Complete Guide to Driving in Iceland

Driving in Iceland at a Glance

Iceland’s Road and Coastal Administration confirms that the general maximum speed is 90 km/h on highways outside urban areas and 80 km/h on gravel roads, while urban limits are usually lower and always determined by road signs.

Do You Need a Car in Iceland?

You do not necessarily need to rent a car to visit Iceland. Reykjavík has public transport and many popular attractions can be visited on organised day tours.

However, renting a car in Iceland gives you considerably more flexibility.

You can decide when to leave, how long to spend at each stop and where to go next without working around a tour schedule. This is particularly useful if you want to travel the Ring Road, explore more remote parts of Iceland or change your itinerary according to the weather.

For travellers who enjoy independent trips, a rental car is often the easiest way to explore more of Iceland.

Before You Drive in Iceland

A little preparation before your trip can make driving in Iceland much easier.

Choose the Right Rental Car in Iceland

The best vehicle depends on when you are visiting and where you plan to travel.

For a summer trip around Reykjavík, the Golden Circle or the main Ring Road, a standard 2WD car may be perfectly suitable.

For winter trips, remote regions or itineraries where road conditions may be more challenging, a 4x4 can provide additional stability and ground clearance.

If you plan to drive on Iceland's F-roads in the Highlands, you must use an appropriate 4x4 vehicle.

Before booking, think about:

• The season you are travelling
• Your planned route
• How much luggage you have
• The number of passengers
• Whether you intend to drive on F-roads
• Your experience driving in winter or on gravel roads

Driving Licence Requirements

Visitors can generally drive in Iceland using a valid driving licence from their home country.

Your licence should use the Latin alphabet. If it does not, you may need an International Driving Permit alongside your original licence.

Rental conditions can vary between car rental companies, particularly for younger drivers. Some companies apply a young driver fee or require drivers to be at least 23 years old to rent larger vehicles or certain vehicle categories.

At Lava Car Rental, the requirements are simpler: you must be at least 20 years old and have held a valid driving licence for at least one year.

These requirements apply across all vehicle categories, including larger vehicles and 4x4s, and there is no young driver fee.

This means drivers aged 20 and over who have held their licence for at least one year can choose from the full range of rental vehicles and without paying an additional fee based on age.

Credit and Debit Cards

A credit card is usually required when renting a car in Iceland, as most rental companies use it as part of their payment and security requirements.

At Lava Car Rental, we also accept debit cards, giving travellers who do not have a credit card another option. To rent a vehicle with a debit card, you need to select our Full Protection insurance package.

If you plan to use a debit card for your rental, simply choose Full Protection when booking to meet the required conditions.

Choose the Right Insurance

Insurance is an especially important consideration when renting a car in Iceland.

The combination of Iceland's changeable weather, strong winds, gravel roads, loose stones, sand and ash, snow and ice means that certain types of vehicle damage can occur more frequently than travellers may be used to in other countries. Even when driving carefully, conditions such as gravel being thrown up by another vehicle or a sudden strong gust of wind can lead to damage.

Vehicle repairs in Iceland can also be expensive. For this reason, it is worth looking beyond the rental price alone and understanding what insurance is included, what your liability is and which types of damage are covered before choosing your rental.

In general, the most common protections included with rental cars in Iceland are:

• Third-Party Liability Insurance (TPL)
• Collision Damage Waiver (CDW)
• Theft Protection (TP)

The exact coverage, excess and exclusions vary between rental companies.

More Protection Included When You Book Directly with Lava

When you book directly on the Lava Car Rental website, you get the benefit of several essential protections already included in your rental price.

Direct bookings on lavacarrental.is include:

• Third-Party Liability Insurance (TPL)
• Collision Damage Waiver (CDW)
• Super Collision Damage Waiver (SCDW)
• Gravel Protection (GP)
• Theft Protection (TP)

This level of included protection is available when booking directly through the Lava Car Rental website.

