Until about 1974 many villages and towns in Iceland were isolated, travel being either by sea or the long way around on miserable roads. In 1974, a huge project that caused Iceland to have a debt the citizens are still paying off, was finished. Weather permitting, you can now head out around Iceland in either direction and end up where you started. A huge accomplishment for a small population.
In 1996 a volano in Vatnajokull errupted destroying bridges and significant sections of the Ring Road on the south east section. In a very short time considering the damage, Icelanders repaired the Ring Road. You can now drive yourself all around this amazing island. Buses run also. This makes traveling in Iceland much easier and less expensive.
Roads going into the middle of Iceland are limited and rough to say the least. If you wish to see the interior of Iceland the best way is to hire a guide.
Hofn is 459 Km. from Reykjavik. 1 km = .62 miles.