Register Your Vehicle as Temporarily Out of Use in Iceland

When a vehicle owner in Iceland needs to temporarily remove their vehicle from public road use, the official procedure is to register it as "out of use." This essential administrative step primarily involves physically handing in the vehicle's number plates to the Icelandic Transport Authority (Samgöngustofa) or an approved inspection station. Successfully completing this process means the vehicle is exempted from road tax charges, and its insurance policy can typically be cancelled. However, it also strictly prohibits the vehicle from being used on public roads. It's crucial to be prepared to submit both number plates; if one is missing, a new plate must be ordered and paid for at the time of submission.

Understanding the "Out of Use" Status for Icelandic Vehicles

Registering a vehicle as "out of use" is a temporary measure designed for situations where a vehicle will not be driven on public roads for an extended period. This differs significantly from permanent deregistration (e.g., for scrapping or export) and offers a way to pause certain financial obligations associated with vehicle ownership in Iceland.

This procedure is typically chosen for vehicles that are:

• Being stored for winter or a longer period.
• Undergoing extensive repairs or restoration work.
• Temporarily out of service due to owner absence.
• Otherwise not needed for public road use.

The primary benefits for the owner are:

• Road Tax Exemption: No road tax will be charged while the vehicle holds "out of use" status. This exemption begins from the date the plates are handed in.
• Insurance Cancellation: Owners can contact their insurance provider to cancel or suspend the mandatory general use insurance policy, leading to potential cost savings.

It is absolutely critical to understand the legal implications of this status.

This procedure is distinct from a "vehicle out of use with a sticker" option, which allows for temporary cessation of use without handing in plates but may have different rules regarding insurance and road tax. This guide focuses solely on the "handing in number plates" method.

Eligibility and Owner Responsibilities

The ability to register a vehicle as temporarily out of use rests with specific individuals or entities, and certain responsibilities come with this status.

Who Can Request This Status?

The request to register a vehicle as temporarily out of use can be made by:

• The registered owner of the vehicle.
• The registered keeper of the vehicle (if different from the owner).

Both the owner and keeper are legally responsible for the vehicle's status and adherence to regulations.

Key Responsibilities While Out of Use

Once a vehicle is registered as out of use, the owner/keeper has several responsibilities:

• No Public Road Use: Ensure the vehicle is not driven or parked on any public road.
• Plate Storage Fees: Be aware of and pay any required fees for the storage of the number plates.
• Insurance Notification: Inform your insurance company about the change in vehicle status and arrange for cancellation or suspension of relevant policies.
• Future Reinstatement: Understand the process and requirements for putting the vehicle back in use when desired.
• Odometer Reading (for specific vehicles): For electric, hydrogen, or plug-in hybrid vehicles, the odometer reading must be provided when registering the vehicle as out of use. This is important for tracking specific vehicle types.

Preparing for Submission: Your Essential Checklist

Before proceeding to hand in your number plates, ensure you have all necessary items and information ready. Proper preparation will streamline the process and help avoid delays.

Documents and Items to Prepare

• Both Number Plates: If your vehicle is registered with two number plates, you must bring both of them. This is a fundamental requirement for the "handing in plates" method.
• Valid Identification: The owner or keeper submitting the plates must present a valid form of identification. This typically includes a passport, national ID card, or Icelandic driving licence.
• Vehicle Registration Document (optional but recommended): While not always strictly required for handing in plates, having the vehicle's registration document (often called skráningarskírteini in Icelandic) on hand can be useful for quickly verifying vehicle details.
• Odometer Reading: For electric vehicles (EVs), hydrogen vehicles, and plug-in hybrid electric vehicles (PHEVs), you must provide the current odometer reading. Make a note of this before you go.
• Payment Method: Be ready to pay the applicable fee for plate storage. This fee is typically paid at the time of submission.
• Power of Attorney (if applicable): If someone other than the registered owner or keeper is submitting the plates on their behalf, they must present a legally valid power of attorney (umboð) authorising them to act. The representative will also need their own valid ID.

Pre-Submission Actions Checklist

To ensure a smooth process, consider these steps before you visit the authority or inspection station:

• Verify Number Plate Status: Confirm you have both plates. If one is missing, be aware that you will need to order a replacement plate simultaneously.
• Check Vehicle Type: Determine if your vehicle is electric, hydrogen, or a plug-in hybrid to ensure you record the odometer reading.
• Contact Your Insurer (Optional but Recommended): While you can cancel insurance after the plates are handed in, it's wise to speak with your insurer beforehand to understand their specific requirements and the effective date for cancellation once the vehicle is officially out of use.
• Confirm Location Opening Hours: Check the opening hours of your chosen Samgöngustofa office or inspection station.

