Car Rental Tips

Top Tips for Driving in Iceland Safely Year-Round

15.08.2025

Planning a self-drive trip in Iceland? Excellent choice. Hiring a car gives you the freedom to chase waterfalls at sunrise, linger at hidden hot springs, and reach those far-flung viewpoints that tours skip. But Iceland’s roads, weather, and light can be very different from what you’re used to. This guide brings together Holdur’s expert advice so you can drive with confidence in every season—whether you pick up your car hire at Keflavik International Airport or rent a car in Reykjavik.

What you’ll learn:

  • The key differences between paved roads, gravel roads, and Highland F-roads
  • Seasonal driving tips for winter, spring, summer, and autumn
  • How to plan around Iceland’s rapidly changing weather and daylight
  • Practical safety habits that make a big difference on Icelandic roads
  • Vehicle, insurance, and equipment choices that suit your route
  • Parking, tolls, and essential resources for real-time road info

If you’re ready to rent a car in Iceland, Holdur (Europcar Iceland) operates the country’s largest fleet, with convenient locations at KEF and in central Reykjavik, plus extensive 4x4 rental in Iceland for Highland travel in summer.

See also: What to know about driving in Iceland.

Iceland main road 1

Why hire a car in Iceland?

  • Freedom and flexibility: Go at your pace, skip crowds, and reach quieter spots.
  • Comfort and convenience: Your own space, your own playlist, and the ability to change plans when the weather does.
  • Year-round access: With the right car and advice, you can enjoy Iceland in any season.

Demand peaks in summer. If you’re planning to rent a car in Reykjavik or book Keflavik International Airport car rental, reserve early.

Know your roads: paved, gravel, and F-roads

Paved roads (Primary roads and Route 1)

  • What they are: Tarmacked roads connecting towns and villages, including the Ring Road (Route 1).
  • Speed limit: 90 km/h in rural areas; 30–50 km/h in towns.
  • Year-round travel: Generally open and well-maintained in all seasons, though winter ice and wind still require caution.

Gravel roads (Secondary roads)

  • What they are: Unpaved connectors to smaller settlements and farms.
  • Speed limit: 80 km/h, but slow right down when transitioning from paved to gravel to avoid skids.
  • Year-round travel: Mostly open, but conditions vary with weather. Keep more distance and pass oncoming vehicles slowly to avoid flying gravel.

F-roads (Highland roads)

  • What they are: Rough, remote mountain routes through Iceland’s Highlands.
  • Vehicle rule: 4x4 rental in Iceland is mandatory; 2WD vehicles are not permitted (and fines apply).
  • Seasonal access: Typically closed in winter and shoulder seasons due to snow and river conditions.
  • River crossings: Depth and flow change often. No insurance covers river-crossing damage—if you wouldn’t cross on foot, do not attempt it in a car.

More F-road information from Holdur here:  A Beginner's Guide to River Crossings in Iceland and Understanding Iceland’s F-Roads: What You Need to Know Before You Go.

4x4 SUV Highland driving in Iceland

Seasonal driving tips in Iceland

Winter (Nov–Mar): short days, snow, and ice

  • Vehicle: Choose a 4x4 SUV if you plan to leave urban areas. Holdur equips all cars with studded winter tyres from 1 Nov to 15 Apr at no extra cost.
  • Daylight: Around the solstice, daylight can be limited to 4–5 hours. Plan routes you can complete in daylight.
  • Wind and ice: Expect strong gusts and black ice. Reduce speed, increase following distance, and avoid sudden steering or braking.
  • Night driving: Best avoided. If you must, drive slowly with headlights on (required by law 24/7).
  • Checklist: Keep warm layers, water, snacks, a torch, and a phone charger in the car.
  • Discover more in-depth insights in our comprehensive guide:  winter driving in Iceland.

Spring (Apr–May): improving conditions, lingering ice in the Highlands

  • Weather: Fewer storms, but snow can persist in high areas. Many F-roads still closed.
  • Driving: Watch for freeze–thaw cycles that create icy patches in mornings and evenings.
  • Wildlife: Sheep and reindeer roam. Slow down and give them space.

