Iceland is famous for its waterfalls, black sand beaches, glaciers, volcanoes, and geothermal hot springs. But did you know that many of the best things to see in Iceland are completely free to visit?
Whether you’re planning a short Iceland road trip or exploring the entire Ring Road, there are plenty of incredible places to discover without spending a fortune.
One of the best ways to explore Iceland on a budget is by renting an affordable car. With a cheap rental car from Firefly Iceland, you can visit famous attractions, discover lesser-known locations, and plan your trip around your own budget.
In this guide, we’ll cover:
- The best viewpoints and scenic attractions in Iceland
- Eight waterfalls you can visit without paying an entrance fee
- Natural hot springs and geothermal areas
- Glaciers, black sand beaches, and volcanic landscapes
- Tips for choosing a cheap rental car in Iceland
- Frequently asked questions about budget travel in Iceland
Most of these attractions have free general access, although some require paid parking or have seasonal access restrictions.
Why Rent a Cheap Car to Explore Iceland?
Renting a car is one of the most practical ways to explore Iceland, especially if you’re planning to visit several attractions in one trip.
While guided tours can be convenient, booking multiple excursions can quickly increase your travel expenses.
With an cheap Iceland car rental, you can:
- Visit multiple attractions in a single day.
- Explore places that aren’t easily reached by public transport.
- Spend more time at your favourite destinations.
- Create a flexible Iceland self-drive itinerary.
- Share transportation costs when travelling with friends or family.
- Save money by choosing free attractions instead of paid activities.
Do You Need a 2WD or 4×4 Rental Car in Iceland?
Choosing the right rental car can make a big difference to your travel budget.
A 2WD rental car is generally suitable for Reykjavík, the Golden Circle, the South Coast, and most of the Ring Road during summer.
A 4×4 rental car is worth considering for winter travel, more remote destinations, and routes requiring four-wheel drive.
If you’re planning to explore Iceland’s Highlands, remember that F-roads require an approved 4×4 vehicle and are normally only open during summer.
You should also consider fuel consumption when choosing your rental car, as fuel is another important part of your Iceland road trip budget.
10 Best Scenic Views and Places to Visit in Iceland
Some of Iceland’s most impressive landscapes can be enjoyed without booking an expensive sightseeing tour.
Here are ten beautiful places to visit in Iceland by car.
1. Þingvellir National Park -Golden Circle
Þingvellir National Park is one of Iceland’s most important historical and geological attractions.
This UNESCO World Heritage Site is where Iceland’s Alþingi parliament was established in 930 AD. It’s also located within the rift valley between the North American and Eurasian tectonic plates.
Visitors can walk through the Almannagjá gorge, explore historic sites, and enjoy views of the surrounding landscape.
How to get there by car: Approximately 45–50 minutes from Reykjavík via Route 36.
Cost: Free general entry, but parking fees apply.
Best rental car: A 2WD is generally suitable when roads are accessible.
2. Kirkjufell Mountain – Snæfellsnes Peninsula
Kirkjufell is one of the most photographed mountains in Iceland.
Located near Grundarfjörður on the Snæfellsnes Peninsula, this distinctive mountain is particularly famous for its appearance in Game of Thrones.
Nearby Kirkjufellsfoss waterfall provides one of Iceland’s most recognisable photography locations.
How to get there by car: Approximately 2.5 hours from Reykjavík.
Cost: No general sightseeing admission fee; parking charges may apply.
Best rental car: A 2WD in suitable conditions or a 4×4 for additional winter capability.
3. Dyrhólaey Arch – South Iceland
Dyrhólaey is a coastal headland near Vík, offering views of the Atlantic Ocean, black sand beaches, and a natural rock arch.
During summer, visitors may also spot puffins nesting around the cliffs.
Dyrhólaey is a popular stop on an Iceland South Coast road trip.
How to get there by car: Approximately 2.5–3 hours from Reykjavík.
Cost: No general entrance fee; parking fees or access restrictions may apply.
Best rental car: A 2WD for accessible lower areas; check the upper viewpoint road before visiting.
4. Hvítserkur Rock – North Iceland
Hvítserkur is a distinctive basalt rock formation rising from the sea near the Vatnsnes Peninsula.
The formation resembles a dragon drinking from the ocean and is one of North Iceland’s most unusual natural attractions.
How to get there by car: Located on the Vatnsnes Peninsula, with access involving gravel roads.
Cost: Generally free to view.
Best rental car: A 4×4 may be preferable for the gravel approach and seasonal conditions.
5. Sólheimajökull Glacier – South Iceland
Sólheimajökull is an outlet glacier of Mýrdalsjökull, one of Iceland’s major ice caps.
