Driving in Iceland: All You Need to Know for a Safe Road Trip

Driving in Iceland means renting a car and hitting the island’s diverse roads—from the rugged gravel of the Highlands to the pavements of Reykjavík. The sights in front of you change at every mile traveled, but as inspiring as they are, challenges await around every curve: sudden changes in weather, unexpected wildlife crossings, and basic rules of traffic conduct. Even if you’re familiar with Iceland's driving side (right, not left), there’s still plenty to learn before navigating the roads of this dramatic Scandinavian land. 

Roads in Iceland adhere to the principles of the rest of Europe (except the United Kingdom) and the US, with slight differences in requirements. Is it easy to drive in Iceland? Not exactly, but if you nail the fundamentals of the law and familiarize yourself with license and speed limit rules, you’ll have a solid start! 

Driving in Iceland with a US license (among many other foreign ones) is allowed if legal requirements are met. While the driving age in Iceland is 17, there are additional nuances to learn before hitting the roads in the Scandinavian country: 

• Accepted licenses: Driver’s licenses must be valid in the country of issue, written in Latin characters, include a photo, and have been held for at least one year. Therefore, driving in Iceland as an American or EU citizen is quick and straightforward. However, travelers from countries that use non-Latin alphabets, like China, must carry an International Driving Permit (IDP). 

• Age requirements: In Iceland, the minimum age to obtain a driver’s license is 17. However, you must be at least 20 years old to rent a standard passenger vehicle. Depending on the rental company, drivers aged 18 to 19 may be subject to additional fees. For larger or more powerful vehicles, such as SUVs and 4x4s, the minimum rental age typically increases to 23 or even 25, based on the provider’s policy. 

Iceland’s driving rules are similar to those in most countries. You must drive on the right side of the road and use the left lane only for overtaking. At roundabouts, yield to traffic already inside unless signs state otherwise. Seatbelts are mandatory for all passengers, including those in the back, regardless of the season. Headlights must always be on when driving in Iceland at night or during the day. Iceland has a strict blood alcohol limit of 0.02%, and violations can lead to fines of up to 100,000 ISK, license suspension, or jail time. Using a mobile phone while driving is strictly forbidden, so focus on the road. 

How fast you can go in Iceland depends on the surface of the road and the zoning area. While paved roadways outside the city are the most relaxed, head into the Highlands, and the speedometer needle has to drop to match the lower limit. Traffic violations, especially speeding, are often detected by automated cameras or patrolling police, with penalties enforced according to the severity of the offense. 

Urban, rural, and highway limits: In urban areas such as Reykjavík, the speed limit is generally capped at 50 km/h (31 mph). Outside towns, limits increase to around 90 km/h (56 mph) on paved roads like the circular Ring Road. Gravel roads, including the rugged F-roads, have a maximum speed of 80 km/h (50 mph) due to their rough and uneven surfaces. However, speed should always be adjusted according to road signs, weather conditions, and terrain. 

How speed cameras work: Most speed cameras in Iceland are fixed installations, mounted on poles in permanent locations. These rectangular devices, often painted gray, beige, or other camouflage colors, blend into remote areas nationwide. When a driver exceeds the speed limit, the cameras capture photos sent to the vehicle rental company. By law, rental companies must share the driver’s information with the police, who then issue fines and pursue enforcement. 

Consequences of speeding: Exceeding Iceland's speed limit carries financial and legal consequences. Fines start at 10,000–30,000 ISK ($70–210 / 69–208 EUR) for driving 10–20 km/h (6–12 mph) over the limit, increasing with higher speeds. If you exceed the limit by more than 40 km/h (25 mph) or accumulate 13 speeding offenses, license suspension becomes a likely penalty, enforced through a points-based system. 

Caution and safety—the keys to being like an Icelander on the island’s roads. Stick to the basics: drive on the right side, respect speed limits, and yield at roundabouts unless signs indicate otherwise. Plan your route and keep your gas tank topped up to avoid emergency stops in remote areas. 

