Driving in Iceland: 10 Tips for a Safe and Scenic Road Trip

Driving in Iceland is one of the best ways to experience the country’s stunning scenery and hidden gems (or popular spots) at your own pace.

Whether you plan to explore the entire Ring Road or just do a couple of day trips from Reykjavik, understanding the basics of driving in Iceland is essential for a safe and unforgettable trip.

With a few trips to Iceland under my belt, I’ll share some of my tips and must-knows about car rentals and driving in Iceland. As well as some of my favorite spots to visit without driving the whole island.

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**Any photos taken from the car were not taken while I was driving – don’t use your phone while driving**

Is Driving In Iceland Easy?

Driving in Iceland is generally straightforward. The roads to main attractions or destinations are well laid out, with good road signs, and minimal confusing turns. And if you have your GPS with you, or a good connection to Google Maps, you can’t really go too wrong.

But driving in Iceland does require extra caution and awareness. The main roads, including the famous Ring Road, are easy to navigate, yet weather can change rapidly which is the biggest unpredictable factor.

Avoiding snowy seasons such as late fall, winter and early spring could be helpful if you’re unsure about driving in Iceland. Even more care and attention would be required otherwise.

Rural and highland areas often have gravel roads or river crossings that require slower speeds and more experience. But you can also see plenty of Iceland without needing to take those.

By keeping an eye on road conditions before setting off, and sometimes adapting your itinerary with the weather, you should find driving in Iceland easy enough. Plus, it’s the best way of seeing more of the country, and what a beautiful country it is.

What Kind Of License Do I Need When Driving In Iceland?

To drive in Iceland, you’ll need a valid driver’s license from your home country. It must be written in Roman characters or accompanied by an international driving permit (IDP) if it’s not.

Licenses issued in the USA, Canada, UK, EU/EEA and Australia are all valid to drive in Iceland without the need for an international driving permit.

As long as your license has also been valid for at least a year you should be good to go explore Iceland’s incredible landscapes by car. Note that some rental car companies have age restrictions and may not rent to those under 20, 21, or sometimes even under 25.

Must Know Laws For Driving In Iceland

• In Iceland they drive on the right, same as the US/Canada and most of Europe. If you’re coming from the UK though, this might be a little different for you.
• Seat belts are mandatory. Since this is the case in many countries this shouldn’t come as a big shock, but is worth noting.
• No right turn on red lights. This is common in USA and Canada, but isn’t allowed in Iceland.
• Keep your headlights on at all times. This is a rule in most Nordic countries. Weather is subject to change so even during the day lights can help with visibility.

Rental Car Tips

• Driving on F Roads may not be allowed – and could negate any insurance you’ve taken.
• Make sure to shop around – there are tons of rental car companies to choose from.
• Car rental companies often have an airport shuttle to/from the terminal. We booked with Lotus Car Rental. Upon arrival we just had to use the free phone in the terminal to call and they picked us up within 10 minutes.
• Ensure your car is well maintained before you set off. Driving in Iceland puts a lot of wear and tear on the cars, mostly due to the weather. We noticed the tires were low and the rental car company changed our car before we set off.
• Make sure your luggage will fit. We had 4 people on our last trip to Iceland, with one suitcase each plus carry on bags that meant we had to go for a big enough car. The Kia Ceed Wagon and the Subaru Forester have both been the ideal size for us (but the Subaru was way more fun to drive).

10 Big Things You Need To Know About Driving In Iceland

Driving in Iceland can be an unforgettable experience. Renting a car offers the freedom to explore its dramatic landscapes at your own pace. However, Iceland’s unique terrain and unpredictable weather mean that preparation is essential. Here are some key things to know before you hit the road in Iceland.

THERE ARE A LOT OF SINGLE LANE ROADS

Once you get out of Reykjavik there’s not a whole lot of people in Iceland. Multi-lane roads soon start to pare down to single lanes in each direction. They can be like that for miles (or kilometers).

While making it super easy to drive, it does require being more aware of your surroundings. Why? Well, with limited passing lanes you can sometimes get stuck behind other vehicles, so plan your itinerary carefully so you’re not running late for booked tours.

