Volkswagen ID.3
Fully electric compact hatchback with surprising interior space and smooth handling — ideal for Reykjavík and Golden Circle loops.
Iceland draws adventurers from around the world to its raw volcanic landscapes, gushing geysers, and steaming thermal waters. Renting a car gives you the absolute freedom to explore these natural wonders at your own pace, away from the rigid schedules of tour buses. One of the absolute highlights of any road trip in this region is visiting the historic Laugarvatn Fontana, a serene geothermal haven located right on the popular Golden Circle sightseeing route. This self-drive guide provides everything you need to plan your ultimate wellness road trip, helping you choose the right rental vehicle, navigate the roads safely, and maximise your relaxation.

This lakeside resort blends modern luxury with authentic Icelandic bathing culture. Situated right on the shores of Lake Laugarvatn (Warm Lake), the complex utilises natural steam and hot water bubbling up directly from the ground. Since 1929, locals have gathered here to enjoy the healing properties of these mineral-rich waters, making it one of the best hot springs in Iceland. Today, the modern facility features three natural steam rooms, multiple outdoor pools of varying temperatures, and a Finnish sauna offering panoramic views over the lake. Exploring the geothermal baths at Laugarvatn Fontana offers a deeply restorative experience that connects you directly to the geothermal heartbeat of the country.
What sets this destination apart from other spas is its unique geothermal bakery, where staff bake traditional rye bread in the hot sand of the lake. Visitors can watch the entire excavation process and taste the warm, dense bread served with fresh Icelandic butter. To complement your spa day with guided snorkelling in Silfra, super jeep tours, or glacier excursions nearby, browse available options on the Hertz Iceland TourDesk. While some travellers prefer the historic charm of the Secret Lagoon (Gamla Laugin), this facility stands out due to its unique lakeside location and culinary heritage. Planning your visit to Laugarvatn Fontana allows you to experience these ancient traditions firsthand while soaking away any physical tension from your long drives.

Reaching this geothermal oasis from the capital city is incredibly straightforward, making it an ideal day-trip destination. If you pick up your vehicle from our Reykjavík location, the drive takes approximately one hour and fifteen minutes (75 km / 47 miles) under clear summer conditions. You will escape the urban traffic quickly and head east toward the dramatic volcanic plains. Utilising a comprehensive Golden Circle self-drive guide helps you map out your route efficiently and identify the best viewpoints along the way. Planning your drive to Laugarvatn Fontana ensures you remain in complete control of your itinerary, allowing you to stop whenever a beautiful landscape catches your eye.
The journey takes you through breathtaking volcanic fields and sweeping mountain passes before descending into the lowlands. The roads remain fully paved and well-signed throughout the year, which makes navigation simple even for first-time visitors. Before setting out each morning, always check live road alerts and weather warnings on the official Hertz Iceland Safety Portal. Driving yourself allows you to adjust your departure time to avoid peak tour hours, ensuring a more peaceful soaking experience. As you make your way toward Laugarvatn Fontana, you will pass active agricultural valleys, rolling hills, and rugged lava fields that showcase the unique geology of southwestern Iceland.
Drivers can choose between two main routes depending on their sightseeing goals:
Local Parking Tip: When using paid parking lots at Þingvellir National Park or nearby trailheads, ensure your rental car’s license plate details are entered accurately into the Parka.is app to prevent administrative fees being added to your rental contract.
Before setting off, we highly recommend reading our Icelandic road safety guide to familiarise yourself with local driving customs, speed limits, and single-lane bridges.
Follow the scenic Golden Circle corridor east from Reykjavík via Þingvallavegur (Route 36) across Þingvellir National Park, connecting through Gjábakki (Route 365) to Laugarvatn Fontana and the vibrant blue waters of Brúarfoss.
Visiting this natural sanctuary represents excellent value compared to other commercial spas in the country:
Changing rooms provide lockable storage lockers and private showers. Icelandic hygiene regulations require visitors to shower thoroughly without a swimsuit before entering the public geothermal pools to keep chemical-free waters pristine. After your swim, you can relax in the on-site cafe, which serves light soups, sandwiches, and local trout caught directly from the lake while enjoying views over the steaming black sand shores.

