Good to know
Driving in Iceland
Iceland is one of the world's great road-trip destinations, but it has a few rules and conditions that catch first-time visitors off guard. Read this before you set off — it could save you a damaged vehicle, a fine, or a dangerous situation.
Rules at a glance
- Speed limits
- 50 km/h in towns, 80 km/h on gravel roads, 90 km/h on paved roads — and 30 km/h in many residential streets, where signposted.
- Headlights
- Dipped headlights on at all times, day and night, all year round.
- Seat belts
- Required in every seat, front and back.
- Children
- Under 135 cm tall: a child seat or booster that suits the child's size.
- Alcohol
- The limit is 0.02% (0.2‰) — about one drink. The safe choice is none.
- Phones
- Hands-free only while driving.
- Emergency
- Call 112 for police, ambulance, fire and rescue.
Based on the Icelandic Traffic Act (no. 77/2019).
Iceland road types at a glance
Know which road needs which car before you set off.
Everyday / Comfort / Any
Route 1 and the Golden Circle are fully paved two-lane roads — a standard 2WD handles them fine in summer.
Comfort recommended
Common near waterfalls and viewpoints. Slow to 30–40 km/h when meeting oncoming traffic — stone chips crack windshields.
Approved 4×4 or AWD only — summer
Only a four-wheel-drive car (4x4, 4WD or AWD) your booking confirms as F-road approved — with us, Comfort, 4×4 Adventure and Highland 4×4 — and only when the road is officially open; other cars are not permitted, and some F-roads are excluded (rental terms, clause 16).
AWD / 4×4 + winter tires
AWD or 4×4 with winter tires, fitted on every car we rent from 1 November to 14 April. Check umferdin.is before every driving day.
Driving into or across a river is entirely at your own risk: no car type or cover option covers water damage (rental terms, clause 17).
Basic rules
- Drive on the right. Overtaking takes place on the left.
- Seatbelts are mandatory for every occupant at all times, both front and rear seats.
- Headlights on at all times — this is required by law in Iceland regardless of the time of day or light conditions.
- Alcohol: the legal limit is 0.02%. That is 0.2‰ blood alcohol — about one drink — so the only safe choice is not to drink at all before driving. Penalties are severe, and no waiver covers damage while the driver is under the influence (rental terms, clause 36).
- Cell phones: using a handheld phone while driving is illegal. Use a hands-free mount.
- Roundabouts: give way to traffic already in the roundabout. In a two-lane roundabout, use the outer (right) lane only if you are taking the first exit; otherwise take the inner lane. A car leaving from the inner lane has priority over one in the outer lane, and changing lanes inside the roundabout is not allowed — so keep an eye on the inner lane.
- Off-road driving is illegal. Iceland's Nature Conservation Act bans driving off roads and tracks, and offenders face heavy fines. No waiver covers damage caused off road, and our terms add a €1,000 off-road driving fee (rental terms, clauses 16 and 40).
Speed limits
- 50 km/h in urban and built-up areas (watch for the speed-limit sign as you enter towns and villages).
- 80 km/h on unsealed gravel roads outside urban areas.
- 90 km/h on sealed (paved) roads outside urban areas.
Speed cameras and radar enforcement are common, and the limits apply even on the most remote stretches. Fines are high: a police fine is reduced by 25% if you pay it within 30 days (island.is). If a fine notice reaches us, we pass it on to you or give your details to the issuer, and charge our €10 processing fee per notice (rental terms 40(i)).
Gravel roads
Route 1 has been paved all the way around since 2019, but many side roads to waterfalls, trailheads and viewpoints are gravel, and the asphalt can end abruptly — watch for the sign Malbik endar and slow down before the surface changes. Slow down significantly when meeting oncoming traffic, too — stones kicked up at speed can crack a windshield. The recommended safe speed on gravel when meeting another vehicle is 30–40 km/h or lower.
