Driving in Iceland: The Ultimate Guide to Road Trips

What to Know About Road Trips in Iceland

Planning a road trip to Iceland involves considering several practical details to ensure a smooth and enjoyable journey. From understanding the unique driving conditions to preparing for the ever-changing weather, it’s essential to plan ahead. You’ll need to think about the best time of year to travel, what type of vehicle suits your route, and how to navigate Iceland’s road system safely.

Additionally, being aware of local driving regulations and essential supplies can make all the difference in your experience. Here are some key points to keep in mind as you prepare for your self-drive adventure!

Keep Your Iceland Itinerary Flexible

It may be tempting to see as many things as possible during your Iceland road trip, but you will want time for spontaneity in your itinerary and in case of bad weather. There are incredible things to see around every corner, and part of the magic of Iceland is all those hidden spots you'll come across along your travels.

You'll want to decide on the major stops, plan any self-drive activities, and book your accommodation ahead of time, but allow yourself time between activities. For example, don't try to complete the whole Ring Road in four days, as you'll spend most of the time driving and enjoying your trip less. Instead, take more time to explore one region, enjoy a longer visit, or plan a return trip!

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• Learn all about How Many Days to Spend in Iceland.

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Keep Your Tank Full or Stay Charged

One major thing to be mindful of during your travels is fueling your rental car! While you won't have to think much about finding gas stations in Reykjavik, they can be harder to find outside the Capital Region, especially in regions like the Westfjords, Eastfjords, and Northeast Iceland.

The most common stops you'll encounter in the countryside are the N1 gas stations, which have convenient locations all around Iceland. They have self-service stations, so you don't have to worry about opening times, and some locations have full-service centers where you can get a hot meal, simple groceries, and travel items like car chargers. It's also a great place to enjoy a typical Icelandic hot dog, an unmissable part of any Iceland road trip!

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• See more about Gas Stations in Iceland: The Ultimate Guide

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If you're traveling around Iceland with an electric vehicle, you'll have to plan your route according to charging station locations. While electric charging infrastructure is growing in Iceland, it is less dense than gas stations, so strategic planning is necessary to avoid running low on power.

Most major towns along the Ring Road are equipped with charging stations, and you can find them at many N1 gas stations. However, always check the availability and type of charger needed for your vehicle while planning your travel itinerary.

Whether you're driving a gasoline-powered car or an electric vehicle, it’s best to refuel or recharge whenever you have the opportunity, especially before venturing into more remote regions of the island. Keeping your vehicle fueled and ready not only ensures a smoother journey but also keeps you safe and worry-free as you explore the stunning landscapes of Iceland!

Emergency Services and Roadside Assistance in Iceland

When driving in Iceland, knowing how to access emergency services and roadside assistance is crucial due to the country's varied terrain and remote areas. In case of any emergency, dial 112, Iceland’s official emergency number, which is accessible 24/7 throughout the country. This service can dispatch medical help, fire services, police, or rescue services, depending on the nature of the emergency.

If you bump into unexpected car trouble, make sure to contact your rental company, and they can help guide you in your next steps. Be aware that most major car rental companies offer basic roadside assistance as part of their rental packages, though this is not always the case.

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• Check out the Best Guide to Rental Car Sizes in Iceland.
• See also: Top 10 Car Rental Companies in Iceland.

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Stay Connected with Good Internet and Mobile Data

Staying connected during a road trip in Iceland is crucial for easy navigation, finding local information, and handling emergency situations. The best way to do so is by getting a local SIM card or eSIM for your phone, as you'll be able to ensure reliable access to mobile data and communication services throughout your journey.

One of the more popular and convenient places to find SIM cards is Vodafone, which offers extensive coverage all around Iceland. This is especially important when exploring more remote areas of the country. You can purchase a Vodafone SIM card online, directly at Keflavik Airport, or from Vodafone stores, some gas stations, and more places around larger towns. You can also choose different data plans based on your needs, making it easy to stay online without worrying about excessive roaming charges.

