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Driving in Iceland: A complete guide

Date

10. Aug 202610. Aug 26

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13 min

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Some of Iceland’s most extraordinary landscapes just aren’t reachable by tour bus. A rental car puts you in control of your own itinerary: stop wherever the view demands it, take the quieter back roads, and move through the country at your own pace rather than someone else’s schedule.

Driving in Iceland is a little different from driving at home for many reasons. Changeable weather, a mix of paved and unpaved surfaces, free-roaming wildlife, and long stretches without another car in sight all call for a bit more preparation than you’d need on your average road trip. That’s not something to worry about, though. A little knowledge goes a long way, and most visitors find that driving around Iceland is refreshingly straightforward once they know what to expect.

This guide covers everything you need before you set off: the rules of the road, the different road types and conditions you’ll encounter, what changes from season to season, how to choose the right vehicle, and the wildlife and hazards worth keeping an eye out for.

Rules of the road in Iceland

As with every country, there are plenty of different rules of the road that need to be followed. We’ve brought together some of the most important to make your road trip easier.

Drive on the right

One of the big questions when driving in another country: which side of the road do they drive on? We drive on the right in Iceland, and overtake on the left. At junctions and roundabouts, vehicles coming from the right usually have priority, and you should always give way to emergency vehicles, and to buses re-entering traffic.

Speed limits

Speed limits vary by road type and area, and signage isn’t always posted unless a different limit applies, so it’s worth learning the default limits before you go:

  • Residential areas: 30 km/h (19 mph)
  • Populated/urban areas: 50 km/h (31 mph) – the standard unless otherwise signed
  • Throughways: 60 km/h (37 mph)
  • Rural paved roads: 90 km/h (56 mph)
  • Rural gravel roads: 80 km/h (50 mph)

 

Conditions can make these limits feel generous, particularly gravel or in poor weather, so treat them as your maximum and slow down to stay safe.

For up-to-the-minute conditions on any route, it’s worth checking road.is before you set off, particularly if you’re covering longer distances.

Be on the lookout for roaming sheep in summer.

The surprising roundabout rule

There’s a roundabout rule that catches out plenty of visitors, so it’s worth having in mind before you hit your first one. There aren’t many roundabouts in the countryside in Iceland, but there are quite a few in Reykjavík.

The inner lane has the right-of-way at a two-lane roundabout. You have to give the car in the inner lane priority if they’re signalling to leave the roundabout.

Licenses, signage, and other essentials

A valid driving license from your home country covers you to drive or rent a car in Iceland, as long as a few boxes are ticked: it needs a photo, an issue date and an expiry date, and you’ll typically need to have held it for at least a year. If your license isn’t in English, it needs the details in Latin lettering too (this applies to languages like Arabic, Chinese, Japanese, Hebrew, and Russian), otherwise, you’ll need an International Driving Permit alongside it. Most Icelandic car rental companies also set a minimum age of 20 to hire a car, sometimes higher for larger vehicles.

Iceland uses standard European road signs, though a handful trip up visitors more than others. Watch for signage marking the transition from paved to unpaved road, F-road entry signs indicating 4WD-only routes, and single-lane bridge warnings. These are all worth recognizing before you’re on the road rather than reacting to them at speed.

From the US? Note that turning right on a red light isn’t permitted in Iceland unless a green arrow specifically allows it, a habit worth unlearning before you arrive.

Full lights need to be on at all times when you’re driving, day or night. Most rental cars handle this automatically on the ‘auto’ setting, but it’s worth checking your specific vehicle before setting off, since on some cars ‘auto’ doesn’t automatically switch on the rear lights. Driving without visible tail lights, especially in winter, is genuinely dangerous.

Iceland’s drunk driving law is strict: the Blood Alcohol Concentration (BAC) limit is 0.02%, well below the 0.08% common across the US and most of the UK, and the 0.05% typical across much of Europe. In practical terms: don’t drink and drive, at all.

A few habits worth building in

Off-road driving is illegal in Iceland and carries a heavy fine. It’s not just about the money, either: Iceland’s mossy lava fields and fragile terrain can take decades, sometimes centuries, to recover from tire damage, so stick to marked roads and tracks.