Tire and Windshield Protection (TWP), €20 a day when you book and included in MAX, covers at no excess a front windshield damaged by gravel from another vehicle, and a tire when only the tire is damaged: the replacement part only, not rims or fitting labor. Without TWP or MAX, damage only to the windshield or the tires is not covered by any waiver (rental terms, clauses 36 and 38). See our damage cover page for details.
Single-lane bridges
Iceland has many single-lane bridges on rural roads, including parts of Route 1 (the Ring Road). The right of way rule is: the vehicle that reaches the bridge first has priority. If another car is already on the bridge or clearly closer to it, pull over and wait. Do not try to pass on the bridge itself.
Single-lane tunnels operate similarly — check for traffic signs indicating which direction has priority and whether there are passing places inside.
Road signs you'll see
Most warning signs use symbols, but you will also meet a few Icelandic words — on signs, on barriers and on umferdin.is. Here is what they mean and what to do:
Einbreið brú — Single-lane bridge
Slow down well before the bridge. The car that reaches it first crosses first; if in doubt, stop and let the other car come over.
Blindhæð — Blind hill
Slow down and keep well to the right — an oncoming car can be hidden just over the crest. Never overtake or stop near it.
Malbik endar — Paved surface ends
Gravel ahead. Brake before you reach it: tires lose grip where the surface changes.
Lokað — Closed
The road is closed to all traffic. Don't drive past the sign or barrier — turn back or wait until it reopens.
Ófært — Impassable
Used in road reports and on umferdin.is when snow, ice or flooding blocks a road. Don't attempt it; wait or choose another route.
Hálka / Hálkublettir — Ice / patches of ice
Expect a slippery surface: slow down, brake gently and leave a much longer gap.
Vegavinna — Roadwork
Slow to the posted limit and watch for loose gravel, workers and machinery.
Stopping for photos — and where not to
The views make it tempting, but never stop on the road or its shoulder to take photos. Drive on to a marked pull-out, viewpoint or parking area, even if it is a few minutes further — many accidents in Iceland start with a car stopped where nobody expects it.
- Stopping or parking on or near a blind hill, a bend or anywhere the view ahead is limited is against the law: drivers coming over the crest or around the bend won't see you in time.
- If the car breaks down, move it off the road if you can. If you can't, switch on the hazard lights, set up the warning triangle and call us.
F-roads & highland tracks
F-roads (Fjallvegir) are unmaintained highland tracks accessible only by four-wheel-drive vehicles. They usually open in June or early July — each road on its own date, depending on snow — and close again from around mid-September. The Icelandic Road and Coastal Administration publishes live opening status at umferdin.is.
- Only drive an F-road in a four-wheel-drive car that your booking confirms as F-road approved. That means a 4x4, 4WD or AWD car from our Comfort, 4×4 Adventure or Highland 4×4 category, and only when the road is officially open. Every other car, including all 2WD cars, may not drive F-roads, Kjölur (road 35 from road 37 to road 732), Kaldidalur (550), Öxi (939), road 586 or road 864. Even an approved car may not use the excluded F-roads, such as F26 (Sprengisandur), F225, F88 and F910 (Askja) and F249 (Þórsmörk); the full list is in clause 16 of the rental terms.
- On a road your car isn’t approved for, no waiver applies. Damage that happens there is yours to pay in full, and a €1,000 prohibited-road fee may be charged (rental terms, clauses 16 and 40). On a permitted F-road your cover option applies as usual, but no cover option covers underbody damage from rough roads or stones.
- River crossings are entirely at your own risk — even on a permitted F-road. No waiver or cover option covers water damage; you pay the full repair cost, or the car’s value, plus towing (rental terms, clause 17). If water covers the road, turn back.
Strong winds
Iceland experiences sudden and extreme wind gusts, particularly in the South and in open highland areas. Wind speeds can be high enough to rip a car door from its hinges if opened carelessly.
