Driving in Iceland

Safety Driving in Iceland

We care deeply about your safety. That’s why we provide every customer with clear guidance on how to drive responsibly and legally in Iceland. Road rules in Iceland are simple but crucial to follow, and violations can result in heavy fines or serious accidents.

Driving Laws & Regulations

 

Drive on the Right in Iceland

In Iceland, vehicles drive on the right-hand side of the road, and overtaking is done on the left.

All vehicles provided by Saga Car Rental have the steering wheel on the left, which is standard throughout Iceland, Europe, and North America.

If you are used to driving on the left (e.g., UK, Australia, Japan), allow time to adjust—particularly when:

• Turning at intersections

• Entering roundabouts

• Merging onto highways

Roundabouts are common, especially in Reykjavík. Vehicles already inside the roundabout always have priority.

Safety insight: Many driving incidents involving tourists occur during the first day of adjustment. Take your time when leaving the airport or city areas.

Seat belts & Child Safety in Iceland

Icelandic law requires:

• Seat belts for all passengers, front and rear

• Children under 135 cm in height to use an approved child safety seat

• Child seats to be installed in the back seat

When booking with Saga Car Rental, certified child seats are available upon request to comply with Iceland’s road safety standards.

Failure to follow child safety regulations may result in fines and legal liability.

Headlights always be ON (24/7, year-round)

One of the most strictly enforced Iceland driving laws. This includes:

• Bright summer daylight

• Rain or fog

• Winter darkness

Many rental vehicles include automatic headlights, but drivers are legally responsible for ensuring lights are active. If another driver flashes their headlights during daylight, it usually indicates yours are off. 

This law improves visibility in Iceland’s rapidly changing weather conditions.

Speed Limits & Speed Cameras in Iceland

General Iceland speed limits are:

• 50 km/h in towns

• 30 km/h in residential areas

• 80 km/h on rural gravel roads

• 90 km/h on paved country roads

Speed cameras are widely used, and fines are significant. However, posted limits are maximums—not targets. Always reduce speed when:

• Driving on loose gravel

• Encountering strong crosswinds

• Navigating narrow bridges

• Experiencing snow or ice

Expert tip from Saga Car Rental: Gravel roads increase braking distance significantly. Maintain extra following distance at all times.

Drinking and driving in Iceland

Iceland enforces one of Europe’s strictest drunk-driving policies.

• Legal tolerance is extremely low (effectively zero for visitors)

• Fines start around 100,000 ISK

• Penalties may include license suspension and vehicle impoundment

Random roadside checks are common.

If you plan to enjoy restaurants, nightlife, or alcohol, always designate a sober driver. Road safety enforcement in Iceland is strict and consistently applied.

Mobile phone & driving in Iceland

Using a handheld mobile phone while driving in Iceland is illegal. This includes:

• Texting

• Calling

• Handling the device in any capacity

Hands-free systems are allowed but should be used responsibly.

If navigation adjustments or calls are necessary, pull over safely in a legal stopping area.

Distracted driving is a frequent cause of tourist-related traffic violations.

Right-of-Way Rules in Iceland

Understanding right-of-way laws reduces accident risk significantly.

• At unsigned intersections, yield to traffic coming from the right

• Vehicles inside roundabouts always have priority

• In multi-lane roundabouts, vehicles in the inner lane have priority when exiting

These rules apply across urban and rural Iceland.

When uncertain, reduce speed and proceed cautiously.

Parking in Reykjavik

Parking in Reykjavik can be straightforward once you understand the city’s system. Here’s what you need to know for a hassle-free experience, whether you’re visiting for a few hours or staying longer.

Reykjavik’s Paid Parking Zones (P1–P4)

The city center is divided into four main parking zones, each with its own pricing and rules. Look for signs indicating P1, P2, P3, or P4 to identify which zone you’re in. The closer you are to the heart of downtown, the higher the parking rate will be, with P1 being the most central and expensive, and P4 being the most affordable and further out.

Parking Rates, Hours, and Payment Methods

Parking fees vary by zone, with P1 being the most expensive and P4 the least. Paid hours typically run from 9:00 to 18:00 on weekdays, with shorter hours on Saturdays, usually from 10:00 to 16:00. Parking is often free on Sundays and public holidays. You can pay at parking meters using coins or cards, or conveniently via the Parka app, which allows you to extend your parking remotely.

Parking Garages

Several parking garages are located near Reykjavik’s main attractions, offering covered parking with extended hours and higher security. These garages are ideal for longer visits to the city center, especially during bad weather or when street parking is full. Some garages also offer electric vehicle charging stations.

Important Reminder

Fines for illegal parking in Reykjavik are substantial and can be issued quickly. Always check local signage, park only in designated areas, and be mindful of time limits to avoid penalties.

Parking Fines and Penalties

Parking in Iceland, especially in Reykjavik and other major towns, is strictly regulated. Typical fines for illegal parking can range from moderate to substantial amounts, depending on the severity and location of the violation. For example, Reykjavik parking tickets are often issued for parking in restricted zones, overstaying time limits, or failing to pay the required fees.

