Driving in Iceland: Everything You Need to Know Before You Go

Iceland is one of those rare destinations where the journey genuinely matters as much as the arrival. Renting a car and heading out on the open road gives you the freedom to stop at unmarked waterfalls, linger at viewpoints until the light shifts, and explore corners of the island that buses and tour groups simply never reach. But driving here is not quite like driving anywhere else. The weather changes in minutes, some roads require specialised vehicles, and distances between services can catch you off guard.

This guide covers everything practical about driving in Iceland, from traffic rules and road types to fuel logistics and common mistakes. Whether you are planning a full Ring Road circuit or a few day trips from Reykjavik, bookmark this one for the planning stage and refer back to it before you set out each morning.

Why Driving Is the Best Way to Explore Iceland

Public transport outside Reykjavik is limited, and internal flights only connect a handful of towns. Driving gives you something no other mode of travel can: total control over your itinerary and timing. You can chase a gap in the clouds to a glacier viewpoint, pull over for a flock of Icelandic horses, or arrive at a hot spring before the crowds.

Most of Iceland's iconic sights sit along or just off paved roads, making them accessible even for cautious drivers. And because the population is small and spread thinly, traffic outside the capital region is refreshingly light. On many stretches of road, you will have the landscape almost entirely to yourself.

The Ring Road (Route 1)

Route 1, known as the Ring Road, is the main highway that loops around the entire island. It covers roughly 1,322 kilometres and passes through nearly every major region, from the south coast waterfalls to the volcanic highlands of the north and the dramatic East Fjords.

The road is almost entirely paved and well maintained. Most travellers allow between seven and ten days to complete the full circuit at a comfortable pace, though some rush it in five. We would recommend taking your time. The stops between the famous landmarks are often where the most memorable moments happen.

If you are looking for a shorter self-drive adventure, the Golden Circle route is a brilliant introduction. It covers three of Iceland's most visited sites in a single day loop from Reykjavik, and it gives you a good feel for Icelandic road conditions before committing to longer distances.

F-Roads and Highland Driving

F-roads (marked with an "F" prefix, such as F26 or F35) are unpaved mountain tracks that cross Iceland's remote interior highlands. They are only open during summer, typically from late June to September depending on conditions, and they require a 4x4 vehicle. This is not a suggestion. Driving a 2WD car on an F-road is illegal, and your rental insurance will not cover any damage or rescue costs if you try it.

F-roads can involve river crossings without bridges, loose gravel, deep ruts, and steep inclines. Even experienced drivers should check conditions on road.is before heading out. If you have never forded a river in a vehicle, it is worth watching instructional videos or joining a guided convoy for your first highland route.

That said, the highlands are extraordinary. Landmannalaugar, Askja, and the Kjolur route offer landscapes that look like nothing else on earth. If you are comfortable with the conditions and have the right vehicle, the highlands are an unforgettable part of the Iceland experience.

Speed Limits and Traffic Rules

Speed limits in Iceland are straightforward:

30 km/h in residential areas
50 km/h in urban zones
80 km/h on gravel roads
90 km/h on paved rural roads (the maximum anywhere in the country)

There are no motorways and no roads with limits above 90 km/h. Speed cameras are common on approach roads to towns, and fines are steep. A ticket for 20 km/h over the limit can easily exceed 30,000 ISK (around 200 EUR).

Other important rules to know:

Headlights must be on at all times, day and night
All passengers must wear seatbelts
Off-road driving is strictly illegal and carries heavy fines. Iceland's fragile moss and soil can take decades to recover from tyre tracks
Single-lane bridges are common on Route 1. The car that arrives first has the right of way. Approach slowly and check for oncoming traffic
Blind hills (marked with "Blindhaed" signs) require extra caution. Slow down and stay in your lane

Gas Stations and Distances Between Them

In the south and southwest, fuel stops are frequent and you will rarely drive more than 30 to 50 kilometres between stations. In the north, east, and especially the Westfjords, gaps can stretch to 150 kilometres or more.

Always fill up when you see a station, particularly if you are heading into remote areas. Running out of fuel in an area without mobile signal is a genuine safety concern, not just an inconvenience.

Most stations accept credit cards at automated pumps. You will need a card with a PIN (chip and PIN, not swipe). Some travellers carry a prepaid fuel card from N1 or Orkan as a backup, which is a sensible precaution if your foreign card does not work at unmanned pumps.

