Driving in Iceland is the best way to see the country, but the roads come with their own rules and hazards that surprise first-time visitors. Gravel, single-lane bridges, sudden wind and free-roaming sheep are all part of the experience. This guide from Aurora Car Rental Iceland covers everything a first-time renter needs to know to stay safe, avoid fines and enjoy the drive.
Licence and age requirements
You can drive in Iceland on a valid driving licence from your home country, provided it is written in the Latin alphabet (otherwise bring an International Driving Permit). The licence must have been held for at least one year. With Aurora, the minimum age is 20 for most cars and 23 for larger vehicles and campers. There is no upper age limit. Every driver listed on the rental is covered by the included insurance — additional drivers can be added as an extra.
Speed limits and the golden rules
Speed limits are strictly enforced with cameras, and fines are steep. Memorise these three numbers.
| Road type | Speed limit |
|---|---|
| Built-up areas / towns | 50 km/h |
| Gravel roads (rural) | 80 km/h |
| Paved rural roads (Ring Road) | 90 km/h |
Beyond speed, three rules apply everywhere in Iceland: headlights must be on 24/7, seatbelts are mandatory for all passengers, and any alcohol in your blood while driving is illegal (the limit is effectively zero). Using a handheld phone while driving is also prohibited.
Off-road driving is illegal
This is the rule visitors most often break by accident. Driving anywhere off marked roads and tracks — onto moss, sand, riverbeds or open highland — is illegal in Iceland and carries fines of hundreds of thousands of krónur. Iceland's vegetation is fragile and tyre scars can last decades. Always stay on established roads, and never create your own path for a photo. Marked parking areas exist at every major sight for exactly this reason.
Icelandic road hazards to know
Even on good roads, a few uniquely Icelandic features catch newcomers off guard.
- Single-lane bridges (einbreið brú): Common on the Ring Road. The car closest to the bridge has priority — slow down and be ready to wait.
- Blind rises (blindhæð): Crest hills where you cannot see oncoming traffic. Keep right and reduce speed.
- Gravel transitions (malbik endar): Where pavement turns to gravel, slow right down — braking hard on loose gravel causes skids and rollovers.
- Free-roaming sheep: Sheep graze near and on rural roads all summer and will dart across unpredictably. Slow down when you see them.
- Wind: Gusts can top 30 m/s. Hold doors tightly, and in extreme wind, stop and wait it out. Wind damage to open doors is usually not covered by insurance.
F-roads and the highlands
Roads with an "F" prefix (F35, F208 and so on) lead into the interior highlands and are only legal in a 4x4 vehicle. They are unpaved, rough, and many require crossing unbridged rivers, which is never covered by standard insurance. F-roads open only in summer (typically late June to September) and close entirely in winter. If your plans include Landmannalaugar or Þórsmörk, you need a proper 4x4 such as the Toyota Hilux or a rugged Duster — check our fleet for suitable vehicles.
Weather and road conditions
Icelandic weather changes in minutes and dictates everything about driving here. Before any trip, check two websites: vedur.is for weather and road.is for live road conditions and closures. In winter, roads can ice over or close with little warning, and daylight is short. Carry warm clothing, keep the fuel tank at least half full, and never rely on your phone alone for navigation in remote areas.
Fuel, tolls and parking
Most fuel stations are self-service and require a card with a PIN, so make sure your card works at automated pumps. Iceland has one road toll — the Vaðlaheiði tunnel in the north — which is paid online, not at a booth. Parking at popular sights often carries a small fee paid at a machine or app. With an Aurora rental, kilometres are unlimited and there is no deposit, so you only budget for fuel and any optional extras.
What is included with your Aurora rental
Every Aurora Car Rental Iceland vehicle comes with insurance, unlimited kilometres, a free airport-area transfer, GPS and WiFi, and no deposit. You pay cash (ISK or EUR) at pickup, which keeps things simple. Optional extras like tyre insurance, child seats (required by law for children under 135 cm), additional drivers and camping gear can be added to any booking on the booking page. Note that all vehicles are unavailable 10–15 August 2026.
Frequently asked questions
Do I need an international driving permit for Iceland?
If your licence is written in the Latin alphabet and has been held for at least a year, you can drive in Iceland without an IDP. If it uses another alphabet, bring an International Driving Permit alongside your national licence.
What is the speed limit in Iceland?
50 km/h in built-up areas, 80 km/h on gravel roads and 90 km/h on paved rural roads such as the Ring Road. Speed cameras are common and fines are high.
Is off-road driving allowed in Iceland?
No. Off-road driving is illegal everywhere in Iceland to protect fragile nature, and fines run into hundreds of thousands of krónur. Always stay on marked roads and use designated parking areas.
Do I need a 4x4 to drive F-roads?
Yes. F-roads into the highlands are legally restricted to 4x4 vehicles. They are unpaved, open only in summer, and often involve river crossings that standard insurance does not cover.
Are children required to use car seats in Iceland?
Yes. By Icelandic law any child under 135 cm must use an appropriate child seat. Aurora offers seats for ages 0–3 and 4–12 as an optional extra on every booking.
Drive Iceland with confidence
Book a well-maintained 4x4 with Aurora Car Rental Iceland — insurance included, no deposit, free airport-area transfer.
Aurora Car Rental Iceland — Suðurbraut 890, 262 Keflavík | WhatsApp: +48 729 854 633 | carrentalaurora@gmail.com