Driving Laws in Iceland - Complete Guide
Current information, rules, and requirements for international drivers
Quick Facts - Iceland
| Driving Side | Right |
|---|---|
| Steering Wheel | Left |
| Speed Units | km/h |
| Minimum Driving Age | 17 |
| Car Rental Age | 20-75 |
| Seat Belt Required | |
|---|---|
| Blood Alcohol Limit | 0.05% |
| IDP Required | Sometimes |
| Toll Roads | |
| Emergency Number | 112 |
Introduction
Driving in Iceland offers one of the most spectacular motoring experiences in the world, with the famous Ring Road (Route 1) circling the entire island and passing dramatic waterfalls, glaciers, volcanic landscapes, and black sand beaches. Iceland uses right-hand traffic, with vehicles having the steering wheel on the left side, which feels familiar to drivers from North America and most of Europe. Tourists commonly rent cars to explore beyond Reykjavík, as public transport is limited outside the capital region, and many of the country's most stunning natural attractions are only accessible by road. The local currency is the Icelandic Króna (ISK), and while credit and debit cards are accepted almost everywhere including at fuel stations, having some cash for remote areas is advisable. Driving in Iceland requires extra vigilance due to rapidly changing weather, gravel roads in highland areas, narrow bridges, and the presence of sheep on roads. Understanding local driving laws is essential for a safe and enjoyable journey through this unique landscape.Is It Easy to Drive There?
Driving in Iceland is moderately easy around Reykjavík and along the paved Ring Road, but it can become extremely challenging in the highlands, on F-roads, and during winter months. The main roads are well-maintained, but once you venture into rural areas, you may encounter gravel surfaces, steep mountain passes, and single-lane bridges that require careful negotiation. Traffic congestion is virtually non-existent outside the capital, which is a pleasant surprise for many visitors. The primary challenges stem from nature itself: powerful wind gusts that can rip car doors from their hinges, sudden fog banks, snowstorms even in summer at higher elevations, and loose livestock on roads. Tourists should respect weather warnings, check road conditions daily at road.is, and never attempt to ford rivers in a standard rental car. Iceland is not difficult to drive if you stay alert, drive cautiously, and choose the right vehicle for your planned route.Driving Side
Iceland follows right-hand traffic, meaning vehicles drive on the right side of the road and overtake on the left. The steering wheel is positioned on the left side of the vehicle, consistent with right-hand driving countries. For tourists arriving from the United Kingdom, Ireland, Australia, New Zealand, Japan, or other left-hand driving nations, this requires a period of adjustment, particularly at roundabouts and intersections. The main challenge is staying oriented on narrow rural roads where the lack of a centre line can create momentary confusion. Pay extra attention when pulling out of parking lots, driveways, and when turning, as the natural instinct to look in the wrong direction can be dangerously misleading during the first few days of driving in Iceland.Speed Limits
| Road Type | Speed Limit | Notes |
|---|---|---|
| Urban Areas (Built-up) | 50 km/h | Standard limit in towns and residential areas. Lower limits of 30 km/h apply near schools and in some residential zones. |
| Gravel Roads | 80 km/h | Applies to all unpaved rural roads regardless of surface quality. Reduce speed significantly in wet or loose conditions. |
| Rural Paved Roads | 90 km/h | Standard limit on sealed rural highways, including most sections of the Ring Road outside towns. |
| Expressways/Motorways | 90 km/h | Iceland does not have true motorways with higher limits. The maximum national speed limit is 90 km/h on all paved rural roads. |
Speed enforcement in Iceland is carried out by fixed speed cameras, mobile police patrols, and average speed cameras in the Hvalfjörður Tunnel. Speeding fines are substantial, starting from ISK 10,000 (approximately $73 USD) for minor infractions and increasing to ISK 90,000 (approximately $655 USD) or more for serious violations. Police strictly enforce speed limits, and foreign drivers are not exempt from penalties.
