Iceland Ring Road Part 2: North, West & Blue Lagoon Guide

Completing the full circle around Iceland is a logistical challenge that rewards you with some of the most alien landscapes on Earth. While the South Coast gets the fame for its waterfalls, the North and West offer something different: raw geothermal power, red Mars-like terrain, and the calculated luxury of the Blue Lagoon.

This post covers the second leg of our 10-day road trip, driving from the Diamond Circle back to Reykjavik. Below, I break down the specific costs, driving conditions, and whether the famous Blue Lagoon is actually worth the $100+ price tag.

Quick Facts: North & West Iceland

• Best Time to Visit: May to September (when interior roads are passable).
• Daily Budget: $150 - $350 USD per person (depending on accommodation).
• Driving Reality: Route 1 is paved, but key detours (like Hvítserkur) involve gravel.
• Connectivity: 4G is reliable, even in remote areas.
• Weather: Expect 4 seasons in one day. We saw 20°C (68°F) sun and freezing rain within 24 hours.

The Diamond Circle: Waterfalls and Mars Scapes

Our route through the North centered on the Diamond Circle. Unlike the Golden Circle, this area feels remote and untamed.

Dettifoss: Europe's Most Powerful Waterfall

This is not a polite, scenic waterfall; it is a terrifying display of power.

• The Hike: 1km (0.6 miles) from the parking lot over rocky terrain.
• The View: The lower platform offers the best sense of scale but expect to get soaked.
• Cost: Free parking and entry (a rarity in the North).
• Facilities: Primitive toilets only.

⚠️ Watch Out: The spray here is equivalent to a heavy rainstorm. Wear full waterproof gear—pants included—even if the sky is blue.

Hverir: The Geothermal Field

Just a short drive from Dettifoss, Hverir looks like a sci-fi movie set. The ground is stained orange, mud pots boil at 100°C (212°F), and the air smells distinctly of sulfur.

• Parking Fee: 1,200 ISK (~$8.75 USD).
• Safety: Do not cross the ropes. The ground is literally boiling.

We also hiked the Hverfjall Crater, a massive extinct volcano nearby. It’s a steep 15-20 minute climb to the rim, where the wind can be brutal.

Attraction Parking Cost Time Needed Difficulty Dettifoss Free 1.5 Hours Easy/Moderate Hverir ~$8.75 USD 45 Mins Easy Hverfjall ~$7.30 USD 1 Hour Moderate (Steep)

Northwest Detours: Trolls and Gravel Roads

As we moved west, we detoured to Hvítserkur, the famous rock formation resembling a drinking rhino (or a troll).

Driving Alert: Reaching this spot requires driving on a gravel road.

• Speed Limit: 80km/h on gravel, though I recommend 50-60km/h to avoid stone chips.
• Vehicle: Our 2WD handled it fine in May, but check conditions if traveling in shoulder seasons.

Accommodation Strategy: The Guesthouse System

Hotels in Iceland are prohibitively expensive ($300+ night). To keep our budget in check, we used the Guesthouse system. Here is how it works:

1. Self Check-in: You receive a code via email 24 hours prior. Staff is rarely on-site.
2. Shared Bathrooms: Facilities are in the hallway but are generally spotless.
3. Kitchen Access: This is the key to affordability. We cooked our own breakfast and dinner daily.

Pro Tip: Prioritize guesthouses with free coffee machines. A cup of coffee at a cafe costs ~$5-7 USD. Free guesthouse coffee saves two people ~$14 a morning.

The Snæfellsnes Peninsula & Return to Reykjavik

The drive back toward the capital includes the Snæfellsnes Peninsula, often called "Iceland in Miniature."

Kirkjufell Mountain

Famous from Game of Thrones, this is the most photographed mountain in the country.

• Parking: 1,200 ISK (~$8.75 USD).
• The Reality: It is smaller than it appears online and very crowded with cruise ship passengers. It is worth a 20-minute stop, but don't expect solitude.

The Hvalfjörður Tunnel

To reach Reykjavik, we took this 6km tunnel that dives 125 meters below sea level. It cuts an hour off the drive. Prepare for your ears to pop—the pressure change is significant.

Reykjavik Price Check

Once back in the city, the prices were a shock after days in the wilderness.

• Wool Sweater (Lopapeysa): ~$220 USD (30,000 ISK)
• Standard Pizza: ~$22 USD (2,990 ISK)
• Fridge Magnet: ~$6.50 USD (899 ISK)

The Grand Finale: Blue Lagoon & Tectonic Plates

We saved the Blue Lagoon for the very end of the trip due to its proximity to Keflavik Airport. Before entering, we visited the Bridge Between Continents, a free footbridge spanning the fissure between the North American and Eurasian tectonic plates.

We also drove through Grindavik. Seeing fresh cracks in the roads and houses consumed by lava from recent eruptions was a sobering reminder of the active geology here.

Is the Blue Lagoon Worth It?

We booked the basic package, which includes entry, a towel, one drink, and a silica mud mask.

• The Pros: The water is genuinely hot, the facility is massive enough to find a quiet corner, and the logistics (lockers/showers) are seamless.
• The Cons: It is expensive and commercialized.

My Verdict: Despite the price, it is a relaxing way to end a hiking-heavy trip. Just book weeks in advance.

Common Mistakes to Avoid

1. Dipping Your Hair in the Lagoon: The silica will turn your hair into a stiff brick for days.

   Pro Tip: Coat your hair in the provided conditioner before entering the water and leave it in. Do not rinse it out until you leave.

2. Ignoring Parking Apps: Almost every natural attraction now charges for parking. Download the Parka app to avoid fines.
3. Speeding on Gravel: Rental car insurance often excludes gravel damage. Slow down.

Completing the Ring Road is an investment of time and money, but the diversity of landscapes—from the boiling mud of Hverir to the icy spray of Dettifoss—makes it undeniably worthwhile.