Driving in Iceland: Everything You Need to Know

Driving in Iceland isn’t like driving anywhere else. Its unique road conditions, unpredictable weather, and strict regulations can be challenging if it’s your first time in the country.

In this guide, we’ll give you information and all the aspects that you should consider for your Icelandic driving experience so you can plan a smooth and safe road trip.

What Documents Do I Need to Drive in Iceland?

To drive legally in Iceland, you must carry a valid driver’s license. Most travelers won’t have to worry about additional paperwork. If you’re from the European Union (EU) or European Economic Area (EEA), your national license is fully accepted. If you’re from outside these areas, your license is also valid as long as it’s written in Latin characters.

If your license is in a non-Latin alphabet, like Arabic, Cyrillic, Japanese, or Chinese, for example, you’ll need to get an International Driving Permit (IDP). This is essentially a translated version of your license, and you must carry both documents when driving.

Car rental companies often require a credit card when renting a vehicle, but accepting debit cards (like we do) has become increasingly common. Basic insurance is typically included, but consider upgrading to gravel protection, sand and ash damage insurance. These might seem unnecessary, but are crucial for covering the kinds of damage specific to Iceland’s environment.

Always carry your rental agreement, insurance paperwork, and passport while driving, just in case you’re stopped or involved in an incident.

Driving Rules and Regulations

Iceland’s road rules are straightforward and easy to follow, but are strictly enforced.

Understanding Iceland’s traffic laws is crucial for a safe and enjoyable road trip. The country enforces strict regulations to ensure safety for drivers, passengers, and pedestrians alike.

Icelanders drive on the right-hand side of the road, so you’ll need to adapt if you come from a country that drives on the left. When overtaking, always do so on the left, and only when it’s safe.

There’s a particular law in this country: headlights must be on at all times, regardless of whether it’s day or night. The reason for this is the frequent changes in light conditions caused by the weather. It helps improve visibility, even in broad daylight. Make sure your headlights are working properly before setting off.

Seat belts are mandatory for all passengers, whether they’re sitting in the front or the back. Icelandic authorities take this very seriously, so ensure everyone in your vehicle is buckled up. Another key rule is regarding alcohol consumption. Iceland has one of the lowest blood alcohol limits in the world, at 0.02%. This essentially means that consuming even one drink before driving can cause you to fail the test if you’re stopped by the police. The fines for these types of offenses are usually high and must be paid immediately.

Finally, using mobile phones while driving is strictly prohibited unless you have a hands-free system. Distractions on Icelandic roads can be dangerous, particularly when navigating unpredictable conditions. Always keep your focus on the road and avoid taking or making calls unless it’s strictly necessary.

Road Manners and Etiquette

Icelanders are polite drivers, and you’re expected to be as well. When driving on narrow roads or bridges, most of which are single-lane, yield to oncoming traffic if needed. The custom is that the first one to arrive has preference.

Always pull over to designated parking spots to take photos or admire the view – stopping in the middle of the road is not only dangerous but also illegal.

Animals, particularly sheep, are frequent road hazards in rural areas. If you see a flock ahead, slow down and prepare to stop. On long stretches of road, use passing zones to let faster drivers overtake. Locals are used to these conditions and might drive faster than tourists.

Finally, never drive off-road. Iceland’s terrain is delicate, and going off can damage the environment for decades. It’s also illegal, with fines reaching tens of thousands of ISK.

Iceland's Road System

The road network in Iceland is a mix of well-maintained highways and rugged, remote rural tracks. Understanding the different types of roads will help you prepare for the journey.

The Ring Road (Route 1)

The Ring Road, its official name being Route 1, is Iceland’s main highway, forming a loop around the country and connecting most major towns and attractions. It’s 1,332 kilometers long (828 miles). Most of the Ring Road is paved and relatively easy to drive, but there are sections where weather conditions and narrow lanes can make it a bit tricky.

Gravel Roads

In rural areas, most roads are gravel. The loose gravel reduces traction, so sharp turns and sudden braking can be hazardous. Additionally, vehicles coming in the opposite direction can project stones, which can crack your windshield or chip the paint. This can also happen when driving behind another car if you’re too close. Another reason to invest in gravel insurance. Drive slowly and stick to the middle of the road when possible, but yield to oncoming traffic when needed.

Urban Roads

In cities like Reykjavik, roads are well-maintained and easy to navigate. However, speed limits in urban areas are low, usually around 30–50 km/h (18 to 31 mph). Pay attention to signs, as many streets in downtown Reykjavik are one-way. Parking can be tricky, with most spots requiring payment via meters or apps (we’ll explain this later).