Summer (Jun–Aug): the easiest season to drive

  • Roads: Clear of snow; F-roads generally open (check before you go).
  • Midnight sun: Long daylight hours can tempt overlong drives—schedule rest breaks and don’t drive fatigued.
  • Gravel transitions: Slow well before the surface change to maintain traction.

Autumn (Sep–Oct): most changeable season

  • Weather: You may experience summer-like days or early storms in the same week.
  • Daylight: Shortening fast. Plan shorter drives.
  • Prep: Carry layers and check road.is before each leg of your journey.

Estate Rental Car in Iceland

Weather, light, and live updates you’ll actually use

Iceland’s weather can swing from clear to white-out in an hour. Build the habit of checking conditions before every drive.

  • Road conditions and webcams: road.is (Vegagerðin). Use it for closures, surface info, and live cams.
  • Weather forecasts and warnings: en.vedur.is (Icelandic Meteorological Office). Check wind speeds along your route.
  • Safe travel alerts: safetravel.is. Handy for regional advisories.
  • Holdur Travel App: Your on-the-road companion with practical info and links in one place.

Tip: If wind warnings look severe, delay travel. Strong gusts can push vehicles—especially high-sided SUVs—off line or damage doors when opened. Always hold onto doors with both hands in strong winds.

On-the-road safety habits that matter

  • Lights on, always: It’s the law to use headlights 24/7.
  • Seatbelts: Mandatory for all occupants.
  • Speed limits: 90 km/h paved rural; 80 km/h gravel; 30–50 km/h in towns—and they’re limits, not targets.
  • Two-lane roundabouts: Inner lane has right of way. If you’re in the outer lane and intend to exit, yield to vehicles in the inner lane before leaving the roundabout.
  • Pull over to photograph: Never stop in the carriageway. Use designated pull-outs or car parks.
  • Single-lane bridges: The first to arrive has priority, but slow down and make eye contact. When in doubt, yield.
  • Blind summits: Approach cautiously and keep right.
  • Obey closures: “Lokað” means closed. Don’t drive past barriers or closure signs.
  • Stay on roads: Off-road driving is illegal and heavily fined. Use marked tracks and car parks only.

Choosing the right vehicle for your route

  • City and Ring Road only: A standard passenger car is suitable for paved routes and typical summer itineraries.
  • Mixed paved/gravel and shoulder seasons: A compact or mid-size SUV offers more ground clearance and stability in wind.
  • Highlands and F-roads (summer only): Book a qualified 4x4 SUV. Confirm F-road permissions and restrictions with Holdur when booking.
  • Winter touring: Favour 4x4 with studded winter tyres (included seasonally with Holdur) for added grip and stability.

Popular 4x4 choices for Iceland:

  • Dacia Duster: Great value, capable on gravel and many F-roads in season
  • Kia Sorento: Comfortable family SUV with strong winter manners
  • Toyota Land Cruiser: High clearance and excellent on rougher tracks in summer

Family in front of a car

Insurance and protection: what’s covered—and what isn’t

All Holdur rentals include:

  • Collision Damage Waiver (CDW)
  • Personal Accident Insurance
  • Theft Protection

Optional upgrades for peace of mind on Iceland’s unique roads:

  • Super CDW: Reduces excess significantly
  • Gravel Protection: Covers windscreen and glass from stone chips
  • Sand and Ash Damage Waiver: Protection during severe sand/ash events
  • Premium Cover (Zero Excess): Combines key protections and reduces excess to zero

Important exclusions across Iceland:

  • Damage from driving into or across rivers or any waterway is not covered
  • Damage to the undercarriage, gears, or driveline from rough use is excluded
  • 2WD vehicles on F-roads are prohibited and not insured on those routes

EVs and hybrids: smart, easy, and increasingly popular

Iceland’s charging network is growing fast, with most stations around Route 1 and in towns.

