Hire cars · Iceland

Hiring a Car in Iceland: Licence, F-Roads, Tunnel Toll, Speed Limits and Fines

Checked 26 October 2026 against Icelandic regulations, the police, the Road and Coastal Administration and SafeTravel · skynomad

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Hire cars: all 12 pages

Verdict

A non-EEA licence works for 12 months with an IDP or a translation. The traps are the F-roads, the river crossings, the 24-hour tunnel payment and fines priced in thousands of krónur.

The top speed anywhere is 90 km/h, lights stay on day and night, and driving off the road is against the law. Most F-roads do not open until late June or early July. SafeTravel, the Icelandic travel-safety site, warns that no insurance covers damage from crossing a river.

Iceland's roads have gravel stretches, single-lane bridges and weather that closes them without warning. A hire car here is a different contract from one in Germany or France, and the fines are steep: driving at 101 km/h on a 90 road costs 50,000 kr.

Bring an IDP or a Translation With a Non-EEA Licence

A driving licence issued outside the European Economic Area is valid in Iceland for up to 12 months, provided you meet Iceland's minimum age for the vehicle: 17 for a car. The licence must be in Latin letters, or come with a translation into Icelandic, Danish, Norwegian, Swedish or English. An international driving permit counts as a licence for this rule.

So a licence in another script needs an international driving permit or an English translation. There is no official minimum age for hiring a car; ask the rental company.

Keep to 90 km/h and Leave the Lights On

RoadLimit
Urban areas50 km/h
Gravel roads80 km/h
Highways outside urban areas90 km/h, the highest legal limit in Iceland

Front and rear lights must be on 24 hours a day, all year. Driving without headlights costs 20,000 kr.

At a single-lane bridge, stop for oncoming traffic. SafeTravel gives 50 km/h on these bridges, and the first car to reach the bridge goes first.

Stay Off the F-Roads Until They Open, and Out of the Rivers

The mountain roads, marked with an F, open with the weather and the snow. The Road and Coastal Administration says most often do not open until late June or early July; SafeTravel says they are usually closed from mid-September.

Rivers on F-roads have no bridges. SafeTravel's warning is blunt: "no insurance covers any damage of a vehicle while crossing a river!" Read your rental contract before you drive one, and ask the desk whether the car may go on F-roads at all.

Driving off roads or tracks is against the law, except when the ground is frozen and covered in snow. F-roads and gravel roads count as roads; the ground beside them does not.

Pay the Vaðlaheiðargöng Toll Within 24 Hours

The Vaðlaheiðargöng tunnel charges a toll. A single trip for a car under 3.5 tonnes costs 2,216 kr (from 2 March 2026). You pay online by number plate at veggjald.is or tunnel.is, within 24 hours before or after driving through.

Miss the window and you can no longer pay it yourself. The tunnel company bills the rental company, which charges your card the toll plus its own service fee.

Know the Fines in Krónur

Iceland's fines regulation runs to 500,000 kr. Paying within 30 days takes 25% off. You can also pay on the spot if a police officer gives you a ticket.

OffenceFine
96–100 km/h on a 90 road20,000 kr
101–110 km/h on a 90 road50,000 kr
111–120 km/h on a 90 road80,000 kr
121–130 km/h on a 90 road120,000 kr
Phone without hands-free40,000 kr
Red light50,000 kr
Seat belt not worn, per passenger over 1520,000 kr
Child under 135 cm without a car seat30,000 kr
Headlights off20,000 kr
Studded tyres outside the season, per tyre20,000 kr

The speeds are the counted speed after the police allowance. Children under 150 cm must not sit in front of an active airbag.

Alcohol: under the 2019 Traffic Act, a driver with 0.2‰ blood alcohol is presumed unable to drive safely. Penalties start at 0.5‰ (0.25 mg/l of breath): a first offence at 0.50–0.60‰ costs 90,000 kr and a two-month licence suspension. I wouldn't drink at all before driving.

Expect Studs in Winter, and Ask for Them

Studded tyres and chains are banned from 15 April to 31 October, unless conditions need them. On snow or ice the car must have chains or coarse-pattern winter tyres. A car with studs must have them on all wheels. The legal minimum tread is 1.6 mm; no separate winter minimum is published.

Check the Road Before You Leave

Roads can close without warning in a storm. Check umferdin.is for live conditions, or call the 1777 line (+354 522 1100), open every day 06:30–22:00. The emergency number is 112.

Settle Damage Disputes as a Private Matter

The Icelandic Tourist Board says disputes between tourists and service providers, rental companies included, are private civil matters it cannot settle. There is no official rule on gravel, sand or ash damage: it is whatever your contract says. Photograph the car all round at pick-up, and read the damage clauses before you sign: excess and damage cover.

Next on the road

Sources

  1. Regulation 830/2011 on driving licences, articles 6 and 29: non-EEA licences valid up to 12 months, Latin letters or a translation, international driving permit, minimum age 17
  2. Regulation 822/2004 on vehicle equipment: studded tyres and chains 15 April – 31 October, winter tyres or chains on snow and ice, studs on all wheels, 1.6 mm tread
  3. Regulation 1240/2019 on traffic fines: up to 500,000 kr, 25% off within 30 days, speeding table, headlights, alcohol
  4. island.is — Traffic fine calculator (police): studded tyres, phone, red light, seat belts
  5. island.is — Pay a traffic fine: on the spot
  6. island.is — Alcohol and drug use while driving: 0.5‰ blood or 0.25 mg/l breath penalty threshold
  7. Government of Iceland — Main changes in the 2019 Traffic Act: presumed-unfit limit lowered from 0.5‰ to 0.2‰, penalties from 0.5‰
  8. island.is — Children in cars: under 135 cm in a car seat, airbag rule, ISK 30,000 fine
  9. Icelandic Road and Coastal Administration — Driving safely in Iceland: 50, 80 and 90 km/h, F-roads late June or early July, storm closures
  10. Icelandic Road and Coastal Administration — Mountain roads: opening depends on weather and snowpack
  11. Umferdin.is — Road conditions and the 1777 information line
  12. SafeTravel — Winter driving: lights on 24/7
  13. SafeTravel — Top 12 driving tips: single-lane bridges, off-road driving forbidden
  14. SafeTravel — Highland driving: F-roads closed mid-September to June/July, no insurance for river crossings
  15. Environment Agency of Iceland — Access rights: driving off roads or tracks is against the law
  16. Veggjald — Vaðlaheiðargöng prices and payment: 2,216 kr single trip, 24 hours before or after
  17. Veggjald — Rental cars: unpaid tolls charged by the rental company with its service fee
  18. Icelandic Tourist Board — Suggestions and complaints: disputes with service providers are private matters

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