To truly blend in with Icelanders, you have to be adaptable. Summer or winter, the Icelandic climate is always ready to disrupt your plans. Adjust your driving accordingly: reduce speed when strong winds or poor visibility set in, and begin braking early on gravel roads, where traction is limited. Also, flash your lights to warn oncoming traffic of animals or other road hazards. If you want to take a photo, stop in a parking lot and only then use your phone or camera. 

City roads in Iceland are well-maintained and generally easy to navigate. Once you venture into rural areas, the risks increase—sharp curves and long, open stretches can both pose significant dangers. These hazards become even more apparent when each type of road challenge is considered on its own: 

Gravel roads: Unpaved roads are common in remote regions like the Highlands and the Westfjords, with most classified as F-roads. These rugged routes require a 4x4 vehicle, as their challenging surfaces demand extra traction and stability. The golden rule is to take your time and drive slowly; sharp turns or sudden bumps can easily cause your vehicle to skid or lose control. 

One-lane bridges: Single-lane bridges are found along the Ring Road and in Iceland’s remote interior. These narrow crossings operate on a simple principle: first come, first served. The vehicle that reaches the bridge first has the right of way, while any approaching traffic must wait until the bridge is clear before proceeding. 

Blind summits: Sections of road where a sharp curve or a hill obscures oncoming traffic. Known as Blindhæðir (meaning "blind hill" in English), they are marked with warning signs well in advance. When approaching one, always reduce your speed and stay firmly in your lane while ascending or navigating the turn, as visibility is limited and the risk of a head-on collision increases. 

Roaming sheep: During summer, the Icelandic countryside is inhabited by sheep, which graze the land and look like beautiful clouds in the sky. Sometimes they are herded in groups; other times, they stray unexpectedly into the path of oncoming traffic. If you spot sheep near the road, slow down and keep a safe distance to allow time to react—collisions can cause severe damage to your vehicle. If you hit a sheep or other livestock, it’s crucial to call 112 immediately and report the incident, as required by law. 

No matter the season, Iceland’s weather can change dramatically in minutes without notice. While the island's climate is somewhat stable in summer, the rules go out the window in winter. Cold, windy, and snowy—driving in Iceland in October and November comes with a slow buildup of these elements. Roads to the Highlands close down, and rainfall slowly changes to snowfall. 

The mayhem shows its cold fangs while driving in Iceland in December, January, and February. As the ice coats paved surfaces, the wind creates snowdrifts, reducing visibility of the sights ahead. In spring, conditions improve, but driving in Iceland in March and April is still challenging. Snow starts to melt, and added rain increases glacier river flow, making streams harder to cross. 

Driving the Ring Road in Iceland is a pleasant experience for both first-timers and veteran travelers. Meanwhile, navigating F-roads in the Icelandic Highlands remains an experience reserved for the truly adventurous. The differences between paved and unpaved roads become much clearer when comparing Iceland’s road conditions: 

Types of roads: Asphalt roads of Route 1 or urban centers are smooth, reliable, and suitable for drivers of all experience levels. Conversely, gravel roads are rougher and more demanding, dominating the island's interior. Labeled as F-roads, they see less yearly traffic than the main Route 1. Mountain roads—paved or not—have their own tricks up their sleeves for unsuspecting travelers. As they wind through elevated terrain, drivers should prepare for strong winds, icy patches, and dramatic scenery—all of which demand heightened caution and control behind the wheel. 

Road maintenance and signage: Maintenance works are more common for paved roadways and less so for gravel ones. Potholes and other surface issues are typically reported by drivers and repaired by the Icelandic Road and Coastal Administration. They’re also responsible for maintaining road signs across the country. While signage is installed according to legal standards, visibility can be limited in mountainous areas due to uneven terrain and frequent fog. 

