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Ring Road Cars

Driving in Iceland with a US or Canadian license

Last updated: 10 November 2026

Prepared by Ring Road Cars at Keflavík Airport and checked against the official sources listed at the end of this page.

Ground-level view of a paved road, its white center line leading toward snow-capped mountains under heavy cloud

Short answer

Yes. The Icelandic Transport Authority says driving licenses from outside the EEA, US and Canadian ones included, are valid in Iceland for 6 months, and as yours is printed in the Latin alphabet, you need no International Driving Permit to rent with us. Bring the physical license — not a mobile license on your phone — held for at least one year and valid for the whole rental. What changes from home: speed limits are in km/h (90 km/h, about 56 mph, is the highest), headlights stay on day and night, you may never turn right on red, the alcohol limit is 0.2‰ (0.02%), and the emergency number is 112.

Is a US or Canadian license valid in Iceland?

Yes. The Icelandic Transport Authority says driving licenses from countries outside the European Economic Area (EEA) are valid in Iceland for 6 months, and the Government of Canada's travel advice for Iceland says the same for Canadian licenses. That is far longer than a rental with us, which lasts at most 30 days.

  • Printed in the Latin alphabet: Iceland's driving-license regulation asks that a license issued outside the EEA be in Latin letters or come with a translation into Icelandic, Danish, Norwegian, Swedish or English (Regulation No. 830/2011, article 29, in Icelandic). US and Canadian licenses are printed in the Latin alphabet, Québec's French-language licenses included.
  • The same vehicles as at home: under the same article, a foreign license lets you drive in Iceland the vehicles it allows you to drive in the country that issued it.

What an International Driving Permit (IDP) is: a booklet with a translation of your license (as Ísland.is describes the Icelandic one). It does not replace your license: you carry the two together. It is issued in the country that issued your license, so if you want one, get it at home before you travel. It is valid for one year.

Do you need an IDP?

Not to rent with us: a license in the Latin alphabet is all we ask for. The Government of Canada's travel advice for Iceland still recommends carrying one. If you want one: in the US, USAGov names the two organizations the State Department authorizes to issue IDPs and warns that many websites claiming to issue “international driver's licenses” are fraudulent; in Canada, the Government of Canada's IDP page explains how to apply.

What we ask for when you rent

  • Your physical driving license for the type of car, with your photo, valid for the whole rental and held for at least one year, without major endorsements or penalty points (rental terms 3).
  • No mobile licenses, screenshots or scans. Many US states now issue mobile driver's licenses (see the TSA's list), but we can only accept the card itself, so pack it.
  • A passport or national ID card for the renter and every driver (rental terms 4).
  • Age: every driver must be at least 20, and 25 for SUVs, 4×4s and vans (Comfort, 4×4 Adventure, Highland 4×4 and Family & Space), which drivers aged 20–24 may rent at our discretion for a young driver fee of €15 per day. There is no maximum age (rental terms 2).
  • Named drivers only: only drivers named on the rental agreement may drive, and each shows their own license. An additional driver costs €10 per day.

Check every driver's license before you travel

If a driver can't show a license that meets these rules, we may refuse that driver or the rental, and a refused rental counts as a no-show: the price is not refunded, and a pay-on-arrival booking may still be charged (rental terms 4 and 8).

Just renewed your license and only have a temporary paper document? Ask us before you travel: info@ringroadcars.is or +354 779 9499. All the rules for renting are in What you need to rent a car in Iceland.