You should also be aware in case you’re holding people up by going too slow. You might want to gaze at every pretty view, but a local Icelander might not. Use one of the pullout spots if you need and let people pass. You are on vacation, after all.

ROADS ARE SURPRISINGLY WELL MAINTAINED

I was pleasantly surprised at the state of Iceland’s roads. Reykjavik, as a main city, has decent road surfaces. But going further around a sparsely populated island made up of volcanic rock? I thought it might be a little bumpier.

For the majority of visitors to Iceland you might head out onto the Golden Circle route, or along parts of the main Ring Road. Either way, for the most part of where we went the roads were smooth, with great signage and good road markings.

As weather impacts the roads, you may see some areas that are being resurfaced, or made of looser gravel. And maybe a pot hole or two. But overall the main roads are well maintained. Side roads, roads off the beaten track, including F-roads may be a different story.

WATCH YOUR SPEED WHEN DRIVING IN ICELAND

Iceland is a relatively safe country to travel in. So much so, that 60% of all crimes are traffic related. While that might make you feel better about Iceland in general, it should also warn you that speeding is serious business. That means high speeding fines if you’re caught. Rule of thumb: don’t speed!

A lot of the rental cars you’ll get are powerful, built to endure the harsh Icelandic climate. Between that and long open roads, with not a lot of other vehicles around, it can be easy to not notice how fast you’re going.

Keep an eye on the speedometer. Our car, a Subaru Forester, had really good cruise control, allowing us to set the speed so we easily stayed under.

DRIVING CONDITIONS CHANGE QUICKLY

Bright sunshine so blinding we needed sunglasses. Dense fog so thick we couldn’t see more than a couple of feet ahead. Whipping wind that made us grateful for a heavier, sturdy car. Sideways rain that turned into pelting hail I thought might come through the glass. And that was all within one morning of driving.

Iceland is an island in the middle of the North Atlantic. And since many of the roads you will take are not far from the coast, you can expect fast changing weather conditions. Be prepared for everything, and take it slower if you need to.

PULL OFF THE MAIN ROADS FOR VIEWS

Don’t be that person. You know the one – they see a pretty view and stop the car, regardless if they’re on a main road. We saw more than our fair share of this. And since most of the roads are single lane, there’s not a lot of space to stop. Instead, find one of the many proper pull-out spots to park up.

It’s true the views in Iceland are jaw-droppingly amazing. And well worth stopping for. For a lot of the main ones you can easily find somewhere to stop that’s safe for you and for other drivers.

GET THE PARKA APP FOR EASY PARKING

Whether you’re in Reykjavik or at one of the popular tourist spots, it’s almost a guarantee you’ll need to pay for parking. Good news is you don’t have to figure out machines, or even carry cash. There’s an easy-to-use parking app called Parka that you should download before you visit Iceland.

Looking for street parking in Reykjavik? The app color blocks areas of the city into different zones for parking – each with their own cost. The further out from the central streets, the cheaper it is. Parking in downtown Reykjavik is around 230-700 ISK/hr until 9pm.

Visiting a popular attraction like Thingvellir (Þingvellir) National Park, Geysir, Seljalandsfoss or Reynisfjara black sand beach? Use the map to find your spot, or choose from top tourist destinations shown. Parking will usually be 1000-1300 ISK depending on car size. There’s often a small service fee for using Parka but typically less than a dollar.

FILLING UP YOUR CAR IS EASY

Most gas stations are manned, but you still pump the gas yourself. If using a credit card to pay for gas you’ll need a card with a 4-digit pin. If you don’t have this, you’ll need to pay inside first.

In Iceland you are required to “pre-pay” for gas. Either select the maximum ISK amount you wish to pay or choose full tank. You only pay what you use, but this way you won’t go over your desired amount.

Alternatively you can pre-pay inside the gas station, if manned. This is also how you would pay if you want to use cash, as we sometimes did. In fact, on one fill up we wanted to get rid of all our change, and were able to choose a specific amount to pre-pay that used all our coins too.

There are lots of gas stations around Reykjavik. However in rural Iceland you may often find self-serve gas stations only, where you will need to use a card. Fill up regularly as once in rural Iceland gas stations are not as prevalent.

TOP ICELAND TRAVEL TIP: Gasoline (petrol) is the GREEN handled pump, Diesel is black. Make sure you select the correct one.

ROUNDABOUTS ARE VERY COMMON

I grew up in the UK, so I am well versed in the rules of roundabouts. Those things are everywhere there. Roundabouts are, however, less common in the US and Canada, so you may not be as familiar with them.

The basic rule is that whoever is in the roundabout has right of way. Knowing when someone might be leaving the roundabout, or if they will keep going is the often tricky part.

Indicating is where you can help others, and also gauge other drivers’ intentions. Left signal shows intent to continue going around, right signal shows intent to exit the roundabout.

NOT ALL ROAD SIGNS ARE IN ENGLISH

While there are universal road signs without wording, not all signs with wording are in English. It can throw you off at first, as you think “but I don’t speak Icelandic”. But road signs in Iceland are fairly self explanatory.

Speeds are posted in Kilometers, not Miles. Warning signs are still triangular, mostly red outline, yellow background. You’ll easily recognize or be able to understand signs that show icy roads, upcoming bridges or tunnels, priority, or roundabouts.

Don’t be thrown off by the wording, if in Icelandic, instead focus on the picture. The above sign on the left looks similar to a regular No Entry sign (red circle, white horizontal line). Treat it the same way, it just means that you’re not allowed to enter this area vs. the usual red circle No Entry sign typically indicates one-way traffic from the other direction.

The sign on the right is telling of an upcoming bridge that is Einbreið brú, or one-lane bridge. The car closest to the bridge has right of way.

DON’T CHEAP OUT ON INSURANCE

While it might be tempting to save money by choosing the cheapest rental car insurance in Iceland, it’s usually not worth the risk. The country’s challenging driving conditions can easily lead to damage that basic insurance won’t cover.

From gravel roads and high winds to volcanic ash and sudden weather changes driving in Iceland can be different than what you’re used to.

Opting for the top level coverage, including gravel, sand, and ash protection was important for us for peace of mind. While I went back and forth over the coverage options, in the end stories about costly surprises convinced me to go with the higher level.

TOP ICELAND TRAVEL TIP: Check what extras come with some of the higher insurance tiers. Our Platinum coverage came with a Wi-Fi device which meant we saved big on a mobile data package for our trip.

Driving In Iceland: Easy Day Trips From Reykjavik

Renting a car in Iceland makes it easy to explore beyond Reykjavik and discover the country’s breathtaking natural wonders. You don’t have to go far to see some amazing waterfalls, volcanic craters, coastal views and more. Here are some of my picks for popular places that are drivable from the capital.

THINGVELLIR NATIONAL PARK

Distance – 48km from Reykjavik to the Visitor Centre. About 50-minutes away by car.

Þingvellir, as it can often be stylized locally, is one of Iceland’s three national parks. It’s also the closest one to Reykjavik, making it the perfect day trip if you’re driving in Iceland during your vacation.

Unlike most US National Parks, entry here is free. Parking at the car parks in Thingvellir does have a cost, but one ticket covers you for all the parking lots.

Make sure to stop by the visitor center to learn about the national park, and for the best washrooms in the park. Take a stroll along the observation deck, or a longer walk through the newly laid path through a fissure in the rock.

The opposite side of the river has a lovely historic church, and you cannot miss Öxarárfoss, a powerful waterfall with a great viewing platform.

GEYSIR

Distance – 115km from Reykjavik. About 90-minutes away by car.

For those of you who’ve been to Yellowstone National Park you’ll be familiar with Old Faithful. While that geyser goes off every hour or so, you can see a geyser in Iceland which goes off every 5-10 minutes.

Take a drive out to Geysir, which has a fabulous visitor center, and breath in that rich Sulphur smell. See bubbling hot springs and geothermal steam vents along the way.

The original Great Geysir has been dormant for decades now, but Strokkur geyser is more predictable. I’ve waited longer than 10 minutes, or as short as 5 minutes to see it erupt. Note: on a windy day, you may get wet.

TOP ICELAND TRAVEL TIP: Want to see more powerful forces for water? Head 10 minutes further along the same road and visit the impressive Gullfoss. With an upper and lower viewpoint this waterfall is equally amazing in winter as well as summer. BONUS: Parking and entry here are both FREE!

VIK

Distance – 190km from Reykjavik. About 2.5 hours away by car.

I loved Vik so much we stayed there for a few days. A lovely quiet town, a lot different from Reykjavik. If you don’t have time to stay there, you can still do this as a day trip from Reykjavik, although depending on how many stops you make, you might not want to go all the way to Vik. Don’t miss the impressive Lava Show if you do get to Vik.

On the way to Vik I recommend stopping at the Caves Of Hella, 1hr20m from Reykjavik. Take a 75-minute tour of these unique underground caves. Seljalandsfoss and its neighbouring waterfalls are a further 25-minutes towards Vik. A great place to grab a quick bite from the on-site cafe.

Keep driving to see some unique black sand beaches of Iceland. Reynisfjara is the most popular, and while it is a beautiful beach, I recommend continuing to Vik and checking out Víkurfjara beach on the other side of the cliffs. Parking here is free, and you’ll probably have the beach to yourself. Or at least less people than Reynisfjara.

KIRKJUFELL

Distance – 180km from Reykjavik. About 2.5 hours away by car.

For Game of Thrones fans, a trip to Iceland might not be complete without visiting Kirkjufell. This conical mountain is known as Arrowhead Mountain in the show. TV show aside, it’s still a really cool mountain to see, especially if you get it with Kirkjufellsfoss waterfall in the foreground.

This iconic location is one everyone needs to see. But there are tons of other great places on the Snæfellsnes peninsula it sits on to make this into a worthwhile day trip.

Arnarstapi’s cliffside walks and giant troll statue were one of my favorites. As is Djúpalónssandur black sand beach – a great alternative to south Iceland’s Reynisfjara.

BLUE LAGOON

Distance – 50km from Reykjavik. About 45-minutes away by car.

Need to relax after all that driving in Iceland? A day at the Blue Lagoon will sort you out. While it is the most touristy of the geothermal spas you can visit, it is a beautiful place, and can still be relaxing if you plan it right.

In the off-season, or shoulder seasons you’ll find it a little quieter than in the height of the summer. And you’ll be more thankful for the warm embrace of the mineral-fed waters to balance the chilly air. I’d also recommend visiting earlier in the day before it gets too busy.

Having visited the Blue Lagoon a couple of times, I find that about 3-4 hours is long enough. Unless you get some additional treatments like a massage. The price isn’t cheap – tickets are around $90-170 USD per person depending on the time and experience you choose. Personally I didn’t find the Premium ticket worth the additional cost.

TOP ICELAND TRAVEL TIP: Not only is parking free here, but there’s a left luggage service building in the parking lot if you don’t have a car and are on your way to/from the airport. Leaving your bag is also free, just remember to keep your ticket.

Driving In Iceland – Final Thoughts

Now that I’ve visited Iceland a few times, I can say having a rental car is the way to go. You will have so much more freedom to do what you want, not stick to someone else’s schedule, and see places that the tours won’t take you.

Driving in Iceland is easy enough, especially if visiting from North America where it’s the same side of the road. Wherever you’re from, driving in Iceland is not difficult. But it can be pricy.

Book well in advance and shop around the many different rental car companies. We paid 127,000 ISK (~$1000 USD) for 8 days rental. Over 50% of that cost was for the platinum insurance which, for peace of mind, was worth it.

The benefits of having a car outweigh the cons. Even with filling up on gas it worked out cheaper overall considering round trip airport transfers and the price of tours comparable to our day trips.

The biggest hassle for us was finding places in Reykjavik that had parking included. We managed, but it did limit our options. But once outside of Reykjavik you can’t beat having your own vehicle and being able to change up your itinerary for the day if the weather changes on you. Next time I visit Iceland I’ll definitely be renting a car again.

If you’ve enjoyed this post leave a comment or share using the social media buttons below. Have you rented a car in Iceland? How did you find driving in Iceland on your vacation? Feel free to share extra tips to help other travelers.