Iceland Speeding Tickets: Fines, Cameras and Rental Car Rules

By Johanna Georgsdóttir Verified Expert

If there’s one thing that can really derail your road trip, it’s Iceland speeding tickets. To say that Icelanders take our road rules seriously would be an understatement. And if we say you might have to remortgage your house after receiving one, we’re not exaggerating.

So to ensure you’re on the right side of the law and your dream holiday doesn’t turn into a nightmare, you need to know everything about the road rules and speeding limits here in Iceland, because “I didn’t know” or “I didn’t see it” is not going to cut it as an excuse here.

Speed Limits in Iceland You Must Know Before Driving

As we already mentioned, “I didn’t know” doesn’t make for a good defense in Iceland, and although you’ll usually find clearly marked speed signs along the road, it’s always good to play offense rather than defense. Here’s what you need to know about the speed limits in Iceland:

Speed Limits in Towns and Cities

The speed limit in urban areas such as towns and cities generally stands at 50 km/h (+/-31 mph). But this tends to decrease even further once you enter residential areas or find yourself near a school.

Then the speed limit usually drops to 30 km/h (19 mph). Pro tip: Many people get their first speeding fine as they enter the capital city via the airport road, where speed limits suddenly decrease. So, ensure that you’re always mindful of these town and city speed limits.

Speed Limits on Gravel Roads

Most of our gravel roads can be found in our countryside or as roads leading to local sights and attractions. The speed limit on gravel roads is 80 km/h (50 mph), but here you’ll also be required to use your own discretion based on the state of the road.

You’re not going to be flooring it as much as you can across an extraordinarily rough and uneven gravel road or one that has more loose stones than confetti at a wedding. Otherwise, you might just exchange that speeding fine for an insurance excess.

Speed Limits on Paved Highways

Our paved and well-maintained highways are the logistical arteries of the island and a big reason why it’s possible to road trip the island all year round. Highways such as the Ring Road and the Golden Circle are especially popular.

Here, the speed limit is usually 90 km/h (56 mph), although it may vary in some parts (so always keep a lookout for those speed signs!) And don’t get tempted by the open road – these are some of the roads where you’ll 100% get caught speeding by our cameras.

How Much is a Speeding Ticket in Iceland?

Speeding tickets in Iceland are calculated on a scale. In other words, the fine you get depends heavily on the speed limit zone as well as the number of kilometers you’ve gone over. That being said, the following should give you a general idea of what you can expect:

*If you are towing something like a trailer, you’ll need to add 20+% to the above amounts.

How Speed Cameras Work in Iceland

There is no way to gippo the cameras here in Iceland. They capture everything from the make and model of the vehicle and the license plate to the face of the driver. But speed cameras come in different shapes and sizes on the island:

Fixed Speed Cameras

Some cameras are permanently installed in certain locations. Don’t think you can outwit these cameras by suddenly slowing down once you spot them – these guys can already capture you speeding from 200 meters away!

Mobile Speed Cameras and Police Radar

The one is simply a mobile camera that gets relocated to different spots, so you’ll never know when or where these guys pop up. The other is your stereotypical sneaky-sneaks traffic cops scenario.

They can use various tools from their hiding spots, which include cameras as well as speedometers. In some instances, these officers will stop you immediately if caught, but most of the time they’ll simply pop you a little “surprise” later on (whether directly or via your rental agent).

What Happens if You Get a Speeding Ticket with a Rental Car in Iceland?

Some feel a false sense of safety when driving a rental car, as if a rental car becomes a cloak of invisibility when it comes to the driver’s identity. But this is simply not the case.

There are numerous ways for the police to verify who you are, as well as claim their fine without waiting for you to make a payment. Besides, you don’t want to leave the island as an outlaw – these things can really bite you in the butt when it comes to travel later on.

How the Police Identify the Driver

The police can identify a driver in the following ways:

• By verifying id on the spot and in person after being caught.
• Verifying id via a captured license plate.
• Verifying id via captured footage.
• Verifying id via rental agents.

How Rental Companies Process Speeding Fines

If you’re caught speeding while driving a rental car, there are a few ways you can pay your fine (this often depends on the specific rental agent, so please double-check your rental agreement):

• You can sometimes pay a fine on the spot if you’re caught speeding, using your credit card.
• We forward any fines we receive during your use of the rental to you so you can pay them directly.
• We merely notify you of any fines and charge the amounts to your credit card.
• We let you pay any/all outstanding fines when you drop off your rental car.
• We pay all fines on your behalf and then simply recoup the amount from you, either by paying in person when you drop off the vehicle or by charging it to your credit card.

Administration Fees Explained

There’s more to speeding in your rental car than just having to pay a speeding ticket; you also have to pay a handling or administration fee to the rental agent. Depending on the rental agent, this fee can range between 3000 – 6000 ISK ($24 - 48/€21-41) PER SPEEDING TICKET! If this doesn’t get you to take extra precautions, we don’t know what will.

Other Common Driving Fines Tourists Get in Iceland

We mentioned earlier that Icelanders don’t play around when it comes to our rules of the road, so be careful that you don’t also end up with any of the fines below:

Parking Tickets in Iceland: What Rental Car Drivers Should Know

Most parking in the cities and towns of Iceland is not free, and parking fees are charged according to zones, periods of the day, and time limits. You are also only allowed to park in clearly marked, dedicated parking spots (unless you want your car towed). The official parking sign is a rectangular blue sign with a giant, white P on it.