Setting up a SIM card in Iceland is straightforward. Once activated, you will immediately have an Icelandic phone number and internet access. This allows for easier communication with local services, booking confirmations, and updates on weather or road conditions, making your trip safer and more enjoyable.

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• Learn more with the Guide to SIM Cards in Iceland.
• See also: Top 10 Apps for Traveling in Iceland.

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Hazards When Driving in Iceland

Below are some of the most common causes of road accidents and car damage when driving in Iceland. By familiarizing yourself with them, you'll reduce the chance of being involved in an accident.

• Under-inflated or damaged tires: Road surfaces in Iceland vary widely. In rural areas, many are gravel or else littered with potholes. Therefore, your tires must be in good condition every time you go out. Flat tires are not covered by insurance.

• Slipping on ice: Iceland's winters bring freezing temperatures across the country, meaning drivers must be extra vigilant when behind the wheel. Even in summer, many mountain passes can be veiled in ice. If you know that you may be driving in such conditions, ensure you book a four-wheel drive vehicle.

• Sheep are crossing the road: The hundreds of thousands of sheep that call Iceland home roam free in summer, and they're known for running out into the roads when panicked. So, be careful and slow down when driving past a group of sheep near the road.

• Doors caught in the wind: Iceland’s strong winds can cause damage, even to parked cars. During stormy weather, open your car doors slowly and hold them firmly to prevent the wind from tearing them off.

• Losing traction on gravel roads: Many of Iceland's remote areas can only be reached by driving on gravel roads. When the road changes from pavement to gravel, slow down gradually without braking and maintain a lower speed on the gravel surface.

• Driving in snowstorms: Snowstorms in Iceland can drastically reduce visibility to just a few feet. If a storm is forecast, it’s best to avoid driving that day. While snowplows work to clear the roads and bright yellow markers help guide drivers, it’s still easy to get stuck or risk an accident. Always check the weather conditions before setting out, especially during winter.

• Speeding: With the ice, gravel, and unpredictable weather mentioned above, it should come as no surprise that you should travel within speed limits and lower your speed accordingly should conditions become adverse.

Is It Easy To Drive in Iceland?

Driving in Iceland is a fantastic way to explore and the best way to navigate the entire island. Whether you plan to rent a car and create your own journey or follow a self-drive tour, adventure awaits as you explore the island's shores.

If you don't have experience driving in ice, snow, and strong winds, it can sometimes be a little daunting for first-time visitors when encountering these conditions, particularly in winter.

For those wondering how to drive in Iceland, the best advice – other than to respect Iceland's driving rules, obviously – is to stick to a safe driving speed. Be sure to give yourself enough space from other vehicles, and don't rush your journey.

Part of the adventure of a road trip in Iceland is to fully explore the terrain and take in the sights and stops at your leisure. Rushing yourself and driving too fast frequently results in accidents, so please avoid doing so.

Iceland roads and their conditions vary dramatically based on the location. For example, Reykjavik's roads are usually very well maintained, just as you'd expect in a small city. But you'll encounter some worn parts of the road as a result of years of weathering. In the countryside, the routes are usually two-lane roads.

The most used road is Route 1, which travels around the whole island, hence its other name, the Ring Road. You'll likely encounter much rougher terrains when venturing off the Ring Road. These often include gravel roads and deep potholes due to less frequent road maintenance.

If you choose to rent a four-wheel-drive vehicle, you can explore the roads in the Highlands. However, it's best to do this during the summer when the weather is more stable, and there’s plenty of daylight for driving.

Keep in mind that driving in the Highlands is very different from navigating other roads in Iceland. The terrain is much rougher, and river crossings are a common part of the journey. If you’re not experienced or confident in handling these challenging conditions, it’s safer and more enjoyable to join a Highlands tour offered by a professional provider.

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• See also: Top Iceland Ring Road Tours & Packages.
• Read all about How to Drive Safely in Iceland.

