The Driving Age in Iceland - What Is the Legal Driving Age in Iceland?

By Johanna Sigurðardóttir Verified Expert

Iceland boasts one of the highest car ownership rates in Europe, with 741 vehicles per 1,000 inhabitants. This stat highlights just how essential driving is in the Land of Fire and Ice. But how old do you have to be to rent a car in Iceland?

The answer isn't as straightforward as you might think. The minimum age varies depending on the rental company and the type of vehicle, with different rules for compact cars and larger SUVs. In this guide, we'll cover legal driving ages, rental requirements, license rules for tourists, key driving laws, and tips for safe travels.

How Old Do You Need To Be To Rent a Car in Iceland

You must be at least 20 years old to rent a car in Iceland, regardless of your home country's driving laws. While Iceland's driving age for residents is 17, rental companies enforce stricter policies for tourists. No agency will rent a car to anyone under 20, and larger vehicles come with even higher age limits.

Here's how it breaks down:

• 20 years old for standard cars like compact models and sedans (Hyundai i20, Toyota Corolla)
• 23 to 25 years old for 4x4s, large SUVs, and luxury vehicles (Toyota Land Cruiser, Land Rover Defender)
• 23+ years for campervans and minibuses

Many rental agencies charge a daily young driver fee of $10–30 for renters under 25. However, we at Reykjavík Cars do not charge a young driver fee, making it a budget-friendly option for younger travelers. Some companies also allow 20-year-olds to rent all vehicle types, including 4x4s. 

Comparison of Some Car Rental Companies in Iceland

Car Rental Requirements in Iceland

Apart from the legal driving age in Iceland and the young driver policy, there are a few other requirements you must meet to rent a car in Iceland. Here's a list of what you'll need:

• A Valid Driver's License: You must present a valid driver's license issued in your home country. If your license is not in English or doesn't use the Latin alphabet, you'll also need an International Driving Permit (IDP). Note that the license must have been valid for at least one year prior to your visit.
• A Credit Card: Most car rental companies in Iceland require a credit card in the renter's name to cover the vehicle deposit and potential damages. Some companies may allow debit cards and a security deposit, but it's best to check ahead of time.
• Passport or Photo Identification: A passport or government-issued photo ID will be required to confirm your identity when picking up the rental vehicle.
• Proof of Age: As mentioned earlier, rental companies in Iceland enforce strict age limits. Be prepared to show proof of your age with official identification.
• Insurance Requirements: Basic insurance is usually included, such as CDW, in your rental agreement, but additional coverage for gravel protection, sand and ash damage, or theft protection may be necessary, especially for more rugged areas.

Driving with a UK License

If you're from the UK, your license is fully valid in Iceland without an IDP. Just make sure it's laminated and has been valid for at least 12 months.

Driving with a US License

US travelers can use their licenses without an IDP since they are in English. However, you must carry the original license, not a temporary paper copy. As long as it's valid, you're good to go.

Icelandic Driving Laws and Car Rental Rules

Before you hire a car in Iceland, it's important to know the country's driving laws. Iceland takes road safety seriously, and breaking the rules can lead to hefty fines. From strict speed limits to always keeping your headlights on, here's what you need to know before hitting the road.

Speed Limits

Iceland enforces strict speed limits to keep drivers safe:

• Urban areas: 30–50 km/h (19–31 mph)
• Rural paved roads: 90 km/h (56 mph)
• Gravel roads: 80 km/h (50 mph)

Speeding fines aren't cheap. Even a minor infraction can cost $100, while more serious offenses go up to $400.

Right-of-Way Rules

• Always drive on the right side of the road and overtake on the left.
• At roundabouts, vehicles already inside have the right of way.
• Animals and livestock always have the right of way, so slow down if you see any on the road.
• On single-lane bridges, the first vehicle to arrive typically has the right of way.

Lights and Visibility

Your headlights must be on at all times, no matter the weather or time of day. This law is strictly enforced to improve visibility, especially in unpredictable conditions.

