Are you planning a trip to Iceland? Driving the Ring Road is the perfect way to experience Iceland’s natural wonders. The Ring Road is a circular route that loops around the whole island, passing through some of Iceland’s most awe-inspiring landscapes. It’s arguably one of the most beautiful road trips in the world.

Hands-down the best way to see Iceland is by car. Exploring Iceland by car can be an exciting adventure, but may also feel a bit daunting if you’ve never driven abroad before. But you’ll find that Iceland is actually a decent place to practise driving on the ‘other’ side of the road (if the weather is on your side). There is very little traffic outside of Reykjavik, and the Ring Road is a well-maintained paved road. 

In this guide we will cover how to choose the right rental car for Iceland, what to expect on the Ring Road, and some useful tips for driving in Iceland.

As a (fairly nervous) UK driver who spent 2 weeks driving the Ring Road, I’m here to share my experience and insights to help make your Icelandic road trip a stress-free experience. So, let’s fasten our seatbelts (it’s compulsory in Iceland), and get going!

What Side of the Road Does Iceland Drive On?

In Iceland they drive on the right side of the road. This is the key difference compared to driving in the UK, and probably the main anxiety-inducing aspect of driving abroad. (It was for me, at least). Although for American and Canadian visitors, it’ll be no big deal.

In Iceland, the steering wheel and driver’s seat are on the left side of the car. This type of car is called a “left-hand drive”. The gear stick and handbrake will be operated by your right hand. The order of gears is usually the same, as it’s the driver, rather than the gear stick that has swapped sides. The location of the reverse gear may differ depending on the car. Thankfully, the pedals remain in the same order (left to right: clutch, brake, gas).

At roundabouts you drive anti-clockwise instead of the usual clockwise. You take the first exit to turn right. And to turn left, you go all the way round the roundabout. Pretty logical so far, right?

But there is one quirk of Iceland’s traffic rules that is different from other right side-driving countries. At roundabouts in Iceland, the car in the inner lane has right of way. So if you are on the outer lane, you should give way to the inner lane driver. This is mainly something you will encounter in Reykjavik. In the smaller towns and villages along the Ring Road, the roundabouts will mostly be single-lane. You’ll also be glad to know that two lanes is the maximum number for an Icelandic roundabout.

Iceland’s Seasons: When’s the Best Time to Go?

You’ll find the best weather in Iceland in the summer months of June, July and August. With long daylight hours, the ‘midnight sun’, and lush greenery, Iceland is magnificent in the summer. The warmer weather (bye bye snowstorms) and longer days also make driving in Iceland much easier in the summer. Unfortunately, the summer months are also Iceland’s high season for tourism. You’ll encounter higher prices and larger crowds, particularly in the Golden Circle.

The shoulder season in Iceland is in April/May (spring) and late September to November (autumn). Accommodation will be a bit cheaper, and the crowds smaller. The weather can be slightly unpredictable during these transition months, though. I drove the Ring Road in late April/early May and encountered one big snowstorm, but my plans weren’t affected too much otherwise.

The winter months are the best time for seeing the northern lights in Iceland. You can see them from late September to late March. It doesn’t get dark enough to see the northern lights in the summer. But winter in Iceland also brings snowstorms and unpredictable weather, as well as much shorter days (4-5 hours of daylight in December/January). If you are a first-timer to Iceland and have never driven abroad, I would not advise practising your driving skills in an Icelandic snowstorm!

Hiring a Car in Iceland

Hiring a car is the first step to making your Iceland road trip dreams a reality, and one that’s important to get right. As with any trip, there’s no one-size fits all solution for everyone. Here we will cover some key considerations for hiring a car in Iceland.

Requirements for Car Hire in Iceland

You must be at least 20 years old to hire a car in Iceland, and at least 23 years old to hire a 4×4. You also need to have held your driving licence for at least 12 months. Some companies charge an additional fee for drivers under 25.

If you’re a UK driver, you can use your UK driving licence to hire a car in Iceland. There’s no need for additional paperwork such as an International Driving Permit. Other foreign driving licences written in English or the Latin alphabet are also accepted in Iceland.

You will also need a valid credit card when booking.

Book in Advance

Booking your Iceland car hire in advance is essential. You should try to book the car as early as possible. You don’t need to have figured out your exact itinerary yet, as you’ll need the car for almost all of the trip, except perhaps Reykjavik. Iceland is an expensive destination, and booking in advance ensures you get the best price, as well as the type of car that you want.

Manual vs Automatic Car

If you drive a manual car back home and you’ve driven on the right side before, you should hire a manual car. They are slightly cheaper to hire and more readily available in Iceland. You’ll also have more control over a manual car in snowy or icy conditions.

If you’re used to driving a manual car, but only on the left side, then an automatic car might be the one for you. As a UK driver who’d never driven abroad, this is what I chose for my first trip to Iceland. You won’t need to worry about operating the gear stick with the ‘wrong’ hand, so it’s one less unfamiliar thing to think about. You will, however, probably still instinctively reach for the gear stick with your left hand!

