Trip Suggested car Why
Route 1 in summer Small or compact car Paved main road; some stretches and side roads are gravel
Winter on the South Coast Car with good tyres, or 4x4 Snow and ice; check road.is
F-roads, interior 4x4 required Fords and tracks, open for a short part of the summer

Sample prices: Discover Cars Iceland page, search for 8 to 16 November 2026, driver aged 30 to 65; they change with dates and season.

Insurance to compare

  • Collision (CDW): often included with a high excess.
  • Gravel (GP): windscreen and paint on gravel roads.
  • Sand and ash (SAAP): the UK government warns that strong winds throw sand or ash up and damage paintwork, and that this is not covered by standard insurance; British tourists have paid large repair bills (gov.uk, 6 November 2026).
  • Theft: compare the excess.
  • River crossings: water damage is generally not covered; the UK government advises crossing rivers at 5 to 10 km/h, with levels that can change within a day.

Driving rules

Drive on the right; keep dipped headlights on year-round; speed limits are generally 90 km/h on paved roads, 80 km/h on gravel and 50 km/h in towns. Some bridges are single-lane with passing places. Off-road driving is strictly controlled and carries heavy fines. Fill up before long stretches: some stations are unmanned and need a card with a PIN. To pick up in town, see car rental in Reykjavik.

Licence and age

The UK government says a UK photocard licence can be used for up to 30 days, and that hire companies often ask for more: a year of driving experience, a higher minimum age, sometimes an international driving permit. For a licence from another country, the rental company states the rule when you book.

See also getting around Iceland, the itinerary and the budget.

FAQ

Do I need a 4x4 in Iceland?

Only for F-roads and some winter conditions. For Route 1 in summer, a small car is enough.

Which insurance should I take?

Compare CDW, gravel, sand and ash, and theft; read the exclusions.

Can I drive with a foreign licence?

A UK photocard licence is valid for up to 30 days according to gov.uk; for other licences the rental company states its own requirements when you book.

The Iceland Authority editorial team, 6 November 2026.