Planning a trip to Iceland from Canada or the United States? Iceland may be relatively close to North America, but there are a few differences worth knowing before you arrive.
From renting a car and understanding Icelandic road signs to paying for purchases and deciding whether you need a 4×4, a little preparation can make planning your trip much simpler.
Here are quick answers to some of the most common questions North American travellers have before visiting Iceland.
Can Americans and Canadians drive in Iceland?
Yes. Visitors from both the United States and Canada can drive in Iceland with a valid driver’s licence that meets the required conditions.
For a Thrifty Iceland rental, your licence must have been held for at least one year. Minimum rental age varies by vehicle category, starting from age 20 for selected vehicle groups.
Do I need an International Driving Permit in Iceland?
Most visitors from Canada and the United States will not need an International Driving Permit (IDP) when using a standard Canadian or US driver’s licence.
Thrifty accepts valid US and Canadian licences. An IDP may be required when a licence is not written in Roman characters.
Which side of the road do you drive on in Iceland?
Iceland drives on the right-hand side of the road, just like Canada and the United States.
This means North American visitors don’t have to adjust to driving on the opposite side of the road.
Does Iceland use kilometres or miles?
Iceland uses kilometres and kilometres per hour (km/h).
For Canadians, this will already be familiar. American visitors should remember that all Icelandic speed-limit signs are displayed in kilometres per hour.
The general maximum speed limits are:
- 50 km/h in many urban areas
- 80 km/h on gravel rural roads
- 90 km/h on paved rural roads
Always follow the posted speed limit, as limits can vary.
Are rental cars in Iceland automatic?
Both automatic and manual rental cars are available in Iceland.
If you normally drive an automatic at home, make sure you select an automatic when booking your Iceland car rental rather than assuming your vehicle will have one.
Are cars smaller in Iceland than in North America?
You will see plenty of familiar SUVs and larger vehicles in Iceland, but small and compact cars are also very common.
If you’re travelling as a couple or staying on Iceland’s main roads during summer, a smaller rental car can be a more affordable option. For groups, longer road trips or travellers carrying more luggage, an SUV or larger vehicle may be more suitable.
Do I need a 4×4 in Iceland?
Not necessarily.
For a summer trip focused on Reykjavík, the Golden Circle, South Coast or Ring Road, a standard 2WD rental car can often be enough when conditions are suitable.
A 4×4 rental in Iceland becomes more important if you’re visiting during winter or planning to explore roads where a 4×4 is required.
Your itinerary and time of year should determine the car you rent rather than automatically choosing the largest vehicle.
What are F-roads in Iceland?
F-roads are mountain roads leading through the Icelandic Highlands.
They are generally only accessible during the summer, and you must have a suitable 4×4 vehicle to drive on them. Conditions can include rough gravel, potholes, steep sections and, on some routes, river crossings.
If your Iceland itinerary includes the Highlands, check that your specific rental vehicle is permitted on the roads you intend to drive.
Is driving in Iceland similar to driving in Canada/USA?
There are some similarities. Both countries drive on the right, use kilometres and can experience challenging winter weather.
However, Iceland presents some different driving conditions. Strong winds, narrow roads, gravel surfaces, one-lane bridges and rapidly changing weather can all be unfamiliar, even to experienced Canadian drivers.
So, while being comfortable with winter driving can help, don’t assume Icelandic conditions will be exactly the same as those you encounter at home.
What should North American drivers know before driving in Iceland?
One of the biggest adjustments for American visitors is switching from miles to kilometres.
There are also some Icelandic driving rules worth learning before your trip. For example, headlights should be used at all times, everyone must wear a seatbelt and driving off marked roads is illegal.
Can I drive Iceland’s Ring Road?
Yes. Iceland’s Ring Road, or Route 1, is one of the most popular choices for a self-drive vacation.
The route travels for more than 1,300 km around the country, connecting many of Iceland’s major regions and attractions.
A 4×4 is not required simply to drive the Ring Road. A normal 2WD car can be suitable during summer, while Thrifty generally recommends considering a 4×4 for a winter Ring Road trip.
If you’re planning to drive the complete route, allow at least seven days, and preferably longer if you want more time for stops and detours.
Can I use a Canadian or US credit card in Iceland?
Yes. Cards are widely used in Iceland, including for very small purchases.
Visa and Mastercard are commonly accepted, so most visitors from Canada and the US can travel without carrying large amounts of Icelandic cash.
Before travelling, it’s worth checking whether your bank charges foreign transaction or currency-conversion fees.
What currency does Iceland use?
Iceland uses the Icelandic króna, abbreviated as ISK.
If you’re travelling from Canada, your CAD will therefore need to be converted to ISK when making purchases. The same applies to USD for American travellers.
