Driving in Iceland: What You Need to Know Before You Rent a Car
A practical guide to driving in Iceland — why you should book a 4x4 regardless of your route, what to do if you hit a sheep, speed cameras, parking apps, and how to check road and weather conditions.
Driving is genuinely the best way to see Iceland, and it's easier than most people expect — but there are a handful of things I wish someone had told me before I picked up the keys. This pairs well with the Essential Tips section of my Ring Road guide if you're planning the full route.
Book a 4x4, even if you're not planning to touch an F-road
Outside of Reykjavik, the country is largely empty, so traffic itself is rarely the issue — road surface is. Plenty of roads that aren't officially classified as F-roads are still rough enough that a standard 2WD rental will struggle. Book a 4x4 from the start rather than assuming your route won't need one.
I drove a Mitsubishi 4WD crossover and never regretted paying for the four-wheel drive, even on a route that stayed off the F-roads entirely. A mid-size crossover is the sweet spot here: enough clearance and grip for rough gravel, without the cost or the fuel bill of something bigger.
Watch for sheep on the road
Through the warmer months, sheep roam freely and have a habit of hanging out on or right next to the road. Drive with that in mind, especially on quieter stretches.
This is the one that nearly got us. We never actually hit a sheep, but we had plenty of close calls — far more than anything else on the road. It's the most consistent hazard in the country, and it's the real reason to keep your speed down on empty stretches where there's otherwise no obvious reason to.
If you do hit one, don't panic — pull over safely and call the police. Icelandic sheep are insured, and reporting the incident is what allows the owner to actually claim on that insurance.
Don't let the empty roads lull you
Long stretches of Iceland are just you, the road, and the landscape — which is exactly what makes it easy to lose focus. The scenery is a genuine driving hazard in its own right. Stay alert, and pull over properly (not onto the shoulder) whenever you want to take it in or get a photo.
Respect the speed limit — the cameras are everywhere
Speed cameras are spread across the entire country, not just near towns. Fines for speeding are steep, so it's not worth testing your luck on those long, empty roads that make it tempting to speed up.
Never go off-road
However solid the ground looks, don't drive off the marked road. Iceland's terrain is far more fragile than it appears, and off-roading causes damage that can take years to recover, if it ever does. It's also enforced.
Parking: use the apps, not the shoulder
Don't park on the side of the road. Google Maps is reliable for finding parking areas near most attractions. For paying, download the Parka and EasyPark apps before your trip — most paid parking areas in Iceland use one or the other, and many don't have a payment machine on-site at all.
Check conditions before you drive, every day
Conditions can change quickly, so build this into your daily routine:
Both are worth checking each morning, not just once before the trip.
Once you're on the road, my 7-day South Iceland itinerary or the full 12-day Ring Road guide will help you plan where to actually go.