What is different from driving at home

You drive on the right, as at home, and most rules will feel familiar. These are the ones that catch drivers from the US and Canada out:

At home vs in Iceland
TopicAt home in the US or CanadaIn Iceland
Speed limitsmph in the US; km/h in Canadakm/h: 90 km/h (56 mph) at most
Right turn on redIn the US, usually allowed after stopping unless a sign forbids it; in Canada, it depends on the province or territoryNever allowed
HeadlightsDepends on the state, province or territoryOn at all times, day and night, all year
Alcohol limit0.08% in most US states (0.05% in Utah); in Canada, 0.08% under the Criminal Code, plus provincial rules0.2‰ (0.02%): in practice, not even one drink
Emergency number911112
FuelBy the gallon in the US; by the liter in CanadaBy the liter: 1 US gallon is about 3.8 liters
  • Speed: 90 km/h (56 mph) on paved roads outside towns, 80 km/h (50 mph) on gravel and 30–50 km/h (19–31 mph) in towns, unless signs say otherwise. Speed cameras send the ticket to the car's owner, which is us: we pass it on to you or give your details to the police, and charge a €10 processing fee per notice (Speed limits & fines).
  • Headlights and taillights stay on at all times, all year: switch them on yourself, as the car's automatic setting may not be enough.
  • No right turn on a red light, ever: the Icelandic Transport Authority says it is prohibited, so wait for green.
  • Roundabouts: traffic already in the roundabout has priority. In a two-lane roundabout, use the outer (right) lane only if you leave at the first exit, and otherwise the inner (left) lane. Don't change lanes inside, and give way to a car leaving from the inner lane: it has the right of way. Signal when you exit.
  • Seat belts in every seat. Children shorter than 135 cm need a car seat that suits them, and children under 150 cm may not sit in front of an active airbag (Icelandic Transport Authority). You can book child seats with the car (Extras & what's included).
  • Phones: hands-free only while driving.
  • Alcohol: under the Traffic Act (No. 77/2019, art. 49), a driver with 0.2‰ of alcohol in the blood is deemed unable to drive safely; as Safetravel puts it, you can't drive even after one drink.
  • Emergencies: call 112. Iceland has only one emergency number, for police, ambulance, fire and rescue. After an accident, call the police (112 in an emergency) and then us (Accident & breakdown).

Rural roads: bridges, blind hills, gravel and sheep

  • Single-lane bridges (sign: Einbreið brú) are still common, on the Ring Road too. The car that reaches the bridge first crosses first: slow down early and, if in doubt, let the other car cross.
  • Blind hills (sign: Blindhæð): keep to the far right and slow down, as an oncoming car can be hidden just over the crest. Never stop or overtake near one.
  • Gravel roads: the limit is 80 km/h, but slow down before the pavement ends (sign: Malbik endar), as tires lose grip where the surface changes. Many roads inland are unpaved, narrow and without a shoulder, and stones thrown up by other cars can damage a windshield, so slow down when you meet one.
  • Sheep and horses can be on or beside the road, and sheep may run across with little warning; a lamb on one side and its mother on the other is the classic case. No cover option includes damage caused by or involving animals, and such damage must be reported to the police and to us (rental terms 19 and 36).
  • Never stop on the road for photos, not even at the edge: drive on to a marked parking area or pull-out.
  • Off-road driving is illegal. No cover option applies to damage caused off road, and our terms add an off-road driving fee of €1,000 (rental terms 16 and 40). Only approved 4×4s may drive F-roads (Can rental cars drive on F-roads in Iceland?).

Weather and road conditions change fast: check the road conditions every day before you set off.

Fuel, and automatic or manual

Fuel is sold by the liter: 1 US gallon is about 3.8 liters. Most stations are self-service, and you pay at the pump before you fill up, with a card and its PIN, so ask your bank for your card's PIN before you travel. No PIN? Pay with your phone where the pump accepts it, or buy an N1 prepaid card at a staffed N1 station while it is open (Fuel & paying at the pump).

Fill up with the fuel your car takes, as shown on the label of the fuel cap: Bensín is petrol (gas) and Dísel is diesel. Return the car full, refueled within 5 km of the return location.

Prefer an automatic? Every car in Comfort and Highland 4×4 is automatic. In 4×4 Adventure, the Suzuki Vitara 4x4 is automatic and the Dacia Duster 4x4 is manual. Everyday and Family & Space cars are manual only. Book an automatic category or model (Automatic cars). If you rarely drive a manual (stick shift), an automatic is the simpler choice: no cover option includes damage to the clutch or transmission (rental terms 36).

