Iceland sees hundreds of thousands of U.S. travelers every year, with many planning a self-drive trip around the country. If you’re an American looking to get out on the road in Iceland, you might have a few questions ahead of your trip, including the big one:“Can I drive vehicles in Iceland with a US driver’s license?”

This article will answer all of your questions about driving in Iceland as an American, what ID is valid, what you should bring on an Icelandic road trip, and safety tips.

Can I Drive in Iceland with a US License?

US License is Valid in Iceland

Yes! You can legally drive in Iceland with a valid driver’s license from the United States. As long as your driving license is written in English and you’ve held it for at least 12 months, you’re good to go.

If your driving licence (spelled with a “c” in some countries) isn’t in English or doesn’t use the Latin alphabet, please note: you’ll need an international driving permit (IDP) alongside your regular license.

renting a car in Iceland with US license

Should I Still Get an international driving permit (IDP)?

While not required for most Americans, having an international driving permit IDP can be a good backup, especially if you’re planning to visit more than one country during your trip. It’s also useful if your license is lost or stolen, as it serves as a second form of identification issued by your home country.

Renting a Car in Iceland as a US Visitor

Requirements from Rental Companies

Most car rental companies in Iceland will ask for a few basic things:

  • A valid driver’s license
  • A passport
  • A credit card (used for payment and deposit)
  • Proof you’ve held your license for over a year

You’ll also need to show the original copy of your driving permit in Iceland when picking up your rental. The minimum age to rent is between 20–23, depending on the vehicle type.

Some car rental agencies may request an IDP if there’s any doubt about your license, so if you’re unsure, it’s best to contact them ahead of time.

Why Firefly Iceland is a Smart Choice

Firefly Iceland is one of the best choices when it comes to rental car companies in Iceland. We’re located at the KEF Airport which makes for easy pickup on arrival in the country.

While our fleet is a bit older, all of our vehicles are very reliable and it allows them to offer cheaper rates. Rentals with Firefly Iceland include unlimited mileage, no hidden fees, and good insurance options! You can also upgrade to the MAX insurance and get the 0 excess stress-free coverage.

Firefly Iceland is an award winning car rental company in Iceland

Iceland Driving Rules US Visitors Should Know

Speed Limits in Iceland

The speed limit in Iceland is generally 90 km/h on paved roads, 80 km/h on gravel roads, and varying lower speeds when you’re driving through the center of town.

Take care not to speed as it will result in high fines. Speed cameras are located throughout the country, in both towns and the countryside.

Road Conditions and Driving Tips

Just a few of the road conditions you might encounter in Iceland include narrow backroads, blind hills, and one-lane bridges.

F-roads, also known as mountain roads, will require a 4×4 vehicle by law. Standard cars are generally not allowed. Remember, off-roads driving is illegal in Iceland, always drive on the marked roads.

The Ring Road, is a paved highway that circumnavigates the entire country. While it’s generally well maintained, you’ll still need caution when it comes to severe weather like wind and rain.

Winter Driving & Safety Reminders

Those who are planning to visit Iceland in the winter will want to be aware of the extreme weather conditions that they’ll likely encounter. Ice, snow storms, and poor visibility are all likely.

Always be sure to check road.is and vedur.is before heading out on the road. These websites give up to date information on local weather forecasts and road conditions.

If you’re driving outside of Reykjavik in the winter, renting a 4WD vehicle is your best option.

Credit Card & Insurance Tips for US Drivers

Do You Need Extra Insurance?

Yes, you’ll likely need extra insurance when driving in the Land of Fire and Ice. Most US credit card insurance doesn’t cover Iceland. You’ll want to make sure to get Collision Damage Waiver (CDW) insurance and gravel protection to be 100% sure you’re covered.

Paying for Fuel & Tolls

Gas stations in Iceland generally accept credit cards but a PIN is required. Of course, cash is also acceptable!

Luckily, Iceland doesn’t have any highway tolls, although there is one tunnel that does charge a small fee along the Ring Road as you enter Akureyri from the east.

Common Questions About Driving in Iceland with a US License

What is an IDP for Iceland, and should I get one?

An IDP for Iceland is a translation of your license, but not a replacement. Most US visitors don’t need one unless they plan to drive in other countries as well. However, having one as a backup is always a good idea, especially if you’re traveling for an extended time.

Do I need an international driver’s license?

Drivers only need an international driver’s license in Iceland if their license isn’t printed in the Latin alphabet or they haven’t had their license for at least a year.

Can I rent a car if I’m under 25?

Yes, you generally need to be 20-23 to rent a car in Iceland.

Are US automatic cars available in Iceland?

Yes, automatic cars are available in Iceland, although manual vehicles are generally less expensive and more common.

What side of the road does Iceland drive on?

In Iceland, you drive on the right-hand side of the road—just like in the United States. The driver’s seat is on the left side of the vehicle, so it should feel pretty natural for American visitors.

Is driving in Iceland safe for first-timers?

Driving in Iceland can be challenging for new drivers. Conditions like snow, ice, and high winds are all common. If you’re planning to visit in winter, you’ll want experience driving in snow.

Is it easy for Americans to drive in Iceland?

Yes! Most road signs are easy to understand, and the general traffic flow is very similar to the US. The biggest difference is adapting to gravel roads, weather changes, and roundabouts. Just take your time, and you’ll be fine.

Do US tourists need to take a driving test in Iceland?

Nope! If you’re just visiting, you do not need to take any driving tests or apply for a local license. Just bring your valid license, and you’re ready to hit the road.

Does Iceland accept digital or photocopied licenses?

Please note: Icelandic rental companies and police require the physical copy of your license. Photocopies, screenshots, or digital versions are not accepted, so don’t forget to pack the real thing!

Start Your Iceland Road Trip with Firefly

At the end of the day, driving in Iceland is simple with a US driver’s license!

Book your rental car with Firefly Iceland for the best rates and easy pick up from KEF Airport. 

Cheap rental car options in Iceland

PAJERO

Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

Group: I Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 5 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 213 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
SORENTO

Kia Sorento or similar | Automatic | 4×4 (SFAN) | 2022-2024

Group: O2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 164 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
TIGUAN-GREY

VW Tiguan or similar|Automatic|4×4 (IFAR) | 2022-2024

Group: OReservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 176 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
VITARA

Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

Group F Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN) -2022-2024

Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 116 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
VW-GOLF-WAGON

VW Golf Wagon or similar | Automatic (CWAN) | 2022-2024

Group: T2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

This vehicle is NOT allowed in the highland F-roads.

You must be 20 years of age to drive this vehicle.

Additional Features
  • Front Wheel Drive
  • 130 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags