Driving and Hiking in Harmony: Explore Iceland's Natural Wonders with Höldur Car Rental

Iceland, a land of fire and ice, offers an unparalleled opportunity to intertwine the freedom of driving with the exhilaration of hiking. With Höldur Car Rental, you can seamlessly journey through breathtaking landscapes, combining scenic drives with short treks to iconic glaciers, majestic waterfalls, and ancient lava fields. This guide is crafted to inspire and inform prospective travellers, ensuring your Icelandic adventure is both memorable and harmonious.

The Perfect Pairing: Driving and Hiking in Iceland

Embarking on a road trip in Iceland allows you to witness the country's diverse terrains at your own pace. From the comfort of your vehicle, transition effortlessly to footpaths that lead to some of the most awe-inspiring natural sites. This blend of driving and hiking offers a holistic experience, immersing you in Iceland's raw beauty.

 

Must-Visit Destinations for Drive-and-Hike Adventures

 

1. Seljalandsfoss Waterfall – Walk Behind a Cascade of Wonder

Just under two hours from Reykjavík on the Ring Road (Route 1), Seljalandsfoss is more than a scenic stop — it's an interactive experience. This graceful waterfall tumbles from a cliff some 60 metres high, and a footpath lets you walk behind the curtain of water, giving you a truly immersive view of nature’s power. Wear waterproofs and bring your camera — this spot is as photogenic as it is unforgettable. Short trails nearby lead to lesser-known falls like Gljúfrabúi, hidden in a mossy ravine.

 

2. Skógafoss Waterfall – A Giant in the Mist

A scenic 30-minute drive east from Seljalandsfoss takes you to Skógafoss — another iconic cascade, this one broader and thunderous, dropping with full force into a misty basin below. A staircase of over 500 steps leads you to a panoramic viewpoint and the starting point of the famed Fimmvörðuháls trail. Whether you tackle the full hike or just ascend for the view, this stop blends accessibility with grandeur. The legend says a Viking treasure is buried behind the falls — a tale that adds a sprinkle of myth to the magic.

 

3. Fjaðrárgljúfur Canyon – A Fairytale in Stone

Winding like a green ribbon through Iceland’s southern plains, Fjaðrárgljúfur is a breathtaking canyon formed during the Ice Age, just a short detour off Route 1 near the town of Kirkjubæjarklaustur. The hike along the rim is gentle and rewarding, offering views into the serpent-like river that flows through steep moss-covered cliffs. Its surreal beauty has made it a favourite filming location — and a top pick for Instagrammers, nature lovers, and solitude seekers alike.

 

4. Stórurð (The Giant Boulders) – A Hidden Gem in the East

Tucked beneath the towering Dyrfjöll mountains in East Iceland, Stórurð — meaning “The Giant Boulders” — is a surreal wonder of turquoise ponds, mossy meadows, and enormous glacial boulders strewn across a hidden valley. It’s a place that feels like stepping into a fantasy world.

To reach the trailhead, enjoy a scenic drive from the town of Borgarfjörður Eystri, one of Iceland’s most charming and remote fishing villages. Several well-marked hiking routes lead into the area, ranging from 2.5 to 4 hours round-trip depending on your pace and route. The hike is moderately challenging, with a gentle climb and a few rocky patches — but the reward is a jaw-dropping landscape that feels worlds away from anything along the main tourist routes.

Stórurð is best visited in summer (late June to early September), when the trails are snow-free and the sunlight catches the vivid colours of the glacial pools. It's an ideal detour for travellers seeking authentic, crowd-free adventure with a touch of East Iceland’s magical stillness.

 

5. Dimmuborgir Lava Fields – Iceland’s Dark Fortress

Located near Lake Mývatn in North Iceland, Dimmuborgir — meaning “dark castles” — is a dramatic lava field shaped by volcanic eruptions over 2,000 years ago. The area is criss-crossed with walking paths that weave between towering rock formations, caves, and collapsed lava tubes. The landscape is so otherworldly it’s been featured in fantasy television series and Icelandic folklore, said to be home to trolls and the mischievous Yule Lads. This area is also ideal for spotting birdlife and exploring geothermal attractions nearby, like Hverir and Mývatn Nature Baths.