Visitors can walk towards designated glacier viewpoints and admire the ice, volcanic landscape, and surrounding mountains.
You don’t need to book a glacier hike to enjoy the views.
However, never walk onto a glacier without a qualified guide and appropriate equipment.
How to get there by car: Approximately 2.5 hours from Reykjavík, with a short walk from the parking area.
Cost: Glacier viewing is free; parking may be charged. Best rental car: A 2WD in suitable conditions.
6. Kerið Crater – Golden Circle
Kerið is a volcanic crater known for its colourful slopes and blue-green crater lake.
It’s a popular addition to a Golden Circle road trip, especially for travellers looking for a quick sightseeing stop.
How to get there by car: Approximately 1 hour from Reykjavík, near Route 35.
Cost: Paid entrance fee.
Best rental car: A 2WD in suitable conditions.
7. Fjarðárgljúfur Canyon – South Iceland
Fjaðrárgljúfur is a beautiful canyon featuring steep moss-covered cliffs and a winding river.
It’s one of the most popular photography locations in South Iceland.
Visitors can follow designated walking paths to viewpoints overlooking the canyon.
How to get there by car: Approximately 3.5 hours from Reykjavík, near Kirkjubæjarklaustur.
Cost: No general admission fee; parking charges may apply.
Best rental car: A 2WD when the access road is suitable, or a 4×4 depending on conditions.
8. Sólheimasandur Plane Wreck – South Iceland
The Sólheimasandur plane wreck is one of Iceland’s most unusual sightseeing attractions.
The remains of a US Navy aircraft that made an emergency landing in 1973 sit on a vast black sand plain.
Visitors can reach the wreck by walking several kilometres from the designated parking area or using a paid shuttle service when operating.
How to get there by car: Approximately 2.5 hours from Reykjavík, along Route 1.
Cost: Walking to the wreck is free; parking and shuttle services may cost extra.
Best rental car: A 2WD in suitable conditions.
Important: Driving across the black sand to the plane wreck is not permitted.
9. Vík í Mýrdal Church Viewpoint – South Iceland
Vík is a small coastal village famous for its black sand beaches and surrounding mountains.
The hilltop Víkurkirkja church is one of the town’s most recognisable landmarks.
From the church area, visitors can enjoy views over Vík and the surrounding coastline.
How to get there by car: Approximately 2.5–3 hours from Reykjavík.
Cost: Free to view from public areas.
Best rental car: A 2WD in suitable conditions.
10. Hjörleifshöfði Cave (Yoda Cave) – South Iceland
Hjörleifshöfði Cave, also known as Gígjagjá, is a distinctive cave opening that resembles the head of Yoda from Star Wars.
Located near Vík, it’s a fun stop for travellers looking for unusual natural attractions.
How to get there by car: Near Route 1, east of Vík, with a gravel and sandy access route.
Cost: Check current access and parking arrangements.
Best rental car: A suitable 4×4 is preferable for the approach when access is permitted. Do not drive off marked roads.
Hvitserkur Rock in North Iceland
8 Beautiful Waterfalls in Iceland You Can Visit on a Budget
Iceland has thousands of waterfalls, and many of its most famous cascades can be visited without paying an entrance fee.
Here are eight waterfalls worth adding to your Iceland road trip itinerary.
11. Seljalandsfoss – South Iceland
Seljalandsfoss is one of Iceland’s most famous waterfalls, known for the walking path that passes behind the falling water.
The waterfall is approximately 60 meters tall and is a popular stop along the South Coast.
The path behind the waterfall may close during winter because of ice.
Location: South Iceland, just off Route 1.
Cost: Free entry; paid parking.
12. Skógafoss – South Iceland
Skógafoss is a powerful waterfall approximately 60 meters high.
Visitors can admire it from below or climb the staircase beside the waterfall for views of the surrounding coastline.
It’s one of the easiest waterfalls to include in a South Iceland self-drive itinerary.
Location: Skógar, South Iceland.
Cost: No general entrance fee; check current parking charges.
13. Gullfoss – Golden Circle
Gullfoss is one of the main attractions on Iceland’s Golden Circle route.
This impressive waterfall drops into a deep canyon in two stages.
During winter, parts of the surrounding landscape may become covered in snow and ice.
Location: Golden Circle, southwest Iceland.
Cost: Free general access.
14. Hraunfossar – West Iceland
Hraunfossar is different from many other Icelandic waterfalls.
Instead of one large cascade, streams of water emerge from beneath a lava field and flow into the Hvítá River.
Nearby Barnafoss is another beautiful waterfall worth visiting during the same stop.