Gravel Protection is particularly useful in Iceland because gravel and loose stones are common on rural roads and can also be thrown onto vehicles when cars pass one another.

Before booking elsewhere, always check which protections are actually included in the advertised rental price, as insurance packages can differ depending on the rental company and booking channel.

Upgrade to Full Protection

If you want the most comprehensive level of coverage, you can upgrade to our Full Protection package.

Full Protection reduces your liability to 0 ISK for damage covered by the package, giving you greater peace of mind during your Iceland road trip.

It includes:

• Third-Party Liability Insurance (TPL)
• Collision Damage Waiver (CDW)
• Super Collision Damage Waiver (SCDW)
• Gravel Protection (GP)
• Theft Protection (TP)
• Sand and Ash Protection (SAAP)
• Tyre Protection (TIP)

Sand and Ash Protection is particularly relevant in Iceland, where strong winds can carry sand and ash that may damage the exterior of a vehicle.

Tyre Protection adds coverage for tyre damage, which can be particularly useful when travelling on gravel or more rural Icelandic roads.

Full Protection is also required if you want to rent a vehicle using a debit card instead of a credit card.

Whichever insurance option you choose, take a moment to read the coverage and exclusions before starting your trip. Insurance is not simply an optional extra to consider at the counter; given Iceland's unique driving environment and the potential cost of repairs, it should be an important part of choosing your rental car.

Iceland Driving Rules You Need to Know

The basic rules are straightforward, but there are several differences international visitors should know about.

Drive on the Right

Vehicles drive on the right-hand side of the road in Iceland and overtake on the left.

Keep Your Headlights On

Headlights must be switched on while driving in Iceland, during both the day and night and throughout the year.

Follow the Speed Limits

Typical maximum speed limits are:

• 30–50 km/h in many populated areas
• 80 km/h on gravel roads
• 90 km/h on paved roads outside urban areas

These are maximum limits rather than recommended speeds. Weather, visibility and road surfaces may require you to drive much more slowly.

Always follow the posted signs.

Wear Seat Belts

Seat belts are mandatory for everyone in the vehicle. Children must also use an appropriate child restraint according to their age and size.

Do Not Use Your Phone While Driving

Using a handheld mobile phone while driving is prohibited. If you need to check navigation, road conditions or the weather, stop somewhere safe first.

Never Drive Off-Road

Off-road driving is illegal in Iceland. The country's volcanic landscapes and vegetation are extremely fragile, and damage caused by vehicles can take decades to recover.

Driving on an F-road or another marked gravel road is not considered off-roading. If there is no recognised road or track, do not drive there.

Understanding Iceland's Roads

You will mainly encounter three types of roads during an Iceland road trip.

Paved Roads

Most major routes are paved, including the majority of Route 1.

In normal conditions these roads are straightforward to drive, but weather can still make them slippery or difficult.

Gravel Roads

Gravel roads are common in rural Iceland.

Reduce your speed before transitioning from a paved surface onto gravel, avoid sudden steering or braking and leave extra space between your vehicle and the car ahead.

Loose stones can damage windscreens and paintwork, especially when vehicles pass one another too quickly.

F-Roads and Mountain Roads

F-roads lead into Iceland's Highlands and are generally open only during the summer.

A 4x4 vehicle is required.

Conditions vary significantly between routes. Some are relatively manageable while others can be very rough and may include unbridged river crossings.

Never assume that owning or renting a 4x4 automatically makes every Highlands route suitable for you.

Check:

• Whether the road is officially open
• Current road conditions
• Weather conditions
• Your rental company's restrictions
• Whether the route includes river crossings

Many rental companies prohibit certain particularly difficult roads or river crossings.

Mountain roads generally open at different times each year depending on snow, thawing and ground conditions. Some may not open until late June or July.

Driving in Iceland by Season

Road conditions can be completely different depending on the time of year.

Driving in Iceland in Summer

June, July and August offer Iceland's easiest driving conditions overall.

