Avoiding Unwanted Parking and Toll Surprises in Iceland: A Guide from Zero Car Rental

Why this article matters

If you’ve been scrolling through Iceland travel groups on Facebook this week, you may have noticed an explosive thread about parking fines that even caught the attention of national newspaper DV. A visitor described coming home to “a shower of e-mails” from the rental company because four different parking sessions had not been paid. Commenters chimed in with similar experiences—one family paid €37 for merely driving through a monitored lot; another couple cut several waterfalls from their three-day itinerary out of fear of mounting penalties. “Pure money-grabbing,” one traveller concluded.

At Zero Car we pride ourselves on keeping your road trip simple and stress-free, so this blog post sets out everything you need to know about fees, fines and tunnels—plus a few insider tactics to ensure your memories feature geysers and glaciers, not invoices. For anyone still weighing up whether to pick up a vehicle right at Keflavík International or in downtown Reykjavík, we cover the pros and cons in a dedicated guide: Rent at KEF Airport or Reykjavík?.

First, what actually happened?

The DV story centres on Iceland’s near-universal shift to camera-monitored, pay-by-plate parking at tourist sites and in city centres. If you drive in, your licence plate is recorded; if payment is not registered in the system within the stated grace period, an automatic surcharge (typically ISK 1,500–7,500) is generated. Iceland’s Consumer Association has criticised the lack of on-site information and the hefty “handling fees” that service providers add on top.

The good news? Once you understand the system, every single krona of these charges is avoidable—and that starts with downloading the right apps and building a realistic trip budget (more on costs in our Complete Guide to Car-Rental Pricing for 2025).

Zero Car’s policy

Parking, entrance and road tolls are the renter’s responsibility.

If a fee or toll is left unpaid, authorities invoice the registered owner of the vehicle (that’s us).We must then add a fixed ISK 2,000 handling charge to cover the work of matching the fine to the contract and responding to official queries. Full details are published in our terms under “Road & Parking Fees.”

Translation: paying on the spot—or via app/website within the grace window—is always cheaper than paying later through a fine.

Typical places you must expect to pay

*Not exhaustive—when in doubt, assume a fee applies and look for the sign.

For a deeper dive into picking the ideal direction for your Ring-Road loop (northbound or southbound), check our comparison piece: Find Your Perfect Iceland Car Rental.

Your two best friends: Parka and EasyPark

Parka is Iceland’s home-grown parking app, accepted at nearly every paid car park outside Reykjavík as well as in most municipal zones. It also covers 40 tourist destinations and 12 parking garages nationwide, letting you start, extend or stop a session with a tap.

EasyPark, Europe’s largest parking platform, operates alongside Parka in Icelandic towns. It lets you pay by the minute, end sessions remotely and, if you’re a frequent parker, subscribe to a flat monthly fee that waives the 15 % service charge.

Download before you fly and add your licence-plate number in the app settings. Iceland is cashless; these apps accept all major debit/credit cards plus Apple/Google Pay.

Step-by-step: Paying for parking in 60 seconds

1. Pull in and park.
2. Open Parka or EasyPark. The GPS will suggest the correct zone; confirm it matches the sign.
3. Enter the rental’s licence plate (copy it from your key tag) and choose your expected duration.
4. Pay and start the session. A digital timestamp is stored centrally—no paper ticket needed.
5. Need more time? Extend from the trailhead café while you sip coffee.
6. Leaving early? Stop the session and get a refund of unused minutes (EasyPark) or avoid over-paying (Parka).
7. If you forget to stop the clock, the app stops automatically when the car is detected leaving the lot.

Remember, a few seconds of phone-tapping beat an hour of post-trip admin every time.

What about unmanned rural sites?

Some remote waterfalls and canyon viewpoints use a simple QR-code sign instead of an app. Scan it, type the plate number, pay with card and save the e-mail receipt until your credit-card statement clears. If you have no mobile signal, most systems allow payment up to 24 hours later—set a reminder.

Planning to spend several days off-grid? Our six-day Iceland road-trip itinerary shows you exactly where you can (and can’t) expect connectivity en route.

The Vaðlaheiði tunnel—Iceland’s only electronic road toll

Driving the Ring Road in North Iceland in winter? The Vaðlaheiði tunnel (near Akureyri) saves you a snowy mountain pass—but it’s not free. The toll is ISK 2,152 per trip and must be paid at www.tunnel.is any time from 24 hours before to 24 hours after the crossing. Miss the window and the charge doubles once the bill lands with the rental company plus our ISK 2,000 handling fee.