Do I need a 4×4 Car in Iceland?

The short answer is no.

A 4×4, or a 4WD (4-wheel drive), is a car where the engine powers all 4 of the wheels. Regular cars are 2WD, where the engine powers 2 wheels (either the front 2 or the back 2).

4×4 cars give you more control when driving, allowing you to cross rugged terrain and drive in more extreme weather. There are certain roads in Iceland which you can only access with a 4×4. These are the F roads, which are unpaved gravel tracks leading to the highlands of Iceland. You won’t need to pass through them on the Ring Road.

Whilst you may encounter some gravel tracks on your trip, the majority of the Ring Road is well-paved road. 4×4 cars are much more expensive to hire, and consume more fuel. If you plan on driving the Ring Road in Iceland, and are not visiting during winter, a 4×4 is not needed. In an already expensive destination, this is one area where you can save money.

Choosing a Rental Company

I recommend using RentalCars.com (owned by Booking.com) to book your car rental in Iceland. There are many reputable rental companies on RentalCars.com, and you can usually find a good deal.

As with many things, be wary of hidden costs in the absolute cheapest offers, which can turn out to be more expensive in the long run. Examples include: restricted mileage, charges for additional drivers, charges for drivers under 25. A rental company with a track record of good customer service is important in case you run into any issues with the car.

Pick Up & Drop-Off

Most rental companies offer pick-up and drop-off from Keflavik airport, the main (and only) international airport in Iceland. This is the easiest and recommended option.

Pick-up and drop-off is possible in Reykjavik, but you should factor in transport costs from the airport (around £20 one way by shuttle bus). If you plan to stay in Reykjavik for a few days afterwards, it might work out cheaper to return the car earlier in Reykjavik. Bear in mind that the drop-off location may be far from the city centre, requiring a bus or a long walk.

Car Insurance in Iceland

Insurance is something that you definitely must have. This is not an area to save money. If your rental car gets damaged in any way during your trip, you do not want to be paying out of your own pocket for repairs. You can usually purchase your insurance from the rental company at the time of booking.

Mileage Restriction

Some companies will offer a restricted mileage option for a slightly lower price. But generally it’s not worth the hassle – unlimited mileage gives you much more flexibility for your trip. Leave yourself some room for spontaneity and/or changes in the weather.

Collision Waiver Damage

Third party liability (if you damage another car/injure someone) is a legal requirement in Iceland, and most rentals include this. 

Collision waiver damage (if your car is damaged in an accident) is generally included as well. However the excess amount will be quite high, meaning you’d still need to pay any repair costs up to that amount (which could be several thousand pounds). Rental companies will usually have a ‘premium’ insurance option where the excess amount is much lower, which I strongly advise you to take.

But collision waiver damage does not cover all possible damage to your car in Iceland…

Gravel Protection

It’s worth getting gravel protection, as small rocks from gravel roads can easily scratch the underside of the car, or even the windscreen if you’re unlucky. I’ve heard of some rental companies in Iceland using a mirror to check underneath the car for gravel damage on return.

Sand and Ash Protection

High winds causing sandstorms are a reasonably common occurrence in Iceland. Common enough for it to have a specific insurance category, anyway. Sandstorms caused by high winds can significantly damage your car by stripping the paint. There is a higher risk of sandstorms in the winter months, particularly along the south coast.

You probably won’t need sand and ash protection in summer, but it’s worth always checking the road conditions before setting out.

Picking Up Your Rental Car

So you’ve landed in Iceland, and are ready to start your adventure! What next?

Where to Go

The bigger rental companies have their service desks inside Keflavik Airport. As you exit into the arrivals hall, turn left and there will be a line of booths along the back wall. Some rental companies are located a bit further out, and may require a short walk. Double-check your booking for the exact location.

What to Bring

The 3 things you need are: your driver’s licence, credit card, and booking confirmation email. Your credit card is charged in the event of any damage to your hire car (that’s not covered by insurance). If you have additional drivers, make sure they also have their driver’s licences.

Useful extras for the trip: spare USB charging cable, car phone holder (for navigation), aux cable (in case the car doesn’t have Bluetooth for your road trip tunes).

Essential Information

Here are a few things to make a note of when picking up your car:

• The car rental company’s helpline (in the event of a breakdown/other issues)
• Whether the car uses petrol or diesel
• Instructions for drop-off: time, location, and fuel level (you usually need to return it with a full tank)

Check the Car

Check your rental car thoroughly before setting off. Make sure you take detailed photos and videos of the whole car (exterior and interior, including fuel level and mileage). The rental agreement document will usually note any areas of pre-existing damage. If you find a discrepancy, report it to the rental company before setting off.

Don’t do what I did and spend half the trip worrying about a huge scratch until you realise it was already there before 🤣.

On the Road in Iceland

Here we will cover some essential information and helpful tips for driving in Iceland.

