. Our car rental desk is conveniently located in the arrivals hall on the left after passing through Customs. Your car will be located in the airport car park just outside the terminal.

Self-drive holidays offer several advantages over group tours:

• Flexible scheduling allowing spontaneous stops
• Access to remote locations unreachable by tour buses
• Cost-effectiveness for families or small groups
• Ability to revisit favourite spots

Planning Your Self-Drive Adventure

Iceland's Ring Road (Route 1) forms the perfect foundation for a self-drive adventure, connecting major attractions whilst remaining accessible year-round. Popular stops include:

South Coast highlights:

• Seljalandsfoss and Skógafoss waterfalls
• Reynisfjara black sand beach
• Jökulsárlón glacier lagoon

Western regions:

• Snæfellsnes Peninsula
• Blue Lagoon geothermal spa
• Reykjavik cultural attractions

Car rental at Keflavik enables easy access to these destinations whilst providing comfortable accommodation for luggage and equipment needed for Iceland's variable weather conditions.

Frequently Asked Questions

Does Iceland Use Euros?

No, Iceland does not use Euros. The country uses the Icelandic króna (ISK) as its official currency. Whilst some tourist-oriented businesses may accept Euros, you'll receive change in Icelandic króna, often at unfavourable exchange rates.

What Is the Currency in Iceland Called?

Iceland's currency is called the Icelandic króna (plural: krónur). The international currency code is ISK, and the symbol is "kr." One króna equals 100 aurar, though aurar coins are rarely used in practice.

Can I Use Credit Cards Throughout Iceland?

Yes, credit cards are widely accepted throughout Iceland, including at car rental companies at Keflavik Airport. Visa and Mastercard work almost everywhere, whilst American Express has more limited acceptance. Many establishments prefer card payments over cash.

Is It Better to Exchange Money Before Arriving in Iceland?

Generally, it's more convenient and cost-effective to obtain Icelandic króna after arriving. ATMs throughout Iceland, including at Keflavik Airport, offer competitive exchange rates. Most major expenses like car rental can be paid by credit card.

How Much Cash Should I Bring to Iceland?

Most visitors need minimal cash, as card payments are preferred. Budget approximately 5,000-10,000 ISK per day for small purchases, tips, and establishments that only accept cash. This amount varies based on your travel style and planned activities.

What Documents Do I Need for Car Rental at Keflavik?

Car rental at Keflavik typically requires a valid driving licence, credit card in the main driver's name, and passport or national ID. International driving permits may be required depending on your country of origin.

When Is the Best Time for Self-Drive Holidays in Iceland?

Summer months (June-August) offer the best road conditions and longest daylight hours for self-drive adventures. However, shoulder seasons provide fewer crowds and potential Northern Lights viewing. Winter driving requires experience with challenging conditions but offers unique photographic opportunities.

Are There Any Driving Restrictions in Iceland?

Iceland maintains good road infrastructure, but some highland roads (F-roads) require 4WD vehicles and remain closed during winter months. Speed limits are generally 50 km/h in towns, 90 km/h on paved roads, and 80 km/h on gravel roads. Always check road conditions and weather forecasts before departing.

Making the Most of Your Icelandic Adventure

Iceland offers extraordinary experiences for those prepared to embrace its unique culture and natural beauty. Understanding the country's currency system, learning basic phrases, and securing reliable transportation through car rental at Keflavik Airport sets the foundation for an unforgettable journey.

The freedom of self-drive exploration allows you to discover Iceland's hidden gems at your own pace, from secret waterfalls to remote hot springs. Combined with proper preparation regarding currency and cultural basics, your Icelandic adventure promises memories that will last a lifetime.

Höldur is proud to be Iceland's largest car rental provider, with a fleet of over 8,000 vehicles and convenient rental locations nationwide. As the official Europcar franchisee in Iceland, we offer professional and dependable service you can count on.

Start planning your journey today by researching car rental options at Keflavik International Airport, and prepare to experience one of the world's most spectacular destinations on your own terms.

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