Road rules for travelers with car rental in Iceland

If you're planning to rent a car and explore Iceland’s majestic landscapes, understanding the country’s road rules is essential. Iceland offers freedom and flexibility through self-drive travel, but it also comes with unique conditions and laws that are important for first-time drivers to know.

This guide covers everything from driving age to F-roads and parking, giving you the road information you need to travel safely and confidently.

Which side of the road do you drive on in Iceland?

In Iceland, you drive on the right-hand side of the road and overtake on the left. All rental cars are left-hand drive. Other important driving rules include:

• Headlights must be on at all times, day or night
• Seat belts are mandatory for all passengers
• Using a mobile phone while driving is illegal unless you’re using a hands-free device

Speed limits in Iceland

Speed limits in Iceland are lower than in many other countries and strictly enforced:

• 50 km/h in urban areas
• 80 km/h on gravel rural roads
• 90 km/h on paved rural roads or highways

Speed cameras and occasional police checkpoints are common. Fines for speeding can be high, and they’re often charged directly through your rental company.

Understanding F-Roads in Iceland

F-roads (mountain roads) are marked with an “F” and are found mostly in the Highlands. These routes are only accessible with 4x4 vehicles, and many rental agreements (including Blue Car Rental) prohibit 2WD vehicles from using them.

Important notes:

• F-roads are closed during winter (typically open from mid-June to September)
• Off-road driving is strictly illegal and can result in heavy fines
• F-roads can involve river crossings and rough terrain (drive carefully and check road conditions on road.is)

For more on choosing the right vehicle, see our guide: Do I need a 4x4 in Iceland?

Parking rules and reminders

Parking in Reykjavik and across Iceland comes with its own set of rules. In Reykjavik, there are four paid parking zones and enforcement hours vary. You can pay via ticket machines or apps like Parka or EasyPark. At tourist attractions, parking may be free or require a small fee.

Never park on grass, moss, or private property. If you get a ticket, you can usually pay it online or at a bank. Learn more in our full guide to parking in Iceland.

Other useful road information for travelers

Here are a few more important driving facts and road etiquette tips for travelers renting a car in Iceland:

• Roundabouts: Inner lane has priority. This is different from many countries
• Tunnels: Most are free, but the Vaðlaheiðargöng tunnel near Akureyri requires a toll
• Single-lane bridges: These are still common in rural areas, even on the Ring Road. The vehicle closest to the bridge has the right of way, but always approach slowly and be prepared to yield if another vehicle is already on the bridge.
• Animals: Sheep are common near roads in summer, slow down and watch for them
• Weather: Always check forecasts at vedur.is 

Why Rent from Blue Car Rental?

At Blue Car Rental, we aim to make your Icelandic road trip smooth, safe, and memorable. We offer:

• Vehicles for every need—small cars, family wagons, and 4x4s
• Full cover insurance and 24/7 roadside assistance
• Easy online check-in and key box pickup at Reykjavik and Keflavik
• Local knowledge and support to help you navigate with confidence

Whether you're cruising the Ring Road or venturing off the beaten path, we’ve got the right vehicle and support for your journey.

To rent a car in Iceland, age requirements vary depending on the vehicle. At Blue Car Rental, drivers must be at least 20 years old to rent a small car and 23 or older to rent a large vehicle or 4x4. A valid driver’s license is required at all times, and if your license isn’t written in Latin characters, you’ll need to present an international driving permit.

Final Tips Before You Hit the Road

Driving a rental car in Iceland is one of the most rewarding ways to explore its diverse landscapes. But to make your journey smooth and safe, a few reminders go a long way.

Stick to posted speed limits and road signs, especially in rural areas where weather and road surfaces can change quickly. Off-road driving is illegal and harmful to Iceland’s delicate nature so avoid that at all cost.

Be sure to plan ahead: fuel stations can be sparse in the countryside and may require a PIN-enabled card for payment. It's also wise to check live road and weather updates on apps or local websites.

With the right road information and a reliable rental car in Iceland, you're all set for an unforgettable adventure. If you like to learn more about driving in Iceland feel free to check out our drive safely in Iceland site. We also have specially sign for driving in Iceland blog full of useful travel tip for travellers with a car rental in Iceland. 

Safe travels and enjoy the drive!