Iceland's main road is Route 1, known as the Ring Road, and it circles the whole country. The Ring Road is more than 1,300 km long. Route 1 is paved for its full length, so a standard 2WD car is generally sufficient for it in summer. F-roads are unpaved highland mountain tracks marked with an F prefix, such as F35 and F26.
What kind of car you need and when a 4x4 is required
F-roads are rough highland roads with unbridged rivers, and Safetravel advises that not all four-wheel-drive vehicles are suitable for them; some need a larger or modified vehicle. F-roads are open only in summer, typically from around June to September, depending on conditions. Driving a 2WD on an F-road can void your rental insurance. Use the Road Conditions to help plan your trip.
Understanding the main rental insurance options
Third Party Liability insurance is a legal requirement in Iceland and is normally included in the rental for free. Collision Damage Waiver, abbreviated CDW, reduces the amount the renter is liable to pay for damage to the car. Super Collision Damage Waiver, sometimes called SCDW, lowers the deductible or excess further than standard CDW. Gravel Protection covers gravel and stone damage to the windshield, headlights, bonnet and front fender of the car. Sand and Ash Protection covers damage from volcanic ash and sandstorms and is fairly unique to Iceland. Theft protection covers loss of the vehicle from theft. The deductible, also called the excess, is the amount the renter still has to pay toward damage even with insurance, and buying more cover lowers it.
Driving rules and road types every renter should know
The general speed limit in urban areas is 50 km/h. The speed limit on gravel roads outside towns is 80 km/h. The speed limit on paved rural roads is 90 km/h. Dipped headlights must be switched on at all times of day, in all light conditions, all year round. Seatbelts are mandatory for all passengers, in both front and back seats. Vehicles in Iceland drive on the right-hand side of the road. Off-road driving is illegal everywhere in Iceland and carries large fines. The blood alcohol limit for driving in Iceland is very low at 0.2 permille, so drivers should not drink any alcohol before driving. Using a handheld phone while driving is prohibited, and calls are only allowed with a hands-free system. Iceland has many single-lane bridges where one car crosses at a time, and many roads change from paved to gravel surfaces.
Age, license and pickup requirements to rent a car
The minimum age to rent a standard car in Iceland is generally 20. The minimum age to rent a 4x4 or larger vehicle is generally 23. Drivers usually must have held their license for at least 1 year before renting. Most rentals are picked up at Keflavik International Airport or in Reykjavik.
Comparing self-drive tours and rental-inclusive packages
You can compare Iceland car rental partners to see current rates and terms, or compare Reykjavik tours if a guided option suits the trip better.
