ICELAND - Rent Car or Public Transport?

Really just 2 1/2 days, so here's my suggestion:

Monday: If you want to spring for the Blue Lagoon (yes it's expensive, but it's really wonderful), purchase a package that includes transportation from the airport to the Blue Lagoon and then a later pickup from the Blue Lagoon to take you into Reykjavik.

Tuesday: spend the day in Reykjavik. There's plenty to see to fill the day.

Wednesday: do a Golden Circle tour. You could certainly rent a car for this if you want, but there are lots of tours (including big, less expensive buses and small group van tours that will be more expensive but allow you to feel more like an individual human being and less like part of a herd).

Thursday, back to the airport after breakfast. You really don't have time for anything much before a 12:50 flight.

I did not rent a car when I was there. I did a van tour to the Golden Circle. It was just me (traveling solo) and a couple also from the US. In addition to the Golden Circle, we drove up onto a glacier.

I had five days, so I was able to do some other tours as well.

Personally, I wouldn't bother with a car in Iceland unless you're planning on heading out of Reykjavik for an extended excursion over multiple days.

I didn't rely on public transportation at all, so I can give you any info about that as an option for getting to some of the top sites.

We had a TEN hour layover in KEF and rented a car at the airport. We did the Golden Circle, ending at the Blue Lagoon.

It was easy - the airport is tiny. We had a blast !

If you were just staying in Reykjavik the entire time, I would say there is absolutely no need to rent a car. It is very easy to get around just by walking. However, if you want to rent a car to go outside the city for a day trip or two, it is very easy. The pick-up and return are very quick and simple. We rented from Blue Car Rental and had no problems at all. The Golden Circle is a nice day trip from the city.

I agree with Lane's proposed itinerary. You don't have enough time to make renting a car worth while. I rented one through Sixt to do the Golden Circle tour and some other day tripping from Reyk and they were great, but I had several more days. I also just used the bus system in the city and it was very easy to use. I think I got some sort of museum city pass that included public transit.

Also, I highly recommend the Settlement Exhibit and the National Museum of Iceland, both very well done.

Enjoy! Iceland is fantastic.

Thank you all for taking the time to reply. We are all set to follow the itinerary with the blue lagoon and golden circle. Will be sure to check out the museums in Reykjavik as well!

Thanks agian!

I was in Iceland with my fiancé last September and we had three days as well. I can tell you that the public transportation system is underdeveloped in Iceland and most of the tourists book tours through Icelandic Excursions or other tour companies. They come and pick you up at your hotel and bring you back after your excursion is over. When you book things like riding Icelandic horses or the Golden Circle tour the companies will include pick up and drop off as part of the price. It is well worth it in my opinion. There is only one highway in Iceland and there are spots where roads turn alongside steep cliffs with no guardrail. The scenery is beautiful but, it is really rugged with miles of no civilization in between points of interest. I agree with the person who posted an itinerary for you earlier but, here is our three days so you can compare:

Day 1 - Reykjavik Sightseeing
Day 2 - Icelandic Horseback riding in morning and Blue Lagoon in afternoon/evening
Day 3 - Golden Circle tour

Hope this info helps!