Here are some useful links for your driving in Iceland.
- Road condition
Be aware: green of the road is good condition, red or black is closed, and white is icy
- Road safety
It is for your plan, ask for help and all information and hints for your driving in Iceland
Do you need a car living in Olafsfjordur?
In general, not at all as all the facilities are in walking distance. However, if you are a photographer need travelling around for seeking unexpected location, you may need to rent a car for longer period.
You also can consider to rent a car in short period for travelling around north Iceland. Here are some popular car rental companies in Akureyri or Reykjavik.