Days are long, most main roads are clear and the Highlands gradually become accessible as mountain roads open.

However, summer does not mean guaranteed good weather.

You can still encounter:

• Strong winds
• Heavy rain
• Fog
• Gravel roads
• Road closures
• Sudden temperature changes

Always check conditions before setting off, even on a sunny morning.

Summer is also peak travel season, so expect more traffic around popular attractions such as the Golden Circle and South Coast.

Driving in Iceland in Winter

Winter driving requires more preparation.

Snow, ice, strong winds, storms and limited daylight can make conditions considerably more challenging, particularly if you have little experience driving in winter.

A 4x4 is not legally required for every Icelandic road in winter, but it can be a sensible choice depending on your route and the expected conditions.

Lava Car Rental vehicles are equipped with appropriate winter tyres during the winter season.

Before every journey:

• Check the road conditions
• Check the weather forecast
• Allow extra driving time
• Reduce your speed
• Leave a larger distance between vehicles
• Watch for black ice
• Clear snow and ice from the vehicle before driving
• Avoid unnecessary travel during severe weather

F-roads and Highlands roads are closed during winter.

Check the Weather and Road Conditions

One of the most important rules for an Iceland road trip is simple: check the conditions before you drive.

Weather can change quickly, and conditions several hours ahead on your route may be very different from those outside your accommodation.

Two useful official resources are:

www.road.is : current road conditions, closures and travel information.

www.vedur.is : weather forecasts and warnings from the Icelandic Meteorological Office.

Check both before longer drives and again during the day when necessary.

Never continue onto a closed road, even if your map or navigation app suggests using it.

Strong Winds in Iceland

Wind is one of Iceland's most underestimated driving hazards.

Strong gusts can affect steering, especially in campers, SUVs and other high-profile vehicles.

Be particularly careful:

• On exposed roads and plains
• When passing mountain ridges
• When driving near the coast
• When exiting tunnels
• When large vehicles pass you

Sudden crosswinds can be much stronger than expected.

Strong wind can also damage car doors. When stopping, park facing into the wind where possible and keep a firm grip on the door when opening it.

Never leave a door open unnecessarily.

Single-Lane Bridges

You may encounter single-lane bridges in rural Iceland. Reduce your speed as you approach and assess traffic coming from the opposite direction before entering.

Never rush onto a bridge to try to cross before another vehicle.

Some single-lane bridges are located directly along the Ring Road, so you may encounter them even if you are not exploring remote areas.

Roundabouts in Iceland

Roundabouts are another area that can surprise international drivers.

In a two-lane roundabout, vehicles travelling in the inner lane have priority over vehicles in the outer lane when exiting.

Choose your lane early, follow the road markings and pay attention to surrounding traffic.

Watch Out for Sheep

Sheep roam freely in many parts of rural Iceland during the warmer months.

You may see them grazing beside the road or suddenly attempting to cross.

If you see sheep near the roadside:

• Slow down
• Be prepared to stop
• Do not sound your horn unnecessarily
• Watch for more animals following behind

A lamb may run after its mother even after you think the road is clear.

Horses and reindeer can also appear near roads in some parts of the country.

Only Stop in Safe Places

Iceland's landscapes make it tempting to stop every few kilometres for photographs.

Never stop in the middle of the road or in a location where your vehicle obstructs traffic. Instead, wait for a designated parking area, viewpoint or safe place completely away from the road.

This is particularly important on the Ring Road, where traffic may approach quickly even when the road initially appears empty.

Road Signs in Iceland

Icelandic road signs generally follow European conventions, so many will look familiar to international drivers. However, you may encounter some signs that are less common elsewhere, particularly when travelling through rural areas or the Highlands.

It is useful to familiarise yourself with the most important Icelandic road signs before setting off, especially those warning about gravel roads, single-lane bridges, blind hills, animals, changing road conditions and mountain roads.

Always pay close attention to warning and temporary signs, and remember that road conditions can change quickly. If a road is marked as closed, never continue past the closure even if the road initially appears passable.

