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Car hire driving information Iceland

Driving Overview | Insurance Information | Rental Restrictions

Driving Overview

General Information
Officially there are no motorways in Iceland. But there are roads with good quality that goes around this island. Travelling to the centre of the island is not recommended if you do not have a 4 wheel drive. The roads are often unpaved and of lower standard. Without a rental car in Island you will not be able to see much. Public transportation is not well developed in the rural areas. 

To rent a car in Iceland, you must be at least 18 years old (age can vary by car category) and have held your driver's license for at least 1 year. For drivers under the age of 25 an additional young driver surcharge may apply locally. Seatbelts are mandatory.

Speed Limits
Speed limits in Iceland are:

  • Town and city: 50 km/h 
  • Open Roads: 80 km/h
  • Motorways: 90 km/h

Traffic restrictions
Traffic travels on the right. Please be aware that it is prohibited to drive off road in Iceland. If you see some animals on the road always give right of way.

In the Reykjavik area, petrol stations are open usually from 07:30 to 20:00. Some stations are open until 23:00. Outside of the city, petrol stations opening hours vary, but most stations are open until 22:00.

There are no toll highways in Iceland. There is a toll for using the Hvalfjudor Tunnel. The fee is approx. of ISK 1,000.

In the city centre of Reykjavik you can park for 2 hours using a meter. You will also find a few parking garages in the capital, but not in other parts of the island.

Insurance Information

General Information
Car rental insurance varies widely, so please study the information below prior to making your booking. Regulations of the country where you rent the car will be in effect for the duration of your rental.

All our car hire rates include Collision Damage coverage and Theft Protection for the vehicle. Rental limits potential vehicle damage or loss liability to an excess, which is stated on your voucher. If you plan to take advantage of coverage offered by your credit card, please contact your card issuer directly for details. Specific insurance information for your reservation will be printed on your confirmation voucher.

Rental Restrictions

General Information
Since it is not allowed to take your rental car on a ferry travel off the island is not possible.

Domestic one-way rentals are available between certain locations, additional fees may apply. International one ways are not allowed. 

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