Location: Borgarfjörður, West Iceland.
Cost: Generally free to visit.
15. Dettifoss – North Iceland
Dettifoss is one of Europe’s most powerful waterfalls.
Located in Vatnajökull National Park, it’s known for the enormous volume of water flowing through Jökulsárgljúfur canyon.
The access roads are seasonal, so always check which side of the waterfall is accessible before travelling. Location: Northeast Iceland.
Cost: Free general access.
Rental car tip: Route 862 is generally the more practical approach when open, while Route 864 is a rougher gravel road.
16. Dynjandi – Westfjords
Dynjandi is one of the most beautiful waterfalls in the Westfjords.
Its wide, cascading shape resembles a bridal veil, and several smaller waterfalls can be seen along the walking route.
The waterfall is especially popular during summer road trips through the Westfjords.
Location: Westfjords, Iceland.
Cost: Generally free to visit.
Rental car tip: Consider a 4×4 for a Westfjords road trip, particularly when travelling on gravel roads.
17. Háifoss – South Iceland
Háifoss is one of Iceland’s tallest waterfalls, dropping approximately 122 metres into a dramatic valley.
Its remote location makes it an attractive destination for travellers looking to explore beyond the most popular tourist stops.
Location: Þjórsárdalur Valley, South Iceland.
Cost: Generally free to visit.
Rental car tip: The access road can be rough, so a suitable 4×4 is recommended. Check seasonal accessibility.
18. Kvernufoss – South Iceland
Kvernufoss is a smaller waterfall hidden inside a green canyon near Skógafoss.
A short walk leads visitors towards the waterfall, making it a worthwhile addition to a South Coast itinerary.
Location: Near Skógar, South Iceland.
Cost: No general admission fee; parking charges may apply.
3 Natural Hot Springs and Geothermal Locations in Iceland
Iceland is famous for geothermal activity, and you don’t always need to visit an expensive spa to experience it.
However, not every natural hot spring is safe or suitable for swimming.
19. Reykjadalur Hot River – South Iceland
Reykjadalur, meaning Steam Valley, is a geothermal valley near Hveragerði.
Visitors can hike through the valley to reach a naturally heated river with designated bathing areas.
The hike usually takes around 45–60 minutes each way, depending on the route and conditions.
How to get there by car: Approximately 45 minutes from Reykjavík to the trailhead.
Cost: No bathing admission fee; parking may be charged.
Best time to visit: When hiking routes are safe and accessible.
20. Landbrotalaug – Snæfellsnes Peninsula
Landbrotalaug is a small natural hot pot on the Snæfellsnes Peninsula.
It’s known for its peaceful surroundings and compact bathing area.
Because it’s small and access arrangements can change, check whether visiting is currently permitted before making the trip.
Location: Snæfellsnes Peninsula.
Cost: Check current access arrangements.
21. Grjótagjá Cave – North Iceland
Grjótagjá is a small lava cave near Lake Mývatn containing geothermal water.
The cave became internationally famous after appearing in Game of Thrones.
Although the water looks inviting, swimming is prohibited because temperatures can be dangerously high and unpredictable.
Location: Near Lake Mývatn, North Iceland.
Cost: Check current visitor access arrangements.
6 Must-See Natural Wonders in Iceland
From active geothermal areas to floating icebergs, Iceland has plenty of natural attractions that can be enjoyed on a budget.
22. Geysir Geothermal Area – Golden Circle
The Geysir Geothermal Area is one of the most popular attractions along Iceland’s Golden Circle.
Its main attraction is Strokkur, a geyser that erupts regularly, often every 5–10 minutes.
Visitors can walk along marked paths to view geothermal pools, steaming vents, and erupting water.
Location: Golden Circle.
Cost: Free general access.
23. Blue Lagoon Surroundings – Reykjanes Peninsula
The Blue Lagoon is one of Iceland’s best-known geothermal spas.
Although bathing requires a paid reservation, visitors may be able to view parts of the surrounding volcanic landscape and blue geothermal water from publicly accessible areas.
Public viewing access is not the same as access to the paid lagoon facilities.
Location: Reykjanes Peninsula, near Grindavík.
Cost: Paid admission for bathing.
Important: Access around the Blue Lagoon and Grindavík can change because of volcanic activity. Check official safety notices before travelling.
24. Jökulsárlón Glacier Lagoon – Southeast Iceland
Jökulsárlón is one of the most impressive natural attractions in Iceland.
Large icebergs break away from Breiðamerkurjökull glacier and float across the lagoon towards the Atlantic Ocean.
You can admire the icebergs from designated viewing areas without booking a boat tour.
