Direct answer: You can absolutely do an Iceland road trip over Christmas and New Year, but four days of the calendar work differently: 24 December (afternoon), 25 December, 26 December and 1 January, when almost all shops, supermarkets and many petrol stations close or run short hours. Roads stay open and are ploughed, rental pickups still happen, and New Year's Eve in Reykjavík — bonfires, then roughly fifteen minutes of city-wide fireworks at midnight — is one of the best nights of the Icelandic year. Book the car and accommodation three to six months ahead, stock the boot with food on 23 December, and plan short driving days around four to five hours of daylight.
Christmas and New Year is the one time of year when Iceland stops being a country you simply drive through and becomes a country you are visiting during something. The holidays here are long, genuinely observed, and built around thirteen Yule Lads rather than one Santa. For a self-drive traveller that means two things at once: an atmosphere you cannot get in July, and a logistics puzzle that punishes anyone who assumes a supermarket will be open.
At Aurora Car Rental Iceland we hand over cars right through the holiday period from our base at Suðurbraut 890 in Keflavík, ten minutes by taxi from the airport. This guide covers what is open, what is closed, how the driving changes, and how to build a realistic Christmas or New Year itinerary.
The Icelandic holiday calendar — what actually closes
Icelandic Christmas begins on the evening of 24 December, not the morning of the 25th. At 18:00 on Christmas Eve, church bells ring, the country sits down to dinner, and everything shuts. This is the single most important fact for a visiting driver: if you arrive at a Bónus at 17:00 on 24 December expecting to shop, you will find a queue and a closing door.
| Date | Icelandic name | What to expect |
|---|---|---|
| 23 Dec | Þorláksmessa | Shops open late, often to 22:00–23:00. Best day to stock up. Reykjavík city centre is busy and festive. |
| 24 Dec | Aðfangadagur | Shops close around 12:00–14:00. Everything shut from 18:00. Restaurants closed except a few hotels. |
| 25 Dec | Jóladagur | Effectively everything closed. Some hotel restaurants and a handful of N1 stations open. |
| 26 Dec | Annar í jólum | Public holiday. Limited supermarket hours; larger stores may open in the afternoon. |
| 31 Dec | Gamlársdagur | Shops close early, around 12:00–14:00. Bonfires from roughly 20:30, fireworks at midnight. |
| 1 Jan | Nýársdagur | Everything closed. Roads quiet. A genuinely good driving day if the weather cooperates. |
Petrol is the exception that saves you. Most self-service pumps run 24/7 on card, including on 25 December and 1 January. The shop attached to the station may be locked, but the fuel is not. Never let the tank drop below half over the holidays and this stops being a problem.
Driving conditions in late December and early January
The Ring Road is ploughed and salted as a matter of routine, and Iceland does not shut down for snow the way southern Europe does. What changes is daylight and wind. Around the winter solstice Reykjavík gets roughly four to five hours of usable light — sunrise near 11:20, sunset near 15:30 — and the sun never climbs high, so you drive into low glare much of the day.
Practical consequences:
- Plan two, maybe three stops per day. Not five. A Golden Circle loop that takes four hours in June takes a full daylight window in December.
- Check road.is every single morning before you set off, and safetravel.is for weather alerts. Conditions change within hours.
- Wind is the real hazard, not ice. Gusts over 20 m/s can rip a door out of your hand — always hold it firmly when opening. Door damage from wind is the most common winter claim in Iceland.
- Highland F-roads are closed. All of them, without exception, from autumn until June. Þórsmörk, Landmannalaugar and Kjölur are simply not options in December.
- Some mountain passes close in bad weather — Öxi (939) in the east, road 862 to Dettifoss west bank, and the Krafla area near Mývatn are the usual first to go.
Every Aurora Car Rental Iceland vehicle runs on proper winter tyres through this season. If you plan on driving the south coast or into the north, a 4x4 is not a luxury — the extra traction on packed snow at a slip road or an unploughed guesthouse driveway is exactly where it earns its keep.
Which car for a holiday trip?
| Vehicle | From (low season, per day) | Best for |
|---|---|---|
| SsangYong Tivoli | 12,000 ISK | Couples staying around Reykjavík and the Golden Circle |
| Dacia Duster 2018 | 12,500 ISK | Best value 4x4 for the south coast |
| Dacia Duster 2022/23 | 13,000 ISK | Newer, quieter, same capability |
| Kia Sportage / SsangYong Korando | 14,000 ISK | Families of four with winter luggage |
| Bus, 9 seats | 30,000 ISK | Groups spending New Year in Reykjavík together |
| Toyota Hilux / Musso 2026 | 65,000 ISK | Maximum ground clearance and confidence in deep snow |
Roof tents and campervans are available year-round but we do not recommend them for late December. Campsite facilities are largely closed and overnight temperatures inland regularly sit well below freezing. See the full fleet on our cars page.
New Year's Eve in Reykjavík — worth planning the trip around
Icelandic New Year has a shape to it. In the early evening, neighbourhood bonfires (brennur) are lit across the capital area — Ægisíða and the Laugardalur area are the biggest. Families gather, people sing, and it is entirely free and open to visitors. Around 22:30 the city empties as almost everyone watches Áramótaskaupið, the satirical television review of the year. Then, from about 23:30, the fireworks start.
