Iceland does not require an International Driving Permit if you hold a valid driver's license from the US, Canada, UK, Australia, or most other countries

You can drive in Iceland on your home country's license alone — no International Driving Permit (IDP) needed. Iceland recognizes licenses issued by the US, Canada, the UK, Australia, New Zealand, and most other countries with established road systems. The Icelandic Road and Coastal Administration does not list an IDP as a requirement for visitors from these nations.

That said, an IDP is not harmful to carry. It is a translation of your license into multiple languages and can be useful if you are stopped and the officer does not speak English, though this is rare in Iceland. English is widely spoken among police and rental car staff. The real requirement is that your home license be valid, current, and in your name — and that you meet Iceland's age and insurance rules.

Key Takeaways

  • A valid driver's license from the US, Canada, UK, Australia, or most other countries is sufficient to drive in Iceland without an International Driving Permit.
  • Your home license must be current and in your name; an expired license will not work even if you have an IDP.
  • You must be at least 17 years old to drive in Iceland, and rental companies often require drivers to be 20 or older.
  • Rental car companies may ask for an IDP as proof of translation, though it is not legally required; check with your rental company before you book.
  • Carrying an IDP costs between $15 and $30 and takes one to two weeks to obtain in the US, so order early if you decide to get one.

What Iceland actually requires from foreign drivers

Iceland's law states that a driver must carry a valid license issued by their home country. The license must be in your name, current (not expired), and issued by a country that has a reciprocal agreement with Iceland — which includes all major English-speaking countries and the European Union. You do not need to translate it, notarize it, or carry an IDP alongside it.

You also need proof of vehicle insurance that covers Iceland. Most car rental companies include this in their quote, but if you are bringing your own vehicle or renting from a private owner, you must arrange coverage that is valid in Iceland. Your home insurance may not cover you abroad, so check your policy or buy a temporary international policy before you travel.

Carry your physical license card at all times while driving. A photo or digital copy is not enough. If you are stopped and cannot produce the original, you may face a fine even if your license is valid.

When an International Driving Permit might be useful

An IDP is a booklet that translates your license information into ten languages, including Icelandic. It is not a separate license and has no legal standing on its own — it is only valid when carried alongside your home country license. In Iceland, an IDP is optional but can be helpful in specific situations.

If you are stopped by police and the officer does not speak English, an IDP can speed up the interaction by providing your information in Icelandic. However, English proficiency among Icelandic police is high, and most interactions with rental companies and authorities happen in English. An IDP is more useful if you plan to drive through multiple countries in Europe, where some nations do require one or where language barriers are more common.

Some rental car companies list an IDP as a preferred document, even though Iceland does not require it. Before you book, contact the rental company and ask whether they will accept your home license alone or whether they want to see an IDP. If they require an IDP, you will need to order one before your trip.

How to get an International Driving Permit if you decide you need one

In the United States, the American Automobile Association (AAA) and the American Automobile Touring Alliance (AATA) both issue IDPs. You do not need to be a AAA member to obtain one through AAA. The process takes one to two weeks by mail and costs between $15 and $30, depending on the issuer.

To explore, you will need your valid US driver's license, a passport-sized photo (2x2 inches), and a completed process form. You can explore in person at a local AAA office or by mail. If you explore by mail, include a check or money order and allow extra time for processing. Some AAA offices offer same-day service if you explore in person, but this varies by location.

In Canada, the Canadian Automobile Association (CAA) issues IDPs. In the UK, the Post Office and the AA (Automobile Association) both issue them. In Australia, the National Roads and Motorists' Association (NRMA) and the Australian Automobile Association (AAA) handle IDPs. Check the website of your country's automobile association for the current fee, processing time, and process method.

Age requirements and rental car restrictions

Iceland's legal driving age is 17, but rental car companies impose their own rules. Most major rental companies require drivers to be at least 20 years old, and some require 25. Drivers under 25 often pay a young driver surcharge of $15 to $30 per day. Check the rental company's age policy when you book, because it varies widely.

Your license must have been issued at least one year before you rent the car. If you obtained your license less than a year ago, some rental companies will refuse to rent to you. Again, this is a rental company rule, not an Icelandic law, so confirm the policy with your chosen company before you commit to a booking.

Common mistakes to avoid

Do not assume your home insurance covers you in Iceland. Contact your insurance company before you travel and ask whether your policy extends to Iceland. If it does not, buy a temporary international policy or rely on the rental company's coverage. Driving without valid insurance is illegal and can result in fines and vehicle impoundment.

Do not carry only a photocopy or digital image of your license. Icelandic police will not accept it. Bring the physical card. If you are worried about losing it, leave a copy at your accommodation, but always have the original with you while driving.

Do not assume that because you have an IDP, you do not need your home license. An IDP is only valid when presented alongside your original license. If you are stopped with only an IDP, you will be treated as if you have no license.

Do not order an IDP at the last minute. Processing times vary, and if you order fewer than five business days before your trip, you may not receive it in time. Order at least two weeks in advance if you decide you need one.

What to carry in your car

Keep your original driver's license, your passport, and your rental agreement or vehicle registration in the car at all times. If you have an IDP, carry that too. Keep insurance documents either in the car or on your phone in a format you can show to police (a PDF or photo). Icelandic police may ask to see all of these documents if you are stopped.

Wear your seatbelt at all times — it is the law. Headlights must be on during the day. Speed limits are strictly enforced, and speeding fines are high. If you are involved in an accident, call the police non-emergency line (112) and stay at the scene until they arrive.

Frequently Asked Questions

Can I drive in Iceland with just a photocopy of my license?

No. You must carry your original, physical license card. A photocopy or digital image will not satisfy police if you are stopped. If you lose your license while in Iceland, contact your rental company and the police when ready.

Do I need an IDP if I am renting a car in Iceland?

No, not legally. Your home country license is sufficient. However, some rental companies prefer to see an IDP as proof of translation. Contact your rental company before you book to confirm whether they will accept your home license alone.

What happens if I drive in Iceland without a valid license?

You can be fined, and the rental company may charge you additional fees or refuse to rent to you in the future. If you are in an accident without a valid license, your insurance may not cover the damage. Always carry a current, valid license.

Can I get an International Driving Permit after I arrive in Iceland?

No. IDPs are issued only by automobile associations in your home country. You cannot obtain one in Iceland. If you decide you need one, you must order it before you travel.

Is an International Driving Permit valid in Iceland if my home license is expired?

No. An IDP is only valid when carried with a current, valid home license. If your license has expired, you cannot drive legally in Iceland, even with an IDP. Renew your home license before your trip.