Driving in Iceland is not difficult but does involve a certain level of challenge. The speed limits are lower and some roads in the mountain areas (highlands) are closed in the winter as they are impossible to use. It is therefore important that you are careful to choose a car that is suited to the roads you plan to drive on. Most of the mountain roads and the roads in the highlands are gravel roads. Some parts of the Ring road that goes around the island are also gravel road. The coating on the gravel roads is often loose (especially on the edges). Slow down and drive carefully when meeting oncoming traffic. The mountain roads are narrow and are not suitable for high speeds. The same goes for bridges, which often fit only one car at a time. Most of the mountain roads are closed until the end of June, sometimes even longer due to the soil conditions that render them inoperable. When these roads open again you can usually only drive 4-wheel drive cars on them. Take a closer look which roads your hired vehicle is allowed to drive on.
Be well prepared and respect the traffic rules to minimize the risk of road accidents. Up-do-date information about weather and roads on Iceland can be found here: Icelandic State Road Administration
Driving on the Ring Road
The main road that goes around Iceland is known as the Ring Road (or Route 1) and is 1399 km long. The road connects the biggest towns and passes through some of the most interesting parts of the country. Most of the Ring Road is paved and it is two-way in most parts. The speed limit is 50 km per hour in urban areas and 90 km per hour on paved roads in rural areas. It takes about a week to drive around the entire Ring Road at a leisurely pace with many stops along the way.
From the Ring Road is minor roads lead to a great many interesting sights and small villages. The majority of these are gravel roads that require a little extra attention, but which are generally easy to use in a normal two-wheel drive. The speed limit is 80 km per hour.
Driving in the highlands and on F-roads
In order to drive on so-called F-roads, you will need a four-wheel drive with ground clearance. These gravel roads are often narrow and not made for fast driving. F-roads are designated with an F in front of the route number on signs and on maps. Most F-roads are closed until the end of June or later because of wet and muddy conditions which make them impassable.
The highest permissible speed in Iceland is 50 km/h in urban areas, 80 km/h on gravel roads and 90 km/h on asphalt roads. By law, headlights are to be used both night and day. There is a law on wearing a seat belt and Icelandic law prohibits driving under the influence of alcohol.
Insurance
Insurance information / Other
Insurance information / Other
On the right, you will find insurance information from our car rental providers in Iceland. These insurances are valid until September 2025.
For all providers, it applies that all renters must have had a valid driver's license for at least one year and a credit card as a guarantee when picking up the car.
Europcar
Europcar
Insurance:
• Prices include unlimited mileage and Collision Damage Waiver (CDW). The CDW covers damages to the car exceeding 250,000 ISK.
• With additional Super Collision Damage Waiver (SCDW) costing 1,500 ISK per day, the excess for damage to the car is reduced to 60,000 ISK. This insurance can be purchased when you pick up the car in Iceland.
• Note that CDW and SCDW do not cover all damages, such as damage to the car’s undercarriage.
Insurance for four-wheel-drive vehicles (highland driving allowed), vans, or motorhomes:
• Prices include unlimited mileage and Collision Damage Waiver (CDW). The CDW covers damages to the vehicle exceeding 450,000 ISK.
• With additional Super Collision Damage Waiver (SCDW) costing 2,500 ISK per day, the excess for damage to the vehicle is reduced to 110,000 ISK.
Additional information:
• Only vehicle type can be requested, not make/model. The makes listed are for illustration only and are representative of the respective vehicle type. (Not applicable to motorhomes).
• To rent, the driver must be at least 20 years old. For motorhomes, the minimum age is 23.
• All renters must have held a valid driving license for at least one year and a credit card as a guarantee when collecting the car.
• Add an extra driver at no additional cost.
Additional costs for motorhomes:
• Gas refill: 80 € per rental
• Cleaning fee: 120 € per rental (toilet only: 130 €)
• Bed linen (Pillow, duvet, cover and sheet for the mattress, bath towel)
Avis
Avis
Insurance:
• The prices include unlimited mileage and Collision Damage Waiver (CDW). The CDW covers damages to the car over 195,000 ISK.
• With extra CDW (SCDW) costing 2,700 ISK/day, the deductible for damages to the car is reduced to 0 ISK. This insurance can be purchased when you pick up the car in Iceland.
• Note that the CDW and SCDW do not cover all damages, such as damages to the car's undercarriage.
Insurance for four-wheel drive cars (highland driving allowed, except Skoda Octavia 4WD):
• The prices include unlimited mileage and Collision Damage Waiver (CDW). The CDW covers damages to the car over 360,000 ISK.
• With extra CDW (SCDW) costing 3,600 ISK/day, the deductible for damages to the car is reduced to 0 ISK.
Other information:
• Driver airbag, ABS, radio, CD player, central locking, etc.
• Only car type can be booked, not brand/model. The car brands listed here are only for illustration but are representative of the respective car type.
• To rent the renter must be at least 20 years old. For four-wheel drive cars, 23 years old.
• All renters must have held a valid driver's license for at least one year and have a credit card as a guarantee when picking up the car.
• Add an extra driver at no cost.
Rás
Rás
Insurance:
• The prices include unlimited mileage and collision damage waiver (CDW). The CDW covers damages to the car over 250,000 ISK.
• With additional collision damage waiver (SCDW) which costs 1,500 ISK per day, the deductible for damages to the car is reduced to 60,000 ISK. This insurance can be purchased when you pick up the car in Iceland.
• Note that the collision damage waiver (CDW) and (SCDW) do not cover all damages, such as damage to the car's undercarriage.
Insurance for four-wheel drive cars (highland driving allowed) and Kia Ceed Station Wagon:
• The prices include unlimited mileage and collision damage waiver (CDW). The CDW covers damages to the car over 450,000 ISK.
• With additional collision damage waiver (SCDW) which costs 2,500 ISK per day, the deductible for damages to the car is reduced to 110,000 ISK.
Additional information:
• Only the car type can be ordered, not the brand/model. The brands listed here are for illustration purposes only but are representative of the respective car type.
• To rent the renter must be at least 20 years old.
• All renters must have had a valid driver's license for at least one year and a credit card as a guarantee when picking up the car.
• Add an extra driver at no cost.
