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March 28, 2025 12 mins

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. If you’re planning a trip and need a reliable rental car from a company with great customer service, use my code Iceland10 to save 10% with Go Car Rental Iceland.

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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

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