Driving in Iceland: A complete guide

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.

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.