The Step-by-Step Process for Handing In Number Plates

The procedure for registering your vehicle as temporarily out of use by surrendering its number plates is straightforward and involves a physical visit to an authorised location.

Where to Hand In Your Plates

You have two primary options for where to hand in your vehicle's number plates:

• Icelandic Transport Authority (Samgöngustofa): You can visit one of their service centres.
• Approved Vehicle Inspection Stations: These stations, located throughout Iceland, are authorised to accept number plates for temporary deregistration. Many drivers find these stations more accessible. You can typically find a list of these stations on the Ísland.is portal or the Samgöngustofa website.

Handling Missing or Damaged Number Plates

It is a common scenario for one of a vehicle's number plates to be lost, stolen, or damaged. This situation has a specific protocol when registering a vehicle as out of use.

If your vehicle normally requires two number plates (which is standard for most passenger vehicles in Iceland), both must be handed in. If only one plate is available, and the other is missing or unusable:

• Ordering a New Plate is Required: You cannot simply hand in one plate. You must order a new replacement plate for the missing or damaged one at the same time you submit your existing plate.
• Additional Cost: Be prepared to pay the fee for ordering this new number plate, in addition to the plate storage fee. This ensures that the vehicle's record correctly accounts for both plates, even if one is newly manufactured for this specific purpose of being handed over.
• Integrated Process: The process of ordering a new plate and registering the vehicle as out of use is typically handled concurrently at the Samgöngustofa office or inspection station. This ensures full compliance and proper management of your vehicle's registration identifiers.

Costs, Fees, and Plate Storage Duration

Understanding the financial aspects and timeframes associated with registering a vehicle out of use is crucial for planning.

Associated Costs

The primary cost involved in this procedure is the storage fee for the number plates. This fee is paid at the time you hand in your plates.

• Plate Storage Fee: This fee covers the cost of storing your number plates for a specified period. The inputs indicate that "the plates are stored for one year."
• New Plate Order Fee: If one of your number plates is missing, you will incur an additional fee for ordering a replacement plate. This fee is separate from the storage fee.
• No Fee for Re-registration: While there is a cost for putting a vehicle out of use and storing its plates, there is generally no fee for officially registering the vehicle back in use later, provided all other conditions (insurance, outstanding charges) are met.

Plate Storage Duration and Renewal

Your number plates will be stored by the Icelandic Transport Authority (or at an inspection station on their behalf) for one year from the date of submission.

• Extension of Storage: If you need to keep your vehicle out of use for longer than one year, you must pay the storage fee again to extend the storage period.
• Consequences of Non-Renewal: If the storage fee is not paid again after the initial one-year period, the plates will be destroyed. This means that if you later wish to put the vehicle back in use, you will have to order and pay for entirely new number plates, which could be a more complex and costly process than simply renewing storage.

Legal Implications and Prohibited Use

Registering a vehicle as "out of use" is a legal declaration that carries significant restrictions, primarily concerning the vehicle's permissible use.

Strict Prohibition on Public Road Use

As highlighted earlier, a vehicle registered as "out of use" is strictly prohibited from being used on any public road. This includes:

• Driving: The vehicle cannot be driven, even for short distances or to move it between properties if it involves traversing a public road.
• Parking: The vehicle should not be parked on public streets, pavements, or any other public thoroughfare. It must be stored on private property.

Consequences of Violation

Operating a vehicle registered as out of use can lead to serious legal and financial repercussions:

• Fines: Significant fines can be imposed by law enforcement for driving or parking a vehicle that is not legally registered for use.
• Invalid Insurance: Any insurance policy that was active prior to the "out of use" status is typically cancelled or suspended. Driving the vehicle without valid insurance is a severe offense and leaves the owner personally liable for all damages, injuries, and legal costs in the event of an accident.
• Vehicle Impoundment: Authorities may impound the vehicle if it is found to be illegally used.
• No Retroactive Registration: It is not possible to register a vehicle as out of use retroactively. The status change is effective from the date of plate submission, meaning any prior period of non-use will still incur road tax liabilities if the vehicle was registered for general use.

Exemption from Road Tax

Once successfully registered as out of use, the vehicle is exempt from road tax for the period it holds this status. This exemption is automatically applied from the date the plates are surrendered. It is one of the primary motivations for undertaking this procedure.

Insurance Considerations

While Samgöngustofa handles the vehicle registration status, managing your vehicle insurance is a separate but equally important step that directly impacts your financial obligations and legal standing.