Don’t park in the middle of the road, or on the side, even on stretches that look empty. It’s a habit some visitors get into to snap a photo, but it causes accidents and is against the law. Find a proper place to pull over safely instead.

If you’re heading somewhere remote, it’s worth submitting a quick travel plan with Safe Travel Iceland before you set off. It takes a couple of minutes and means someone knows your route and arrival time in case cell signal drops out and plans change.

Parking in Iceland

Free parking in Iceland is becoming a thing of the past – in Reykjavík and Akureyri city centers, and at many popular visitor attractions.

It’s worth knowing the set-up before you arrive at your destination rather than working it out on the spot.

Paid parking is the norm in Reykjavík’s center, and the city’s parking rules are strictly enforced, with fines issued for non-compliance.

Apps like Parka and EasyPark make paying straightforward and let you top up or extend from your phone. It’s worth downloading the apps before you arrive, since not every parking lot has a physical payment machine on-site. You can then set it up with your license plate and a credit card.

If you’re renting a car and staying in Reykjavík, it’s useful to ask your hotel or accommodation provider for tips on the local parking requirements and where is the best option for overnight parking.

Plenty of Iceland’s best-known attractions along the Ring Road and the Golden Circle now charge for parking too, with the Parka app the most common way to pay, although you will often find a payment machine on-site. The fees are primarily used to fund the maintenance of nature paths and signage, build and clean restrooms, and manage heavy visitor traffic.

Note that many of these sites use automatic license-plate recognition cameras to record vehicle comings and goings, so remember to pay or you’ll receive a fine (it will be sent to your car-hire company, which will bill your credit card and add an administration fee). Some lots – including those managed by Parka – will allow you to pay for your parking retroactively, up to 24 hours after you leave.

At popular sites such as Reynisfjara, Seljalandsfoss, and Geysir, parking lots can fill up fast in peak season. Arriving early in the morning or later in the afternoon tends to solve two problems at once: an easier time finding a space, and fewer crowds in your photos.

Toll roads in Iceland

There are two stretches of toll road that are part of the Ring Road (Highway 1) circuit. Both require online payment.

  • Vaðlaheiðargöng in North Iceland near Akureyri is a 7.5km (4.7 mile) tunnel that allows drivers to bypass the precipitous Víkurskarð mountain pass. Pay online at tunnel.is. Note that in summer you might elect to skip the tunnel and drive Víkurskarð on roads 83 and 84. This adds about 16km (10 miles) to your journey and is slower going; it shouldn’t be attempted in winter.
  • In summer 2026, a new stretch of road opened west of Höfn in the southeast corner of Iceland, shortening the Ring Road by 12km (7.5 miles) and removing three single-lane bridges. Drivers must pay a toll online at spolur.is. There is the option of taking the longer, older road (now road 987), although winter service is patchy so this is better as a summer option.

Iceland’s road types and conditions

Once you’re prepared, navigating road conditions in Iceland is refreshingly simple. The country’s road network ranges from smooth highway-standard asphalt to seasonal mountain tracks, and knowing which is which makes all the difference to how comfortable your trip feels.

F-roads

You may be wondering what are F-roads in Iceland? F stands for fjall (Icelandic for mountain), and these are unpaved highland mountain roads that only open once winter snow has cleared, typically from late June to September. Opening dates vary year to year depending on conditions, so for reliable, up-to-date information it’s worth checking the Icelandic Road and Coastal Administration’s mountain road opening schedule before planning any highland route.

These roads require a four-wheel drive (4WD or 4x4) vehicle, and many involve unbridged river crossings. Driving an F-road in a standard 2WD rental car is strictly prohibited and voids your insurance entirely, so it’s not a risk worth taking even if the road looks manageable.

F-roads are easy to identify once you know what to look for: the ‘F’ prefix appears on maps and road signs (F208, and so on), and entrances are clearly marked with 4WD-required signage. As with any route, check road.is before setting out, since Icelandic weather can change quickly and reshape conditions within hours.

The best-known F-roads include F208 (Fjallabak, leading to Landmannalaugar), F26 (Sprengisandur), and F225 (Landmannaleið).