F-Roads

F-roads are the most unique and infamous roads in Iceland. They are mountain roads that are mainly located in the Central Highlands. These roads are unpaved, often full of potholes, and can require crossing rivers. They are only open during summer (usually June to September) and are strictly for 4x4 vehicles. These roads offer stunning scenery but demand caution, preparation, and experience. If you see a road whose name starts with an F followed by numbers, that’s an F road.

Speed Limits and Fines

Speed limits in Iceland are as follows:

• 50 km/h in urban areas. Bear in mind that some areas might have lower limits.
• 80 km/h on gravel roads.
• 90 km/h on paved roads outside urban areas.

These limits are clearly marked, but always adjust your speed according to road and weather conditions.

Fines for speeding in Iceland are among the highest in Europe:

• 10–20 km/h over the limit: 15,000–35,000 ISK (€100 to €240 or $108 to $253).
• 20–30 km/h over the limit: 35,000–50,000 ISK (€240 to €340 or $253 to $360).
• 30+ km/h over the limit: 50,000 ISK (€340 or $360) or more, and in severe cases, your driver’s license may be confiscated.

Speed cameras are on many roads, and police patrols often monitor rural roads, so don’t risk it. Drive safely, and you’ll not only avoid fines but also protect yourself and others.

What Car to Choose?

Your choice of vehicle will depend on your itinerary and the season. For summer trips along the Ring Road and popular sites like the Golden Circle, a standard car is enough. However, if you’re visiting in winter or planning to explore the highlands, a 4x4 is essential.

There’s a wide range of vehicles. Pick a model that suits your group size, luggage needs, and planned routes.

Popular Cars

Toyota RAV4

Renault Trafic

Hyundai i10

Dacia Duster

Suzuki Jimny

Hyundai Tucson

Check options

Gas Prices

Gasoline and diesel are quite expensive in Iceland, so budgeting for fuel is essential. As of November 2024, gasoline averages around 250 ISK per liter, while diesel is slightly cheaper at about 240 ISK per liter. Prices are more or less uniform in the country, although some companies may offer slightly better deals. Understanding how they work can be quite helpful.

Major fuel companies in Iceland are:

• N1: The largest chain, with stations all over the country, many of which have restaurants or convenience stores.
• Orkan: Often offers competitive pricing, with self-service stations in many areas.
• ÓB: A budget-friendly option for refueling.

Many gas stations use prepaid fuel cards available, which are particularly useful to avoid international transaction fees​. In remote regions, gas stations can be scarce, so always fill up whenever you can, especially before heading into the highlands.

The weather on the road

If you go to Iceland, you should pay attention to the effect the weather has on everything you do. And driving is one of the things that is affected the most. The climate here is an unpredictable force, significantly influencing road conditions and travel experiences across the island.

The country's proximity to the Arctic Circle, combined with the moderating effects of the North Atlantic Ocean, results in a climate that can shift rapidly, even within a single day. Sometimes, at a moment’s notice. It’s pretty normal to experience sunshine, rain, and snow quickly, making it essential to stay informed and prepared.

Seasonal Variations and Their Impact on Driving

Iceland is not cold all year round, so driving in winter can feel very different from driving during the summer.

Summer (June to August)

Summer is, objectively, the best season to drive in Iceland. Summers in Iceland are mild, with temperatures typically ranging between 10°C and 15°C (50°F to 59°F). The extended daylight hours, which can be almost 24 by the end of June, give a lot of time to explore everything and are perfect for visibility while driving. However, sudden rain showers are common, and fog can reduce visibility, especially in coastal and mountainous regions.

Autumn (September and October)

Autumn comes with cooler temperatures and more rain. Roads can become slippery due to rain and early frost, particularly in the northern regions and higher elevations, and in general by late October. Wind speeds also tend to be higher during this season, affecting vehicle stability, especially for high-profile vehicles like campers and SUVs. Some F-roads can begin to close due to the weather.

Winter (November to March)

Probably the most hazardous season in Iceland for a road trip, but it can still be perfectly done with precaution. This season is long and cold, with average temperatures around 0°C (32°F). The daylight hours are very short, sometimes to as little as four hours per day. Snow and ice are common, and they can cause challenging driving conditions. Many roads, especially in the Highlands and remote areas, become impassable and are closed for the season. Even on main roads, black ice can be a hidden hazard. It’s highly recommended that you rent a 4x4 car and ensure you have all the appropriate equipment.

