Driving in Iceland offers an incredible way to explore the island at your own pace. But before you hit the road, it’s important to understand how traffic rules work here. This guide is packed with everything you need to drive safely and legally in Iceland.
Use the Jump to Chapter links if you're looking for something specific.
Quick Checklist for Driving in Iceland
- Drive on the right-hand side
- Headlights on at all times
- Seatbelts for all passengers
- No handheld phone use
- Watch for sheep and one-lane bridges
- Respect speed limits (fines are steep)
- Off-roading is illegal
- Keep emergency number 112 handy
Rules and Regulations
Basic Driving Rules
- Drive on the right-hand side of the road.
- Seatbelts are mandatory for all passengers.
- Handheld phone use while driving is forbidden. Use hands-free options.
Right of Way
Traffic from the right has the right of way unless otherwise indicated by signage or traffic lights.
| Sign | Meaning |
|---|---|
 |
Roads with this sign have the right of way. |
 |
Give way to buses indicating to leave a stop. |
 |
One-way tunnel ahead. Use pull-outs on the right if another car approaches. |
 |
Always yield to emergency vehicles. Move to the side if needed. |
 |
Pedestrians at zebra crossings have the right of way. |
Speed Limits
Keep an eye on speed limit signs as limits can change quickly. Fines range from ISK 5,000-70,000.
| Area | Limit |
|---|---|
| Countryside | 90 km/h (56 mph) |
| Gravel Roads | 80 km/h (50 mph) |
| Urban Areas | 50 km/h (31 mph) |
| Residential | 30 km/h (19 mph) |
Additional notes:
- Vehicles with trailers: max 90 km/h.
- Trailers over 750kg without brakes: max 80 km/h.
Driving Fines in Iceland
Even experienced drivers get caught off guard in Iceland. Here are the most common mistakes, and the fines you’ll want to avoid:
| Mistake | Fine (ISK) |
|---|---|
| Speeding (10-20 km/h over limit) | 10,000 - 25,000 |
| Speeding (30+ km/h over limit) | 50,000+ |
| No seatbelt | 20,000 |
| Using a phone without hands-free | 40,000 |
| Off-road driving | 400,000+ |
| Driving under influence (BAC >0.02%) | 100,000+ + possible license suspension |
| Stopping on the Ring Road for photos | 10,000+ |
Tires
Rental cars should already have compliant tires. Still, here are legal requirements:
- Nov 1–Apr 14: Studded tires allowed. Minimum tread: 3mm
- Apr 15–Oct 31: Studded tires prohibited. Minimum tread: 1.6mm
Allt rentals from Northbound.is are equipped with winters tires when needed
Sheep on the Road
With over 800,000 free-roaming sheep, animal crossings are common. Slow down if you see sheep near the road. If there's an accident, notify local authorities so farmers can care for injured animals.
Accidents & Emergencies
By law, everyone must help at the scene of an accident.
- Injuries involved?: Call 112 immediately.
- No injuries?: Exchange insurance details. No need to call emergency services.
Useful numbers:
- Emergency (police, ambulance, fire): 112
- Police Station: 444-1000
- Landspítali Hospital ER: 543-2000
- Dental Emergency: 575-0505
- Disability Support (Sjálfsbjörg): 550-0300
- Search and Rescue: 570-5900
Roundabouts
- Don’t signal when entering, only when exiting.
- Inner lane: for second, third, or later exits (has right of way).
- Outer lane: for immediate exits.
If you’re stuck in the wrong lane, keep indicating inward but stay in your lane until it's safe to exit.
Tunnels
Tunnels are common and safe. Longest: over 9 km. Remove sunglasses before entering.
- Hvalfjörður Tunnel: Free since 2018.
- Vaðlaheiðargöng Tunnel: ISK 1,500 for normal cars; higher for trucks.
One-Lane Bridges
Whoever arrives first crosses first. Bright orange signs mark these.
More Important Rules
- Headlights required at all times, day or night.
- Blood alcohol limit: 0.02%
- Fines start at ISK 100,000.
- Off-roading is illegal
- Fines up to ISK 400,000.
- Never stop on highways to take photos. Use designated pull-outs marked with an "M".
Complete Iceland Traffic Signs
Related Info
- Should I Rent a Car In Iceland
- Renting A Car In Iceland: Step-by-Step Guide
- 10 Common Mistakes Tourists Make
- Campervan Travel Guide
- Weather in Iceland
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