Best 30 Free Things to See in Iceland with a Cheap Car

There might be no better place in Europe for dramatic landscapes than Iceland. Imagine exploring lunar landscapes, craggy cliff sides, remote hot springs, and jaw-dropping cascades.

Despite common thought, it is possible to explore Iceland on a budget with a little ingenuity. One of the best tools to keep your trip cheap? Finding an inexpensive rental car.

Here’s everything you need to know about the best things to see in Iceland with a cheap rental car ,especially the free ones, and where to find the best deals (Hint: Firefly Iceland!).

Why Rent a Cheap Car in Iceland?

While renting a cheap car in Iceland can sound counterintuitive, many discount car rental companies simply monopolize on using vehicles that are a few years old versus the newest models.

Renting a car allows you to save money on transportation, which can add up if you’re exploring solely by tour. You’ll also have access to remote destinations that public transportation just can’t reach and the freedom and flexibility to visit as many attractions as you wish—and hang around as long as you like!

Be sure to check the fuel efficiency of the car you’re thinking about renting, too. Fuel in Iceland isn’t cheap! so we recommend choosing a fuel-efficient 2WD if you’re staying on paved roads or an older 4WD model if you’re planning a day trip off the beaten path. Either way, it’s a smart way to explore Iceland’s south and beyond!

Best Views in Iceland

1.  Þingvellir National Park – A must-see on any Golden Circle tour, Once the site of Viking gatherings and important constitutional meetings in medieval Iceland, thingvellir national park protects the heritage of this ancient area. It also happens to be the place where the North American and Eurasian tectonic plates are separating and you can walk between the two at this UNESCO World Heritage Site.
2.  Kirkjufell Mountain – The most photographed mountain in Iceland, Kirkjufell Mountain is most well known for its appearance in Game of Thrones. Located on the Snæfellsnes Peninsula, visitors will also be treated to Kirkjufellsfossar, the nearby waterfall.
3.  Dyrhólaey Arch – Located on Iceland’s South Coast, Dyrholaey Arch is a sea arch that offers dramatic views and puffins in summer. This is located right next to the famous Reynisfjara Beach black sand beach if you want to combine the two!
4.  Hvitserkur – A craggy, “dragon-shaped” basalt rock formation surrounded by the sea in North Iceland, Hvitserkur is one of the most impressive geologic sites in Iceland.
5.  Sólheimajökull Glacier – A stunning outlet glacier of the larger Myrdalsjokull which covers the Katla Volcano, Solheimajokull Glacier has easy roadside access on Iceland’s South Coast making it easy to add a peak of a glacier to your itinerary.
6.  Kerið Crater – Tucked along Iceland’s famous Golden Circle, the Kerið Crater is a colorful volcanic crater with a unique lake inside. This is a quick but beautiful stop.
7.  Fjaðrárgljúfur Canyon – Known for its appearance in a Justin Bieber music video, Fjaðrárgljúfur Canyon is a breathtaking, moss-covered canyon with winding rivers. Located on Iceland’s South Coast, the Tjandra River carves its way through the canyon, only adding to its dramatic beauty.
8.  Sólheimasandur Plane Wreck – A hauntingly beautiful abandoned DC-3 plane wreck on a vast black sand beach, Sólheimasandur is a must-see for history buffs.
9.  Vík í Mýrdal Church Viewpoint – Hidden away in the tiny town of Vík on Iceland’s South Coast, the Mýrdal Church is a picturesque chapel with stunning panoramic views over Vík and the Reynisfjara black sand beach.
10.  Hjörleifshöfði Cave (“Yoda Cave”) – A cool stop on your day trip through Iceland’s South Coast. Another South Coast beauty, Hjörleifshöfði Cave is a massive cavern shaped like Yoda’s head. Located near Vik, this cave system is also known as Gígjagjá.

8 free Waterfalls in Iceland

1.  Seljalandsfoss – If you’re looking for the best things to see in Iceland, look no further than Seljalandsfoss. Tucked on Iceland’s South Coast, this is one of the most-visited waterfalls in Iceland. What makes this iconic cascade unique is that you can walk behind it. Be sure to bring slip-resistant shoes for this adventure!
2.  Skógafoss – Possibly the most popular waterfall on Iceland’s South Coast, Skogafoss plummets over a cliffside 197’. Climb the stairs for the perfect photo opportunity and sweeping views of the south coast. This waterfall is tucked just off the famous Ring Road.
3.  Gullfoss – One of the highlights of any Golden Circle tour. Gullfoss waterfall is the famous Golden Circle waterfall. This thundering cascade sees 140 cubic meters of water flow every second in the summer months. In the winter, this waterfall is even more dramatic, often frozen in some sections.
4.  Hraunfossar – Located north of Reykjavik near the Snæfellsjokull Peninsula, Hraunfossar is a waterfall that trickles through a lava bed, flowing from beneath the ground. This is one of the most unique cascades in Iceland, although a bit off the beaten path!
5.  Dettifoss – Europe’s most powerful waterfall, Dettifoss is located inside Vatnajökull National Park, the same preserve where you’ll find Europe’s largest glacier. This is the largest waterfall in Iceland!
6.  Dynjandi – One of the most beautiful sites in the Westfjords, Dynjandi is a majestic “bridal veil” waterfall. It’s about a mile hike to reach Dynjandi, but it’s worth it to see this remote region’s largest waterfall.
7.  Háifoss – One of Iceland’s tallest waterfalls, it’s well worth the trek to see this cascade plummet 122’ over a cliff. You can either hop out of your car and simply look at the waterfall from the overlook or you can make the 2.7 mile hike down to its base for an up close view.
8.  Kvernufoss – Although you can spot Kvernufoss from the Ring Road, this waterfall is a bit hidden by the canyon it plummets into. Tucked near Skogafoss, this is an awesome side-quest for adventurous travelers and one that you might have all to yourself!

