Planning an Iceland self-drive tour is exciting, but narrowing down where to go can be overwhelming. From volcanic landscapes and glacier lagoons to charming towns and dramatic coastlines, Iceland packs an incredible variety of experiences into a relatively small island.
To help you plan the perfect road trip, here are ten must-see places to visit on a self-drive tour of Iceland, all easily accessible by car and ideal for travelers renting a cheap car in Iceland with Firefly.
Reykjavik and Short Day Trips from the Capital
1. Reykjavik
You don’t strictly need a car to explore downtown Reykjavík, but having one makes a big difference if you’re short on time or want flexibility. Drive along the scenic waterfront to see Harpa Concert Hall and the Sun Voyager sculpture, or head slightly out of town to Grótta Lighthouse, one of the best nearby spots for northern lights spotting during winter.
Reykjavík also makes an excellent base for day trips, especially if you’ve rented a car at KEF Airport and want to start driving straight away.
2. The Blue Lagoon
Located in the Reykjanes Peninsula, the Blue Lagoon is a perfect first or last stop on your Iceland road trip. This world-famous geothermal spa combines luxury with sustainability, using mineral-rich water from a nearby power plant.
Driving yourself means you can visit early in the morning or late in the day, often avoiding the busiest crowds.
3. The Golden Circle
The Golden Circle route is one of the most popular self-drive routes in Iceland and for good reason. Starting less than an hour from Reykjavík it includes:
- Þingvellir National Park, where the North American and Eurasian tectonic plates meet.
- Geysir geothermal area, home to erupting hot springs.
- Gullfoss waterfall, one of Iceland’s most powerful natural sights
It’s an easy, well-maintained drive and ideal for first-time visitors renting a 2WD car.
South Iceland Highlights
4. The Westman Islands (Vestmanneyjar)
Just off Iceland’s south coast, the Westman Islands are a paradise for nature lovers. Puffins nest here in summer, and volcanic history dominates the landscape. On Heimaey, you can walk over the Eldfell lava fields, where bright green moss and purple lupins now soften the dramatic terrain.
5. Vík í Mýrdal
Driving into Vík is one of the most memorable moments on a south coast road trip. The village sits near some of Iceland’s most famous sand beaches, including Reynisfjara, known for its basalt columns and powerful sneaker waves.
This area is easily accessible via the Ring Road, making it a popular overnight stop for self-drive travelers.
6. Jökulsárlón Glacier Lagoon
Few places in Iceland feel as otherworldly as Jökulsárlón, especially at sunset. Icebergs calve from Breiðmerkurjökull glacier and drift slowly towards the sea before washing up on nearby Diamond Beach.
It’s one of the most photographed locations in Iceland and a must-stop on any south or Ring Road itinerary.
East Iceland
7. Seydisfjördur
Seyðisfjörður is a colorful fjord-side town best known for its rainbow street leading to a blue church. While quiet for much of the year, it becomes lively when the ferry from Denmark arrives.
The scenic mountain drive into town is part of the experience, offering waterfalls, winding roads, and dramatic views.
8. Studlagil Canyon
Once hidden beneath glacial waters, Stuðlagil Canyon is now one of East Iceland’s most impressive natural attractions. A vivid turquoise river flows between towering basalt columns, creating a dramatic landscape that’s perfect for hiking and photography.
Access is easiest with your own rental car, especially of you want to explore at your own pace.
North Iceland
9. Húsavík
Known as the whale watching capital of Iceland, Húsavík is a charming harbor town overlooking Skjálfandi Bay. Traditional wooden boats depart daily in search of humpback whales, minke whales, and dolphins.
On land, don’t miss the iconic Húsvík Church, built in a classic Swiss-chalet style.
West Iceland
10. Kirkjufell
Located on the Snæfellsnes Peninsula, Kirkjufell is one of Iceland’s most recognizable mountains. Often photographed with waterfalls cascading in the foreground, it’s a favorite among photographers and a popular detour from the Ring Road. The Snæfellsnes Peninsula is sometimes called “Iceland in miniature” and is well worth exploring on a self-drive trip.
Why a Self-Drive Tour is the Best Way to See Iceland
Renting a car in Iceland gives you complete freedom to explore hidden viewpoints, stop when the light is perfect, and travel at your own pace. With Firefly Iceland, you can rent a cheap car in Iceland without compromising safety or reliability, making road trips more accessible for budget-conscious travelers.
Frequently Asked Questions About Iceland Self-Drive Tours
- Is Iceland good for a self-drive holiday?
Yes. Iceland is one of the best countries in the world for self-drive travel. Roads are well maintained, signage is clear, and most major attractions are accessible by car.
- Do I need a 4×4 for an Iceland road trip?
- When is the best time for a self-drive tour of Iceland?
- Is it expensive to rent a car in Iceland?
- Car rental in Iceland can be expensive, but booking early and choosing a budget-friendly provider like Firefly Iceland helps keep costs down. Traveling outside peak summer months can also significantly reduce prices.
- Can I drive the Ring Road with a cheap rental car?
- Yes. The Ring Road (Route 1) is fully paved and suitable for small and economy cars in good weather conditions. Many travelers complete the full Ring Road using cheap rental cars.
Ready to Start Your Iceland Road Trip?’
A self-drive tour is one of the most rewarding ways to explore Iceland. Book your cheap car rental in Iceland with Firefly today and start planning a road trip filled with waterfalls, glaciers, black sand beaches, and unforgettable views.
