Driving in Iceland

Driving in Iceland can be one of the most exciting things you can experience. But Iceland's beautiful and rugged landscape also contains some difficulties and dangers for the driver, some that you may not have come across in other countries.

The general speed limit is 50 km/h in urban areas, 80 km/h on gravel roads in rural areas, and 90 km/h on asphalt roads.

Special warning signs indicate danger ahead, such as sharp bends, but there is generally not a separate sign to reduce speed. Please choose a safe speed according to conditions. Motorists are obliged by law to use headlights at all times day and night. In Iceland all driving off roads or marked tracks is prohibited by law. Passengers in the front and backseats of an automobile are required by law to use safety-belts. Icelandic law forbids any driving under the influence of alcohol.


Motor Vehicle Insurance

A “Green Card” or other proof of third-party insurance is
mandatory for motorists driving their own cars in Iceland, except from the following countries: Austria, Belgium, Croatia, Channel Islands, the Czech Republic, Cyprus, Denmark, Faroe Islands, Finland, France, Germany, Gibraltar, Great Britain, Greece, Hungary, Ireland, Isle of Man, Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, Northern Ireland, Norway, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland, the Vatican. Drivers without a “Green Card” (or equivalent) must buy a separate third-party insurance policy upon arrival.