Spring (April and May)

Spring is a transitional period with fluctuating temperatures and melting snow, which can lead to wet and muddy road conditions. Potholes may appear as the ground thaws, and there can be occasional late snowfalls that can catch drivers off guard. It's a time to drive with caution and stay updated on weather forecasts.

Regional Differences

Iceland's diverse geography means that weather conditions can vary significantly across regions.

Southern Coast

This area experiences milder temperatures but higher rainfall due to its exposure to the North Atlantic winds. Roads here can be slippery, and river crossings may swell during heavy rains. This region also has stronger winds, with gusts that can be an unpleasant surprise.

Northern Regions and Westfjords

These areas usually have harsher conditions, including heavier snowfall. Road closures are more common, and some routes may remain closed until late spring.

Tips for Safe Driving in Iceland's Variable Weather

As we said before, driving in Iceland is doable. However, there are some things to keep in mind regarding the weather to make sure your road trip is smooth and safe at all times.

• Stay Informed: Regularly check weather forecasts and road conditions through reliable sources like the Icelandic Met Office and the Icelandic Road and Coastal Administration's websites.
• Equip Your Vehicle: Make sure your vehicle is fitted with appropriate tires for the season. In winter, studded tires can provide better traction on icy roads.
• Adjust Driving Habits: Reduce speed in adverse conditions, maintain a safe following distance, and be prepared for sudden weather changes. Always have headlights on (it’s not only safe but mandatory in Iceland), as visibility can decrease rapidly.
• Be Prepared: Carry essentials such as blankets, food, water, and a fully charged mobile phone in case of emergencies. Inform someone of your travel plans, especially when venturing into less populated areas.

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Road Challenges and Hazards

Driving in Iceland comes with its fair share of challenges, from narrow roads to unpredictable closures. Knowing what to expect can help you deal with them safely and confidently.

Narrow Roads and Bridges

Many of Iceland’s rural roads are narrow and lack a shoulder, so it’s essential to stay in your lane at all times. Paved sections are generally smooth, but some roads barely allow two cars to pass simultaneously. When encountering oncoming traffic on these narrow parts, slow down and use passing areas when necessary.

Single-lane bridges are another common feature, especially on the Ring Road. These bridges only allow one vehicle at a time, requiring drivers to yield based on who reaches the bridge first, as we explained before. Be patient and wait your turn to cross.

Potholes are another issue, particularly on some rural roads. While the Icelandic government works diligently to maintain roads, potholes can develop quickly due to weather events. Always pay attention and reduce your speed on uneven terrain to avoid damage to your tires or suspension.

Road Maintenance and Closures

Due to Iceland’s harsh climate, road maintenance happens all year round. Seasonal closures are common, especially in the Highlands. The F-Roads often remain unpassable until late spring or early summer. Regular roads can also close during severe weather conditions, such as heavy snowfall, floods, or strong winds.

Parking in Reykjavik

Parking in Reykjavik is regulated and divided into zones, each with its own pricing:

• Zone 1 (Red): 250 ISK/hour (€1.70 or $1.80), closest to downtown.
• Zone 2 (Blue): 125 ISK/hour (€0.85 or $0.90), slightly farther out.
• Zone 3 (Green): 90 ISK/hour (€0.60 or $0.65), located on the outskirts.

There’s free parking available in some areas, but these spots usually fill up quickly. Payment can be made via parking meters or mobile apps like Parka.

Safety and Travel Tips

• Plan your route: Before setting off, decide your route and see where you can find fuel stations, restaurants, and rest stops along the way. Remember that services can be sparse in remote areas, so fuel up when possible.
• Check weather and road conditions daily: Always check the conditions before starting your day.
• Prepare for wildlife: Sheep and other animals can be near or on roads, especially in rural areas. Always slow down when animals are nearby, as you never know what they will do next.
• Adapt to the weather: Icelandic weather can change in an instant. Reduce your speed in heavy rain, snow, or fog, and avoid sharp turns on icy or gravel roads. If wind warnings are issued, delay your trip, especially if you’re driving a camper or tall vehicle.
• Respect the environment: Iceland’s terrain is fragile, so never drive off-road. Stick to marked roads and parking areas to avoid fines and preserve the natural beauty.
• Follow the speed limits: Always adhere to speed limits, especially on gravel roads where the risk of accidents increases. It can also save you a lot money in fines.
• Emergency Number: Dial 112 for emergencies.

Conclusion

Driving in Iceland is more than just a way to get around; it’s an experience in itself. It’s not only the best way to reach all the amazing places there are in this country, but you’ll also pass through some fascinating towns and landscapes. By understanding the rules, respecting the environment, and preparing for all conditions, you can enjoy a road trip that’s as safe as it is spectacular.