Note that F35 (the Kjölur route) has been reclassified to just ‘35’ in recent years, due to road improvements. There are no river crossings on this route – however, it’s still a rough and remote mountain road that requires a 4WD.

A sign indicates ‘óbrúaðar ár’ (unbridged river ahead), and the need for a 4x4 vehicle.

Gravel roads

Outside the larger towns and away from the Ring Road, a significant proportion of Iceland’s roads are unpaved gravel. That’s normal and not a sign of poor maintenance; it simply calls for a lower speed and a bit more care behind the wheel.

A sign saying ‘malbik endar’ indicates that the paved section of the road is coming to an end, and speed should be reduced.

A few habits make gravel driving safer and more comfortable:

  • Reduce speed well before bends, since gravel offers less grip than asphalt.
  • Loose gravel can cause skidding, particularly if you brake or steer sharply.
  • Stones kicked up by passing vehicles can crack windshields, so it’s worth checking your rental insurance covers this before you set off.

 

If you do lose traction, gradual braking is always safer than swerving suddenly. It maintains maximum tire grip and helps you keep control of the vehicle, whereas a sharp correction is more likely to send you into a skid.

A sign indicates ‘malbik endar’ ahead (the asphalt road ends, and becomes gravel).

One-lane bridges and tunnels

Iceland has many single-lane bridges, marked with a sign reading ‘einbreið brú’. The rule is simple: whoever arrives first crosses, and oncoming traffic waits. Always approach these bridges slowly and be ready to stop.

Several tunnels around the country are also single-lane with designated passing places. These are signed ‘einbreið göng’ and a sign with an arrow will indicate which direction has priority. Be prepared to pull into a passing place if you meet oncoming traffic and the other direction has right of way.

A sign indicates ‘einbreið brú’ ahead (one-lane bridge).

Road closures

Roads in Iceland can close at any time due to weather, volcanic activity, or seasonal conditions, sometimes with little warning.

Checking road.is every morning before you set out is good practice year-round, and especially important in winter and spring, when conditions can shift overnight.

The Icelandic Road and Coastal Administration (IRCA), called Vegagerðin in Icelandic, provides real-time updates on road conditions and closures, and Safe Travel Iceland also issues alerts worth signing up for.

Never attempt to pass a closed road barrier. The conditions that trigger a closure, whether flooding, ice, or volcanic risk, are genuinely dangerous, and closures are not applied lightly.

A sign indicates ‘ófært’ (road is impassable ahead).

Driving in Iceland by season

When you visit can significantly affect what driving in Iceland looks like day to day, so it’s worth tailoring your preparation to the season you’re traveling in.

Summer driving (April–October)

F-roads typically open from late June, and renting a 4WD during this window opens up highland routes and remote corners of the country that are inaccessible the rest of the year.

Iceland’s midnight sun means it barely gets dark through the summer months, which is a wonderful novelty but worth being mindful of behind the wheel. Fatigue can creep up on long drives when the light makes it feel much earlier than it actually is, so build in proper rest stops regardless of how bright it still looks outside.

Summer is Iceland’s busiest season for road-tripping visitors, and popular viewpoints and parking lots fill early in the day. Setting off earlier or later than the main wave of traffic tends to mean a smoother trip and a quieter view once you arrive.

Driving in Iceland in winter (November–March)

A 4WD fitted with studded or winter tires is strongly recommended for winter travel, and it’s worth taking your rental company’s advice on vehicle choice seriously if you’re visiting during these months.

The Ring Road stays open year-round, though it can close temporarily during severe storms. Checking road.is before every journey, not just once at the start of your trip, is essential in winter.

Strong winds are a genuine hazard in winter – they can make driving feel unstable and have been known to rip car doors from hands when getting in or out of a vehicle in exposed spots. Brace the door carefully and be mindful of your surroundings when stepping out in windy conditions.

Daylight is limited in winter, sometimes as little as four to five hours in December and January, so it’s worth planning journeys around the available light and building in extra time rather than cutting it close.

If you’re weighing up timing for your trip more broadly, our guide to the best time to visit Iceland is worth a read alongside this one.