There is no organised municipal display. Instead, tens of thousands of households buy fireworks from the Icelandic search and rescue teams — the sales fund the volunteers who pull tourists out of trouble all year — and set them off simultaneously. The result, for roughly fifteen minutes either side of midnight, is a 360-degree barrage over the whole city. Hallgrímskirkja, Perlan and the Grótta lighthouse are the classic vantage points.
Do not drive during the fireworks window. Between roughly 23:00 and 00:45 the streets fill with pedestrians and smoke reduces visibility to almost nothing. Park the car by 22:00, walk, and drive again the next morning.
A realistic 6-day Christmas itinerary from Keflavík
| Day | Plan | Driving |
|---|---|---|
| 23 Dec | Pick up the car, drive to Reykjavík, Þorláksmessa evening in the centre, big supermarket shop before closing | ~50 km |
| 24 Dec | Short Reykjanes loop in the morning — Brimketill, Gunnuhver — back before 16:00 | ~100 km |
| 25 Dec | Golden Circle. Roads are empty and the sites are free and always open | ~250 km |
| 26 Dec | South coast to Seljalandsfoss and Skógafoss, overnight near Vík | ~190 km |
| 27 Dec | Reynisfjara black sand beach, Dyrhólaey, return west | ~200 km |
| 28 Dec | Sky Lagoon or Blue Lagoon, then drop-off at Keflavík | ~60 km |
Note that 25 December and 1 January are, counterintuitively, excellent sightseeing days. Natural attractions have no opening hours, the roads are the quietest they will be all year, and the car parks at Þingvellir and Skógafoss are close to empty. You just need to have eaten beforehand.
Booking timelines and what is included
Christmas and New Year is the one winter period that genuinely sells out. Accommodation in Reykjavík for 31 December is often gone by September, and vehicle availability tightens from October. Three to six months ahead is the right window.
With Aurora Car Rental Iceland, every booking includes insurance, WiFi, GPS and the airport transfer, with flight monitoring so a delayed arrival on 23 December does not leave you stranded. There is no security deposit, and payment is in cash on collection in ISK or EUR. Add winter extras by the day — tyre insurance at 3,000 ISK, a child seat at 4,000 ISK, an additional driver at 2,000 ISK — which matters over the holidays when you want a second person able to share a dark drive.
One date to note: the entire fleet is unavailable 10–15 August 2026, fully reserved for the solar eclipse. That does not affect the winter season, but it is worth knowing if you are planning a second trip.
Frequently asked questions
Are the roads in Iceland open at Christmas?
Yes. The Ring Road and all main routes are ploughed and maintained throughout the holidays, and clearing crews work on public holidays as well. Highland F-roads are closed, as they are from autumn until June, and individual mountain passes such as Öxi or road 862 to Dettifoss can close temporarily in storms. Check road.is each morning before you drive.
Can I pick up a rental car on 25 December or 1 January?
Yes. Aurora Car Rental Iceland arranges pickups and airport transfers throughout the holiday period, including Christmas Day and New Year's Day, because flights into Keflavík continue to operate. Tell us your flight number when booking and we monitor it, so a delay does not cost you the car.
Where can I buy food on Christmas Day in Iceland?
Almost nowhere, which is why you shop on 23 December. Supermarkets are closed on 25 December and 1 January, and close around midday on 24 and 31 December. A small number of N1 petrol station shops in the capital area stay open with limited stock, and hotel restaurants serve their own guests. A cooler box and a camping burner make this a non-issue.
Do I need a 4x4 for an Iceland road trip in December?
For Reykjavík, the Reykjanes peninsula and a fair-weather Golden Circle loop, a two-wheel-drive car on winter tyres is adequate. For the south coast, the north, or any trip where you might meet packed snow on a side road or an unploughed guesthouse driveway, a 4x4 such as the Dacia Duster or Kia Sportage is strongly recommended. All our vehicles carry proper winter tyres regardless of drivetrain.
Can I see the northern lights over Christmas?
Late December offers the longest dark hours of the year, so the viewing window is enormous — realistically from 17:00 to 09:00. The limiting factor is cloud, not aurora activity. Having your own car is the decisive advantage: you can check the cloud cover map on vedur.is and drive an hour to a clear patch, which no coach tour can do for you.
Is it safe to drive on New Year's Eve in Reykjavík?
Drive before 22:00 and after about 01:00, but not in between. During the fireworks, streets fill with pedestrians and smoke cuts visibility to a few metres. Park up, walk to a bonfire or a viewpoint, and leave the car until morning. Iceland has a zero-tolerance drink-driving limit, so if you are celebrating, the car stays parked.
How far ahead should I book a car for Christmas or New Year?
Three to six months. This is the tightest winter period of the year for both vehicles and accommodation — Reykjavík hotels for 31 December are often sold out by September. Booking early also locks in low-season pricing, which runs from September through May.
Spend the holidays on Icelandic roads
Winter tyres, insurance, WiFi, GPS and free Keflavík Airport transfer included. No deposit — pay in cash on collection. Christmas and New Year dates go fast.
Aurora Car Rental Iceland — Suðurbraut 890, 262 Keflavík | WhatsApp: +48 729 854 633 | carrentalaurora@gmail.com