As in most of Europe, Iceland has right hand driving. Most roads are two-lane undivided; there are multiple lanes in each direction in and around the capital area. General speed limit on paved roads is 90 km/h and speed is often slower due to road conditions. Only main roads in Iceland are paved, while two thirds of the roads are gravel roads. On gravel roads the speed limit is reduced to 70 km/h. Along many roads there are rest areas with a picnic table, but without any toilet facilities. Toilets are mainly found at petrol stations, restaurants and camping grounds.

The city center of Reykjavik may be confusing to navigate for the first time visitor due to many one-way streets. Traffic is rarely heavy, mostly during rush hour in the capital area, and during holidays on the roads out of the capital area. Outside of cities, also on main roads, traffic is often light.

In some parts of Iceland, the next petrol station might be 200 km away, due to the sparse population in the country. Fill up the tank in time.

Iceland has a long winter season and some roads are covered by ice or snow for a week, as the frequency of winter service depends on the amount of traffic on the road. Temperatures are usually lower in the northern part of the country than in the southern part. Visitors entering Iceland by car between October and late April should be prepared.

All of the roads leading to the Icelandic interior are closed during winter. Other mountain roads may be closed for shorter periods during bad weather.

There are five ferry crossings on public roads in Iceland. Ferry docks are sometimes located in remote areas at the point of shortest possible crossing. Two out of the five ferries in Iceland are car ferries. They are operated by private companies on behalf of the national road authority.

Crossings can take up to 2 hours. Booking should be done beforehand. Travelers are well advised to add time for ferries in planning. Ferry crossings typically appear on maps as dotted lines. Ferries can in general be avoided, as most of them lead to islands. These are the ferry crossings in Iceland:

• Vestmannaeyjar – Landeyjarhöfn. Car ferry.
• Stykkishólmur – Flatey – Brjánslækur. Car ferry. Shortens the time to travel from West Iceland to the Westfjords.
• Árskrógströnd – Hrísey
• Hrísey – Dalvík – Grímsey
• Neskaupsstaður – Mjóifjörður

Roads in Iceland can be split into three categories. Roads with one or two digits are main roads, roads with three digits are secondary roads and roads with an "F" prefix are mountain roads. This system does not necessarily indicate the quality of the road itself.

Visitors should know about a handful of key roads for planning and navigation. Road 1 (or the ring road) is clearly the most important as it runs around the country, connecting nearly all regions (except the Westfjords and the interior). Road 1 is for the most part an paved road, with multiple lanes in each direction near the capital area.

• Road 41 runs from the international airport in Keflavik to the capital. It is for the most part a four-lane asphalt road.
• Road 60 and road 61 are the main roads leading to the Westfjords.
• Road 93 runs from Seyðisfjörður, the port of the Smyril line ferry to Egilsstaðir where it meets road 1.

On the main and secondary public roads there is no need for anything special in summer. On the mountain roads (those with number prefixed with F) four wheel drive and possibly snow tires may be needed. In winter, Icelandic cars use Nordic quality winter tires (studded tyres are permitted from November to April). Satellite navigation (GPS) can be useful in cities and around Reykjavik, but navigation by road number is more reliable.

For the Interior a sturdy four-wheel-drive car is necessary. Tell the car rental company that you are going there. Some rivers are even crossed by fording with the car.

Summer tyres must have a minimum of 1,6mm-deep groves, while winter tyres require a minium of 3mm-deep groves.

Several companies hire motorhomes, that are "fully equipped" (beds, small kitchen, fridge, shower, toilet, heating, etc.) and as a rough indication they cost about what one might spend on a reasonable hire car and reasonable accommodation – but allow a lot more flexibility.

Many campgrounds cater to motorhomes (and caravans or camping with tents) and those are well signposted. All have basic facilities (electricity, toilets, hot showers).

Renting a car is expensive, so visitors should consider for how many days and what part of the trip a car is needed. A compact car with a moderate engine is often much cheaper than a heavy SUV. There is only need for a four-wheel drive in the interior, which is only open in the summer.

Day rates for the vehicle itself are usually the main expense; the price of petrol is a less important issue. Compact cars with modest engines are the most fuel-efficient. Some car rental agencies have arrangements with petrol stations for discounts for their customers, e.g., customers of Sixt get 5 kr off per litre at Orkan stations, and Europcar has an arrangement with N1. Be sure to ask.

The only toll road in Iceland is the Hvalfjordur tunnel north of the capital. Another toll road will be added in 2017, the tunnel through Vaðlaheiði, east of Akureyri. Tolls are moderate, 1000 kr through the Hvalfjordur tunnel (for a normal car as of September 2016).

Driving standards are moderately well-maintained in Iceland, with the traffic being (statistically) among the safest in the word. Fatality rates where dropping prior to 2014, but have been increasing in line with more traffic.

See also: Winter driving

In the winter, roads to the Interior are closed and winter tyres are mandatory. Some mountain passes can be closed for shorter times and some minor roads may be ploughed only several days after snowfall. Have adequate equipment to cope with being stuck in snow.

Iceland has ten tunnels, each under 10 km in length. Tunnels are generally very safe places to drive. In case of fire or smoke in tunnel, use the emergency phones inside the tunnel as this will inform traffic control exactly where you are. In case of fire, use the fire extinguisher inside the tunnel as this will alert traffic control and the fire brigade.

Iceland has many one-way bridges. At one-way bridges the first car that arrives at the bridge has right of way. As such, cars should cross the bridge in the same order as they arrived at the bridge. It is also a good idea to use the car's indicator lights to show whether you intend to cross the bridge soon or are waiting for an car on the opposite side to cross it.

Two of Iceland's one-way bridges have laybies on the bridge itself. Those are the bridge over Súla and the bridge over Skeiðará, both of which are in South Iceland. The bridge over Súla river is 420 meters long, with two laybies, while the bridge over Skeiðará is 880 meters long and has five laybies.

Roads are generally not fenced and animals may stray onto all sort of roads. Sheep are most commonly seen crossing roads, but also cattle, reindeer and horses. Cattle typically cross roads where cattle paths cross the roads. Some areas allow horses to roam free near roads and finally reindeer can be seen crossing the road in East Iceland. Note the warning signs.

Icelandic roads have varying quality. Main roads (one-digit roads) tend to be paved and are generally well maintained. Secondary roads (two-digit roads) are maintained less often and lastly mountain roads (prefixed with "F") are typically for four-wheel drive vehicles and are sometimes closed during winter.

Driving a car in winter conditions may be challenging. The golden rule for driving on snow, ice and slush is don't rush. Authorities routinely issue road information on the internet and on information signs along the road. Always obtain specific information about mountain passes the day before going. Don´t hesitate to ask locals or call 1777 (+354 1777) for last-minute information.

There are several tunnels in Iceland. The longest is 9.1 km, but on average they are typically 3.9 km in length. Road 61, road 76 and road 1 have the most tunnels, two tunnels each. Tunnels are generally safe and speeds are sometimes lower as in the open. The main challenge is adapting to the darker tunnel during bright sunshine.

Rules and road signs are generally the same as in the rest of Europe. Virtually all signs use standardised symbols (pictograms), explanatory text is used occasionally as a supplement, although road closure signs are in English as well.

• Traffic from right has right of way, unless signs or lights state otherwise. You must yield to traffic from any road to your right, except from seperate areas such as parking lots and petrol stations.
• Traffic on roads with the standard "Yellow Diamond" sign has the right of way. This is widely used for main roads.
• Universial give way (yield) sign
• Buses have right of way when leaving a bus stop
• In one-way tunnels and bridges, the first car to arrive has the right of way.
• Pedestrians have the right of way at all marked crossings with no traffic lights.
• Emergency service vehicles with flashing lights have absolute right of way.
• Right turn on red is always illegal, even if the road is clear.

• Headlights are mandatory even during daylight.
• Using a mobile phone when driving is forbidden, unless you are using hands-free equipment
• Wearing a seat belt is mandatory
• Winter tyres must have a minimum depth of tread of 3mm. Summer tyres must have a minimum depth of tread of 1.8mm

The general speed limit is

• 90km/h in the countryside
• 50km/h in urban areas
• 30km/h in residential streets

There are no specific rules for change of speed limit when driving conditions change. It is your responsibility to adjust your speed when needed.

Vehicles pulling trailers and vehicles must not drive faster than 80km/h.

Vehicles pulling trailers and vehicles over 750 kg and without brakes must not drive faster than 60 km/h.

• Every person is by law obliged to help and assist at site of accident, even if not involved or guilty.
• Call the police (emergency number 112) if persons are injured or killed. Police should also be contacted if animals are injured or killed.
• If no persons or animals are harmed, police should not be called, but drivers involved should resolve the situation themselves by sharing contact and insurance information.

• Don't drink and drive. Your blood alcohol concentration must not exceed 0.2 ‰. One small beer can be enough.
• On typical Icelandic two-lane road with a narrow shoulder, overtaking is only allowed on long straightaways with plenty of visibility.
• Off-roading is strictly forbidden, unless the ground is covered in deep snow, deep enough not to harm the underlying surface. Violators risk a huge fine.
• Where a road is not wide enough for two cars to meet, blue signs with a large M indicate passing points or laybies.
• Do not stop on a highway: find a pull-out (sometimes marked with a blue sign with a white 'M'), a designated parking area (blue sign with a white 'P'), a picnic area, or a farmer's road. Stopping on a road with a 90-km speed limit is dangerous and illegal, yet you are bound to see tourists doing this.
• Many petrol stations in rural areas have car-washing bays where you can wash the dirt off your rental car for free using a hose and broom.

While road markings are informative, they can be covered by snow in winter. In Iceland white lines separate traffic, either in the same direction or opposing traffic. Yellow lines are along the shoulder of the road, along with reflective sticks. In really bad weather with poor visibility, it is a good idea to drive alongside the reflective sticks.

bensín

petrol

bíða eftir snjóplóg

wait for snowplow

blindhæð

blind rise

dísel

diesel

einbreið brú

one lane bridge

götuhlaup

street run

hægri

right

inn

in

lokað

closed

olía

oil

malbik endar

tarmac ends

negld dekk

studded tires

slysasvæði

accident area

stans, veggjald

stop, toll fee

út

out

vegur

road

vetrardekk

winter tyres

vinstri

left