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Driving Safely in Iceland: What You Need to Know Before Renting a Car

Summary

  • You must be at least 21 years old and, in some cases, 25 in order to hire a car in Iceland. You also need a major credit card.

  • There are three different kinds of roads in Iceland: ring roads, highways, and mountain roads. Highways are smaller, 60 kph-capable roadways that connect cities and villages, whereas mountain roads are unpaved, twisting, and narrow with a 50 kph speed restriction. Ring roads are well-maintained important thoroughfares that round the nation and connect key cities.

  • You must follow the posted speed limits and passing regulations, as well as drive on the correct side of the road.

  • Pay attention to traffic signs, particularly warning and speed restriction signs.

  • To drive safely, practice defensive driving, plan your route in advance, drive cautiously, pack a map, and never drink and drive because it is against the law and subject to harsh punishments.

An Overview of Driving in Iceland

If you're considering visiting Iceland, you've definitely heard about its stunning scenery and dramatic terrain. You will want a rental automobile if you want to fully comprehend the nation's untamed beauty. Driving in Iceland may be a memorable experience, but you must be ready and aware of the potential difficulties.

Image of a road in Iceland under wet conditions
Rainy conditions in Iceland

Everything you need to know before hiring a car in Iceland will be covered in this article, from the top car rental businesses to the traffic laws. For more information about renting a car and driving safely in Iceland, keep reading.

What You Should Know Before Renting a Car in Iceland

There are a few things you should know before hitting the road in Iceland.

To begin, it is critical to understand the various types of roads in Iceland.

Image of a highway in Reykjavik, Iceland with cars driving.
Typical highway road in Reykjavik, Iceland.

Ring roads, highways, and mountain roads are the three main types of roads:

  1. Ring Roads are important thoroughfares that connect and circumnavigate the nation's major cities. The average speed limits on these well-maintained highways are 50 to 90 km/h.
  2. Highways are secondary highways that link towns and cities. You should drive carefully because these roads are smaller and have more turns. Highways normally have a 60 km/h speed restriction.
  3. Mountain roads are the most challenging to navigate. These routes are typically twisting, narrow, and dirt. You should drive carefully because the 50 km/h speed restriction is the norm.

What do you need?

Here are some essentials you need to have when renting a car in Iceland.

You need:

  • A major credit card (for insurance purposes when applicable)
  • A current driver's license (some ask that you have held your license for at least 12 months)
  • You must be at least 18 years old to hire an automobile, while some firms may have a 25-year-old minimum age requirement.

Insurance

Finally, it's important to understand how insurance works.

The cost of insurance is typically included in the rental price of a car, but it's crucial to comprehend the coverage and what to do in the event of an accident.

Lets just start by stating that some rentals have different terms than others, different coverages and different ways of dealing with the coverage amount. Make sure you read terms and conditions before you agree to anything. Not that anyone wants to take advantage, it's just about knowing what you are agreeing to so there are no surprises.

Here are some things to consider:

  • Check the coverage of the CDW (Collision Damage Waiver). Most of the time the CDW covers everything except for water damages, tires, undercarriage, gravel damage and sand & ash. Again, this might vary between rental suppliers.
  • Check the self risk amount. Most car rental suppliers have a self-risk amount, which then would be the maximum amount you would be liable for when paying damages.
  • Check if the rental has insurance liability where they require to hold funds from 500 EUR to 4000 EUR incase of any damages to the vehicle. This can be avoided by accepting an extra insurance package that takes care of the self-risk.

Do I need Sand and Ash protection in Iceland ?

Sand and ash provides you with coverage against winds that hurl sand and ash at your rental vehicle at high speeds. February, March and April are usually known as the Sand & Ash season as the grass is not yet high enough to keep the sand and ash in its place.

If you are traveling to Iceland in those months, we recommend accepting the insurance. This is usually not included in the regular CDW and a special waiver is needed.

Image of a 4x4 Iceland Rental Car in Iceland on a gravel road.
F-Road in Iceland

Gravel protection

If you are just driving the regular highway, mostly inside the capital of Iceland (Reykjavik) and won't venture into the wilderness then you might consider not taking the extra insurance.

If you are renting a 4x4 and are on your way to drive on F-Roads or unpaved roads, you might encounter rocks that leave a dent on your vehicle. These rocks might be from passing traffic or just bounces at you while passing a ridge. Also, while driving the Ring Road you will encounter some unpaved gravel roads so this insurance is a must for those seeking the Ring Road adventure.

Mostly, we recommend taking the gravel protection insurance, even in winter time. There is a lot of loose gravel in Iceland that can leave damages and if you are not covered, these damages will be paid out of your pocket.

Rules of the Road in Iceland

Before driving in Iceland, you should be aware of the following road rules.