A few tips:

The Orkan and Costco stations in the Reykjavik area tend to be the cheapest
Diesel is slightly cheaper than petrol
Electric vehicle charging stations are expanding but still limited outside the southwest. If you are renting an EV, plan your route carefully using the Rarik or ON charging maps

Winter Driving Conditions and Safety

Winter driving in Iceland is manageable but demands respect. From November through March, you can expect ice, snow, strong winds, and reduced daylight. Blizzards can close roads with little notice, and wind speeds regularly exceed 20 m/s, strong enough to rip a car door off its hinges if you open it carelessly.

Essential winter precautions:

Rent a 4x4, even if you are staying on Route 1. The extra clearance and traction make a real difference on icy roads
Check road.is and vedur.is every morning before driving. These sites show real-time road conditions and weather forecasts
Keep your fuel tank at least half full at all times
Carry warm clothing, water, snacks, and a phone charger in case you get stuck or a road closes ahead of you
Drive with your headlights on low beam in poor visibility. High beams reflect off snow and fog and actually reduce visibility
Watch for black ice, especially on bridges and shaded stretches

Studded tyres are standard on winter rentals in Iceland, and they help considerably. But no tyre compensates for excessive speed on ice. Reduce your speed to match conditions, not the posted limit.

Rental Car Tips

Renting a car in Iceland is straightforward, but a few decisions can make or break your experience.

Vehicle type: For summer trips staying on Route 1 and paved roads, a compact 2WD car is perfectly adequate and significantly cheaper. If you want to visit F-roads, the Westfjords, or drive in winter, rent a 4x4. Popular and reliable choices include the Suzuki Jimny, Dacia Duster, and Toyota RAV4.

Insurance: The basic CDW (Collision Damage Waiver) included with most rentals has a high excess, often 300,000 ISK or more. We strongly recommend adding:

SCDW (Super CDW) to reduce the excess significantly
Sand and Ash Protection (SAAP), which covers damage from volcanic sand and gravel. This is not a gimmick. Sandstorms in south Iceland can strip paint in minutes
Gravel Protection for the windscreen and body

Read your rental agreement carefully. Most policies exclude damage from river crossings, off-road driving, and driving on roads not suited to your vehicle type.

Booking tips:

Book early for summer travel (June to August). Iceland's rental fleet is limited and popular vehicles sell out months in advance
Collect your car at Keflavik Airport for the most competitive rates
Return with a full tank to avoid inflated refuelling charges

Common Mistakes Tourists Make

After years of watching travellers navigate Icelandic roads, a few recurring mistakes stand out:

Underestimating distances. Iceland looks small on a map, but gravel roads, single-lane sections, and frequent photo stops mean progress is slow. Budget more time than Google Maps suggests
Ignoring wind warnings. Wind is the single biggest driving hazard in Iceland, not snow. A sudden gust on an exposed stretch can push a high-profile vehicle into the oncoming lane. Park facing into the wind and always hold your door when opening it
Stopping on the road. Pulling over on the shoulder of a narrow road is dangerous and inconsiderate. Always use designated pulloffs and parking areas, even if the view is stunning right here
Skipping the weather check. Conditions change fast. A sunny morning in Vik can become a south coast sandstorm by noon. Check vedur.is and road.is before every drive
Driving tired. Long drives through monotonous landscapes with jet lag are a recipe for micro-sleeps. Share driving duties, take breaks every two hours, and do not try to cover more than 300 to 400 kilometres in a single day
Off-road driving. We cannot stress this enough. Driving off marked roads destroys fragile vegetation that took centuries to grow. Fines are severe, and the environmental damage is real and lasting

Plan Your Drive with The Iceland Blueprint

Good driving starts with good planning, and that means knowing the details that generic travel advice tends to skip. Which stretches of Route 1 are most exposed to crosswinds? Where are the last fuel stops before long remote sections? What do the Icelandic road signs actually mean?

The Iceland Blueprint covers all of this and more across 300+ pages of native knowledge. It includes region-by-region driving notes, practical F-road guidance, fuel and service maps, and the kind of ground-level detail that turns a stressful drive into a confident one. If you are serious about exploring Iceland by car, it is the most thorough preparation you will find.

Get The Iceland Blueprint →