- Open car doors with both hands when it's windy. Hold the door firmly as you open and close it — a gust can fling it past its hinges. A door caught by the wind is one of the most common damage claims in Iceland, so park facing into the wind where you can.
- In severe wind warnings, pull over somewhere sheltered and wait. Do not drive over exposed mountain passes in storm conditions, and take extra care in a high-sided vehicle such as a van.
- Check the Icelandic Meteorological Office forecast at vedur.is before each driving day.
Animals on the road
Sheep roam freely across Iceland from spring to autumn and regularly wander onto roads — including the Ring Road. Drive at a speed that allows you to stop safely. A herd of sheep in the road is a serious hazard and a sudden animal collision can write off a vehicle.
Reindeer are present in the East of Iceland, and horses can also be found near roads in some areas. Slow down, give animals space, and never use your horn to try to move them on.
Winter driving
Winter conditions last roughly from October to April: ice, compacted snow, blowing snow and very short daylight. Every car we rent has winter tires from 1 November to 14 April at no extra charge. In October and the second half of April, ask at the desk for a car that already has winter tires: it's free when one is available, but we can't promise one.
From November to March an AWD or 4×4 car with winter tires is strongly recommended. A two-wheel-drive car with winter tires is legal on Route 1 and manages in mild weather, mainly in the southwest — check umferdin.is and vedur.is before driving.
- Increase following distances significantly on snow and ice. Stopping distances are much longer.
- Black ice forms without warning on bridges and in shaded valley bottoms even when other roads seem clear.
- Mountain passes such as Öxnadalsheiði, Vatnsskarð, and Holtavörðuheiði can close without warning in winter. Check umferdin.is every morning before departing.
Emergency resources
Emergency number: 112
— police, ambulance, search and rescue. Iceland also has a 112 app that sends your GPS location automatically.
Road conditions:
umferdin.is — live road closures, surface conditions and F-road opening status. Or call the road information line 1777 (06:30–22:00, every day).
Safety and travel advice:
safetravel.is — register your travel plan so search and rescue know where to look if you do not arrive.
Weather:
vedur.is — the Icelandic Meteorological Office, with forecasts and wind warnings.
Ring Road Cars emergency line:
+354 779 9499, day or night, by phone or WhatsApp. If the car breaks down through a mechanical fault that isn’t your fault, roadside assistance is free, including a tow and a replacement car as soon as reasonably possible (rental terms, clause 51); in remote areas it can take longer. Optional Roadside Assistance Protection (RAP, €10 a day) waives call-out, labor and recovery fees, including towing, for a flat battery, a tire puncture or a lock-out in an emergency. Call us first in the event of a breakdown or accident.
What it costs to drive (kilometer fee, tolls, parking, fuel)
These are mostly government and third-party charges (the road-use charge includes a small processing charge of ours). For our own service fees (fines passed through, cleaning, fuel shortfall, etc.) see the Fees & charges page.
Road-use charge (kílómetragjald) — €10.50 per started rental day
Since 1 January 2026, Iceland levies a distance-based road fee — kílómetragjald — on all motor vehicles up to 3,500 kg. It replaced the per-liter duties on petrol and diesel, which were abolished at the same time, and applies to all vehicles whatever their fuel, including electric and hybrid cars. The underlying rate is 6.95 ISK per kilometer for vehicles up to 3.5 t.
For rental cars, Iceland allows a daily-fee method. The official rental-car daily fee is ISK 1,390 per started rental day. We charge €10.50 per started rental day: the official daily fee, passed on without markup or VAT, plus our processing charge, which includes VAT (rental terms, clause 41). Your invoice lists it as a separate, clearly labeled line. Official reference: island.is/en/kilometer-fee.
- Applies from your first day of rental — every started day is charged at €10.50. “Per started day” means a day begun counts as a full day (same convention as the rental rate itself).
- Worked example: a 10-day rental = €105 road fee total.