Exploring 3 Free Hot Springs in Iceland

1.  Reykjadalur Hot Springs – Situated close to Reykjavik, the Reykjadalur Hot Springs are a natural hot river, accessed by a beautiful hike.
2.  Landbrotalaug – Landbrotalaug is a tiny, hidden hot pot on the Snæfellsnes Peninsula. Despite its small size, it’s surrounded by stunning scenery.
3.  Grjótagjá Cave – Located near Myvatn in Northern Iceland, Grjótagjá Cave is a unique lava cave filled with steaming hot water. These might be the most unique hot springs in all of Iceland! This is another famous filming location for Game of Thrones, setting the backdrop for Jon Snow and Ygrittes love scene. Because the water temperature is unpredictable, you can no longer swim here.

6 Iceland must-see Natural Wonders

1.  Geysir Geothermal Area – Located along the Golden Circle, the Geysir Geothermal Area is home to several geysers, including Strokkur which you can watch erupt every few minutes. A must-stop on any Golden Circle drive.
2.  The Blue Lagoon (Outside Viewing) – Don’t want to pay the hefty price to soak in the Blue Lagoon? You can still stop by to see its milky blue waters for free. Visitors can pull off at the viewing platform along the road that leads to the Blue Lagoon for a look.
3.  Jökulsárlón Glacier Lagoon (Free Access) – Tucked on the Ring Road, the Jökulsárlón Glacier Lagoon is one of the most visited sites in Iceland—and for good reason. You’ll witness giant icebergs floating on the lagoon, cracked off from the nearby Breiðamerkurjökull Glacier.
4.  Diamond Beach – Right across from Jökulsárlón, you’ll find Diamond Beach, a black sand beach covered in sparkling ice chunks that wash up from the ocean. This is another one of the best things to see in Iceland!
5.  Stuðlagil Canyon – A stunning basalt canyon with turquoise waters, Stuðlagil Canyon is located in the remote Eastfjords and offers some of the most otherworldly scenery in Iceland.
6.  Hverir Geothermal Area – Not far from Lake Myvatn in Northern Iceland the Hverir Geothermal Area is a Mars-like landscape of boiling mud pots. If you’re eager to see Iceland’s volcanic activity upclose, this is one of the best spots!

3 Unique Iceland Landscapes

1.  Reynisfjara Black Sand Beach – The most famous black sand beach in Iceland, Reynisfjara is notorious for its sneaker waves. Visitors should visit this beach with extreme caution and follow all posted warning signs. Aside from being a bit dangerous, this beach is beautiful and flanked by basalt column rock formations.
2.  Skaftafell Nature Reserve – A smaller version of the sprawling Vatnajokull National Park, the Skaftafell Nature Reserve sits in the shadow of Europe’s largest glacier. This area is great for hiking, waterfalls, and glacier views.
3.  Snæfellsnes Peninsula – If you don’t have time to travel the entire Ring Road, opt for a mini version of Iceland by road tripping the Snæfellsnes Peninsula. You’ll be treated to lava fields, waterfalls, unique beaches, charming fishing villages, and more.

Bonus Tip: Keep an Eye Out for the Northern Lights

If you’re visiting in winter, don’t miss one of the most magical things to see in Iceland — the northern lights. To catch this natural phenomenon, head away from the capital city lights and into the countryside. A Firefly rental car lets you chase clear skies and increase your chances of seeing the aurora dance across the night sky.

If you’re here in summer or shoulder season, another unforgettable experience is whale watching. Towns like Húsavík in the north or Reykjavík’s Old Harbour offer some of the best tours. From minke whales and humpbacks to occasional sightings of orcas and blue whales, it’s one of Iceland’s most breathtaking natural sights — and an easy day trip to add to your itinerary.

And if you’re hungry after a long day of exploring? Grab a classic Icelandic hot dog at a gas station — it’s a local tradition loved by visitors and locals alike!

Conclusion

Get started planning your trip to see the best things in Iceland with this comprehensive list of some of the country’s best sights!

From national parks to glacier lagoons, hot springs to tectonic plates, there’s no shortage of unforgettable things to see in Iceland — and many of them are completely free.

You can do it all on the cheap, too, by renting a car through Firefly Iceland. Check the website for the best rates in the country and to see which vehicle is right for your adventures in the Land of Fire and Ice.