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Frequently Asked Questions about Driving in Iceland

To alleviate any concerns you might have about driving in Iceland, we have included a thorough FAQ to answer the most commonly asked questions and cover a few basic Iceland driving rules. If any questions you might have about driving around Iceland have been missed here, please make sure to include them in the comments below. We will be sure to answer your questions as soon as possible!

How old do you need to be to rent a car in Iceland?

To rent a passenger car in Iceland, you must be at least 20 years old, which is required for both insurance and safety purposes.

For four-wheel drives or minibusses, the minimum age is 23, as these vehicles demand more driving experience and advanced handling skills.

A valid driver’s license, written in Latin letters and held for at least one year, must be presented at the time of rental to verify your eligibility.

What else do I need when renting a car in Iceland?

To rent a car in Iceland, you'll need a credit card, a driver's license written in the Latin alphabet, and more than one year of driving experience.

Note that the individual who reserves the car does not need to be the intended driver. When you sign the rental contract, you'll be asked to display your credit card and driver's license.

How does picking up and dropping off the car work in Iceland?

Depending on which car rental company is listed on your voucher, a representative of the company may be waiting in the airport arrivals terminal, bearing either your name, the name of the rental company, or your particular booking number.

If you do not see a person bearing a sign with your name or the name of the rental company, you may need to take an airport shuttle to the rental offices near the airport. First, however, you should try phoning the company with which you made the booking.

You can also arrange to go directly to your accommodation in Reykjavik by taking a trip on the Flybus.

You can have your rental car delivered to you in the city if you make prior arrangements with your car rental company before your arrival. If you are unsure what to do, contact your chosen car rental company directly for help.

The phone number will be printed on your voucher. You can also visit the car rental desk within the airport to clarify any outstanding issues.

At the end of the trip, you'll obviously have to return the car. To drop the car off at the airport, please follow the instructions that the rental representative will have given you upon the vehicle's initial delivery. To drop off the car in Reykjavik or elsewhere than the location listed on your rental contract, follow the representative's instructions or leave the car keys with the reception of your hotel.

If you've agreed with your car rental company to leave the keys with a member of your hotel's reception, be sure you let them know the exact location of the vehicle.

Leaving the car earlier than booked does not entitle the customer to a refund. Please notify the car rental company if you leave the vehicle earlier than expected.

Do you use manual or automatic cars in Iceland?

While manual cars are very common in Iceland, there are still plenty of automatic cars available. You can clearly see if a car has a manual or automatic transmission when comparing your options on Guide to Iceland, making it easy to find the right choice for your road trip.

What car insurance should I get?

CDW (Collision Damage Waiver) is often included in the car rental price, and many companies offer optional insurance such as SCDW, GP, TP, SAAP/SADW, and Premium Insurance. It's advised that you add gravel protection if it's available, especially if you are planning on driving the South Coast of Iceland or accessing the central Highlands.

It's essential to know that all the insurance packages are based on self-risk/self-liability. In case of an accident, you are responsible for up to X amount of damage, which is outlined in the CDW/SCDW section of the rental agreement.

Customers arriving from North America often wish to decline CDW as it's covered by their credit card insurance. When making the booking, it's best to check if this is an option, as it's not often possible to remove CDW from an existing reservation.

In the case of an accident, the towing of the vehicle is not covered by car insurance and will have to be covered by the customer.

CDW/SCDW does not cover damage to the tires and undercarriage. A few companies protect the tires, but this is rare.

In winter, all cars are equipped with winter tires as required by law. However, studded tires are optional. You can request studded tires, and most car rental companies will try to accommodate you based on availability. It's not possible to request chains on any vehicles in Iceland.

F-roads are treacherous to drive, and large rocks can cause damage to the undercarriage of the car, which is never insured. Crossing rivers can lead to significant water damage, which again is not covered. Customers proceed at their own risk, and we advise all our visitors to avoid crossing rivers in any vehicle.

Many insurance packages do not cover "wildlife damage." Be careful of sheep on the sides of the roads when driving around Iceland. Make sure you reduce your speed when encountering sheep.

What's the speed limit when driving in Iceland?

Standard speed limits in Iceland are as follows:

• 25 mph (40 km/h) within Reykjavik

• 49 mph (80 km/h) on dirt and gravel roads

• 55 mph (90 km/h) on paved country roads

While you may not often see police cars on the roads, active speed cameras are hidden in many locations. Some of these speed cameras correspond with a sign around 328 feet (100 meters) away informing you of their presence, and others are positioned to catch you by surprise.

If you are caught driving over the speed limit, you'll likely receive a hefty fine and may even be pulled over by the police at the side of the road.

Which side of the road do you drive on in Iceland?

In Iceland, driving is on the right side of the road. However, during winter, snowbanks can encroach onto the road, sometimes pushing drivers closer to the center.

If this happens, drive slowly and cautiously. Always watch for oncoming headlights and be prepared to adjust your position to create enough space for vehicles to pass safely.

How much does gas cost in Iceland?

The price of gas (95 octanes) is around 2.14 USD per liter or 7.95 USD per gallon. Diesel is only marginally more expensive, with prices around 2.17 USD per liter. The costs fluctuate somewhat.

How much does it cost to rent a car in Iceland?

Small car rental costs vary from about 44 USD to 154 USD per day, while SUVs vary from 58 USD to 346 USD per day. Significant discounts apply for longer rentals, and prices are about twice as high in the summer compared to the winter.

It's advised that you reserve your car rental early, as it can sometimes be hard to find rentals during the high season.

Are there any laws I need to know when driving in Iceland?

Everyone in Iceland must wear seat belts in all cars and buses. It's also mandatory for children to sit in the appropriate car seats suitable for their age.

Are there many roundabouts, one-way streets, or complex junctions?

Iceland's roads generally have only one or two lanes. However, there are several one-way streets in the center of Reykjavik and the west part of town. This means it can often be frustrating to navigate a car when driving in Reykjavik for the first time.

In the countryside, you may encounter some single-lane bridges or single-lane tunnels. The etiquette is to always allow the vehicle closest to the crossing to go first. If there's any hesitation, you can flash your headlights at the oncoming cars to signal that they have the priority for crossing.

Before you enter, there will be a sign showing the right of way. Drive slowly so that you can stop the car on slippery roads if necessary.

There are a few roundabouts in Iceland, mostly when entering Reykjavik or near larger towns. Make sure you note that the inside lane always has the right of way. You only need to indicate when leaving the roundabout, not when entering it. Use the inside lane if you plan to exit the roundabout on the second, third or fourth exit. Use the outside lane if you plan to depart the roundabout on the first exit.

If you enter the roundabout on the outside lane but don't exit immediately, then use the indicator towards the inside lane (but don't switch lanes) of the roundabout until it's time to leave. Make sure you then change the indicator to the direction of your exit and check if you need to let another car go from the inner lane. You can never switch lanes after you have entered a roundabout, and there are never more than two lanes in roundabouts in Iceland.

There aren't many complex junctions, only a couple of underpasses and overpasses within Reykjavik.

What should I do if I run into trouble or an emergency?

It is important to be aware that the emergency number in Iceland is 112.

Contact your rental car office for information on whether your car has broken down or has a flat tire. There's no official road assistance in Iceland, but you can contact the Icelandic Association for Search and Rescue for information about the nearest help center or car repair company. Roads in the Highlands are monitored by search and rescue teams, and they regularly check them in case someone needs assistance.

Other roads in Iceland have regular traffic, and locals are quick to stop and offer help in case of a broken-down car or an incident. If you are unsure where you are, and your car breaks down, do not leave your car and start walking along the road. The weather can change suddenly and become foggy or very cold and dangerous. Stay in place and wait for a passing motorist.

What reputation do Icelanders have regarding driving?

Most Icelanders are capable behind the wheel because the icy, wet, and regularly dark conditions make the consequences of recklessness very real.

