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.

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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:

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.

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!

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.

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!

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.

Hringtorg – roundabout

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