By car: Renting a car is by far the most flexible way to see Iceland. The Ring Road (Route 1) circles the entire country — roughly 1,330 km — and is fully paved. In summer, a small standard rental is sufficient for sticking to the main road. For the highland interior (F-roads), you'll need a 4WD; driving a 2WD on F-roads voids your insurance and is genuinely dangerous. Book well in advance in June to August — demand is high and good cars sell out. Petrol is expensive by European standards; fill up before long stretches, especially in the interior.
Driving rules: Drive on the right. Speed limits are 50 km/h in towns, 80 km/h on gravel roads, and 90 km/h on paved roads. Headlights are compulsory at all times. Single-lane bridges are common — yield to whoever is closer. Sheep wander onto roads in rural areas; take them seriously.
By bus: Strætó operates scheduled bus services between Reykjavik and larger towns. For visitors, the Reykjavik Excursions Flybus and similar companies run popular day tours. Getting to remote parts of the country by bus is slow and requires connections. The highland bus routes (such as Kjölur) run only in summer.
Domestic flights: Eagle Air connects Reykjavik's domestic airport (Reykjavik Airport, RKV) to Akureyri, Ísafjörður, Egilsstaðir, Vestmannaeyjar, and a handful of other airstrips. Flights are short (30–60 minutes) and not cheap, but they save enormous amounts of driving time, especially to the Westfjords.
Cycling: Possible but demanding. Wind and unpredictable weather are the main challenges. The Ring Road is manageable in summer for fit cyclists; gravel roads require a mountain bike.