Street parking wins when
You are comfortable reading the zone signs, you want lower cost, and you are staying in an area where free overnight street parking is possible outside paid hours.
Garages
When a Reykjavik garage is the smarter move
Street parking is often cheaper in Reykjavik, especially overnight. But garages can still make sense if you want simplicity, weather protection, or a fixed central location. The key is knowing that garage pricing behaves differently from the street system.
What travelers often misunderstand
In traveler discussions, one repeated confusion is assuming garages become free overnight just because many street spaces do. That is not how Reykjavik garages generally work. The city publishes separate garage tariffs, and several garages charge 24/7.
Street vs garage
Garages win when
You want less friction, more protection from weather, or a predictable central place to leave the car.
Overnight stays
Garages are not automatically the cheap overnight hack. Many tourists are better off comparing zone hours first before paying garage rates by default.
Good rule of thumb
If your hotel is downtown and does not include parking, compare a garage with a legal P3 or P4 overnight street strategy before deciding. Many visitors overpay simply because the garage feels simpler at first glance.