Cancelling or Suspending Insurance

Once your vehicle is officially registered as "out of use" by handing in the number plates, you are generally able to:

• Cancel your general use insurance policy: Since the vehicle is no longer permitted on public roads, the mandatory third-party liability insurance for general use is not required. You should contact your insurance company directly to formally cancel this policy.
• Consider storage insurance: If you wish to protect your vehicle against risks like fire, theft, or damage while it is stored, you might consider obtaining a specific "storage" or "off-road" insurance policy. This is optional and depends on your individual needs and the value of your vehicle. Your insurer can provide options for this.

Impact on Future Insurance

When you eventually decide to put your vehicle back in use, you will be required to arrange for a new or reinstated general use insurance policy before you can retrieve your number plates or drive the vehicle. Insurance companies require the vehicle to be registered for use and insured before plates can be released.

What Happens After You Submit Your Plates?

After successfully handing in your number plates, several important outcomes and follow-up actions occur.

Official Status Update

• Vehicle Register: The official Icelandic vehicle register, maintained by Samgöngustofa, will be updated to reflect that your vehicle is now "temporarily out of use." This status is linked to the storage of your number plates.
• Confirmation: You should receive a formal confirmation or receipt from the authority or inspection station detailing this change in status, along with proof of payment for the plate storage.

Cessation of Road Tax

• Automatic Exemption: The exemption from road tax comes into effect automatically from the date you surrender your plates. You will not be charged road tax for any period the vehicle is registered as out of use.
• No Retroactive Application: Remember that this exemption cannot be applied retroactively.

Plate Storage and Retrieval

• One-Year Storage: Your physical number plates will be kept in secure storage for a period of one year.
• Renewal Option: If you need to extend this "out of use" status beyond one year, you must contact the authority or inspection station and pay the storage fee again to renew the storage.
• Plate Destruction: If the storage fee is not renewed after the initial year, your plates will be destroyed. This will necessitate ordering new plates when you eventually want to put the vehicle back in use, incurring additional costs and administrative steps.
• Retrieval Process: When you are ready to put your vehicle back in use, you will need to apply to retrieve your number plates. This process requires a valid ID and, importantly, proof that the vehicle is now insured and ready for use on public roads. If another person retrieves the plates, they must present a power of attorney. This separate procedure for "registering a vehicle back in use" has its own specific steps.

Reinstating Your Vehicle: The "Back in Use" Process

Once your vehicle has been registered as "out of use," there will likely come a time when you wish to put it back into active service. This requires a separate, but related, procedure known as "Registering a vehicle back in use."

Key Steps for Reinstatement (Brief Overview)

While this guide focuses on placing a vehicle out of use, it's important to know the general outline for reinstatement:

1. Ensure Vehicle Fitness: Confirm your vehicle is roadworthy and meets all inspection requirements if applicable.
2. Arrange Insurance: Obtain or reinstate a valid general use insurance policy for the vehicle. This is a mandatory prerequisite for retrieving your plates.
3. Pay Outstanding Charges: Any outstanding public charges related to the vehicle must be paid before plates can be handed over.
4. Retrieve Number Plates: Visit the Icelandic Transport Authority or the inspection station where your plates are stored. You will need to present a valid ID and proof of insurance. If collecting on behalf of another, a power of attorney is required.
5. Re-register if 'Sticker' Option Used: If your vehicle was registered out of use with a sticker (not by handing in plates), it must be re-registered for use and issued a new inspection sticker before it may be driven.

For detailed instructions on how to put your vehicle back in use, including any associated forms or requirements, you should consult the dedicated official guide for "Registering a vehicle back in use" on Ísland.is.

Common Mistakes and How to Avoid Them

Navigating administrative procedures can sometimes lead to missteps. Being aware of common pitfalls can help you avoid unnecessary delays, costs, or legal issues when registering your vehicle as temporarily out of use.

