Fines and charges after a car rental in Iceland

What can arrive after your trip

Most charges are settled during the trip. These are the ones that can still arrive afterwards, and how each one reaches you:

Prices, and how to pay each toll and car park on the spot, are on Tolls & parking. Pay them on time and nothing reaches us, so there is no processing fee. Speed limits and how the cameras work are on Speed limits & fines.

Will a fine follow you home?

Yes. An Icelandic traffic fine is issued in the name of the person who was driving, not the car's owner. For a speed-camera ticket in a rental car, this is what happens:

1. The camera photographs the car, and the ticket goes to its registered owner: for a rental car, us (Ísland.is).
2. The owner must tell the police who was driving (Traffic Act No. 77/2019, art. 53, in Icelandic). We match the ticket to your rental and give the police your details (how that works).
3. The police transfer the fine to you and send you the notice, by post or to your Ísland.is inbox. It shows the amount, the offense and the case number.
4. We email you an itemized statement with the documents and charge our €10 processing fee to your card (rental terms 7, 22 and 40(i)).
5. You pay the fine to the police: within 30 days of the date on the notice, it is 25% lower.

What about the EU's cross-border rules? Directive (EU) 2015/413 helps countries find the owner of a car registered in another EEA country after a traffic offense. It has applied in the EEA since 1 August 2025 (EFTA), and Iceland put it into effect with Regulation No. 965/2026 (in Icelandic). A rental car is registered in Iceland, so that system isn't needed to find you: the fine reaches you through us.

Whether your own country would collect an unpaid Icelandic fine is a separate legal question that we can't answer for every country. Don't assume it won't be collected: an unpaid fine stays open in Iceland, and paying on time costs less.

Our processing fee, and why it exists

As the car's registered owner, we receive every camera ticket, unpaid toll and parking claim for the car, and each one takes work. That is what our processing fee pays for: €10 per fine, toll or notice about your rental that reaches us (rental terms 22 and 40(i)). For each one, we:

• match it to your rental and to the driver;
• give your details to the police, the issuer or its collection agent, so that the charge is issued to you directly, or pay a toll or parking claim billed to us and pass it on;
• email you an itemized statement with the documents before we charge your card (rental terms 7).

The processing fee is the only fee we add: you pay the fine, toll or charge itself, plus any late fee its issuer adds. A speed-camera ticket always comes to us first, so it always carries the fee; pay tolls and parking on time and nothing reaches us, so there is no fee. All our fees are listed on Fees & charges.

What common fines cost: examples

Traffic fines are set by Regulation No. 1240/2019 (in Icelandic). These examples come from the version in force on 10 November 2026; the euro amounts are approximate, at the European Central Bank's reference rate of that day (€1 = ISK 137.20).

• Two offenses at once are fined separately and added together.
• Very high speeds add a driving ban: 141–150 km/h where the limit is 90 km/h means ISK 210,000 (about €1,530) and a one-month ban.
• Any other speed: the police's fine calculator on Ísland.is shows the fine for your speed and the limit.
• A closed road also breaks our rental terms: no waiver covers damage there, and our €1,000 prohibited-road fee may apply (rental terms 16 and 40(g)).

How to pay from abroad

• A police fine: pay as the notice says. It shows the amount and the case number, and paid within 30 days of its date the fine is 25% lower. If anything is unclear, contact the police district named on the notice.
• At a roadside check: you can pay the officer there and then, also by credit card.
• Tolls: pay the Vaðlaheiðargöng tunnel online with the plate number up to 24 hours before or after you drive through, and the Hornafjarðarfljót bridge within 24 hours (Tolls & parking).
• Parking: at Keflavík Airport, pay in the app or at a pay station before you drive out. A Reykjavík parking fee can be paid online with the plate number and the date (City of Reykjavík). At nature sites, pay at the machine or online, as the signs say.
• Keep proof: a receipt or a screenshot of each payment settles most questions later.

If a fine isn't paid, it doesn't go away on its own. After 30 days the discount is gone. The police send a reminder with another 30 days to pay, and if that is ignored too, the case can go to a district court, which sets the fine and an alternative penalty (Regulation No. 205/2009, art. 6, in Icelandic). A fine notice that is paid is not entered in the criminal record: paying is the cheaper and simpler way.

If you think a fine or charge is wrong

• A police fine: send a written objection to the police district that issued it as soon as you get the notice, with your name and contact details, the number plate, the case number, why you think the fine is wrong and any evidence, such as photos or documents (Ísland.is). The fine is put on hold while it is reviewed; if the objection is rejected, you again have 30 days to pay with the discount.
• Someone else was driving: don't pay. Tell the police who was driving; if they accept it, the fine is transferred to that person (Ísland.is).
• A Reykjavík parking fee: a review can be requested within 28 days of its date, and the request is filed by the car's owner, so email us at once with your evidence, such as a parking receipt.
• A charge from us: if you think a processing fee or a charge we passed on is wrong, write to info@ringroadcars.is. If we can't agree, you can take it to the Consumer Complaints Board, and consumers in other EEA countries can contact the European Consumer Centre in Iceland (ECC Iceland) (rental terms 44; Feedback & complaints).

Questions about fines after a car rental in Iceland