Non-payment or improper parking not only results in fines but also increases the risk of your vehicle being towed. Authorities in Iceland are vigilant, and parking enforcement is consistent, particularly in city centers and tourist areas. If your car is towed, you will incur additional costs and inconvenience.

To avoid parking penalties in Iceland, always check signage for parking rules, use the correct payment methods such as parking meters or mobile apps, and ensure your vehicle is parked within clearly marked areas. Following these tips will help you steer clear of Reykjavik parking tickets and other parking violations in Iceland.

Urban Driving in Reykjavik

Driving in Reykjavik presents unique challenges and opportunities for visitors and locals alike. As Iceland’s capital, Reykjavik features a network of one-way streets, especially in the downtown area. These are clearly marked with blue and white signs, so it’s important to pay close attention to avoid wrong turns. For efficient Reykjavik city driving, always look for these indicators and plan your route in advance.

Roundabouts are common throughout Reykjavik and require specific navigation skills. When approaching a roundabout, yield to traffic already circulating and use your turn signal to indicate when you are exiting. Proper signaling not only ensures safety but also keeps traffic flowing smoothly, which is essential in busy urban driving conditions.

Parking can be challenging near popular hotels, attractions, and the bustling downtown core. Look for designated parking areas, and consider using parking apps to find available spots. Paid parking zones are clearly marked, and fines are enforced, so always check signs before leaving your vehicle.

Rush hour in Reykjavik typically occurs between 7:30–9:00 AM and 4:00–6:00 PM. During these times, traffic congestion increases, especially on main routes leading in and out of the city center. To avoid delays, plan your trips outside of peak hours whenever possible.

Safety is a top priority in Reykjavik’s urban environment. Be vigilant for pedestrians and cyclists, particularly on narrow streets in the city center. Always yield at crosswalks, and drive cautiously in areas with heavy foot traffic. By following these tips and staying aware, you’ll navigate Reykjavik’s urban roads with confidence and safety.

Stopping and Parking Etiquette

Understanding proper parking and stopping practices is essential for anyone driving in Iceland's countryside. Following the rules not only keeps you safe but also helps preserve the natural beauty of the region and ensures a positive experience for all visitors.

• Legal vs. Illegal Stopping: Stopping on Icelandic roads is only permitted in safe and legal locations. It is illegal to stop in the middle of the road or on the shoulder for photos or breaks, except in emergencies. Always use designated pullouts or parking areas when you need to stop.
• Designated Pullouts: Make use of marked parking areas and pullouts to avoid blocking traffic. Stopping on narrow roads or in areas with poor visibility is dangerous and can lead to accidents.
• Overnight Parking Rules: Overnight parking in campervans and motorhomes is strictly regulated. Campgrounds and designated sites are the only legal options for overnight stays. Parking overnight in random rural areas is prohibited to protect nature and respect local communities.
• Tourist Site Etiquette: At popular attractions, avoid double-parking and always keep access roads and emergency exits clear. Respect parking signs and only park in marked bays.
• Use of Hazard Lights: If you must stop on the roadside due to poor visibility or an emergency, use your hazard lights to alert other drivers and ensure your vehicle is visible.

By following these parking and stopping guidelines, you help maintain safety, respect the environment, and support Iceland’s commitment to responsible tourism.

Fuel and Charging Infrastructure

Availability of Gas Stations

• Gas stations are strategically located along major routes, including the Ring Road, in towns, and even in some remote regions. This ensures convenient access for travelers and locals alike.
• While stations are generally well distributed, the typical distance between them can vary. It is recommended to plan refueling stops in advance, especially when traveling through less populated areas, to avoid running low on fuel.
• Most gas stations accept credit and debit card payments, often requiring a PIN. Cash is rarely accepted, so it is important to carry a suitable payment card when traveling.
• Many stations operate 24/7 with self-service pumps, offering flexibility for refueling at any hour. However, some locations may still have staffed stations during regular business hours, providing assistance if needed.

Electric Vehicle Charging

• The rapid expansion of electric vehicle charging infrastructure has made it much easier for EV owners and travellers to journey across the country. Today, a growing network of charging stations covers major urban centers and key travel routes, ensuring reliable access for those on the move.
• For travellers, locating charging stations is straightforward, with chargers available in major towns and at popular N1 highway stops. Interactive maps and dedicated apps allow users to find real-time information on charger locations and availability, making trip planning more convenient and helping travellers avoid unnecessary delays.
• There are various types of chargers to suit different needs, including fast and slow charging options. Most modern charging stations are compatible with a range of EV models and support user-friendly access through mobile apps or RFID cards, ensuring a seamless charging experience for travellers and commuters alike.
• Travellers heading to remote areas should take special care. It is important to plan ahead, as charging points may be less frequent. Travellers should use available mapping tools to identify charging stations along their route and ensure their vehicle is compatible with the charging options provided in these locations, helping to ensure a smooth and worry-free journey.

Keep Your Vehicle Fueled or Charged

Always keep your fuel tank or battery topped up, especially before heading into remote areas. Use online maps or apps to quickly find nearby gas stations or charging stations. In winter, remember that your vehicle may not go as far and some stations might be closed. If you start running low, have a backup plan—like a portable charger or knowing who to call for help. With these simple steps, you can travel safely and avoid getting stranded.