The images below show some of the most important road signs you may encounter while driving in Iceland.

Fuel Stations and EV Charging in Iceland

Fuel stations are easy to find in Reykjavík and other towns, and there is a good network along Iceland's main travel routes. However, stations become much less frequent once you travel into more remote parts of the country, particularly in the Westfjords, East Iceland and areas far from the Ring Road.

For that reason, it is a good idea not to wait until your fuel warning light comes on before looking for the next station. When travelling in rural areas, take the opportunity to fill up when you pass a fuel station, especially if you are unsure how far away the next one will be.

Some of the main fuel-station brands you will see around Iceland include N1, Orkan, OB and Atlantsolía.

Many Icelandic fuel stations are self-service and automated, particularly outside normal opening hours and in smaller towns. You will normally pay directly at the pump using a payment card. A card with a four-digit PIN is useful, as some automated pumps may require one.

At certain pumps, you may also be asked to choose a fixed maximum amount before refuelling. The pump will only charge you for the fuel you actually use, although your bank may temporarily show the authorised amount before the final transaction is processed.

Larger service stations often offer more than just fuel. Depending on the location, you may find toilets, food, coffee, basic groceries, car-washing facilities and travel essentials. In more remote areas, however, a fuel pump may be completely unattended, so it is worth planning food and rest stops separately.

If you are heading into the Highlands, fuel planning becomes even more important. There are no regular fuel stations in the interior Highlands, so fill the tank before leaving populated areas and make sure you have enough fuel for your planned route.

When renting with Lava Car Rental, you also receive fuel discount tags on your car keychain, which can be scanned at participating pumps to receive a discount.

Driving an Electric Car in Iceland

Electric vehicles can be a good option for many Iceland itineraries, particularly around Reykjavík, the Golden Circle, the South Coast and other well-travelled routes.

However, EV drivers should plan charging stops in advance when travelling farther from populated areas.

Check:

• The distance to the next charger
• Charger compatibility
• Weather conditions
• Expected energy consumption
• Whether charging is available near your accommodation

Charging options are very limited in Iceland's Highlands, so an EV is generally not the right choice for remote Highlands exploration.

Road Tolls in Iceland

Most roads in Iceland are free to use, but there are currently two tolled crossings.

There are no traditional toll booths. Payment is handled digitally.

Hornafjarðarfljót Toll – South-East Iceland

A toll applies on the new section of Route 1 across Hornafjarðarfljót near Höfn.

Rental-car customers have 12 hours after crossing to pay directly. If payment is not made within this period, the rental company is charged and may then charge the renter according to its terms and conditions.

Each payment covers one crossing only.

Lava Car Rental also offers the option to prepay this toll, so we can take care of the payment for you. If you expect to cross in both directions, you will need two crossings.

Vaðlaheiðargöng Tunnel – North Iceland

Vaðlaheiðargöng is a 7.5-kilometre tunnel on Route 1 near Akureyri. The tunnel provides a shorter route between the Akureyri area and North-East Iceland and avoids the mountain road over Víkurskarð.

The toll can be paid digitally up to 24 hours before or 24 hours after using the tunnel's online payment service.

Each payment covers one journey through the tunnel.

Lava Car Rental also offers a prepaid option for customers who would rather have the toll handled for them.

Parking in Iceland

Parking rules vary depending on where you are. In Reykjavík and other populated areas, paid parking zones are common. Many major tourist attractions also charge for parking.

Always check signs when you arrive.

Digital parking systems increasingly use licence-plate recognition, so there may not always be a physical barrier or ticket machine.

Can You Park Anywhere in Iceland?

No.

Avoid:

• Stopping on the road
• Parking where you obstruct traffic
• Parking on private land without permission
• Driving or parking off-road
• Leaving a camper overnight outside permitted areas

Use designated parking spaces and car parks wherever possible.

Campervan Parking and Camping

Renting a camper is a popular way to travel around Iceland, but having a campervan does not mean you can camp anywhere.

