Used tyres are not allowed to be placed on landfills any more, but can be used as insulation materials with very good results. The present paper describes a study in which tyre shreds (50mm * 50 mm) were used as insulation material in a road construction. The tyre shreds had a thickness of 600 mm and were covered with 875 mm of road superstructure. The effect of the layer on frost depth and frost heave was measured during three winters. As scrap tyres are a highly elastic the bearing capacity and Young's module were measure directly on the road by the use of a falling weight deflectometer. The potential environmental impact was also studied. The scrap tyres showed a very good insulation performance, mostly due to its high porosity. Effects of frost action were not visible or recorded. The studied construction had deformation pattern of the road surface was within acceptable limits. The environmental impact was studied before the pavement was placed at the top and therefore leakage could be detected.