Driving in Iceland: the rules visitors actually break

By Stefán · Iceland Roads · Written by a local who drives these roads

The short version

Iceland drives on the right, seatbelts are mandatory for everyone, headlights are on 24 hours a day by law, and the default limits are 50 km/h in town (increasingly signed down to 40, and 30 in residential zones - watch the signs), 80 on gravel, 90 on paved rural roads. Fines are steep and enforced by average-speed cameras as well as patrols. None of that is what trips visitors up. The things below are.

Roundabouts: the inner lane has priority

Iceland's two-lane roundabouts work differently from what most visitors know: the INNER (left) lane has the right of way when exiting. If you're in the outer lane, you must yield to a car exiting from the inner lane across your nose. Reykjavík is full of two-lane roundabouts and this rule surprises almost every foreign driver. Rule of thumb: taking the first exit, use the outer lane; anything past that, use the inner lane and signal out.

Don't stop IN the intersection

At traffic lights, do not roll into the junction box waiting to turn or because traffic ahead stalled - if the light changes, you're now blocking the cross street. Wait behind the line until your exit is clear. Reykjavík rush hour runs on this rule, and blocking the box is both fined and glared at.

The right-hand rule (hægri réttur)

On unmarked intersections - most residential streets and many rural junctions - traffic coming from your RIGHT has priority. There is no “main road” assumption without signs. If in doubt, yield to the right; that instinct is correct in Iceland far more often than the “bigger road wins” instinct visitors import.

Northern lights are not a parking spot

Do not stop on the road, the shoulder, or a blind rise to photograph aurora (or horses, or a sunset). The road is pitch black; the car behind you is doing 90 km/h and expects an empty lane. Every winter has near-misses and worse from exactly this. Pull fully into a marked pull-out, farm access, or parking area, lights on until parked, then go dark for the photo. Every destination page on this site can help you find a safe stop nearby, and the aurora page shows tonight's odds.

Speed discipline: the landscape is the distraction

The classic visitor pattern: brake hard at the first glimpse of a glacier, crawl at 60 with a queue forming, then unconsciously accelerate to 100 on the straights. Hold a steady speed; use pull-outs to sightsee and to let a queue past (it's normal and appreciated here). Watch specifically for:

Single-lane bridgeseinbreið brú

First to arrive crosses first; when in doubt, the car closer to the bridge goes. Slow to the posted approach speed.

Blind risesblindhæð

Keep fully right on rises and blind curves; the middle of the road is not a lane.

Gravel transitionsmalbik endar

Slow BEFORE the surface changes, not on it. The paved-to-gravel edge is where cars roll.

Sheep on the road

They cross when you least expect it, and lambs follow their mother without looking. Slow down, pass wide; hitting one involves the farmer and your wallet.

Horses near the road

Slow down and give riders a wide, quiet pass - no honking, no engine revving.

Two road widenings that look alike (and really aren't)

Iceland's rural roads have two kinds of paved widening on the right, and confusing them causes real danger:

Intersection bypass strip

A short widening on the right that always sits AT an intersection. It is not parking: it's a live lane for through-traffic to slip past a car that has stopped in the main lane waiting to turn left. If a car ahead waits to turn left, ease right through the strip and carry on - this is the one place passing on the right is how the road is designed to work. Never stop or park in one; a moving car expects that space to be empty.

Actual pull-outútskot

A marked lay-by away from junctions where stopping is safe and intended: sightseeing, letting a queue past, aurora photos. Pull fully in, clear of the white line. This is where the “use pull-outs” advice in this guide points - not the bypass strips above.

Off-road driving is illegal. Full stop.

Driving off marked roads and tracks - onto moss, sand, mud, or “just this little shortcut” - is illegal everywhere in Iceland, carries fines that reach hundreds of thousands of ISK, and the tracks last decades in this landscape. F-roads and marked tracks only, and a closed road (lokað) means closed for you specifically, barrier or not. Check what's open →

Small local codes that mark you as considerate

Say thanks

A raised hand or hazard-flash says thank you when someone lets you pass.

Overtake left, only

Overtake on the left, only with a dashed centre line, never near blind rises. The one designed exception: the intersection bypass strips above, where through-traffic passes a left-turning car on the right.

Park into the wind

Nose-to-wind parking protects your doors - and never stop in passing places or farm gateways for photos.

Pump etiquette

Countryside pumps are self-service and unstaffed at night; don't camp on the pump while you reorganize the boot.

Flashing lights

A bus or truck flashing on a narrow stretch is telling you what it intends, not greeting you; give room.

Common questions

Can I turn right on red in Iceland?

No - with one exception you'll meet at some Reykjavík junctions: a separate green right-arrow signal that lights up while the main light is red. Arrow lit, you may turn; no arrow, red means stop, always.

What are the speed limits in Iceland?

The default is 50 km/h in urban areas unless signed otherwise, but many streets - especially in Reykjavík - have been re-signed to 40 km/h (and 30 in residential zones) in recent years, so watch the signs rather than assuming 50. Outside towns: 80 on gravel, 90 on paved rural roads. Speed cameras, including average-speed sections, are common.

Are headlights required in the daytime in Iceland?

Yes, by law, all year, day and night.

What is the blood alcohol limit in Iceland?

0.02% - effectively zero. One beer can put you over; don't drive after drinking at all.

Who has priority in a two-lane roundabout in Iceland?

The inner (left) lane has the right of way when exiting - outer-lane traffic must yield to a car exiting from the inner lane. This is the rule foreign drivers miss most.