Top tip: if the weather is good, skip the tunnel entirely; the old road adds barely 10 minutes and costs nothing. Our Ultimate Guide to Keflavík Airport & Land-to-Grab Drive explains how to spot similar optional toll features all over the country.

Frequently asked questions

Q1 I drove in, decided not to stay, and drove straight out. Do I still have to pay?
Yes. Cameras register entry, not how long you were parked. Many travellers in the DV story were fined for “drive-throughs.”

Q2 How do I know a lot is camera-monitored?
Look for the blue “P” sign with a small camera icon or wording such as Myndavélavakt (video surveillance) and Licence Plate Recognition in use. When in doubt, assume monitoring.

Q3 Can Zero Car cancel my fine?
Unfortunately not. The fee is levied by the site operator and becomes a civil claim. We can forward any dispute you send us in writing, but payment deadlines continue to run while the claim is reviewed.

Q4 What if my phone dies?
Recharge at the next café and pay online; most systems allow delayed payment. Alternatively, use the pay-and-display machine where available.

Why Iceland introduced these fees

Infrastructure investment has lagged behind the tourism boom. Fees fund boardwalks over fragile moss, flush toilets at car parks and winter snow clearance. While that doesn’t make an unexpected invoice feel any better, remembering why the system exists may soften the sting. If you’re curious how supporting local businesses factors into sustainability, have a look at 10 Reasons to Choose a Local Car-Rental Company.

Five golden rules to keep your trip fine-free

• Assume every attraction charges. If the car park looks surfaced and marked, it probably does.
• Read the sign before you lock the door. Payment methods and grace periods vary.
• Save your licence plate as a keyboard shortcut in your phone.
• Set two reminders: one for paying the tunnel, one for ending long parking sessions.
• Keep receipts until your credit-card statement settles; they are your proof if a ticket arrives in error.

But Iceland is already expensive—aren’t these just tourist traps?

The Consumer Association has questioned the proportionality of some late-payment surcharges, but the base parking fees (usually ISK 500–1,000, or €3–7) are modest compared with infrastructure costs. Look at it this way: a typical single speeding ticket in Iceland starts at ISK 30,000, and a tow in a blizzard can top ISK 50,000. Parking correctly is the cheapest peace-of-mind investment of your whole journey.

If you’re crunching numbers for your holiday, don’t miss our 2025 rental-cost breakdown—it shows exactly how fees, fuel and insurance stack up against public transport or group tours.

A sample day with Zero Car—cost breakdown

Total outlay: ISK 2,320 (≈ €16). Skip payment and the same day could generate ISK 10,000+ in surcharges.

Want to expand this into a full week? Our Top 10 Must-See Sights With a Rental Car lays out a perfect seven-day loop.

What if a ticket still arrives months later?

Occasionally a plate mis-read or failed credit-card transaction surfaces weeks after you fly home. If we receive an invoice, we will forward the PDF, supporting photo evidence and payment links. You have seven days to pay directly; if you contest the charge, reply with your receipts or screenshots. We freeze the claim while the operator reviews your proof—but remember, undisputed amounts remain your legal obligation.

Travelling greener (and cheaper)

From 2024 Iceland levies a small per-kilometre Road Tax Fee on electric and plug-in hybrid cars (6 ISK/km and 2 ISK/km respectively). Zero Car collects this up-front so you won’t face an extra bill later, but it’s one more reason to plan efficient routes and share vehicles where possible. By combining cars, you halve both emissions and parking fees—a win-win for budgets and glaciers alike.

Final checklist before you turn the key

✅ Apps installed and licence plate saved?

✅ Credit card enabled for international online payments?

✅ Tunnel payment reminder in calendar?

✅ Downloaded offline maps in case of poor signal?

✅ Read our Driving in Iceland Safety Guide (link in welcome e-mail)?

If you can tick these boxes, you’re ready to hit the Ring Road with nothing to worry about except which glacier-lagoon selfie angle is best.

Enjoy the journey—without the paperwork

Zero Car was founded on the belief that Iceland should feel wild and free, not bureaucratic. The parking and toll system can look daunting, but once you get the hang of Parka, EasyPark and the odd tunnel fee, the whole process takes seconds and spares you hours of post-holiday admin. Every krona you choose to pay on site helps keep waterfalls accessible, restrooms clean and moss untrampled. That’s a small price for the privilege of driving through some of the planet’s most dramatic scenery.

Safe travels—and see you on the road!