Location: Southeast Iceland, along Route 1.
Cost: Free general access; paid parking.
25. Diamond Beach – Southeast Iceland
Diamond Beach is located across the road from Jökulsárlón Glacier Lagoon.
Pieces of glacier ice wash onto the black sand, creating a striking contrast.
The amount of ice on the beach varies with tides and natural conditions.
Location: Opposite Jökulsárlón.
Cost: Free beach access; parking fees may apply.
Safety tip: Stay away from the water’s edge and never climb onto floating ice.
26. Stuðlagil Canyon – East Iceland
Stuðlagil Canyon is famous for its tall basalt columns and striking river.
The colour of the water varies throughout the year depending on river flow and sediment.
There are different viewpoints and hiking routes, so plan your visit before arriving.
Location: Jökuldalur Valley, East Iceland.
Cost: No general entrance fee; parking or facilities may be charged.
Rental car tip: Some approaches involve gravel roads, making a suitable 4×4 useful.
27. Hverir Geothermal Area – North Iceland
Hverir is a geothermal area near Lake Mývatn.
Visitors can see bubbling mud pools, steaming fumaroles, and colourful mineral deposits.
The landscape is often compared to the surface of Mars.
Location: Near Lake Mývatn, North Iceland.
Cost: Parking or access charges may apply.
Safety tip: Stay on designated walking paths because the ground can be extremely hot.
3 Unique Iceland Landscapes You Shouldn’t Miss
28. Reynisfjara Black Sand Beach – South Iceland
Reynisfjara is Iceland’s most famous black sand beach.
It’s known for its basalt columns, powerful Atlantic waves, and views of the Reynisdrangar sea stacks.
Location: Near Vík, South Iceland.
Cost: No general entrance fee; parking charges apply.
Important: Reynisfjara is extremely dangerous because of unpredictable sneaker waves. Follow the beach’s warning system, remain well away from the water, and never turn your back on the ocean.
29. Skaftafell – South Iceland
Skaftafell is part of Vatnajökull National Park and is one of Iceland’s most popular hiking destinations.
Visitors can enjoy glacier views, hiking trails, and the famous Svartifoss waterfall, surrounded by basalt columns.
Location: Southeast Iceland, along Route 1.
Cost: General access is free; parking fees apply.
30. Snæfellsnes Peninsula – West Iceland
The Snæfellsnes Peninsula is sometimes called Iceland in Miniature because it features many of the landscapes Iceland is famous for.
Visitors can explore:
- Kirkjufell Mountain
- Snæfellsjökull National Park
- Arnarstapi coastal cliffs
- Djúpalónssandur black pebble beach
- Búðakirkja black church
- Charming fishing villages
Location: West Iceland.
Cost: Many attractions are free to access, although parking charges may apply.
Best rental car: A 2WD in suitable summer conditions or a 4×4 for more demanding seasonal travel.
Bonus: More Budget-Friendly Things to Do in Iceland
See the Northern Lights in Iceland
If you’re visiting Iceland between September and April, you may have the chance to see the northern lights.
One of the best ways to search for the aurora is to drive away from Reykjavík’s city lights and find a safe, dark location.
A rental car gives you more flexibility to choose a viewing spot based on the cloud and aurora forecasts.
Remember that northern lights sightings are never guaranteed.
Check the Icelandic Met Office’s aurora forecast before heading out, and always park in designated safe locations rather than stopping on the road.
Go Whale Watching
Whale watching is another popular activity in Iceland.
Reykjavík and Húsavík are two well-known departure points for whale watching tours.
Although tours are paid activities, they can be a memorable addition to your Iceland itinerary if your budget allows.
Try an Icelandic Hot Dog
Looking for cheap food in Iceland?
An Icelandic hot dog, known locally as pylsa, is a popular budget-friendly meal.
You can find hot dogs at many petrol stations and food stands around the country.
They’re a convenient option during a long Iceland road trip.
How to Explore Iceland on a Budget: 6 Money-Saving Tips
Exploring Iceland doesn’t have to mean spending a fortune.
Here are six practical ways to reduce your travel expenses.
1. Book your rental car early
Booking ahead can help you compare rental car options and find a vehicle that suits your budget.
2. Choose free natural attractions
Many waterfalls, beaches, national parks, and viewpoints have no general entrance fee, although parking may cost extra.
3. Plan your Iceland road trip route
Grouping nearby attractions into the same day can reduce unnecessary driving and fuel expenses.
4. Consider travelling outside peak summer
April, May, September, and October can offer lower accommodation and rental car prices than peak summer, depending on availability.
5. Buy groceries and prepare simple meals
Shopping at Icelandic supermarkets and packing snacks can help reduce daily food expenses.
