Iceland has no railways and its highway system is Europe's least developed. There are also a number of ferry services connecting ports. Car-rental agencies are found in most major towns, and rates are almost bearable until you add excess kms, compulsory insurance and some of the world's most expensive petrol to the price. With its unsurfaced roads, steep hills and inclement weather, Iceland is hardly a cyclist's dream. Nevertheless, an increasing number of visitors are trying it, and bikes can be rented in most urban centres, hotels, hostels and guesthouses.
Local transport includes taxis, which can also be hired for sightseeing, and municipal buses.
We encourage you to verify any critical information with the relevant authorities before you travel. This includes information on visa requirements, health and safety, customs, and transportation.