Icelanders do, however, sometimes have a reputation for driving with a one-track mind. For example, Icelandic drivers frequently won't pull over to the outside lane when other traffic joins a two-lane road from an entry ramp. It's best to stay vigilant, drive within the speed limit, and stay aware of all other drivers around you to avoid any potential accidents.

Also, be aware that you'll be sharing the road with travelers from around the world, and some of them may only be used to city driving or driving in clear conditions. When driving in Iceland, always ensure you drive in a way that respects all other road users.

Can I drive on F-roads with a rental car?

Driving on F-roads (mountain roads) requires a 4x4 vehicle. Many rental companies don't allow their vehicles on F-roads without the appropriate type of vehicle and insurance coverage. Always check with your rental company before venturing onto F-roads.

What are the requirements for renting a car in Iceland?

To rent a car in Iceland, you must be at least 20 years old (23-25 for larger vehicles), have a valid driver's license from your home country, and have a valid credit card for payment and deposit. International driving permits are accepted but not required if your license is in English or the Roman alphabet.

What are the driving conditions like in Iceland?

Driving conditions in Iceland can be challenging, especially in winter or in rural areas. Roads can be narrow, winding, and have limited visibility. Weather conditions can change rapidly, with rain, snow, fog, or high winds. Always check weather and road conditions before setting off on a journey.

Are roads well-maintained in Iceland?

Major roads like the Ring Road are well-maintained, but conditions can vary in more remote areas. Gravel roads, F-roads (mountain roads), and roads in the highlands can be rough and require a 4x4 vehicle.

Are there many roundabouts in Iceland?

Yes, roundabouts are common in Iceland. When approaching a roundabout, yield to traffic already in the roundabout and give priority to your right and the inner lane.

Are seatbelts mandatory in Iceland?

Yes, seatbelts are mandatory for all passengers in the car, both in the front and back seats.

Can I use my mobile phone while driving?

Using a handheld mobile phone while driving is illegal in Iceland. If you need to make a call, use a hands-free system or pull over to a safe location.

Is it necessary to use headlights while driving in Iceland?

Yes, it is mandatory to use your headlights at all times, day or night, while driving in Iceland. This increases your visibility to other drivers and helps ensure safer driving conditions.

Is it safe to drive in the dark in Iceland?

During the winter months, daylight hours are limited, and you may need to drive in the dark. Be cautious, as visibility can be reduced, and roads may be icy. In the summer, the midnight sun provides extended daylight, so have sunglasses on hand and be well-rested before setting off on long drives.

How do I handle single-lane bridges in Iceland?

When approaching a single-lane bridge, slow down and assess whether another vehicle is already crossing or about to cross the bridge. If another vehicle has already started crossing or is closer to the bridge, yield and allow them to pass first. Use caution and common sense when crossing single-lane bridges.

What should I do if I encounter animals on the road?

Slow down and give animals (such as sheep or horses) plenty of space. Be aware that honking your horn may startle them and cause unpredictable behavior. Wait for the animals to move off the road or pass them slowly and cautiously.

How do I pay for parking in Iceland?

In urban areas, you may need to pay for parking. Parking meters or pay-and-display machines typically accept coins or credit cards. Make sure to display your parking ticket on your dashboard. Or you can also download the app Parka.

Are there toll roads in Iceland?

There is only one toll road in Iceland, the Vadlaheidi Tunnel by Akureyri, which has a fee of around 1,990 ISK for passenger cars. You can pay for the Akureyri tunnel online either 24 hours before or after your drive through it.

Are there any specific driving rules for Iceland's Ring Road?

The Ring Road (Route 1) is Iceland's main highway and follows the same general rules as other roads. However, be aware that some parts may be narrow, winding, or have limited visibility. Use caution, respect speed limits, and be prepared for changing weather conditions, especially during winter months.

We hope you have a wonderful experience should you choose to drive around Iceland. It gives you the flexibility to explore this wonderful country on your terms and make the most of your trip. Ensure you stay safe and always follow Iceland's driving rules to avoid issues. Don't forget to comment below about your questions and experiences driving in Iceland!