Driving in Iceland

All European and US licences are valid in Iceland. Visitors from other countries should check with their local motoring organisation.. Use of safty belts for passangers, bot in the front and rear are mandatory. The Headlights must always be on when driving, day or night. The usage of celluar/GSM phones in banned when driving, use hands free equipment.

Most of the Iceland roads are easy to follow and they are all numbered. Highland routes are also signed but some have unbridged rivers and need extra care and should not be attempted alone! A porper Road Guide will keep you on the right track.

You should ensure that you have arranged appropriate vehicle insurance cover prior to travelling. 

Distances between towns can be great, roads narrow and winding, and speed limits low.  Driving takes longer than you think. Particular care needs to be taken on gravel and loose surfaces.  Driving conditions may be hazardous and roads impassable, especially in winter.  Winter tyres are mandatory from October 15^th  to April 15^th each year. 
You should keep dipped headlights on at all times and observe speed limits.  Fines for exceeding the speed limit are high.  
Many highland tracks only open for a short part of the summer.  If you intend to drive to the highland, or remoter regions of the country, you should always check first with the Icelandic Road Administration (Vegagerdin) before departure:  Tel:  +354 522 1000.  Vegagerdin provides up to date information on all roads in the country and will also advise you on forecasted weather conditions and on off-road driving, which is strictly controlled.  You should remain alert to the possibility of rapidly changing weather patterns, including river levels, which can change dramatically even within the same day.   Drink/drive laws are strictly enforced.  
Take care to read the small print on car rental agreements to ensure that you fully understand which damages are and which damages are not covered by the Excess or Damage Waiver.  

For updated information on road conditions and weather please visit this official site of Icelandic Road Administration before going on the road:

http://www.vegagerdin.is/english/road-conditions-and-weather  

Age and driving licence in Iceland

The minimum age for driving a hired car in Iceland is 21 years and 25 years for a jeep.

Road and traffic regulations

International road signs and regulations apply. Many rural roads are gravel and are not suitable for fast driving. The general speed limit is 50 km/h in urban areas; 80 km/h on gravel roads and 90 km/h on hard surfaces. Watch out for animals and blind hills. There are severe penalties for driving under the influence of alcohol and the limit for blood/alcohol is low.

Parking in Reykjavik, Iceland

Finding parking space in Reykjavik, Akureyri or other towns in Iceland is relatively easy. In Reykjavik and Akureyri there are Multi-Storey car Parks and large parking lots that are cheeper than the meters. An hour var park is between 40 and 100 ISK, on average 1 USD.

More detailed information can be found here:

• Traffic signs & other practical driving information (PDF)
• The Iceland Traffic Council (English - Deutch - Espania)
• Car rental In Iceland (List of car rentals in Iceland)
• Driving regulations in Iceland