Seat Belt Laws
Seat belts are mandatory for all occupants in both front and rear seats of any vehicle in Iceland, without exception. This law applies to all passenger cars, vans, buses, and trucks. The driver is responsible for ensuring that all passengers under the age of 15 are correctly restrained. Failing to wear a seat belt incurs an on-the-spot fine of ISK 15,000 (approximately $109 USD) per unbelted occupant. Children must use appropriate child restraint systems based on their age, height, and weight. Iceland has one of the highest seat belt compliance rates in the world at over 95%, and enforcement is rigorous, with police conducting regular spot checks. Taxis are the only partial exception where seat belts must be worn if available, though all licensed taxis are equipped with belts. Pregnant women must wear a seat belt, positioned with the lap belt low across the hips and the shoulder strap between the breasts and to the side of the abdomen.Child Seat Rules
Children under 135 cm in height must be secured in an appropriate child restraint system. Infants up to 13 kg must travel in a rear-facing child seat. Children weighing 9-18 kg can use a forward-facing child seat with an integrated harness. Children from 15 kg up to 36 kg, or who have outgrown their forward-facing seat, must use a booster seat with the vehicle's three-point seat belt. ISOFIX anchorage points are standard in most modern Icelandic rental vehicles, making installation straightforward. It is illegal to place a rear-facing child seat in the front passenger seat if the airbag is active; the airbag must be deactivated, or the child must ride in the back. Taxis are exempt from the child seat requirement, but children must ride in the rear and use available seat belts. Rental companies offer child seats, booster seats, and baby capsules for an additional daily fee, typically ISK 1,500 (approximately $11 USD) per item, but advance booking is strongly recommended due to limited availability.Drink Driving Laws
Iceland has one of the strictest drink driving laws in the world, with a legal blood alcohol concentration (BAC) limit of 0.05%. However, police can still charge a driver with impaired driving even below this limit if their driving ability is judged to be compromised. The penalties for exceeding the legal limit are severe. For a BAC between 0.05% and 0.12%, the minimum fine is ISK 160,000 (approximately $1,165 USD) and a license suspension of 3 to 6 months. For a BAC above 0.12%, the fine increases to ISK 260,000 (approximately $1,893 USD) or more, with a mandatory license suspension of at least 12 months, and potential imprisonment. Refusing a breathalyser test carries the same penalties as a high-range offence. Iceland operates a zero-tolerance approach in practice, and even a single glass of wine or beer can push some individuals over the limit. The safest approach is to avoid any alcohol entirely if you plan to drive. Random breath testing is common, and police checkpoints operate regularly, especially on weekends and during holidays.Mobile Phone Rules
Using a handheld mobile phone while driving is strictly prohibited in Iceland. This includes making calls, texting, browsing the internet, taking photos, and any other activity that involves holding the device. Hands-free devices such as Bluetooth headsets and speakerphone functions are permitted provided they do not distract the driver, but police can still issue fines if they deem a driver is not in proper control of the vehicle. GPS navigation devices are allowed, but they must be mounted on a dashboard holder or windscreen mount that does not obstruct the driver's view; programming a GPS while the vehicle is in motion is illegal. The fine for using a handheld mobile phone while driving is ISK 15,000 (approximately $109 USD). For more serious cases where phone use contributes to dangerous driving, penalties can include higher fines and license suspension. The law applies equally at traffic lights and in stationary traffic; you must be safely parked with the engine off to legally use a handheld phone.Required Documents
To drive legally in Iceland, you must carry the following documents at all times while driving: a valid full driving licence from your country of residence; an International Driving Permit (IDP) if your licence is not in Roman script or does not contain a photograph; your passport as proof of identity; the vehicle registration certificate (provided by the rental company in the glove box); a valid certificate of motor insurance (also provided by the rental agency, which includes mandatory third-party liability coverage); and your rental agreement or contract, which serves as proof of authorisation to operate the vehicle. If you hold a driving licence issued in an EU/EEA country, the UK, the United States, Canada, or Australia, your original licence is accepted without an IDP provided it is in English or has a photograph. Licences from other countries must be accompanied by an IDP or a certified Icelandic translation. Always carry physical documents; digital copies on a phone may not be accepted by police during roadside checks.International Driving Permit (IDP)