Travellers should use designated campsites and follow local regulations. Do not simply park overnight on the side of the road or on private land.

Planning your campsites in advance is particularly helpful outside the peak summer season, when some facilities may be closed.

What to Do in an Emergency

Iceland's national emergency number is: 112

Call 112 if you need police, ambulance, fire or emergency rescue assistance.

For non-emergency mechanical problems with a rental vehicle, contact your rental company using the assistance information provided with your booking.

If you are involved in an accident, make sure everyone is safe first, contact emergency services when necessary and follow your rental company's accident procedure.

Best Places to Drive in Iceland

Once you understand the basics, the difficult part is deciding where to go.

The Ring Road

Route 1, better known as the Ring Road, circles most of Iceland.

It connects many of the country's best-known destinations, including the South Coast, Eastfjords, North Iceland and the Mývatn region.

The entire route is approximately 1,300 kilometres.

Although you could technically cover it quickly, rushing defeats the purpose. Around seven to ten days is far more comfortable for most visitors and gives you time to stop along the way.

Popular Ring Road destinations include:

• Vík
• Jökulsárlón Glacier Lagoon
• Höfn
• East Iceland
• Lake Mývatn
• Akureyri

The Golden Circle

The Golden Circle is one of Iceland's easiest road trips and a good choice for travellers with limited time.

The classic route includes:

• Þingvellir National Park
• Geysir geothermal area
• Gullfoss waterfall

It is easily accessible from Reykjavík and can be completed as a day trip, although spending longer in the area allows you to explore additional stops.

The South Coast

The South Coast is another excellent option for first-time visitors.

Popular stops include:

• Seljalandsfoss
• Skógafoss
• Reynisfjara
• Vík
• Skaftafell
• Jökulsárlón

The road is straightforward in good conditions, but wind and winter weather can occasionally make travel challenging.

The Westfjords

For travellers looking for quieter roads and dramatic landscapes, the Westfjords offer a very different experience.

Highlights include:

• Dynjandi
• Látrabjarg
• Rauðisandur
• Ísafjörður

Roads here can be slower, more mountainous and more remote than in South Iceland, so allow plenty of time.

The Highlands

Iceland's Highlands offer some of the country's wildest landscapes.

This is 4x4 territory.

Highlands routes generally open only during summer, and road conditions vary enormously.

Before travelling into the Highlands, make sure:

• Your road is open
• Your vehicle is approved for the route
• The weather is suitable
• You have enough fuel
• You know whether there are river crossings
• Someone knows your travel plans

If you do not have experience with challenging terrain or river crossings, choose an easier Highlands route or join a guided excursion instead.

Essential Websites for Driving in Iceland

Bookmark these before your trip:

www.road.is 
Live road conditions, road closures and driving information.

www.vedur.is 
Weather forecasts and official weather warnings.

www.safetravel.is 
Travel-safety information and alerts.

www.112.is 
Emergency information in Iceland.

Checking these websites should become part of your daily routine while travelling, particularly in winter or when driving outside the most populated areas.

Ready to Drive in Iceland?

Driving gives you the freedom to experience Iceland on your own schedule, whether you're planning a quick Golden Circle trip, travelling the entire Ring Road or heading into the Highlands for a summer adventure.

The key is preparation.

Choose a vehicle suited to your itinerary, check the road and weather conditions every day, respect Iceland's driving rules and never underestimate changing conditions.

With a little planning, driving in Iceland can be one of the best parts of your trip.

At Lava Car Rental, we offer a wide range of vehicles for Iceland road trips, from economical 2WD cars and 4x4 SUVs to campers and electric vehicles. Drivers can rent from 20 years old with at least one year of driving experience, with no young driver fee and no higher minimum age for larger vehicle categories.

Our team is based close to Keflavík International Airport and is here to help you choose a vehicle that suits your itinerary, season and travel style.

Find your rental car and start planning your Iceland road trip.