 

6. Dettifoss Waterfall – Europe’s Most Powerful Waterfall

Nestled within Vatnajökull National Park in North Iceland, Dettifoss is often hailed as the most powerful waterfall in Europe — and for good reason. Plunging 44 metres into the Jökulsárgljúfur canyon, its thundering roar can be heard long before you see its churning grey waters. A scenic drive from Lake Mývatn leads you to either the west or east side of the falls (via Routes 862 and 864), each offering its own vantage point and short hiking paths.

The west side provides superior road access and better facilities, making it our top recommendation. The east side offers closer and more striking photo opportunities, but it comes with a challenging walking trail and a rough road that is highly unsuitable for 2WD vehicles with low ground clearance. Whichever route you choose, prepare to be humbled by Dettifoss’s sheer power and the surreal lunar-like landscape that surrounds it. Combine it with a short walk to nearby Selfoss waterfall for a double feature of Icelandic natural drama.

Renting a Car in Iceland: Tips and Insights

Each of these destinations offers the perfect marriage of scenic drive and rewarding hike — ideal for travellers who wish to experience Iceland's wild beauty without embarking on multi-day treks. With Höldur’s largest fleet of new quality cars, you’ll have the freedom to explore at your own pace, stepping into nature’s theatre when the road runs out.

Why Choose Höldur Car Rental?

With Höldur’s selection of over 8,000 vehicles, we have the perfect car for your adventure. From compact cars for navigating city streets to rugged 4x4 vehicles for the highlands, we’ve got you covered. With rental locations conveniently located across Iceland, including Keflavik Airport, getting started couldn’t be easier.

Booking Your Vehicle

To ensure availability, especially during peak travel seasons, it's advisable to book your rental car in advance. This guarantees the best selection and rates.

Driving Requirements

• License: A valid driver's license held for at least one year is required. If your license isn't in Latin characters, an International Driving Permit is necessary.

• Age: The minimum age to rent a car is 20, but for larger vehicles and luxury cars, it's often 23.

• Insurance: Consider additional coverage options like Gravel Protection and Sand and Ash Protection to safeguard against Iceland's unique driving conditions.

FAQs: Driving and Hiking in Iceland

Do I need a 4x4 vehicle for my trip?

If you plan to explore the Highlands or drive on F-roads, a 4x4 is essential. For main roads and popular tourist routes, a standard vehicle suffices.

Are there any toll roads in Iceland?

Most roads are toll-free, but the Vaðlaheiðargöng tunnel in North Iceland requires a fee. Payment can be made online at www.tunnel.is. Read all you need to know in our guide to Tunnels and Tolls in Iceland.

Is off-road driving allowed?

No. Off-road driving is illegal and can cause irreversible damage to Iceland's delicate ecosystems. Violators face hefty fines and potential imprisonment.

When is the best time to visit for hiking?

Summer months (June to August) offer the most accessible hiking conditions, with longer daylight hours and milder weather.

Are hiking trails well-marked?

Popular trails are generally well-marked. However, always check local conditions and consider using GPS or maps for less-traveled paths.

Can I rent a car upon arrival at Keflavík Airport?

Yes, Höldur offers convenient car rental services at Keflavík International Airport, allowing you to start your adventure immediately.

What should I pack for hiking?

Essential items include sturdy hiking boots, weather-appropriate clothing, a map or GPS device, water, and snacks. Always be prepared for sudden weather changes.

Are there any safety precautions I should take?

Always inform someone of your travel plans, check weather forecasts, and be aware of local advisories. In emergencies, dial 112.

Do I need to pay for parking at tourist sites?

While many sites offer free parking, some popular destinations may charge a fee. Always check signage and have a payment method ready. Read all about parking in Iceland.

Is it safe to drink tap water in Iceland?

Absolutely. Iceland's tap water is among the purest in the world and safe to drink.

Embark on a journey where the road meets the trail, and every turn offers a new adventure. With Höldur Car Rental, experience the harmony of driving and hiking in Iceland, creating memories that will last a lifetime.

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