• Driving a Vehicle Registered Out of Use: This is the most critical mistake. Any use on public roads is strictly forbidden and can result in severe fines, invalid insurance, and vehicle impoundment.
  • Remedy: Ensure the vehicle remains on private property and is not moved on public roads until it is officially registered back in use and properly insured.
• Not Handing In Both Number Plates: If your vehicle has two plates, both must be surrendered. Only submitting one will halt the process.
  • Remedy: Always bring both plates. If one is missing, be prepared to order a replacement plate at the same time you make the submission, and factor in the additional cost.
• Forgetting to Provide Odometer Reading for Specific Vehicles: Electric, hydrogen, and plug-in hybrid vehicles require an odometer reading upon submission.
  • Remedy: Make a note of the current odometer reading for these vehicle types before your visit.
• Failing to Inform Your Insurance Company: Your vehicle's general use insurance policy typically needs to be cancelled or suspended separately.
  • Remedy: Contact your insurance provider immediately after successfully registering the vehicle as out of use to adjust or cancel your policy.
• Not Renewing Plate Storage After One Year: Plates are stored for one year. If the fee is not renewed, they will be destroyed.
  • Remedy: If you need to keep the vehicle out of use longer, make a note to renew the storage fee before the year is up. Otherwise, you'll incur costs for new plates when reactivating.
• Confusing Temporary "Out of Use" with Permanent Deregistration: The process of handing in plates is for temporary non-use, not for scrapping a vehicle or permanently exporting it. These are different procedures.
  • Remedy: Understand the specific purpose of each deregistration type. If your vehicle is being scrapped or exported, follow the appropriate specific deregistration process.
• Assuming Digital Confirmation is Final for All Steps: While the vehicle register is updated digitally, the physical act of handing in plates is central to this particular "out of use" method.
  • Remedy: Ensure you complete the physical submission of plates and receive official confirmation of the status change.
• Lack of Proper Identification or Power of Attorney: If the owner/keeper is not present, the representative needs explicit authorisation.
  • Remedy: The person submitting must have valid ID. If acting on behalf of the owner/keeper, a formal power of attorney is essential.

Overview of Vehicle Status Options in Iceland

It's helpful to understand how "temporarily out of use" (by handing in plates) fits into the broader context of vehicle registration statuses in Iceland.

Feature / Status	Temporarily Out of Use (Plates Handed In)	Temporarily Out of Use (Sticker)	Permanent Deregistration (Scrap/Export)	Registered For General Use
Primary Action	Hand in physical number plates	Notify via sticker/online (plates retained by owner)	Vehicle scrapped at facility or exported abroad	Standard registration, plates attached
Purpose	Pause road use, tax, insurance obligations for storage/repair	Pause road use, tax, insurance obligations (owner keeps plates)	Permanently remove from Icelandic register	Normal public road usage
Road Tax Exemption	Yes, from date of plate submission	Yes, from date of notification	Yes, permanent	No, road tax is charged
Insurance Cancellation	Possible to cancel/suspend general use insurance	Possible to cancel/suspend general use insurance	Mandatory cancellation	Mandatory general use insurance required
Prohibition of Use	Strictly Prohibited on Public Roads	Strictly Prohibited on Public Roads	N/A (vehicle no longer registered)	Permitted on public roads, with valid insurance and inspections
Number Plate Fate	Stored for 1 year (renewable), then destroyed if not claimed	Retained by owner, not surrendered	Destroyed or surrendered for export documentation	Attached to vehicle
Odometer Requirement	For EV/Hydrogen/PHEV	For EV/Hydrogen/PHEV	No (scrapping process typically handles vehicle data)	Not directly for status change, but for inspections
Reactivation Process	Requires retrieving plates, insurance, and possibly inspection	Requires re-registering for use, new inspection sticker, insurance	Not applicable	Maintain insurance, pass inspections
Main Authority	Samgöngustofa / Inspection Stations	Samgöngustofa / Ísland.is	Icelandic Recycling Fund / Samgöngustofa (for export)	Samgöngustofa / Inspection Stations

Essential Terminology

Understanding the specific terms used in Icelandic vehicle administration can greatly assist in navigating official procedures and documentation.

Official Sources and Further Information

For the most accurate and up-to-date information, always consult the official channels of the Icelandic authorities.

• Ísland.is - Registering a vehicle out of use: https://island.is/en/skra-okutaeki-ur-umferd
• Ísland.is - Ordering of registration plates: https://island.is/en/ordering-of-registration-plates
• Ísland.is - Vehicle deregistration (for permanent options): https://island.is/en/vehicle-deregistration
• Ísland.is - Registering a vehicle back in use: https://island.is/en/registering-a-vehicle-back-in-use
• Icelandic Transport Authority (Samgöngustofa) official website: https://island.is/en/o/transport-authority
• Ísland.is - Vehicle inspection information: https://island.is/en/vehicle-inspection
• Ísland.is - Vehicles and Driving category overview: https://island.is/en/category/vehicles-and-driving

When seeking information, search for these specific page titles or navigate through the "Vehicles and Driving" section on the Ísland.is portal to ensure you are accessing the correct and authoritative guidance.

Practice Your Knowledge

Understanding the administrative procedures for vehicle ownership is as important as knowing the rules of the road. Test your comprehension of vehicle registration and status changes in Iceland.