Each season in southwestern Iceland offers a completely different aesthetic and driving experience. During the summer months, the legendary Midnight Sun provides nearly twenty-four hours of daylight, allowing you to schedule your swim late into the evening. The roads remain dry and clear, making travel exceptionally comfortable and relaxing. Deciding between Laugarvatn Fontana vs Blue Lagoon often comes down to your desire for peace; the lakeside setting of Laugarvatn feels much more intimate, authentic, and less crowded during the busy summer season. It offers a calm alternative where you can appreciate nature without the large tour groups.
Winter brings a dramatic, snowy landscape and the exciting possibility of viewing the dancing Aurora Borealis from the comfort of a warm pool. The steam rising from the hot baths creates a mystical atmosphere against the freezing winter air. However, winter driving requires careful preparation, as roads can quickly become covered in thick ice and snow. Soaking in the warm waters of Laugarvatn Fontana while the cold wind blows over the frozen lake is an unforgettable experience, provided you choose a vehicle capable of handling winter conditions safely.
Enjoy 24 hours of golden daylight, calm lakeside dips late into the evening, and dry, easily navigated highways connecting from Reykjavík.
Soak in steaming thermal water against snowy mountain horizons, with prime night skies for watching the Aurora Borealis dance over the frozen lake.
Selecting the right vehicle guarantees a comfortable, stress-free trip. Depending on the season, your group size, and your luggage needs, picking a suitable model from our Iceland vehicle fleet catalogue ensures you navigate Golden Circle highways safely:
We strongly advise adding Gravel Protection (GP) and Sand and Ash Protection (SAAP) to your coverage to shield against loose stones along rural detours. Standard insurance plans are included, but remember that water damage resulting from river crossings is strictly excluded from all insurance coverage under Icelandic rental law. Any river crossing is at the renter’s financial risk, so never drive into flowing water. Sticking to the paved roads on your way to Laugarvatn Fontana keeps you safe and fully covered by your standard insurance policies.
Fully electric compact hatchback with surprising interior space and smooth handling — ideal for Reykjavík and Golden Circle loops.
Spacious electric crossover with a large 543L boot — perfect for families or groups touring Iceland’s main Ring Road in comfort.
Premium dual-motor electric SUV featuring advanced e-4ORCE AWD traction for smooth, stable driving on paved routes and gravel roads.
*EV range estimates vary by weather and driving style. Electric vehicles are not permitted on Highland F-roads regardless of drivetrain.
Winter travel in southwestern Iceland demands respect for the unpredictable Arctic weather. High winds, sudden snowstorms, and black ice can transform paved highways into challenging driving environments within minutes. For any trip between October and April, we strongly recommend renting a sturdy 4×4 SUV equipped with studded winter tyres. A four-wheel-drive vehicle provides the traction, stability, and ground clearance necessary to navigate snow-covered passes safely. Always hold car doors firmly with both hands when parked in open, wind-exposed areas, as fierce gusts can catch vehicle doors and cause severe hinge damage. To make your life easier, we created the following table for you to choose your ideal vehicle based on season and road conditions:
| Season & Road Conditions | Recommended Vehicle Category | F-Road / Rough Gravel Legal | Operational & Safety Driving Insights |
| Summer (May – Sept) | 2WD Compact / Sedan (e.g., VW Polo, Toyota Corolla) | ❌ Paved / Main Gravel Only | Ideal for budget travellers on paved Golden Circle roads (Routes 36, 365, 37, 35). |
| Shoulder (Oct & April) | Mid-Size 4×4 SUV (e.g., Dacia Duster, Suzuki Jimny) | ⚠️ Select Approved Routes | Essential ground clearance for mud, sudden slush, and loose gravel transitions near viewpoints. |
| Winter (Nov – March) | High-Clearance 4×4 SUV (e.g., Toyota Land Cruiser, RAV4) | ✅ Mandatory / Approved | Essential for snow and black ice. Equipped with studded winter tyres (fitted Nov 1 – Apr 15). |
Before leaving your accommodation, always check real-time road conditions on road.is and monitor weather alerts on vedur.is. Hertz Iceland provides Nationwide Support with a 24/7 emergency hotline (+354 522 4499). Note that towing, winch recovery, and road service fees remain the renter’s financial responsibility unless optional breakdown protection is added at the rental desk upon pick-up. Staying informed and driving defensively guarantees a safe and memorable winter road trip.
Yes, it sits directly on the Golden Circle between Þingvellir National Park and the Haukadalur geothermal area (Geysir), making it an ideal midpoint stop to break up your drive.
Take Route 36 east from Reykjavík through Þingvellir, then transition onto Route 365 straight into Laugarvatn town. The entire route is fully paved and easily accessible year-round.
The direct drive takes 1 hour and 15 minutes (75 km / 47 miles). Plan for extra travel time in winter or if making scenic stops along the way.
Advance online booking is strongly recommended during summer to secure your entry slot. Pre-booking is mandatory for the geothermal rye bread baking demonstration due to limited capacity.
Yes, main access roads are ploughed regularly. However, a 4×4 SUV with studded winter tyres is recommend for traction against sudden ice or snowstorms. Always check live conditions on safe.hertz.is before driving.
Planning your self-drive routes and vehicle selection? Explore our classic sightseeing itineraries, geothermal spa comparisons, and complete electric car guides: