Driving in Iceland – what are the rules?

There’s a certain magic and mystique to Iceland. Lava rocks, black beaches, geo-thermal lakes and a sun that barely sets in the summer: there’s interest and excitement at every turn.

Set in the Arctic Circle, Iceland is not a place to expect tropical temperatures and a seaside holiday. But there is much to see and do if you decide to visit the country for a vacation – and exploring by car is a great way to do that.

An island situated between the North Atlantic and Arctic Oceans, Iceland has a history of volcanic activity. There are regular volcano eruptions and the ground shows much evidence of lava and dark-coloured sands.

But that doesn’t dampen the spirits of the inhabitants – the people are very friendly and the country ranks highly in terms of quality of life, economy, education and peace. Iceland has no army, relying only on a small coast guard.

In terms of business the island has always relied heavily on fishing but more recently, tourism, fish products and aluminium production have boosted the coffers. Tourism has particularly been developed and there is lots for visitors to experience.

Art features highly with capital city Reykjavik home to several galleries such as the Municipal Galley and the National Gallery of Iceland. Bars and restaurants feature highly in a vibrant nightlife, and food lovers will enjoy a ‘different’ style of cuisine which relies more on meat with little or no spicing.

Porramatur is the traditional dish which includes shark and ram’s meat with cheese. Coffee also features highly on the Icelandic people’s menu.

While Iceland isn’t necessarily the first country on your holiday list – and you can’t drive there without using a ferry – it is certainly worth considering a visit, if only for the open roads and sights from the driver’s seat. The Highlands and the Westfjords are highlights for beautiful, untouched scenery and nature.

So if you are one of many UK motorists who does choose Iceland’s roads when it comes to planning a vacation, you’ll need some careful organisation before going there. 

Although it’s possible to bring in a car on a ferry, flying in and hiring a vehicle is the most obvious option and you’ll find a selection of car rental companies, including Hertz, Avis and Budget, operating at Keflavik International, the main airport, and other arrival points such as Reykjavik and Akureyri.

Driving in Iceland is a completely different experience from doing so in the UK. And that isn’t just because the Icelanders drive on a different side of the road from us. 

It’s much more than that and planning a driving holiday or taking your car to the Arctic on business, requires careful planning and a good understanding of what you can, and can’t do behind the wheel while there.

It’s well worth spending some time planning your trip and making sure you have everything in place for your Nordic excursion before you leave. Here The Car Expert looks at the most important elements to consider when planning to drive in Iceland, and we’ve included a handy checklist. As each journey is unique, always check that you have everything covered for your particular visit.

Basic rules

You must be 17 years old or over to drive in Iceland and you should hold a full UK driving licence. This will allow you 30 days of motoring in the country. Just the licence card will do, as the paper counterpart is no longer a requirement.

You’ll need to prove that you have minimum third party car insurance cover for your vehicle so take your certificate with you (but you don’t need a European ‘green card’). If you are hiring a vehicle (which is quite likely) you will need to be at least 20 years old and have held a driving licence for at least a year. 

Always also carry with you documents that show the identity of your car, such as a V5C ‘logbook’ or the hire car agreement papers. And always have your personal ID or passport with you too.

Your vehicle’s ‘home country’ must be shown on it. A ‘UK’ sticker on the rear is one way to do this but you can also show a small UK badge on both number plates if you wish. The ‘GB’ badge is no longer allowed, even within European ‘golden stars’ and the same goes for country signs such as the English, Scottish or Welsh flags.

Speed limits

Speed limits are shown in kilometres (km/h) rather than miles (mph). In built-up areas the speed limit is 30-50 km/h (18-31 mph) while on more open roads the limit rises to 80 km/h (50 mph) on gravel roads and 90 km/h (56 mph) where the route is tarmacked. There are no motorways in Iceland, and therefore no tolls, but you can use the main ring road which runs around the entire coastline of the island, almost 830 miles long.

Speed humps and speed cameras are used to control traffic in Iceland, and there are lots of roadside cameras dotted throughout the road network. However, you are allowed to use radar detection equipment in your car.

Get stopped for speeding in Iceland, and you will likely get an on-the-spot fine of 23,500 Krona (ISK) (£130) for a small amount over the limit rising, depending on gravity, to 80,000 ISK (£450) for a serious offence.

Roads and conditions change quickly in Iceland so the best way is to watch for speed signs and stick to them. Don’t ever use a mobile phone while driving unless it is ‘hands-free’.

Blood alcohol limits

We don’t recommend any drinking of alcohol if you are going to drive but it’s worth knowing the limits. In Iceland’s case this is zero. There is a 0 g/l limit for all drivers so be careful if you have had a few drinks ‘the night before’ too. By comparison, it’s 0.8 g/l (0.8 milligrams) in England and Wales.

If there is any suspicion of drinking and driving by the police, you’ll probably be asked to take a breath test. Iceland takes a dim view of drinking (or drug use) and driving and the penalty for a first offence can reach 100,000 ISK (£560).

What to carry in the car

You must carry in your car a first aid kit, fire extinguisher, warning triangle and a Hi-Viz reflective jacket in case you have to leave your car at the roadside. Although not compulsory it’s a good idea to have spare bulbs with you for the car’s lights, especially as you have to have dipped headlights switched on at all times.

Specialist suppliers, such as motoring organisations, sell ‘European driving kits’ for around £25, which contain everything you are likely to need for a Continental road trip, and it’s well worth investing in one. 

Make sure your lights are adjusted so they don’t dazzle oncoming traffic and if you meet someone on a narrow road you will be expected to slow right down so that loose gravel doesn’t fly up and hit their windscreen. They will be doing the same for you.

Seatbelt rules

Seatbelt rules are the same as in the UK: if your car has them, they must be worn. It’s the driver’s responsibility to make sure everyone is buckled up – there’s a 20,000 ISK (£115) fine for not using one. 

Children under 135 cm in height must be an appropriate child seat or carrier. Minors who are over 150 cm tall may use adult seat belts but they cannot sit in front of an active airbag.

Driving

Keep to the right-hand lane as much as possible but if you are overtaking do so on the left. You will usually give way to vehicles on the ‘main’ road at a junction unless signs state otherwise. Buses and emergency vehicles always take priority.

You will find a lot of roundabouts on Icelandic roads, especially so in Reykjavik. Cars on the inside lane of roundabouts have priority over those going around the outside so look out for other traffic carefully – this is the cause of many accidents involving visitors.

Horns should be used sparingly but you are allowed to sound yours when you are overtaking and of course in the case of an emergency.

It will get cold and wintry in Iceland and you will be expected to have the appropriate winter tyres fitted to your vehicle from early November until mid-April. Those dates can be changed by the authorities if weather conditions are especially bad. Rental cars will be fitted with the correct winter tyres if they are required.

There are no specific towing rules in Iceland but make sure you can see all around you with the use of wide rear-view mirrors and ensure other drivers know your intentions with early signalling.

Mountain ‘F-roads’ (the F stands for Fjall or mountain) are open only for limited  periods during the year so check with your rental company if you are planning to drive there. Rural roads can become single lane in places and bridges can also be narrow, allowing only one car to cross at a time. Always drive slowly and with extra care in winter conditions.

Four-wheel drive vehicles are ideal for Iceland, but never venture off-road in one. It’s illegal, as Iceland wants to preserve its flowers and vegetation, and can lead to high fines and even imprisonment.

Traffic signs

Traffic lights are red, amber and green and follow a similar pattern to the UK. Don’t turn on a red unless arrows indicate that you can. There are spot fines for ignoring a red light of up to 15,000 ISK (£85).

Road signs usually have pictures which are self-explanatory and look similar to those in the UK. There are a few extra ones such as ‘reindeer’, ‘snowmobiles prohibited’, ‘loose gravel’ and ‘road grading ahead’. The stop sign has the word ‘Stop’ in English although ‘stop for checkpoint’ reads: ‘Stans Eftirlit’.

Mandatory instructions are usually blue circles with white symbols, prohibitory signs are generally yellow circles with a red border while warning signs are yellow triangles with the red border.

Directional signs are generally yellow with the town name written in Icelandic and the distance shown in kilometres. A place name will be in blue with yellow writing.

Fuel availability

Fuel stations are plentiful and electric charge points are growing but there are still some areas where access to both are limited so keep an eye on the fuel gauge. Popular fuel brands include OB, N1 and Atlantsolia. Garages accept credit card payment and pre-paid fuel cards, available from fuel outlets and stations.

Parking

In built up areas such as Reykjavik and Akureyri, parking is controlled using special zones, multi-storey car parks and pay-and-display on-street areas. Ticket machines take coins and cards – you input your car registration number only: there is no ticket to put in the windscreen. There are also Apps such as Parka, to download that you can pay with.

Parking is at its most expensive in Reykjavik’s centre but as the city is quite small, even a five-minute walk in from your car will save you money. Charges start at about £2 per hour.  Illegally parked cars will be ticketed and fined 3400 ISK (£20).

If you do park on the street, make sure you are facing the direction of traffic and only in a marked bay. If there are no road markings it’s illegal to stop there. Don’t cross oncoming traffic to get to a parking space. Avoid roadside space outside of towns.

The Vadlaheidi Tunnel in the north of the country is about five miles long and costs 1850 ISK (£10) to pass each time you go – there is no ‘return charge’ option.

Emergency number

In Iceland, as with most of Europe, you can dial 112 and make contact with emergency services such as fire, ambulance or police, 24 hours a day. Operators will speak English, French other European languages.

Checklist

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