Route 1 and other paved roadways are only the start—the rough adventure awaits on the F-roads. Smooth surfaces give way to bumps and rocks in Iceland's wilderness, which test the vehicle's suspension and the driver's skill. Though the island's remoteness is vast, some regions are too precious or restricted: 

Highland Roads (F-roads)  

Iceland’s F-roads are unpaved routes that link remote areas of the nation with the circular Ring Road highway. While the gravel surface is already taxing, added crossings of shallow rivers add another layer of difficulty for most drivers. Additionally, their lengths vary, as each fulfills a particular purpose. Where F35 stretches from the South Coast to the North Coast, F249 goes to Thorsmork and is more local and shorter. 

Only 4x4s are up to the daunting task F-roads present, as 2WDs can easily break down on the gravel and uneven terrain. Some tour operators use Super Jeeps and Highland buses to traverse the region. Also, solo travelers who rent their vehicle must pay extra for insurance that protects the car from gravel, sand, and other dangers.  

 Off-road driving  

Off-roading in Iceland is illegal, as driving on non-designated roads damages nature. Vehicles disturb the fragile ecosystem, and an accident might happen to the occupants of the cars on uneven grasslands. Instead, travelers should exit the vehicle and hike along designated paths to explore further. But remember to leave nothing behind and collect the trash you make. 

If the rules for off-roading are not followed, penalties will be implemented. Fines can exceed 12,000 USD (1,400,000 ISK), as in a 2018 case of a group of tourists and modified jeeps. Depending on the damage, the punishment might be lighter or harsher, and severe offenders could get a jail sentence.

Icelandic tunnels move the traffic below mountains and shallow water bodies. Héðinsfjarðargöng is the longest of such designs in Iceland and connects Ólafsfjörður and Siglufjörður fjords with one 11 km (6.83 mi) road. Before entering them, drivers should give way to upcoming traffic on one-lane underpasses and follow signs when there are two lanes. 

The majority of Iceland's tunnels are free, except for Vaðlaheiðargöng near Akureyri, the only paid underground crossing on the island. According to the official owner page, passage costs depend on the vehicle's type and weight, which is paid online or through their Veggjald app. 

Explorers are always free to forgo guided tours and instead go on a self-driving expedition. Seven days is enough time to drive around Iceland and explore the sights found along the Ring Road. However, what vehicle will you use? Will you bring your car for the freedom, or rent one for convenience once you arrive on the island? What insurance do you need to drive in Reykjavik and rural Iceland? Here are the answers to your burning questions:  

Pick a car that fits your travel style and expected destinations. An economical sedan is enough in winter and summer if you’re focusing on urban centers like the capital or the nearby Golden Circle. Group travelers would benefit from a minivan or a larger universal class vehicle. However, if rural Highlands landscapes are the focus of your travels, grab a 4x4, whose roaring, powerful engine is matched by the beauty of the remote sights it can reach. 

In summer, a 2WD car is enough to reach most attractions in the South Coast, like Reynisfjara black sand beach, or complete the Ring Road. 4WD vehicles are primarily used in winter or for driving on unpaved roadways, such as F-roads, as they provide much-needed power and traction. 

Automatic transmission cars are more expensive to rent, but easier to drive around Reykjavík and urban centers. Budget travelers should stick to manual vehicles, as the hassle of gear shifting comes with a lower price. In either case, make sure to book a vehicle months in advance before your travels. 

Collision Damage Waiver (CDW) and Third Party Liability (TPL) are the essentials for every rental. While the former covers physical damage to the vehicle, the latter addresses damage to others' property. Additionally, rental companies also offer insurance depending on your needs: 

• Super CDW (SCDW) provides more coverage for the damage done to the car. 

• Gravel Protection (GP) is vital for rural and F-road adventures, where small rocks and dust on the road are more common. 

• Sand and Ash Protection (SAAP) covers damage done by volcanic ash and sand, which is plentiful in the island's South Coast. 

• Theft Protection (TP) shields the driver from financial fees if the car is stolen. 

• Windshield/Window Protection (WSP/WP) secures against damage to the car's windows. 

• Water Crossing Protection ensures you're not liable if the car is damaged while crossing a shallow river. 