- The official part (ISK 1,390 in 2026) is the statutory rental-car fee we pay to the state for each rental day, passed on without markup or VAT; the rest of the €10.50 is our processing charge, including VAT. Rentals are at most 30 days; if one nevertheless runs longer, the official fee for the whole rental is charged per kilometer driven instead, at the rate above, plus the processing charge per rental day.
- The charge is shown in the risk and price summary before payment, and it is not charged (or is refunded) for a booking that is canceled or never collected.
What the road fee covers
- Iceland’s official rental-car daily fee (ISK 1,390 in 2026), passed on without markup or VAT, plus our processing charge, including VAT.
Not covered — paid separately by the driver
- Road tolls — the Vaðlaheiðargöng tunnel east of Akureyri (about ISK 2,200, pay at veggjald.is) and the Hornafjarðarfljót bridge near Höfn (ISK 1,500, pay at spolur.is), each paid online with the car's registration number no later than 24 hours after you pass.
- Paid parking — Reykjavík city zones (P1–P4), Keflavík Airport and a growing number of popular sites. Pay at the meter or machine, or in an app such as Parka or EasyPark.
- National park & site entry fees — charged directly by each attraction; your own responsibility.
Official road-fee reference: island.is/en/kilometer-fee. Live road conditions and closures: umferdin.is.
Vaðlaheiðargöng tunnel (east of Akureyri)
The Vaðlaheiðargöng tunnel runs beneath the Vaðlaheiði mountain just east of Akureyri. It is a tolled tunnel — there are no toll booths; you pay online at veggjald.is using the car's registration number, from 24 hours before until 24 hours after you drive through. Check the plate carefully: a payment made with the wrong registration number is not refunded, and the trip is still billed to the car. If it isn't paid in time, the toll is billed to us as the registered keeper, and we pass it on to you with our €10 processing fee (rental terms 40(i)).
Hornafjarðarfljót bridge (southeast, near Höfn)
Since 1 September 2026, the new section of Route 1 across Hornafjarðarfljót near Höfn is tolled: ISK 1,500 per trip for a car. Cameras read the plate — there are no booths. Pay online at spolur.is within 24 hours after you pass, using the car's registration number, and check the plate before you pay. If it isn't paid in time, the toll is billed to us, and we pass it on to you with our €10 processing fee (rental terms 40(i)).
Hvalfjörður tunnel (near Reykjavík)
The Hvalfjörður tunnel connects Reykjavík and the Vesturland region. It became toll-free in 2018 once construction costs were recovered — there is no charge to use it. The older coastal road around the fjord is still open and scenic, adding about an hour each way.
Paid parking in Reykjavík
Central Reykjavík is divided into four paid zones, from P1 (city core, highest rate) to P4. Pay at a parking meter — coins or card; you key in the plate, so no ticket goes on the dashboard — or in an app such as Parka, EasyPark or SíminnPay. Since 1 October 2026, P1 and P2 charge until 20:00 (from 10:00 on weekends); parking is free outside the charging hours and on public holidays. Outside Reykjavík, more and more popular sites charge for parking, usually with license-plate cameras — pay at the machine or online, for example at parka.app, on the day of your visit, so that no notice reaches us later.
Full guide: tolls, parking & entrance fees in Iceland →
Fuel
Fuel is your own cost, paid directly at fuel stations. Iceland's most common brands are Orkan, N1 and Olís. Many pumps, especially in the countryside, are unmanned and only take a payment card with a PIN — if your card has no PIN, buy a prepaid fuel card inside a staffed station while it is open. Fuel stations can be sparse in the Highlands and the remote East, so top up whenever you have the opportunity. Diesel and petrol are both widely available; check which your vehicle takes at pickup.
Apart from the two tolls above, Iceland's public roads are free to use — the Hvalfjörður tunnel included. Privately run tourist sites may charge for parking or access; these charges are site-specific and your own responsibility.