An International Driving Permit is required for drivers whose national driving licence is not in Roman script or lacks a photograph for identification. If your licence is issued in an EU/EEA country, the United Kingdom, the United States, Canada, Australia, or New Zealand, and it is in English (or French for Canadian licences), you do not need an IDP and can drive solely with your original licence for up to 12 months. Drivers from countries that issue licences in non-Roman alphabets such as Arabic, Chinese, Japanese, or Cyrillic scripts must carry both their original licence and an IDP. The IDP serves as an official translation and must be obtained in your home country before arriving in Iceland, as it cannot be issued locally. The 1949 Geneva Convention IDP is the recognised format in Iceland. Always carry both your IDP and original licence when driving, as police will request to see both documents during any traffic stop. Rental companies may also refuse to release a vehicle without an IDP if your licence does not meet the language requirements.Road Signs
Icelandic road signs follow the Vienna Convention on Road Signs and Signals, using standard international symbols with some unique local variations. The stop sign is a red octagon with the word "STOP" in English. Yield signs are inverted red and white triangles. Speed limit signs are circular with a red border and black numbers on a white background. The no entry sign is a red circle with a white horizontal bar. Road signs warning of hazards specific to Iceland include the loose gravel sign showing a car with spraying stones, the falling rocks sign, and the distinctive "Malarvegur" sign indicating a gravel road ahead. Signs for single-lane bridges show a narrow bridge symbol with one side marked in red, indicating which direction must yield. Important informational signs include the blue and white "N1" sign marking the Ring Road, and the "F-road" sign with a stylised mountain and river crossing, indicating that only four-wheel-drive vehicles are permitted beyond that point. Watch for signs showing sheep, reindeer, or horses, which indicate areas where animals frequently cross the road.Toll Roads
Iceland has relatively few toll roads compared to many countries. The most significant toll is the Vaðlaheiðargöng Tunnel near Akureyri in North Iceland, which uses an electronic tolling system. The toll for a standard passenger car is ISK 1,650 (approximately $12 USD) per crossing, and payment must be made online at veggjald.is within 24 hours of passage, either before or after driving through the tunnel. There are no cash payment booths at the tunnel. The Hvalfjörður Tunnel north of Reykjavík was previously a toll tunnel but has been toll-free since 2018. Several highland roads technically charge a modest fee for passage, but these are typically handled by the tour operator or included in your vehicle rental agreement for highland-capable vehicles. Failure to pay the Vaðlaheiðargöngur toll on time results in a surcharge, with the bill sent to the registered vehicle owner, which for rental cars means the rental company will charge your credit card along with a substantial administrative fee of ISK 5,000 (approximately $36 USD) or more.Fuel Stations
Fuel stations in Iceland are widespread along the Ring Road but become sparse in the highlands, the Westfjords, and the remote interior. The main fuel brands are N1, Orkan, Olís, and Atlantsolía. Most stations are self-service and accept major credit and debit cards, including contactless payments. Many unattended stations require a PIN for credit card transactions, so ensure your card has a PIN before travelling. Diesel is widely available and is the fuel of choice for many larger rental vehicles. Regular 95-octane petrol is the standard unleaded fuel. As of mid-2026, the average price for petrol is approximately ISK 320 per litre (approximately $2.33 USD per litre or $8.82 USD per gallon), while diesel averages ISK 310 per litre (approximately $2.26 USD per litre). LPG is not commonly available. Electric vehicle charging infrastructure is well-developed in Reykjavík and along the southern Ring Road, but sparse in the north and east. Most stations operate 24/7 in urban areas, but rural stations may close early or have limited hours on Sundays. Plan refuelling carefully in remote regions, as distances between stations can exceed 150 kilometres.Parking Rules
Parking regulations in Iceland vary by municipality, with Reykjavík operating the most complex system. In Reykjavík, parking zones are divided into P1 (Red), P2 (Blue), P3 (Green), and P4 (Orange) zones, with P1 being the most expensive in the city centre and P4 the cheapest in outer areas. Paid parking applies Monday to Friday from 9:00 to 18:00 and on Saturdays from 10:00 to 16:00, with free parking outside these hours and on Sundays. Parking fees range from ISK 200 to 600 per hour (approximately $1.45 to $4.37 USD) depending on the zone. Payment is made via parking metres, the Parka app, or by sending a text message. Residential streets marked with blue signage indicate resident-only parking, and displaying a valid resident permit is required during restricted hours. Illegal parking fines are ISK 5,000 to 15,000 (approximately $36 to $109 USD) depending on the severity of the violation, with wheel clamping used for repeat offenders. In rural areas and at natural attractions, parking is typically free, but always look for signage. Never park on moss-covered ground or off designated tracks, as this can result in significant fines for environmental damage.Roundabout Rules