Before buying any insurance, read the small print and pay extra attention to the damages the companies will cover. 

If you're arriving in Iceland with a vehicle from a Green Card system country like Switzerland or Lithuania, your existing insurance typically provides temporary one-year coverage. However, suppose you're coming from a country outside the system, like the United States or Canada, or you're a long-term visitor. In that case, you must contact the Icelandic Motor Insurers' Bureau (ABÍ) for guidance on obtaining valid coverage. 

At least 30 days before arriving in Iceland, you must submit a customs declaration for vehicle clearance through Icelandic Customs. If approved, you can ship your vehicle and enter the country via one of Iceland’s designated international ports. Before entry, be prepared to present all required documents, including proof of vehicle ownership and insurance, driver’s license, passport, and details of your intended stay. 

Gas stations in Iceland are mostly self-serving and common along the Ring Road. But right behind them, picking up speed are electric charging stations, with over 200 installed on the island. In either case, gas or electric, fill up whenever you can, as stations are far and few in between. 

Gas Stations  

Popular tourist spots, like the Golden Circle and Capital Region, are dotted with gas stations, with the reverse being true in the island's Highlands. Most of the points are owned by larger corporations and operate with a self-serving principle, meaning you’ll have to refuel the car yourself. Payments are taken via credit or debit card, but manned stations can also accept cash. 

Remote refueling tips: Pay extra attention to the fuel gauge and refuel to the top as often as possible. Also, plan out your trip and measure distances between the stops. Locating your next station decreases the chances of breaking down in the middle of the Icelandic wilderness. For extra insurance, have a jerry can full of fuel in the back of your car. 

Electric Charging Stations  

Electric vehicle charging stations are available throughout most of Iceland, except the uninhabited Highlands. They’re most densely concentrated in the South and around urban centers, but you'll also find stations along the Ring Road, in coastal fishing villages, and near popular resort areas. Before setting out, check PlugShare or a similar app to locate the nearest available charging point. 

Apps and maps: Download the PlugShare app for a convenient charging port map. Additionally, company-related programs like Ísorka or ON mark their brand's stops. These tools will help you plan your trip and ensure you reach your destination without a hitch or needing emergency assistance.  

The strictest parking regulations in Iceland are typically found in urban centers like Reykjavik, Iceland’s capital. Here, parking costs vary based on the location and time of day. Though public holiday exceptions exist, drivers must pay the price according to their parking zone.  

• P1 (red) is the most expensive, at 630 ISK per hour (with a maximum stay of three hours) on weekdays and weekends.  

• P2 (blue) costs 230 ISK per hour from 9 AM to 9 PM on weekdays and from 10 AM to 9 PM on weekends.  

• P3 (green) charges 230 ISK for the first two hours, then 70 ISK afterward, with the fee applied between 9 AM and 6 PM on weekdays. 

• P4 (orange) is the cheapest at 230 ISK per hour (with no limit) only during weekdays.  

Parking spaces are marked with a blue “P” symbol, zone number, and the hours when fees apply. You can pay using coins or a card at nearby meters or ticket machines, but a more convenient option is to use the Parka or EasyPark apps. If you fail to pay when required, you’ll receive a parking ticket, and if you're driving a rental, the company may also add administrative fees. 

Outside urban areas, paid parking is generally limited to popular tourist spots like the Golden Circle, Kerið Crater, or Kirkjufell. Other locations may offer free parking, depending on the location's popularity and whether the land is privately owned. 

Færð & Veður is an Icelandic road condition app showing current weather and maintenance work. SafeTravel is an alternative and more popular option on the Google Play Store. However, you can always rely on Iceland's road conditions maps online, though you’ll need to spend more time pinpointing locations.   

Useful Websites:  

• Road.is:  Real-time road conditions and closures. 
• Vedur.is: Icelandic weather forecasts and alerts. 
• SafeTravel.is: Travel alerts, safety tips, trip registration. 

