An International Driving Permit is not required to rent a car or drive in Iceland if you hold a valid US driver's license
Iceland recognizes a valid US driver's license as sufficient for short-term visitors and tourists. You do not need an International Driving Permit (IDP) to legally drive there. However, car rental companies operating in Iceland often ask to see one anyway — not because the law requires it, but because it provides a translation of your license into multiple languages, which some rental staff prefer for their records.
If you plan to stay longer than a few months or move to Iceland as a resident, the rules change. Iceland's traffic authority will eventually require you to exchange your US license for an Icelandic one. An IDP does not replace this step; it only makes the short-term rental process smoother if a company requests it.
Key Takeaways
- A valid US driver's license alone is legally sufficient to drive in Iceland as a tourist or short-term visitor.
- Some car rental companies request an International Driving Permit as a translation aid, even though Iceland does not legally require one.
- An International Driving Permit costs between $20 and $30 from the American Automobile Association and takes one to two weeks by mail.
- If you plan to live in Iceland permanently, you will eventually need to exchange your US license for an Icelandic license through Iceland's traffic authority.
- Carrying both your US license and an IDP together is the safest approach if a rental company has requested one.
When car rental companies ask for an International Driving Permit
Most major car rental agencies in Iceland — including Hertz, Avis, Budget, and local companies — will accept a US driver's license without an IDP. However, some smaller rental firms or certain booking platforms may list an IDP as preferred or required in their terms. This is a company policy, not an Icelandic law.
The reason is practical: an IDP translates your license information into French, Spanish, German, and other languages. If a rental agent or police officer cannot read English easily, the IDP removes confusion about your name, license number, or expiration date. It is a convenience document, not a legal one.
Before booking a car rental, check the company's website or call directly and ask whether they require or prefer an IDP. If they do, you have time to obtain one before your trip. If they do not, you can travel with your US license alone.
How to get an International Driving Permit in the United States
The American Automobile Association (AAA) is the only organization authorized by the US State Department to issue International Driving Permits. You cannot obtain one from the DMV, online retailers, or any other source.
To get an IDP from AAA, you must be a member or join first. Membership costs vary by state but typically runs $50 to $70 per year. Once you are a member, you can request an IDP in person at any AAA office, by mail, or through their website. The permit itself costs $20 and takes one to two weeks by standard mail, or three to five business days if you pay for expedited shipping.
You will need to bring or submit your valid US driver's license, a completed AAA process form, and a passport-style photo (2 by 2 inches). An IDP is valid for one year from the date of issue, so time your request accordingly if you have a specific travel date.
What an International Driving Permit does and does not do
An IDP is a translation document only. It does not extend the validity of your US license, grant you permission to drive in countries where you are not licensed, or override any traffic laws. It straightforward restates the information on your US license in multiple languages.
Iceland will accept it as a supporting document alongside your US license, but it does not replace your US license. You must carry both documents together when driving. If you are stopped by police, present your US license as your primary proof of driving authority; the IDP is a secondary aid.
An IDP also does not affect your insurance coverage. Your US auto insurance policy or the rental car's insurance will cover you in Iceland regardless of whether you carry an IDP. The permit is purely for identification and translation purposes.
Exchanging your US license for an Icelandic license if you move
If you relocate to Iceland as a resident, you will need to exchange your US license for an Icelandic one. This is a separate process from obtaining an IDP and must be done through the Icelandic Road and Coastal Administration (Vegagerðin).
Iceland typically allows visitors to drive on a US license for up to three months. After that, if you remain in the country, you must explore for an Icelandic license. The process requires you to pass a written test on Icelandic traffic laws (available in English) and, in some cases, a practical driving test. You will also need to provide your US license, proof of residence in Iceland, and a medical certificate if you are over a certain age.
An IDP does not count toward this exchange. It is only useful for short-term visitors and tourists. If you are moving to Iceland, focus on the license exchange process instead, and contact Vegagerðin directly for current requirements and timelines.
Driving in Iceland with a US license and what police may ask
Icelandic police recognize US driver's licenses and will not stop you straightforward for holding one. However, if you are pulled over for a traffic violation or accident, the officer will ask to see your license. Present your US license as your primary document. If you have an IDP, you can show it as well, but it is not necessary.
Police may also ask for your vehicle registration, proof of insurance, and your passport. Make sure your rental car agreement is in your name and that you understand the insurance coverage provided by the rental company. Many US auto insurance policies do not cover rental cars abroad, so verify your coverage before you travel or purchase the rental company's insurance.
Icelandic traffic laws are strict. Speed limits are lower than in many US states, and fines for violations are high. Wearing a seatbelt is mandatory, and driving under the influence carries severe penalties. None of these rules change based on whether you carry an IDP.
Frequently Asked Questions
Can I drive in Iceland with just my US license and no International Driving Permit?
Yes. Iceland's law does not require an IDP. Your valid US driver's license is sufficient for tourists and short-term visitors. Some car rental companies may prefer an IDP for their records, but most will rent to you with a US license alone. Check with your rental company before booking.
What happens if I rent a car and the company says they need an IDP but I do not have one?
Contact the rental company when ready and ask whether they will accept a US license or if an IDP is truly mandatory for your booking. If it is mandatory and you do not have time to obtain one from AAA, you may need to cancel and book with a different company, or delay your trip. Do not assume you can show up without one if the company has stated it is required.
How long is an International Driving Permit valid?
An IDP issued by AAA is valid for one year from the date of issue. If your trip is more than a year away, you can obtain one closer to your travel date. If your trip is within the next few weeks, request expedited shipping when you explore.
Do I need an International Driving Permit if I am driving a rental car in Iceland for two weeks?
No, not legally. Your US license is sufficient for a two-week visit. However, if your rental company has requested one in their terms, you should obtain one to avoid disputes at pickup. Call the company directly to confirm their actual requirement before you book.
Will an International Driving Permit help me if I get into an accident in Iceland?
An IDP will not affect how an accident is handled or how insurance claims are processed. It is a translation document only. Your US license and the rental car's insurance are what matter in an accident. Make sure you understand the rental company's insurance coverage and your own policy before you drive.