While many visitors to Iceland opt for excursions with a local guide and driver, bus transport to some popular tourist destinations is irregular or unavailable. Those looking to visit more places may choose to travel on their own. For travelers looking for autonomy, renting a car is the path to freedom and adventure.
General Rules
If you plan to drive a car while traveling in Iceland, complying with Iceland’s traffic rules and driving culture should be your priority.
Driving in Iceland is on the right side of the road and is very similar to a small town in Europe or America, at least technically. Speed measured in kilometers per hour. There are few road signs, mainly in cities. There are many roundabouts in Reykjavik, where the inner lane always has a priority. You need to indicate when you are leaving a roundabout, but not when you are entering it. If you plan to exit the roundabout at the first exit, use the outer lane. Use the inside lane if you plan to leave the second, third, or fourth exit.
The Ring Road or road Nr.1 is the main route that leads along the coast of the whole country; it is asphalted and easy to drive along. Many side roads lead to national parks and highlands, classified as F roads or mountain roads. They are not paved and not serviced often, which means that the quality of the roads can be poor.
Speed limit on urban roads 50 km/h (31 mph), on gravel country roads 80 km/h (49 mph), and on paved roads 90 km/h (55 mph), unless there are other restrictions. Off-road driving is prohibited due to damage to flora.
Vehicles must have their headlights on while driving. The driver is not allowed to use a mobile phone while driving, except for a wireless connection. All road users must use seat belts, and children are required to sit in age-appropriate child seats.
Leaving the city, you will find single-lane bridges across small rivers on the way. According to the rules, whoever gets to the entrance to the bridge first has the right of way, and the driver at the other end of the bridge takes slightly to the side, letting a passing car leave a bridge. People in Iceland are friendly and polite towards each other on the road; there are no incidents in such situations.
Gas stations are usually open from 7 AM to 8 PM. Outside Reykjavik, opening hours may vary, but most stations are available until mid-evening. You can also use the automatic gas stations around the clock. It is best to fill the tank to have at least a couple of hours of fuel to go.
Drunk driving in Iceland is a serious offense. If you are caught drunk driving, you will get a hefty fine, and your license will be revoked for at least two months.
Driving Safety
Considering that Iceland is an island in the Atlantic Ocean on the border of the Arctic Circle, the weather is very unpredictable, and storms are frequent here. If you plan to drive on your own, be sure to check the weather forecast before leaving. Locals use the metrology website www.vedur.is to check the weather. You can check the road condition on another website www.road.is.
As you drive through the countryside, you will probably see some cars on the side of the road stopped to admire the scenery. That is normal and acceptable, but make sure your vehicle is not in the driveway. Also, be aware of private ownership; some local roads may be privately owned.
As mentioned above, the weather in Iceland can get worse. Never be afraid to pull over to the side of the road if you are nervous. It is much better to do this than to put yourself in danger. Below are some of the most common causes of road accidents and car damage in Iceland. By becoming familiar with them, you will reduce the likelihood of an accident.
Winter in Iceland brings freezing temperatures throughout the country, and the road can become icy in case of a sharp cold snap, especially in the morning. It means that drivers must be extra vigilant while driving. Order a four-wheel-drive if you suspect that you will have to drive a car in such conditions.
During a snowstorm, visibility on the road may decrease to several meters. If the weather forecast predicts a blizzard, then it is better to postpone your trip out of town. While snowblowers try to clear the road, you can quickly get stuck in the snow or get into an emergency.
Strong winds can damage your car when you open doors. In windy conditions, try to park so that the wind is oncoming, open the doors slowly, and hold tight so that the gust of wind does not rip them off their hinges.
Many country roads are only gravel or may have many potholes. Therefore, your tires must be in good condition every time you hit the road. When approaching the asphalt ends, slow down and maintain a safe speed on this type of road.
F-Roads are unsafe to drive, and large rocks can cause damage to the chassis of your vehicle not covered by insurance. Crossing rivers can result in significant water damage, which is also not covered by insurance. Customers act at their own risk, and we advise you to avoid crossing rivers in any vehicle.
Thousands of sheep roam free in the summer and may end up on the road. It is hazardous when sheep go out onto the roadway at night. Be careful when driving near farm fields. Many insurance packages do not cover animal damage. Beware of sheep on the side of the road; as they approach, you should slow down and honk to see which direction they are going.
The telephone number of the rescue service anywhere in the country is 112; the Icelandic police, ambulance, and fire department will contact you.
Car Rental
There are several car rental companies in Iceland offering a wide range of options. Five-seat 4WD SUVs or crossovers are popular outside the city. Cheaper small cars are popular in the town and on paved roads. Please note that if you plan to drive on the highlands (marked as F-roads), you will need 4WD vehicles. It is also highly recommended to book a 4WD car if you are traveling in winter.
To rent a car in Iceland, you need a credit card, a driving license in English (or an official translation), and more than one year of driving experience. The minimum driver age to rent a car in Iceland is 21 years old, and to rent an SUV is 23 years old. Please note that the person who reserves the vehicle does not have to be the intended driver.
You should also consider which type of insurance to choose. Unpredictable weather creates challenging driving situations. In summer, strong winds can lift sand, causing damage to the car’s body. Road conditions can be incredibly harsh in winter, and ice and snow can damage your rental car.
CDW insurance is often included in car rental prices, and many companies offer additional insurance such as SCDW, GP, TP, SAAP / SADW. We recommend adding gravel protection to your insurance, especially if you plan to drive along the south coast of Iceland or visit the central highlands.
In winter, all vehicles are fitted with winter tires as required by law, but studded tires are optional. You can ask for studded tires, and most car rental companies will meet your request. Vehicle chains are not used in Iceland.