Two-Lane Roundabouts are Different in Iceland – Know These Rules Before You Drive Here

I’m diving into an important yet often overlooked aspect of driving in Iceland—the unique rules of two-lane roundabouts. Even if you are from Europe, there is a good chance that Iceland does two-lane roundabouts a little different than what you expect.

How to Save Money on Your Rental Car in Iceland

Before we get into that, I want to give a shout-out to our amazing sponsors, Go Car Rental Iceland and Go Campers.

I actually use their cars and campers when I travel around Iceland, and I’ve partnered with them for over 4 years now. The main reasons? Their customer service is amazing, and they have a wide range of vehicles to choose from.

They’ve also given me a link so you can save 7% on your rental, plus get a couple of really useful extras.

With Go Car Rental, you’ll save 7% and get free 4G WiFi with your rental.

With Go Campers, you’ll save 7% and get a free sleeping bag included.

You can head to gorentals.is/allthingsiceland
for the discounts.

Once you enter your travel dates, the 7% discount is automatically applied.

For Go Car:
When you get to the extras section, select 4G WiFi. You’ll see the price stays the same, even though it has been added.

For Go Campers:
Choose a sleeping bag under the “Sleeping” section, and same thing, the total price won’t increase.

And just so you know, using my link gives me a small commission at no extra cost to you. It’s one of the ways you’re supporting All Things Iceland and the content I create. Thank you in advance for that.

Why Are Iceland’s Two-Lane Roundabouts Unique?

Roundabouts exist in many countries, but Iceland’s two-lane roundabouts come with specific rules that often catch foreign drivers off guard. If you’ve ever rented a car in Iceland or plan to, knowing these rules will save you a lot of confusion—and possibly a fender bender!

The key thing to know about Iceland’s two-lane roundabouts is that the inner lane (the one closest to the center) has the right of way. This is different from many other countries where the outer lane might have priority. Here’s how it works:

• When entering a two-lane roundabout, you should choose your lane before entering.
  • If you plan to take the first exit, you should be in the outer lane (right lane).
  • If you plan to go straight or take any further exits, you should be in the inner lane (left lane).
• Once inside the roundabout, changing lanes is not allowed. This means if you entered in the inner lane, you must continue in that lane until you exit.
• If you’re in the outer lane and another driver is in the inner lane, you must yield to the inner lane driver if they need to exit. This is where most accidents happen because foreign drivers don’t expect this rule.
• When exiting, use your turn signal to indicate your intention, just like you would in any other roundabout.

Two-Lane Roundabout Example in Iceland

The first image shows two cars entering a two-lane roundabout in Iceland. The orange car is in the inside lane (left) and the pink car is in the outer land (right).

Below shows the the exits that the pink car (outer lane) can take.

And here are the exits that the orange car (inner lane) can take.

This example is showing if the orange car is entering the two-lane roundabout in the inner lane on the bottom and the pink car is coming from the right in t he outerlane.

As a reminder, the pink car can either go to the first or second exit. In this example, it will be going to the second exit.

Since the pink car and the orange car are in close proximity to each other, the pink car is the one that gives the right of way, since the orange car is in the inner lane.

The pink car (outer lane) must stop and let the orange car (inner lane) exit before continuing on to its second exit.

Why These Rules Matter?

Iceland’s road system is designed to keep traffic flowing smoothly, and roundabouts play a big role in that. However, every year, rental car companies report minor accidents in roundabouts because of misunderstandings about these rules. The last thing you want is to start your Iceland adventure with an accident or a costly insurance claim!

The Savvy Traveler’s Guide to Iceland

Whether it’s your first time visiting Iceland or you have been several times before, this guide will help you explore Iceland like a local.
From the best things to see in every region of the country to hidden gems, I have you covered.

Click Here

The Savvy Traveler’s Guide to Iceland I created The Savvy Traveler’s Guide to Iceland, a comprehensive 8-module video guide that walks you through everything you need to know before visiting. I even have a whole module dedicated to getting around Iceland, covering types of transportation, car rentals, road rules, and so much more.

Not only that, but when you get the guide, you’ll have lifetime access, bonus itineraries to make planning easier, and access to my free and private Facebook group, where I share specially curated Iceland travel posts and do a live Q&A each month!

Random Fact of the Episode

You might notice that as you venture outside of the downtown Reykjavík area, that you will see less traffic lights, occasionally roundabouts, and long stretches of road. One of the many things I enjoy about the Icelandic countryside is that traffic lights are not necessary.

Roundabouts are used, when necessary, at intersections to slow vehicles down and allow for cars to head in different directions.

Icelandic Word of the Episode

Hringtorg – roundabout

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