  • To begin, you must understand that you must drive on the right side of the road. This may be different from what you're used to, so exercise caution when driving.

  • Highways typically have a speed limit of 60 km/h, while ring roads typically have a speed limit of 50-90 km/h. It is critical to drive safely and within the speed limit.

  • Finally, it is good to understand the passing laws. When passing another vehicle look for the right time and always use your turn signals when changing lanes.

Road Signs You’ll Encounter in Iceland

There are several types of traffic signs in Iceland. With the aid of these signs, you may drive safely and understand the rules of the road.

Image of a road sign in Iceland where is a river crossing ahead
A road sign for river crossing in Iceland

  • The speed limit sign is the most prevalent type of traffic sign. This sign indicates the posted speed limit for the route you are currently on. It's crucial to drive sensibly and within the speed limit.

  • There will be other clues. You will be made aware of any possible risks by these indicators, such as sharp turns or inclining hills. It is crucial to pay attention to these warning signs and be prepared for what is ahead.

  • Finally, you'll see traffic signs that specify when you should yield. These signs will let you know when it's time to stop and let other drivers pass. It's crucial to heed these warnings in order to stay secure.

There are plenty more of road signs in Iceland and here is a great site to have a gander and learn a bit about them before you arrive.

Tips for Driving Safely in Iceland

Driving in Iceland may be a great experience, but it is very important to drive safely.

Iceland driving safety advice is provided below:

  • Continue to drive defensively. It's crucial to pay attention to your surroundings and plan ahead for other vehicles.
  • Never drink and drive In Iceland, there are harsh consequences for doing so.
  • Decide your path in advance. Planning your route in advance can ensure that you are aware of your destination and what to anticipate.
  • Go gradually. Take your time and drive safely because the roads in Iceland may be congested and twisty.Bring a map with you, please. You can keep on course and prevent getting lost by using a map.
  • Don't forget to bring a spare tire. It is critical to bring a spare tire in case of a flat, so make sure you have one included in your rental.
  • Don't go off-road. Off-road driving is illegal in Iceland, and if you're caught, you'll face a hefty fine.

Things to Avoid to Stay Safe in Iceland

If you want to stay safe on Iceland's roads, you should not do a few things in addition to driving carefully and adhering to the law.

  • To start, it's better to refrain from driving long distance at night, especially if you are not an experienced driver. The roads might be challenging to drive on in the dark, and you can run across animals or other obstructions.

  • Avoiding driving in bad weather is essential as well. The roads can be ice or treacherous in the winter, and they can be muddy and challenging to drive on in the summer. Follow instructions from SafeTravel.

  • Finally, avoiding distractions is crucial. Keep your focus on the road and steer clear of using your phone or other gadgets while driving since doing so is risky.

Driving Etiquette in Iceland

It's essential to know Icelandic driving etiquette in addition to obeying the law of the road.

  • Use your turn signals while changing lanes, to start with. This will keep you safe on the road by drawing attention from other motorists to your activities.

  • Additionally, it's important to be mindful of the posted speed limit. Driving safely and adhering to the speed limit is essential because the speed limit in Iceland is often lower than in other nations.

  • The right of way must also be understood, to sum up. It is essential to drive courteously and to give way to other drivers.

Image of a turn signal inside a car.
FYI - A turn signal switch

What to Bring When Renting a Car in Iceland

To guarantee a secure and enjoyable journey, there are a few things you should pack when renting a car in Iceland.

  • Bring a major credit card and a valid driver's license to get started. Bring these documents with you while renting a car since you will need to provide them.

  • A map or GPS gadget is also a smart idea to have on hand. You can stay on course and prevent getting lost by using a map or GPS gadget.

  • Warm clothing is also a must as good weather can become bad or crazy weather real fast in Iceland.

The Best Iceland Car Rental Companies

If you’re looking for a reliable car rental company in Iceland, there are a few options to choose from.

CarsIceland.is is a great option for car rental. We offer competitive rates and a wide selection of vehicles.

  • We offer 24-hour roadside assistance and a variety of insurance options.
  • You will not be charged a cancellation fee if the change occurs before 48 hours of your car hire pickup.
  • We offer easy access to your booking so you can make the necessary changes yourself without any added costs.
  • We take good care of our customers and we are proud of our customer service team.
  • Our booking system is simple and easy to use
  • Found a better price elsewhere? Let us know and we will match it!

Don't believe us? Have a look for yourself!

Conclusion

Driving a rental car in Iceland may be a fantastic experience, but you must be ready and aware of the traffic laws.

Everything you need to know before renting a car in Iceland has been covered in this article, from knowing the various road types to packing the required paperwork.

To guarantee a memorable and safe journey, hire a car from CarsIceland.is and use the advice in this article if you're planning a vacation to Iceland.


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