Last updated: April 2026
Driving in Iceland: What You Need to Know
Before you rent a car in Iceland, here are the essential driving facts:
| Drive Side | Right |
|---|---|
| International Driving Permit | Recommended |
| Speed Limit (Motorway) | 90 km/h |
| Average Fuel Price | ISK 310/L |
| Minimum Rental Age | 20+ |
Sources: Icelandic Road Administration · SafeTravel Iceland · Vedur.is (Weather Service)
💡 Insider Tip
A 4WD is essential for F-roads in the highlands — standard insurance never covers gravel damage or river crossings.
Best Cities for Car Hire in Iceland
Click on any city below to see detailed rental information, driving tips, and provider comparisons.
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Car Hire in Iceland FAQ
Do I need an International Driving Permit in Iceland?
For Iceland, an IDP is recommended. We recommend carrying one as some rental agencies and police may request it, especially outside major tourist areas.
What side of the road do you drive on in Iceland?
In Iceland, you drive on the right side of the road. If you're used to driving on the left, take extra care at roundabouts and junctions.
How old do I need to be to rent a car in Iceland?
The minimum age to rent a car in Iceland is typically 20. Drivers under 25 may face a young driver surcharge of €5–25 per day depending on the provider.
Which car rental comparison site is best for Iceland?
Iceland's specialized rental market demands careful platform choice. You need winter-rated tires (November–April) and potentially a 4WD for highland F-roads — not all platforms clearly show which vehicles qualify. Economybookings and QEEQ have the most Icelandic supplier partnerships, while Localrent has growing coverage.