Driving in Iceland: A Complete Guide for Travelers

Exploring Iceland by car is one of the best ways to experience its dramatic landscapes, hidden gems, and remote locations. However, driving here is different from many other countries due to the island’s unique road conditions, weather, and regulations. This guide will help you prepare for a safe and unforgettable road trip.


Why Rent a Car in Iceland?

  • Freedom to Explore: Access off-the-beaten-path destinations that tour buses can’t reach.
  • Flexible Itinerary: Create your own schedule and spend more time where you want.
  • Scenic Routes: Drive along the famous Ring Road, through lava fields, and past glaciers and waterfalls.

Essential Road Types

  • Paved Roads (Asphalt): Found mainly in towns and on the Ring Road (Route 1).
  • Gravel Roads: Common in rural areas; slower driving is required.
  • F-Roads (Mountain Roads): Only accessible by 4×4 vehicles and open seasonally, usually from mid-June to September.

Do You Need a 4×4?

You’ll need a 4×4 vehicle if:

  • You plan to drive on F-roads.
  • You’re traveling in winter and want more stability.
  • You’re exploring the Highlands or rougher regions like Westfjords or Þórsmörk.

For city driving or Ring Road in summer, a 2WD car is sufficient.

Speed Limits

  • Urban Areas: 50 km/h
  • Rural Roads: 80 km/h (gravel) / 90 km/h (asphalt)

Speed cameras are common and fines are high.

Driving Regulations

  • Drive on the right side of the road.
  • Headlights must be on at all times, day or night.
  • Seat belts are mandatory for all passengers.
  • No mobile phone use while driving (unless hands-free).
  • Drinking and driving is strictly prohibited (legal limit: 0.02%).

Weather & Road Conditions

Icelandic weather is unpredictable and can change rapidly:

  • Check www.road.is for road conditions.
  • Monitor weather at en.vedur.is.
  • Avoid driving during storms or heavy snow unless experienced.

Insurance Tips

  • CDW (Collision Damage Waiver): Usually included, but has a high deductible.
  • Gravel Protection: Recommended due to stone chips.
  • Sand & Ash Protection: Especially important in areas like the South Coast.
  • Theft Protection: Not essential; Iceland has very low crime rates.

Always review insurance details with your rental provider.

Fueling Up

  • Gas stations are self-service and widely available.
  • Most accept credit/debit cards (sometimes only with a PIN).
  • Fill up often in remote areas—stations can be 100+ km apart.

Parking

  • Reykjavik: Use pay-and-display zones (marked P). Download apps like Parka or EasyPark.
  • Free parking is often available in smaller towns and rural sites.

Helpful Apps

  • 112 Iceland – For emergencies and location sharing
  • Vedur – Weather forecast
  • Aurora Forecast – For northern lights
  • Google Maps / Waze – Navigation
  • Parka / EasyPark – Parking

Final Tips

  • Don’t stop in the middle of the road to take photos.
  • Be cautious around sheep—especially in summer.
  • Always close gates behind you in rural areas.
  • Respect nature: avoid off-road driving (it’s illegal and fined).

Driving in Iceland is incredibly rewarding when done safely. With preparation and respect for nature and local rules, your road trip will be one of the most memorable adventures of your life.