Driving in Iceland
Hiring a car is the best way to experience all that Iceland has to offer. Here’s what you need to know before taking to the open road.
Why Renting a Car is the Best Way to Explore Iceland
From towering glaciers to dramatic volcanoes, Iceland is a country packed with breathtaking landscapes. The best way to experience its natural beauty is by car, giving you the freedom to explore at your own pace. You can stop whenever and wherever you like. While driving in Iceland is generally straightforward, there are a few challenges to be aware of.
Weather and Road Conditions
Iceland’s weather is unpredictable—clear skies in the morning can quickly give way to a snowstorm in the afternoon. This is particularly important to keep in mind during the winter months when driving can be difficult. Always check live road conditions before setting out, and carry extra food and water in case of delays.
Many of Iceland’s roads are easy to navigate, but others can be more challenging. The famous Ring Road is mostly paved, but many other routes are gravel and require extra caution. F-Roads, which take you deep into Iceland’s remote highlands, can be desolate, with long stretches where you won’t see another car. These roads require a 4x4, and signs will indicate when this is the case. Attempting to drive on these roads in the wrong type of vehicle can void your rental insurance.
Parking in Iceland
Urban areas offer various parking options, including metered street parking, parking garages, and dedicated lots. Parking fees typically range from 50 ISK to 250 ISK per hour. When parking on the street, ensure your car is facing the direction of traffic and is at least five meters from pedestrian crossings or intersections.
If you receive a parking fine, expect to pay between 2,500 ISK and 10,000 ISK. Fines can be paid at any bank, and if settled within three days, you may receive a slight discount.
Off-Road Driving is Strictly Prohibited
Driving off marked roads or tracks is illegal in Iceland. If caught, you could face hefty fines. Despite Iceland’s rugged appearance, its environment is extremely fragile, and vehicles can cause significant and lasting damage. Even if you rent a vehicle designed for off-road travel, sticking to designated routes is a must—it’s both illegal and environmentally irresponsible to stray off-track.
Single-Lane Roads, Bridges, and Tunnels
Most Icelandic roads have two lanes, but you’ll also encounter single-track roads, especially in rural areas. Knowing the right of way in these situations is essential.
Many bridges in Iceland are single-lane, meaning only one vehicle can cross at a time. The rule is simple: whoever reaches the bridge first has the right of way. Never drive onto a single-lane bridge if another vehicle is already on it.
Some tunnels in Iceland also have only one lane. If you’re driving in a single-lane tunnel, be prepared to pull into passing bays to allow oncoming traffic to pass. The rule is that if the passing bays are on your right, you must use them—it’s not your right of way. Before entering the tunnel, a sign will indicate its length so you know what to expect.
Essential Driving Rules in Iceland
- Drive on the right-hand side of the road.
- Keep your headlights on at all times, even during daylight.
- Seatbelts are mandatory for all passengers, front and back.
- Speed limits: 50 km/h in urban areas 80 km/h on gravel roads 90 km/h on paved roads
- Drinking and driving is strictly forbidden—violators face a minimum fine of 100,000 ISK and a four-month driving ban.
- In case of an emergency, dial 112 for assistance.
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