If a time limit applies, that will also be displayed next to the parking sign. Parking fees are not included in your rental car cost, and also will not be paid upon returning your rental, nor will they automatically be charged to your credit card. You’ll need to pay for parking as you use it.

How to Pay for Parking in Iceland

Paying for parking in Iceland is super easy. You can choose any of the following methods:

• Pay with cash.
• Pay with a credit card.
• Pay via the Parka or EasyPark mobile apps.

Parking Zones and Paid Parking in Reykjavik

First, for some good news; unless you’re parked in a multi-storey car park, parking in the capital city is free between the hours of 21:00 and 09:00 on weekdays and 21:00 and 10:00 on Saturdays and Sundays. After that, the following rates apply:

• Red & Pink (P1) – 600 ISK ($4.80/€4.10) per hour
• Blue (P2) – 220 ISK ($1.75/€1.50) per hour
• Green (P3) - 220 ISK ($1.75/€1.50) per hour
• Orange (P4) - 200 ISK ($1.60/€1.40) per hour (but only from Monday to Friday; Saturdays and Sundays are free)

Typical Parking Fines and Penalties

As with any other rules of the road, if you don’t abide by our parking rules, there’ll be fines to pay. Below are some of the most common offences:

How to Pay a Parking Ticket or Fine in Iceland

Payments work on the same concept as any other fine while driving a rental car, so please check your rental agreement for details, including administration fees (once again, these apply PER TICKET!).

Can You Ignore a Speeding Ticket in Iceland?

It may be tempting to just stick your head in the sand, but speeding tickets have a nasty habit of biting you on the butt later. Consequences can vary, but can include:

• Being refused entry into Iceland next time you try to travel to the island.
• Arriving on the island only to find an astronomical amount to pay that’s attached to your license and id.
• Not being allowed to drive on the island.
• Being blacklisted by rental agents.
• Potential legal action.
• Potential cross-border action based on cross-border agreements.

How to Avoid Speeding Tickets When Renting a Car in Iceland

Avoiding speeding tickets is pretty simple. Stay alert so you don’t miss any signs along the way, and ensure you know the speed limits for specific roads and regions, so you can already lower your speed to the predicted speed limit. If you’re driving a car with cruise control, you can also set limits there.

Another way to “set reminders” is by using GPS apps such as Waze that’ll warn you the moment you surpass the speed limit (it also warns you against cameras and police nearby, but you didn’t hear it from us *wink, wink, nudge, nudge).

Why Speeding Tickets are a Big Issue for Tourists in Iceland

There are various reasons why speeding tickets can become one of your biggest headaches while traveling around the island:

• Speeding is by far the most common violation when it comes to rules of the road. Even the best and most careful drivers will usually be able to tell you about a couple of speeding tickets in their past. Whether an honest mistake or just trying one's luck, speeding tops the charts as a transgression anywhere in the world. So, the odds of it happening to you even while on holiday are pretty high.
• People still think that they’ll get away with speeding as long as they keep a lookout for those “pesky law enforcers” along the road. In Iceland, you’ll rarely find a “pesky law enforcer” lying in wait, ready to pounce with a speeding ticket. Our high-tech monitoring systems ensure that there are eyes everywhere, and you’ll get caught even in what seems to be the most unlikely of places.
• Iceland is known as one of the most expensive holiday destinations. This is because we have an incredibly high standard of living, which doesn’t bother us locals too much, since we also get paid accordingly. However, most visitors will feel a slight sting in their pockets. So, if visitors are already complaining about the prices of a few basics such as bread and cheese, how much more do you think a speeding ticket (meant to be an actual punishment) will be? Cue remortgaging.
• If you’re road tripping on the island in a rental, there’s no hiding from any speeding tickets. This is not a situation where you can pop the ticket in the cab and postpone payment as long as possible. Any speeding tickets you receive while driving the rental car can simply be deducted from your credit card automatically (it’s in those terms and conditions everyone always signs, acknowledging that they’ve read them without ever having read them).

Iceland Speeding Ticket FAQs

Below are the answers to some of the most frequently asked questions about speeding tickets in Iceland:

How Long Does It Take to Receive a Speeding Ticket?

This all depends on how you were caught speeding. So, it can range from immediately when caught by law enforcement to a couple of months if caught by one of our cameras.

Do All Rental Agents Charge Administration Fees for Tickets and Fines?

Yes. The only difference will be in the amount they charge.

Can I Get a Discount on a Ticket or Fine?

Yes. If you pay a ticket or fine immediately, you generally get a discount of between 20-25%!

Can I Ignore Any Tickets or Fines if I Live Abroad?

Except for the moral dilemma, it’s like playing a game of Russian Roulette: will you ever return to the island or not? Does your country have cross-border agreements with Iceland? You will never really know for certain, so it seems pretty risky to us.

Cameras Seem Like a City-Thing, so Surely There are No Cameras in the Countryside?

If you think our surveillance cameras are limited to the city, you’ll be making a very costly mistake. Our permanent cameras are all across the country, and the police and our mobile cameras can pop up absolutely anywhere and at any time.

Don’t Leave the Island an Outlaw!

It’s pretty easy to avoid speeding tickets in Iceland or any other potential fines that tend to go with road-tripping around a country. But if you manage to snag a few along the way, please play it safe and make payment (the sooner the better if you’d like to take advantage of that discount!).

You never know when you’ll be returning for your next Icelandic adventure, and you don’t want to be met at the border like the FBI's most wanted. So, don’t leave the island an outlaw, and we hope to see you soon for another bucket list road trip! And if you have any questions regarding an upcoming trip, you’re welcome to reach out to us here at Reykjavik Cars.