Driving in Iceland can be challenging due to rapidly changing weather, narrow roads, and limited visibility in more remote areas. While using paved roadways is easier, going off onto gravel ones, like the F-roads, adds another layer of challenge in the form of uneven terrain. In winter, icy conditions and snowstorms create unfavourable conditions for inexperienced drivers. 

Like most European countries and the United States, vehicles in Iceland drive on the right side of the road. The left side is used for overtaking another vehicle or driving past an obstacle. One lane roads follow the rule of first come, first served. 

Yes, Iceland allows US citizens to drive with a valid driver's license. An IDP (International Driving Permit) is not required, as both nations use Latin characters in their documents. If you arrive with your vehicle, you’ll need to buy extra insurance, as the USA is not part of the Green Card system. 

Yes, tourists can safely drive on Icelandic roads, with certain safety precautions. Paved roads, while generally in good condition, are susceptible to changing weather conditions, especially in winter, when ice makes them more slippery. F-roads might be challenging for first-time Icelandic travelers, even with the added power of a 4x4. 

Yes, renting a car is a good option for exploring Iceland's attractions outside Reykjavik. The added flexibility means you can change your itinerary depending on the situation. However, with the freedom comes extra insurance costs, gas refills, and the need to return the car at a certain time. 

Driving in Iceland is straightforward if you follow the main Ring Road, or Route 1. Paved roads are marked, but many outside urban centers, like the unpaved F-roads, are less so. Also, the weather remains unpredictable, so drivers should be alert and follow the speed limits at all times. 

You need to understand the rules of the road and conditions you’ll face while driving in Iceland. The speed limit is lower in urban centers and higher in rural landscapes, and headlights must always be on. Also, before heading out onto the road, check the conditions and weather forecasts online. 

The legal driving age in Iceland is 17, but driving lessons begin from 16. However, rental companies typically require customers to be at least 20 years old, or 23 for 4x4, and have one year of experience as a driver before allowing them to rent a vehicle.  If younger, an extra fee might be charged. 

Vehicles circling the roundabouts in Iceland have priority over those entering. In round, multilane intersections, a person in the outer lane must yield to inner lane drivers if they are on their way to exit. Drivers must indicate they are leaving by turning on the right turn signal. 

Signage before a roundabout indicates the exits you can take, depending on your lane. Use the outer lane to take the first exit, or the inner lane to head straight or turn left. Also, left-lane drivers are prioritized when exiting, and right-lane drivers have to yield. 

Iceland has many roundabouts because they improve traffic flow and safety, especially in areas with light and moderate traffic. Since drivers must slow down, these intersections reduce the likelihood of serious accidents and head-on collisions. An efficient layout also makes congestion rare, reducing the need for stop-and-go driving. 

Icelander driving etiquette focuses on safety, respect, and environmental awareness. Always follow the rules, like keeping the headlights on during the day and yielding in roundabouts. Off-road driving is strictly forbidden due to the damage it can do to the landscape, so stick to the main roads or gravel F-roads. 

Icelandic F-roads are unpaved roadways connecting the Highlands' mountainous region with the rest of the island. In addition to the uneven terrain, drivers will encounter gravel, rocks, and river crossings whose shallow exterior hides deep challenges for inexperienced drivers. Due to the hazards, these paths are open only in summer and for 4x4 vehicles. 

Yes, you can drive around Iceland by following the famous Ring Road, a circular highway that loops the island through mountains and lava field plains. Paved roadways branch out of Route 1, leading to areas like the rocky Westfjords and magical Snæfellsnes Peninsula. While a 2WD is enough for most regions in summer, a 4x4 or 4WD is a must in winter and the Highlands. 

It is technically possible to drive around Iceland in a single day, but it’s highly impractical. The Ring Road spans over 1,300 kilometers (about 800 miles), and completing it in 24 hours would require constant driving with only brief stops for fuel. Most visitors take between 5 and 10 days to travel the route, with 7 days being the most common choice. This allows time to experience key sights along the way, including the Golden Circle, the South Coast, the East Fjords, and North Iceland.