Card payments make this relatively straightforward, but always check the exchange rate when planning your Iceland travel budget.
Should I bring cash to Iceland?
You generally don’t need much cash for a trip to Iceland.
Cards are widely accepted at restaurants, supermarkets, gas stations, attractions and other businesses. Having a small amount of Icelandic króna can still be useful, but there is usually no need to exchange a large amount before your trip.
Do you tip in Iceland?
Tipping isn’t expected in Iceland in the same way it is in Canada or the United States.
Service is generally included in the price, so you don’t need to calculate an additional 15–20% every time you visit a restaurant, café or bar.
Is Iceland expensive for North American travellers?
Iceland can be an expensive destination, particularly when it comes to restaurants, accommodation and some activities.
A self-drive trip gives you more control over your budget. You can choose a smaller economy car rental, shop at supermarkets, stay in accommodation with cooking facilities and prioritise the attractions you really want to visit.
Choosing a smaller 2WD can also help keep rental costs down if your itinerary and season don’t require a 4×4. Thrifty offers both economy vehicles and affordable 4×4 options depending on the type of trip you’re planning.
Is fuel expensive in Iceland?
Fuel prices in Iceland may be higher than what many North American visitors are used to, so it’s worth including fuel in your road-trip budget.
How much you spend will depend heavily on your itinerary and vehicle. A week exploring Reykjavík and the South Coast is very different from driving the entire Ring Road.
When comparing rental cars, consider fuel economy as well as the daily rental price.
Can I rent a car at Keflavík Airport?
Yes. Keflavík International Airport (KEF) is the main international gateway to Iceland and a convenient place to start a road trip.
Thrifty Iceland customers arriving at KEF take the Car Rental Shuttle Bus from outside the terminal to the nearby car rental area, where the Thrifty rental location is situated.
Is it better to rent a car from Keflavík or Reykjavík?
If you’re planning to start driving as soon as you arrive, picking up your rental car near Keflavík Airport can be convenient.
If you’re spending the first few days entirely in Reykjavík, you may prefer to begin your rental later.
Think about your full itinerary before booking so you’re not paying for a rental car on days when you don’t plan to use it.
How many days do you need for an Iceland road trip?
It depends on how much of Iceland you want to see.
For a first trip, you could roughly plan:
| Trip length | Possible itinerary |
|---|---|
| 3–4 days | Reykjavík + Golden Circle + part of South Coast |
| 5–7 days | Golden Circle + South Coast + additional regions |
| 7–10 days | Longer road trip or Ring Road |
| 10–14 days | Ring Road with more time for detours and stops |
Avoid trying to cover too much ground each day. Icelandic weather can also affect driving times and plans.
What should I know about driving in Iceland in winter?
Winter driving can involve snow, ice, strong winds, reduced visibility and short daylight hours.
A 4×4 can be a practical choice for a winter Iceland road trip, but having four-wheel drive doesn’t make it safe to drive in severe weather.
Check the latest road and weather information every day and be prepared to change your plans when necessary. Thrifty’s current driving guidance also recommends a 4×4 for winter trips where conditions warrant it.
What is the biggest driving difference North Americans should prepare for?
For many visitors, it’s Iceland’s weather and wind rather than the basic driving rules.
The country can experience strong winds and rapid changes in conditions. You may leave your accommodation in relatively calm weather and encounter very different conditions later in the day.
Check the forecast and road conditions before setting off, especially when travelling long distances.
What rental car should I choose for my Iceland trip?
Start with your season and itinerary.
A simple way to think about it is:
| Your trip | Rental car to consider |
|---|---|
| Reykjavík + nearby attractions | Economy or compact |
| Summer Golden Circle | 2WD, SUV or 4×4 |
| Summer South Coast | 2WD, SUV or 4×4 |
| Summer Ring Road | 2WD, SUV or 4×4 |
| Winter road trip | 4×4 recommended |
| Highland F-roads | Suitable 4×4 required |
| Larger group | SUV or larger vehicle |
You don’t need to pay for more car than your trip requires. A smaller Iceland rental car can be perfectly suitable for many summer itineraries, while an affordable 4×4 can be a better choice for winter travel or a Highland adventure.
Ready for Your Iceland Road Trip?
For travellers arriving from Canada and the United States, Iceland is a great destination to explore by car. The basic rules of the road will feel relatively familiar, while having your own rental car gives you the freedom to explore beyond Reykjavík and build your trip around the places you want to see.
Whether you’re looking for an affordable small car for a summer trip or a 4×4 rental in Iceland, Thrifty Iceland offers a range of vehicles for different road trips, seasons and budgets.
Plan your route, choose a rental car that matches your itinerary and get ready to explore Iceland at your own pace.