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Driving in Iceland
The rules of the road as our desk recorded them, native unit first.
Driving side
Right
Speed limits
50 / 80 / 90 km/h · 31 / 50 / 56 mph
urban / rural / motorway
International permit (IDP)
Not required
EU, UK and US licences are valid for visits.
Blood alcohol limit
0.02% - effectively zero tolerance
Tolls
Only the Vaðlaheiði tunnel near Akureyri, paid online after passing through.
Headlights
Mandatory at all times, day and night, year-round.
Child seats
Mandatory under 135 cm; rentals stock them.
Off-road driving is illegal and carries heavy fines - the moss takes decades to recover. Rental insurance in Iceland has specific exclusions worth reading: sand and ash damage, water crossings, and wind damage to doors are all commonly excluded, and all three happen. Gravel roads and single-lane bridges need genuine care.