Roundabouts in Iceland follow standard European rules: vehicles already circulating within the roundabout have priority, and entering vehicles must yield. The inner lane is generally used for continuing straight or turning left, while the outer lane is for taking the first exit to the right. Signal your intention to exit the roundabout as you pass the exit before the one you intend to take. Many Icelandic roundabouts are small single-lane affairs, particularly in towns, where the main challenge is simply yielding correctly. Larger multi-lane roundabouts exist on the outskirts of Reykjavík, and lane discipline in these requires more attention. A notable Icelandic quirk is that some rural roundabouts may have gravel surfaces or loose stones, so reduce speed when entering. During winter, roundabouts can be icy and slippery; approach slowly and avoid sudden steering inputs. Tourists from left-hand driving countries should be especially careful, as the instinct to look right first at entry must be consciously overridden.Winter Driving
Winter driving in Iceland demands preparation and the right equipment. From November to March, winter tyres are not legally mandatory but are strongly recommended and are fitted as standard by reputable rental companies during this period. Studded tyres are permitted from November 1 to April 15 and provide the best grip on ice. Snow chains are rarely necessary on main roads but can be useful in the highlands or during extreme snowfall; they are available as an optional extra from some rental agencies. All rental vehicles come equipped with an ice scraper, and 4x4 vehicles often include a small snow shovel. It is a legal requirement to clear all snow and ice from windows, lights, and the roof before driving; failure to do so resulting in restricted visibility or danger to others can incur a fine. Drivers should monitor road.is and vedur.is for real-time road conditions and weather alerts, as roads can close at very short notice. Always carry warm clothing, food, and water in case of becoming stranded, and ensure your mobile phone is fully charged.Low Emission Zones
Iceland does not currently have designated low emission zones or congestion charging schemes in any city, including Reykjavík. The country's small urban population and heavy reliance on geothermal and hydroelectric energy for power mean that air quality issues are minimal, and there has been no legislative push to introduce vehicle emission restrictions. Electric and hydrogen-powered vehicles receive government incentives, including reduced import taxes and free parking in Reykjavík for electric vehicles displaying a special E-licence plate. While no low emission zones exist, driving off-road or on unmarked tracks is strictly prohibited nationwide to protect Iceland's fragile moss and volcanic landscapes. The fine for off-road driving is severe, starting at ISK 350,000 (approximately $2,548 USD) and can run into the millions of króna for significant environmental damage. Always remain on marked roads and designated tracks.Traffic Fines
| Violation | Fine (ISK) | Approximate USD | Additional Penalties |
|---|---|---|---|
| Speeding (1-20 km/h over limit) | ISK 10,000 - 30,000 | $73 - $218 | None for minor infractions |
| Speeding (21-45 km/h over limit) | ISK 50,000 - 90,000 | $364 - $655 | Possible license suspension |
| Speeding (46+ km/h over limit) | ISK 100,000+ | $728+ | Mandatory license suspension, possible imprisonment |
| Mobile Phone Use While Driving | ISK 15,000 | $109 | Higher fines for dangerous driving |
| Seat Belt Violation (per person) | ISK 15,000 | $109 | Driver responsible for passengers under 15 |
| Drink Driving (BAC 0.05%-0.12%) | ISK 160,000+ | $1,165+ | License suspension 3-6 months |
| Drink Driving (BAC above 0.12%) | ISK 260,000+ | $1,893+ | License suspension 12+ months, possible imprisonment |
| Running a Red Light | ISK 30,000 | $218 | Points on license |
| Illegal Parking | ISK 5,000 - 15,000 | $36 - $109 | Wheel clamping for repeat offences |
| Off-Road Driving | ISK 350,000+ | $2,548+ | Possible imprisonment for serious environmental damage |
Driving Tips for Tourists
1. Always check road.is and vedur.is before setting out each day; weather and road conditions in Iceland can change in minutes, and roads can close without warning. 2. Never stop on the road to take photographs; use designated pull-off areas and lay-bys, as sudden stops are a major cause of accidents involving tourists. 3. Be extremely cautious when opening car doors in strong winds, which are common in Iceland; hold the door firmly and park facing into the wind where possible to prevent door damage. 4. Single-lane bridges are common on the Ring Road; the rule is that the vehicle closest to the bridge has right of way, and you should wait if the approaching vehicle is already on the bridge. 5. Sheep graze freely and frequently wander onto roads, especially in rural areas; slow down immediately and be prepared to stop, as hitting a sheep can result in a fine and compensation costs payable to the farmer. 6. Always drive with your headlights on, even during daylight hours; this is a legal requirement in Iceland and improves visibility in often gloomy conditions. 7. Never attempt to ford rivers in a standard two-wheel-drive vehicle; F-roads require a 4x4 vehicle, and river crossings are dangerous even for experienced drivers. 8. Fuel up before heading into remote areas; petrol stations can be 150 kilometres or more apart in the Westfjords and on the Snæfellsnes Peninsula. 9. Watch for cyclists and hikers on narrow roads, particularly during summer months; give them at least 1.5 metres of clearance when overtaking. 10. In winter, always carry emergency supplies in the vehicle, including a blanket, snacks, water, and a torch; being stranded in a remote area without these can quickly become a life-threatening situation.Renting a Car