Rules of the Road in Iceland

Road Safety

Let’s start with some serious “don’ts” for driving in Iceland.

Stick to marked roads and don’t drive off-road. It damages the fragile natural environment and is illegal.

Don’t stop in the middle of the road, even if it’s clear and the view is gorgeous. It’s very dangerous. You should find a designated place to pull over instead.

Don’t drink and drive in Iceland. The laws are very strict in Iceland: the blood alcohol concentration limit is 0.02%, compared with 0.08% in the UK. This means that even having one alcoholic drink puts you over the legal limit for driving.

The same as back home, don’t use your phone whilst driving. It’s illegal and comes with a hefty fine if you are caught.

Headlights

You must keep your headlights on at all times, even in the daytime. This is a legal requirement in Iceland. If a passing car flashes their lights at you, it’s probably because your headlights are off. The ‘auto’ setting is often not enough to keep the lights on during the day.

Speed Limits

The national speed limit is 90 km/h (56 miles per hour), which might be slower than you’re used to. Often you will be driving under the speed limit on the Ring Road due to weather or road conditions.

Here is a summary of the speed limits in Iceland:

• Paved rural roads: 90 km/h (56 mph) – most of the Ring Road
• Gravel roads: 80 km/h (50 mph)
• Tunnels: 70km/h (43 mph)
• Urban areas: 50 km/h (31 mph)

But don’t worry, speed limits are signposted, so you really only need to remember the 90 km/h national speed limit.

There are speed cameras dotted around the Ring Road, mainly in Reykjavik and inside tunnels. Icelandic speed cameras are grey and harder to spot than the bright yellow variety back home. Speeding fines are very steep, and it’s not worth the money or your safety to speed. The speed limit is low for a reason – to keep you safe on the roads in bad weather.

Road Signs

Most road signs are fairly self-explanatory, and similar to those back home. Check out this website for some Iceland-specific road signs.

When a road is closed, you will see a sign saying LOKAÐ.

EINBREIÐ BRÚ is the sign for a one-lane bridge. The sign also has an explanatory diagram of a bridge. For some reason seeing this always makes me want to drink an Irn Bru… You should slow down when approaching single-lane bridges. The etiquette is that whoever reaches the bridge first gets priority to cross.

What to Expect Driving in Iceland

The Ring Road, also known as Route 1, is a circular road stretching 1,322 km around the whole of Iceland. Most of the Ring Road will have 2 lanes, one for each side. The sides of the road are marked with small yellow poles, and usually don’t have safety barriers on the sides.

Some tunnels under mountains will be quite long (several kilometres), and are often single-lane with passing places. Tunnels are also more likely to have speed cameras, so be careful (the speed limit inside tunnels is 70 km/h).

Sheep on the road are a fairly frequent sight in Iceland. If you’ve ever driven around the highlands of Scotland, this might be familiar to you. Be careful and slow down, as their behaviour is often unpredictable. You’ll also need a bit of patience. Sometimes they randomly decide to make camp in the middle of the road, and no amount of honking or noise will budge them. I’ve been stuck in my fair share of sheep traffic jams before. Why not use that time to think about your evening dinner plans, which could involve eating delicious organic Icelandic lamb?

Navigation

Phone reception is reasonable all along the Ring Road, so you can navigate using Google Maps if you have roaming data included in your phone plan. As a general rule of thumb for Google Maps in Iceland, the yellow roads are the main roads and easiest to drive, whilst the white roads will be less well-paved, and may be gravel/dirt tracks.

Signal is mostly good enough to navigate on the Ring Road in Iceland. You can download an area offline in Google Maps or using the Maps.me app.

The Ring Road will be marked on road signs as route number 1. The numbers on road signs following city/town names are the route numbers rather than the distance. 

Weather in Iceland

The weather can be unpredictable in Iceland. Check the road conditions on www.road.is before setting out. The website shows major road closures, and also has live webcams showing road conditions.

You can check the detailed weather forecast on the official Icelandic Met Office website. They also have an app called Vedur.

It can be very windy in Iceland (an understatement). Be careful when opening car doors, and don’t open them wide when it’s very windy. Strong winds have been known to blow car doors off completely! This kind of damage is generally not included in your car rental insurance.

Gas Stations in Iceland

Many gas stations in Iceland are self-service pumps, particularly in more remote areas. Look out for Orkan stations (bright pink), which have the cheapest fuel prices in Iceland.

For self-service pumps you pay by card and pre-select the amount you want to fuel up, e.g. 5000 ISK, 8000 ISK. There’s also an option for ‘full tank’, but avoid this as it temporarily blocks off a large amount of money on your card, and can cause issues with your daily spend limit.

Make sure to use a card that doesn’t charge foreign transaction fees. I recommend Starling (UK only) or Revolut (UK & Europe).

Now that you are equipped with all the important information for driving in Iceland, it’s time to get out there and enjoy the beautiful sights and natural wonders of Iceland. Happy road tripping!

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