Your card, the hold and your own card's cover

The renter needs a physical credit or debit card in their own name: Visa, Mastercard, American Express, China UnionPay, Discover or Diners Club, but not a prepaid, purchasing, anonymous or virtual card. Apple Pay and Google Pay are fine for paying, but bring the card. At pickup we place a hold on it for the excess of your cover option: a hold, not a charge or a deposit, released after you return the car (rental terms 6–7).

Card hold at pickup, by cover option
Cover optionOn this websiteHold at pickup
BASIC + SCDWIncluded in every price€1,000
PLUS (adds Tire and Windshield Protection)+€20 a day€1,000
MAX+€40 a dayNo hold
Without CDW (if you decline it)Same price; your liability is unlimited, up to the car's value€3,000

Counting on your credit card's rental car cover? Before you travel, ask your card issuer whether its cover applies to rental cars in Iceland and to the type of car you will drive, and what it needs from you if you claim. You may decline our CDW when you book or at the desk, at the same price: the price does not go down, your liability becomes unlimited, up to the value of the car and extras, and the hold is €3,000. The rental terms advise declining only if your own card or travel insurance covers rental cars in Iceland (rental terms 35); the Theft Waiver and the two insurances required by law still apply. What each option includes: Cover & extras.

Prices are in euros. This website can show them in US or Canadian dollars as a guide, converted at the day's European Central Bank rate. We charge your card in euros or Icelandic krónur (ISK), an ISK amount at the Central Bank of Iceland's mid-rate on the day, with no card surcharge; fees your own bank or card issuer charges, such as foreign transaction fees, are yours (rental terms 6). More on cards and holds: Renting with a debit card.

Questions about driving in Iceland on a US or Canadian license

Can I drive in Iceland with a US driver's license?

Yes. The Icelandic Transport Authority says licenses from outside the EEA are valid in Iceland for 6 months. To rent with us, bring the physical license, held for at least one year and valid for the whole rental. As a US license is printed in the Latin alphabet, you don't need an International Driving Permit to rent with us.

Can I drive in Iceland with a Canadian driver's license?

Yes, on the same terms: the Government of Canada's travel advice says a Canadian license can be used in Iceland for up to 6 months. Canadian licenses, Québec's included, are printed in the Latin alphabet, so you don't need an International Driving Permit to rent with us.

Do I need an International Driving Permit for Iceland?

Not to rent with us if your license is printed in the Latin alphabet, as US and Canadian licenses are. Iceland's driving-license regulation asks that a license from outside the EEA be in Latin letters or come with a translation. The Government of Canada's travel advice still recommends carrying an IDP; if you want one, get it at home before you travel. It is valid for one year.

Can I use a mobile driver's license on my phone?

No. We accept only the physical license card; mobile licenses, screenshots and scans are not accepted. If your state issues a mobile driver's license, bring the plastic card as well.

Can you turn right on a red light in Iceland?

No. The Icelandic Transport Authority says turning right at a red light is prohibited under Icelandic traffic law, so wait for green.

What is the speed limit in Iceland in mph?

90 km/h (about 56 mph) on paved roads outside towns, 80 km/h (about 50 mph) on gravel roads and 30–50 km/h (about 19–31 mph) in towns, unless signs say otherwise. 90 km/h is the highest speed limit in Iceland.

What is the emergency number in Iceland?

112, for police, ambulance, fire and rescue: Iceland has only one emergency number. After an accident, call the police (112 in an emergency) and then us.

Can I rely on my credit card's rental car cover in Iceland?

Ask your card issuer first whether its cover applies to rental cars in Iceland and to the type of car you rent. You may decline our CDW at the same price, but the price does not go down, your liability becomes unlimited, up to the value of the car, and the card hold is €3,000 instead of €1,000. Our rental terms advise declining only if your own card or travel insurance covers rental cars in Iceland.

Sources

The rules on this page come from our rental terms (valid from 1 August 2026); the law and the road rules come from these official sources (checked 10 November 2026):