Indians Driving in Iceland
All driving licenses issued from the US, Canada and the European Economic Area (EEA) are valid in Iceland.
A driving license issued from anywhere else is valid provided it has:
(i) A license number
(ii) The license holder’s photograph
(iii) The license should be valid at all times
(iv) The license should be in English.
If a Tourist’s driving license does not fulfil all of the above requirements then he/she must obtain an International Driving License to be able to drive in Iceland
If you hire a car in Iceland, it is advisable to be certain about all terms and conditions, since in some instances the credit card (which they insist) has been charged later for car repairs etc (full cost or in insured cases, part cost). Repair cost can be exorbitant compared to India.