6. Choose the right rental car
A fuel-efficient 2WD may be the most economical choice for a summer trip focused on paved roads. For winter travel or routes requiring four-wheel drive, consider an affordable 4×4 rental.
Frequently Asked Questions About the Best Things
- What are the best things to see in Iceland?
Some of the best things to see in Iceland include Gullfoss, Skógafoss, Seljalandsfoss, Reynisfjara Black Sand Beach, Jökulsárlón Glacier Lagoon, Diamond Beach, Þingvellir National Park, and the Geysir Geothermal Area.
Many of these attractions can be visited on a self-drive Iceland road trip.
- What are the best free things to do in Iceland?
Popular free activities include visiting waterfalls, exploring black sand beaches, viewing glaciers, walking through geothermal areas, and enjoying Iceland’s scenic viewpoints.
Some attractions charge for parking even when general entry is free.
- Do you need a 4×4 rental car in Iceland?
Not always. A 2WD rental car is generally suitable for many paved routes during summer.
However, a 4×4 is recommended for some winter itineraries and is mandatory on F-roads. F-roads are seasonal Highland routes, and the vehicle must be approved for the specific route.
- What is the cheapest way to travel around Iceland?
For travellers sharing costs, renting an affordable car and visiting free natural attractions can be a cost-effective option.
You can save more by planning shorter driving routes, shopping at supermarkets, and travelling outside peak summer.
- How many days do you need for an Iceland road trip?
A short Iceland road trip can be done in 3 to 5 days, focusing on Reykjavík, the Golden Circle, and the South Coast. For a complete Ring Road adventure, most travelers recommended at least 7 to 10 days.
- Can you drive Iceland’s Ring Road with a 2WD rental car?
Yes. Route 1, also known as Iceland’s Ring Road, is paved and generally suitable for 2WD rental cars during summer.
In winter, snow, ice, and strong winds can affect accessibility, so a 4×4 may be a better choice.
- How many days do you need to explore Iceland by car?
Three to five days is enough to explore Reykjavík, the Golden Circle, and parts of the South Coast.
For a full Ring Road trip, allow approximately 7–10 days or longer, especially if you want to visit more attractions.
- What is the best time to visit Iceland on a budget?
April, May, September, and October can be good months for budget travel because flights, accommodation, and rental cars may be less expensive than during peak summer.
Prices vary depending on travel dates and availability.
- Are Iceland’s waterfalls free to visit?
Many waterfalls, including Gullfoss, Skógafoss, Seljalandsfoss, Dettifoss, and Hraunfossar, have no general entrance fee.
However, some locations charge for parking or other visitor facilities.
- Can you see glaciers in Iceland without paying for a tour?
Yes. You can admire glaciers from designated viewpoints at Sólheimajökull, Skaftafell, and Jökulsárlón Glacier Lagoon without joining a guided tour.
Never walk onto glacier ice without a qualified guide.
- Is it possible to see the northern lights on a budget?
Yes. Seeing the northern lights is free, and you can search for them from safe public viewing areas during the aurora season, generally September to April.
Clear skies, darkness, and aurora activity all influence your chances of seeing them.
- Where can you rent a cheap car at Keflavík Airport?
Firefly Iceland offers budget car rental options for travellers arriving at Keflavík International Airport (KEF).
After collecting your luggage, follow the signs for the Car Rental Shuttle to reach the rental car area. Firefly’s rental station is located at Flugvellir 11 in Keflavík.
- Is Firefly Iceland a good option for budget travellers?
Firefly Iceland offers affordable rental cars for travellers who want to explore Iceland while keeping transportation expenses manageable.
Whether you’re planning a Golden Circle day trip, a South Coast adventure, or a longer Ring Road itinerary, you can compare available 2WD and 4×4 rental options to find a suitable vehicle.
Conclusion: Discover the Best Things to See in Iceland on a Budget
From powerful waterfalls and black sand beaches to glacier lagoons and volcanic landscapes, Iceland has plenty of unforgettable places to explore.
And the good news? Many of the best things to see in Iceland are free to visit.
With a little planning, you can experience some of Iceland’s most famous natural attractions without spending your entire travel budget on transportation and sightseeing tours.
Renting a car also makes it easier to combine several attractions into one trip, whether you’re visiting the Golden Circle, exploring the South Coast, or travelling around the Ring Road.
Ready to start your Iceland adventure?
Explore affordable 2WD and 4×4 rental cars with Firefly Iceland and find a vehicle that fits your road trip plans and budget.
Before setting off, check the latest travel information at umferdin.is and en.vedur.is.