Seatbelt Laws

Everyone in the vehicle must wear a seatbelt, both in the front and back seats. Children under 12 years old or shorter than 150 cm must use a proper child restraint.

Additional Key Regulations

• Using a mobile phone while driving is illegal unless you have a hands-free system.
• The blood alcohol limit is 0.05%, and penalties for drunk driving are severe.
• Off-road driving is strictly prohibited to protect Iceland's fragile landscapes.
• Dipped headlights must be used at all times, even in broad daylight.

Safe Driving Tips for Tourists

If you plan on driving in Iceland, get ready for an experience unlike anywhere else. The country's dramatic landscapes come with unique road conditions and unpredictable weather. One minute, the sun is shining, and the next, you're facing strong winds or sudden snowfall. Staying prepared is key, especially if you're picking up a rental car and heading out on your own.

Familiarize Yourself with Local Conditions

Before you hit the road, make sure you know what to expect:

• Iceland's road signs and traffic rules might differ from what you're used to.
• Many roads are gravel, and you'll encounter single-lane bridges and steep mountain passes.
• Weather can change rapidly, affecting visibility and road conditions.

Check Weather and Road Conditions Regularly

Before setting out, always check these sources:

• Road.is or SafeTravel.is for road updates.
• Vedur.is for weather forecasts.
• Pay attention to wind speeds, as strong gusts can make driving difficult, especially for smaller vehicles.

Emergency Preparedness

Iceland's wilderness is stunning, but it can also be unforgiving. Stay prepared by:

• Saving 112, Iceland's emergency number, in your phone.
• Renting a 4x4 vehicle if traveling in winter or exploring highland areas.
• Pack warm clothing and essentials since the weather can change without warning.

What You Need to Know About Car Rental Insurance in Iceland

Before you hit the road, let's talk about insurance. Iceland's landscapes are incredible, but driving here comes with unique challenges. Understanding your coverage options can save you from unexpected costs. If you meet Iceland's rental car age requirement, you'll also need to decide which insurance is right for you.

Mandatory Insurance

Every rental includes:

• Collision Damage Waiver (CDW) – Limits your financial responsibility for vehicle damage, though the deductible can be high.
• Third-Party Liability (TPL) – Covers damages to other people and their property.

Optional Coverages Worth Considering

Basic insurance won't cover everything. These add-ons can help:

• Super CDW (SCDW): Lowers the deductible, reducing out-of-pocket costs if something happens.
• Gravel Protection (GP): A must-have, as loose stones can easily damage windshields and headlights.
• Sand and Ash Protection (SAAP): Protects against costly damage from Iceland's infamous sand and ash storms.
• Theft Protection (TP): This covers vehicle theft, though car theft is rare in Iceland.
• Extra Coverage: Some companies offer undercarriage, tire, window, and door protection or bundle everything into a full coverage package, like our Premium or Platinum insurance.

At Reykjavík Cars, we highly recommend the Platinum insurance extra. With zero liability and comprehensive coverage, you can explore any route, vehicle, or adventure without a worry in the world. Enjoy a truly hassle-free trip and focus on making unforgettable memories.

Always read the fine print in your rental agreement and consider Iceland's unpredictable road conditions when choosing insurance. Paying extra upfront can save you a lot of stress later.

FAQs

Can you drive in Iceland with a US driver's license?

Yes, as long as it's written in Latin characters and has an issue/expiry date.

What is the extra fee for young drivers in Iceland?

Rental companies may charge $10-$30 per day if you're under 25.

Are there speed cameras in Iceland?

Yes, there are speed cameras throughout Iceland, and they can be found in both urban and rural areas.

How Old Do You Have to Be to Rent a Car in Iceland? What to Remember

Renting a car in Iceland comes with clear rules, and age is a big factor. Tourists must be at least 20 years old for standard cars, while larger vehicles like 4x4s and campervans require drivers to be 23 to 25 years old. Some companies may have exceptions, but it is always best to check the terms and conditions before booking.

Choosing the right insurance and understanding local driving laws will make your trip safer and stress-free. If you have any questions or need help with your rental, reach out to us, and we will be happy to assist.