  • BEVs (battery electric): Lowest emissions; ideal for shorter road trips with planned charging stops
  • PHEVs and HEVs: Extra flexibility on longer or remote routes
  • Planning: Know your vehicle’s real-world range, carry the right cables, and plan charges ahead—particularly outside the capital area
  • Highlands: EVs are not allowed to drive on F-roads or river crossings; charging is scarce in remote regions

Fuel, charging, and practicalities

  • Fuel stations: Widely available on Route 1; many are self-service with card and smartphone payments
  • Charging: Mix of Tesla Superchargers (Tesla only), high-power fast chargers, and standard chargers. Fast charging can get you close to full in ~30 minutes; standard charging can take several hours
  • Keep topped up: In winter or when heading into sparse areas, refuel or recharge before you need to

Parking without the stress

  • Towns and cities: Park only in marked bays. Check zone rules; many areas in Reykjavik and Akureyri are paid or time-limited
  • Attractions: Use official car parks. Fees vary and help protect fragile landscapes. Many sites now offer EV charging bays
  • Motorhomes and campervans: Overnight only in designated campsites—not lay-bys or roadside areas
  • Payment: Apps, card, and sometimes cash are accepted; signage is clear at most locations

See also: What You Need to Know Parking in Iceland and comprehensive guide to parking in Reykjavík.

Tolls and tunnels: the one to know

  • Vaðlaheiðargöng tunnel (near Akureyri on Route 1): Pay online or via the app within 24 hours of passing through. There’s a free, longer alternative via Víkurskarð if you prefer to avoid the toll.

Toyota Yaris

How to plan a safe route—step by step

1) Outline your must-see stops and daily driving time in daylight

2) Choose the vehicle to match your roads (paved vs F-roads) and season

3) Check weather (en.vedur.is) and roads (road.is) the evening before and morning of travel

4) Identify refuel/charging points and safe pull-outs in advance

5) Share your plan with a travel companion or your accommodation

6) Be ready to change plans—safety first if the forecast turns

Emergency readiness and contacts

  • If you break down: Pull well off the road, switch on hazards, and call for assistance
  • Holdur Road Assistance:
    • Cars: +354 419 2400
    • Campers/motorhomes: +354 840 9853
    • Office hours enquiries: +354 461 6000
    • Out-of-hours emergencies: +354 840 6000
  • National emergency number: 112 (police, fire, ambulance)

Toyota Landcruiser at Sprengisandur

Frequently asked questions

Do I need an international driving permit in Iceland?

Most travellers can drive with their valid domestic licence. You must have held it for at least one year. An IDP is not required for many nationalities, but check your country’s rules before travel.

Is a 4x4 necessary in winter?

It’s strongly recommended if you’ll leave urban areas or drive outside the main highway network. Holdur fits studded winter tyres on all cars from 1 Nov to 15 Apr.

Can I drive the Ring Road in winter?

Yes, it’s usually open and regularly cleared, but sections—especially in the north and east—can be icy or windy. Always check road.is and en.vedur.is and be willing to pause travel.

Are F-roads open year-round?

No. F-roads are typically open only in summer and require a suitable 4x4. River crossings are common; damage from water is never insured.

What’s the speed limit in Iceland?

90 km/h on paved rural roads, 80 km/h on gravel, and 30–50 km/h in urban areas. In two-lane roundabouts, the inner lane has right of way.

Can I turn right on a red light?

No—unless a sign specifically permits it, which is rare.

Where should I hire a car: Reykjavik or Keflavik Airport?

Both are convenient. Keflavik International Airport car rental is ideal if you want to set off straight away. Renting a car in Reykjavik works well if you’re spending a few days in the city first.

What should I pack in the car in winter?

Warm layers, gloves, hats, snacks, water, a torch, a phone charger, and an ice scraper. Keep fuel or charge levels comfortable—don’t run low in remote areas.

Final tips before you set off

  • Match your car to your plan: Standard car for paved routes, 4x4 for Highlands or winter touring
  • Build a check-in routine: Weather (en.vedur.is), roads (road.is), daylight hours, and wind speed
  • Drive defensively: Slower speeds, longer gaps, and smooth steering and braking
  • Respect closures and nature: Stay on marked roads, park in designated areas
  • Book early: Summer fleets and popular 4x4s sell out fast

Ready to go? Book your car hire in Iceland with Holdur at Keflavik International Airport or rent a car in Reykjavik, and set yourself up for a safe, memorable road trip all year round.

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