Checking conditions before you drive

Whatever the season, a short pre-drive checklist makes a real difference to how safe and stress-free your journey is:

  • Check road.is for current conditions and any closures on your route, and keep an eye on the Icelandic Met Office for weather, including storm warnings.
  • The Icelandic Road and Coastal Administration’s real-time updates and mountain-road opening page are worth bookmarking too, especially if F-roads feature in your plans.
  • Save the emergency number 112, and consider downloading the 112 Iceland app, which sends your GPS location straight to emergency services if you need help. It’s also worth keeping your rental company’s roadside assistance number to hand.
  • If you’re heading somewhere remote, submit a quick travel plan with Safe Travel so someone knows your route and timing.
  • Check your fuel level, or EV charge, before setting off. Distances between gas/charging stations can be longer than they look on a map, particularly off the Ring Road.

Choosing the right vehicle for Iceland

Iceland’s landscape, roads, and weather vary enormously depending on where and when you’re traveling, so the vehicle that suits your trip can look quite different from one itinerary to the next.

In summer, a standard car (with two-wheel drive) is perfectly suited to the Ring Road, the Golden Circle, the south coast, and most of Iceland’s popular destinations.

It’s not suitable for F-roads or river crossings and attempting these in a standard rental typically voids your insurance.

A 4WD or SUV is the recommended choice for winter driving, and it’s essential in summer if F-roads or highland routes feature in your itinerary.

It’s also the vehicle required for river crossings – though even with 4WD, it’s vital to assess depth carefully before entering the water. Underestimating river depth is one of the most common causes of serious accidents in Iceland.

A campervan or motorhome is a popular choice for Ring Road trips, since it combines transport and accommodation in one, and allows greater flexibility with itinerary planning (as campsites generally don’t need to be prebooked, unlike hotel and guesthouse accommodation). Around 200 campsites are spread across the country, so there’s plenty of choice for where to stop overnight.

Their height makes campervans and motorhomes more susceptible to strong winds, which can cause uncomfortable swaying or, in extreme conditions, a risk of tipping. Parking position matters here too: it’s best practice to park with the cab facing directly into the prevailing wind.

If a campervan or motorhome suits your trip, take a look at our flight and campervan and flight and motorhome packages.

Electric vehicles are increasingly viable for the Ring Road and popular summer routes, though charging infrastructure is still concentrated around towns.

It’s worth planning charging stops carefully on longer stretches in the east and north, the same way you’d plan fuel stops in a gas or diesel car.

Cold temperatures reduce EV range, so factor this into route planning if you’re traveling in winter or the shoulder seasons.

If tapping into Iceland’s renewable energy and traveling with a reduced footprint sounds good to you, check out our electric self-drive package.

 

Wildlife and road hazards

Iceland is unlike anywhere else, and that includes its wildlife. Being aware of the animals and hazards you might encounter on the road is a small but worthwhile part of preparing for your trip.

  • Sheep roam freely across much of the country between June and September and regularly wander onto roads. Slow down in rural areas and expect lambs, in particular, to dart unpredictably.
  • Arctic foxes and reindeer are less commonly encountered but are equally unpredictable. Reindeer are concentrated in East Iceland, so extra caution is needed when driving there.
  • Iceland’s low sun angle creates intense glare, especially in winter and spring. Have a pair of sunglasses ready.
  • Blind summits and curves are common on Iceland’s narrow, winding roads, where hilly terrain often hides oncoming traffic until the last moment. Stay firmly on your side of the lane and slow down on approach to any blind hill – these are often signed as ‘blindhæðir’.

A sign indicates ‘blindhæðir’ ahead (a blind hill – ie, it’s difficult to see any traffic coming in the opposite direction).

Ready to hit the road?

Driving in Iceland is one of the best ways to experience the country: it’s flexible, rewarding, and takes you well beyond where the tour buses go. A little preparation, the right vehicle for your route, and a habit of checking conditions before you set off are all it takes to make the trip both straightforward and enjoyable.

Ready to plan your trip? Explore our fly and drive packages, get inspired by a classic Diamond Circle itinerary, or dive deeper into route planning with our Iceland road trips guide.

Ready to hit the open road in Iceland?

With the right set of wheels and a map, you’re good to go! Make every mile a memory.