Renting a car is the most popular way to explore Iceland independently, but it requires careful planning. The minimum rental age is 20 for standard vehicles, rising to 21 or 23 for 4x4 vehicles and larger SUVs. A valid driving licence held for at least one year is mandatory, and an IDP is required if your licence is not in Roman script. A major credit card in the driver's name is essential for the security deposit, which can range from ISK 150,000 to 350,000 (approximately $1,092 to $2,548 USD) depending on the vehicle category. Basic Collision Damage Waiver (CDW) is included by law, but it carries a high excess. It is highly advisable to purchase additional insurance covering gravel damage, sand and ash damage, and wind damage to doors, as these are not covered by standard policies and are common causes of expensive claims in Iceland. The excess for sand and ash damage can be ISK 600,000 (approximately $4,369 USD) or more without extra cover. Average rental costs for a compact car in summer start at ISK 18,000 per day (approximately $131 USD per day), while a 4x4 SUV costs from ISK 35,000 per day (approximately $255 USD per day). Winter rates are often lower. Most major rental companies operate at Keflavík International Airport, and advance booking, especially for summer travel, is essential as vehicles can sell out months ahead. Check whether your rental includes unlimited mileage, as some cheaper contracts impose kilometre caps.Frequently Asked Questions
Yes, tourists can drive in Iceland with a valid driving licence from their home country provided it is in Roman script and has a photograph. Licences from EU/EEA countries, the UK, USA, Canada, Australia, and New Zealand are accepted directly without an IDP.
You need an IDP if your driving licence is not in Roman script or does not include a photograph. Drivers with licences in Arabic, Chinese, Japanese, or Cyrillic scripts must obtain a 1949 Geneva Convention IDP in their home country before travelling.
Yes, automatic cars are available from all major rental companies in Iceland, but they are less common than manual vehicles. You must specifically request an automatic when booking and expect to pay a premium of approximately 20-30% more. Early reservation is strongly recommended.
Driving at night in Iceland requires extra caution, especially outside urban areas where roads are unlit and wildlife may be active. In summer, the midnight sun provides near-constant daylight, making night driving a non-issue. In winter, limited daylight hours and potential ice make night driving more hazardous; ensure your headlights are on and reduce speed.
The only significant toll road is the Vaðlaheiðargöng Tunnel near Akureyri. Payment of ISK 1,650 (approximately $12 USD) is made online at veggjald.is within 24 hours of passage. There are no cash booths. Failure to pay results in a surcharge and an administrative fee from your rental company.
If caught by a speed camera or police, the fine will be issued to the driver. For rental cars, the police contact the rental agency, which provides the driver's details. The rental company may charge your credit card for the fine plus an administrative fee. Unpaid fines can prevent you from re-entering Iceland.
Parking is not free in central Reykjavík during business hours. Paid parking operates Monday to Friday 9:00 to 18:00 and Saturdays 10:00 to 16:00, costing ISK 200 to 600 per hour (approximately $1.45 to $4.37 USD). Parking is free on Sundays and outside these hours.
The legal blood alcohol concentration limit is 0.05%, which is stricter than in the UK (0.08%) and the USA (0.08%). However, drivers can be charged even below this limit if deemed impaired. The recommended approach is zero alcohol before driving.
Winter tyres are not legally mandatory, but they are strongly recommended and fitted by reputable rental companies from November to March. Studded tyres are permitted from November 1 to April 15 and provide the best grip on icy roads.
No, F-roads (mountain roads) are only open to four-wheel-drive vehicles. Driving a standard two-wheel-drive car on an F-road is illegal, voids your insurance, and can result in fines. F-roads are typically open from mid-June to late August, depending on conditions.
The Icelandic Króna (ISK) is the official currency. However, fuel stations and parking metres widely accept major credit and debit cards. Ensure your card has a PIN, as unattended fuel pumps may require one. Contactless payment is common.
You must carry your driving licence, passport, vehicle registration and insurance documents (provided by the rental company), and your rental agreement. If your licence requires an IDP, you must carry both the IDP and your original licence at all times.
Rural driving hazards include loose gravel, single-lane bridges, sheep on roads, strong crosswinds, sudden fog, and unmarked road edges. Always check road.is for conditions before travelling and never stop in the middle of the road to take photos.
Yes, UK driving licence holders can drive in Iceland without an IDP for visits of up to 12 months. The UK licence must be a valid full licence with a photograph. This applies to all categories of vehicle that the licence permits.
The minimum rental age is 20 for standard passenger cars. For 4x4 vehicles, SUVs, and larger vehicles, the minimum age is typically 21 or 23. Drivers must have held a full licence for at least one year, and a young driver surcharge may apply for those under 25.