Speeding & Parking Fines in Iceland

Driving in a foreign country can be exciting, stressful, and educational, and driving in Iceland is no exception. There are new traffic signs to learn, different driving styles, a variety of different road types and conditions, speed limits, and different laws to consider. One thing that makes Iceland stand out compared to many other countries is the swift weather changes one has to be prepared for. This is especially true when driving around Iceland in the off-season, where drivers are likely to encounter a number of challenges like low sun, snow blizzards coming seemingly out of nowhere, slippery roads, and so on.

As in every country, Iceland also has speed limits to keep to, with an abundance of police and speed cameras monitoring drivers’ speed. The different speed limits in towns and out on the countryside roads are always wellmarked and must be followed. Here is a short list of speeding fines in Iceland and how they increase with the offense:

Speeding Fines in Iceland Explained

Type of offense Fine (USD)
Driving 26 km/h or faster over allowed top speed. (30-35 km zones) 195
Driving 36 km/h or faster over allowed top speed. (50-60 km zones) 300-390
Driving 41 km/h or faster over allowed top speed. (70 km zone) 460
Driving 41 km/h or faster over allowed top speed. (80-90 km zones) 615-690

20% will be added to this when:

  1. A bus exceeds the speed limit
  2. A vehicle over 3,5000 kg exceeds the speed limit
  3. A car towing any type of trailer exceeds the speed limit

What happens if a customer is caught in a speeding camera?

If one of our customers is caught speeding in one of our rental cars by a speed camera, the Icelandic police will trace it back to GO Iceland Car Rental. Our main office will receive an email with all the information about the offending car. This information will include details such as the time and place of the incident, and the number plate. Our staff finds out who was renting the car at the time and is then, by law, required to send this information back to the police. The police will send the speeding ticket to the registered driver. GO Iceland’s office will then withdraw a handling fee of 5,000 ISK (39 USD) as stipulated in the car rental agreement.

Handling fees according to car rental agreement

It’s best and easiest for everyone if you pay close attention to speed limits in Iceland, and therefore, avoid getting any tickets. In the name of safety, the law, finance, and convenience, sticking to the speed limit is always for the best. 

Parking violations

At times, it can be difficult to determine where you are allowed or not allowed to park, but there are always clearly posted signs informing drivers of the rules and obligations surrounding parking.

There are two types of parking offenses:

The first one is the ordinary parking fine when a driver has not paid for the full parking period or has not paid at all to park in an ordinary parking space. That fee is 2,500 ISK (20 USD). If the fee is paid immediately upon receiving the notice, the price is 1,400 ISK (11 USD). If it’s unpaid after 14 days, the fee goes up to 3,750 ISK (29 USD). If the parking fee is still unpaid after 28 days, it goes up to 5,000 ISK (39 USD).

The second type of parking fine occurs when a parking offense has been committed. A parking offense is when you park a car where you’re simply not allowed to park at any time, like on a curb or on streets where parking is always fully prohibited. The fine for this type of offense is 10,000 ISK (77 USD) but goes down to 8,900 ISK (68 USD) if paid immediately. If unpaid after 14 days, the fine goes up to 15,000 ISK (115 USD). If still unpaid after 28 days, it increases to 20,000 ISK (154 USD).

If someone parks in a parking space marked for handicapped individuals, the fine is 20,000 ISK (154 USD). It goes up to 30,000 ISK (230 USD) after 14 days and after 28 days to 40000 ISK (307 USD)

Parking in Reykjavik

What happens to the parking fine for a rental car?

Bílastæðasjóður, who oversees the parking system in Reykjavík sends an e-mail to the main office of GO Iceland Car Rental with all the details of the offense. The staff identifies who was renting the car and sends this information to the driver of the car. They can also go to the website of Bílastæðasjóður and see pictures of the car. The driver then has a chance to pay the fine but if that is not done, GO Iceland Car Rental pays the fine and withdraws that sum from the driver’s credit card, plus a 5,000 ISK handling fee as stipulated in the rental contract (see above).

Parking in Akureyri in North Iceland

Parking works differently in Akureyri. Parking there is free but you need to get a parking clock at a gas station or a tourist information center. There are also shops that carry them. All you have to do is set the time of arrival on the clock and display it on your dashboard. Depending on the parking zone, you can park for free for 15 minutes up to several hours. If the clock is missing or the parking exceeds the allowed time, you will have to pay a parking fine. The same process will then be followed as what occurs with parking fines in Reykjavík.

Parking rules and regulations in Akureyri

Drive safely!  #GoIceland

Disclaimer: The fines listed will change with the foreign exchange rate. These figures were valid at the time of writing.