What Makes Iceland Unique: Top 15 Highlights for an Unforgettable Journey

Iceland is more than a travel destination — it's a living, breathing masterpiece shaped by fire and ice. Sitting just below the Arctic Circle, this island nation is celebrated for its otherworldly beauty, from volcanic craters and steaming lava fields to glittering glaciers and moss-draped valleys. But beyond the natural splendour, Iceland stands out for its exceptional quality of life and traveller-friendly culture.

With one of the lowest crime rates in the world, Iceland is renowned for its safety and hospitality. Solo travellers, families, and first-time visitors alike often remark on the country’s sense of peace and ease. English is widely spoken, and the locals — known for their dry humour and deep connection to nature — are usually happy to offer directions, travel tips, or the occasional folklore story.

What truly sets Iceland apart, however, is its freedom to roam. Unlike many destinations where attractions are tightly clustered, Iceland rewards exploration. Its wide-open landscapes and lightly trafficked roads make it perfect for self-drive travel. There’s no need to rush from sight to sight — you’re encouraged to linger at a waterfall, take a detour into a lava field, or pause for a moment of silence beside a glacial lake.

Add in free public Wi-Fi in many towns, clean drinking water straight from the tap, and a reliable infrastructure that includes a well-maintained ring road and extensive emergency support networks like SafeTravel.is, and you’ve got one of the most seamless and empowering travel experiences on the planet.

At Höldur, we are proud to be Iceland’s largest car rental company, offering a fleet of over 8,000 vehicles and a network of convenient rental locations across the country. we’re proud to be your trusted travel companion, offering reliable rental vehicles, local advice, and flexible pickup options — including directly at Keflavík International Airport, Iceland’s main gateway. Whether you're cruising past the waterfalls of the South Coast or heading inland to the untamed Highlands via F-roads, we’ll make sure your journey is smooth, safe, and unforgettable.

Why Self-Drive Travel in Iceland is the Best Way to Explore

Iceland’s terrain is varied, wild, and breathtaking. With so much to discover — from black sand beaches to ice-capped volcanoes — the best way to see it all is behind the wheel of a reliable rental car. Höldur, Iceland’s trusted car rental expert since 1966, ensures a seamless start to your adventure, especially when picking up your vehicle straight from Keflavík International Airport.

Whether you're cruising the Ring Road or navigating remote F-roads deep in the Highlands, having the right vehicle and knowledge can make all the difference.

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What Are F-Roads and What Do You Need to Know?

F-roads (short for “Fjallvegur” or mountain roads) are rugged gravel tracks that lead to Iceland’s interior Highlands — areas of raw, untouched wilderness.

Key Requirements for F-Road Travel:

• 4x4 Vehicle: Driving on F-roads is only permitted in four-wheel-drive (4x4) SUVs that are specifically approved for highland travel.

• Seasonal Access: Most F-roads are only open from mid-June to September, depending on snow and weather conditions.

• River Crossings: Some routes require fording rivers — driving experience and caution are essential.

• No Mobile Signal: Connectivity is often limited, so plan accordingly.

At Höldur, we offer a selection of F-road-approved 4x4 vehicles, all maintained to the highest safety standards. And with pick-up options at Keflavík Airport or across Iceland, getting started is easy.

 

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Top 15 Things That Make Iceland Truly Unique

 

1. The Northern Lights (Aurora Borealis)

From late September to early April, Iceland offers one of the most accessible and awe-inspiring locations in the world to witness the Northern Lights. These ethereal ribbons of green, purple and red light dance across Arctic skies — best viewed away from city lights. Travelling by car gives you the freedom to chase clear skies and solar activity forecasts. Höldur recommends heading to Þingvellir, the Snaefellsnes Peninsula, or even just outside your countryside accommodation for the best views.

2. Volcanoes You Can Hike (Fagradalsfjall, Hekla, Askja)

Few places in the world let you walk on newly cooled lava. Iceland’s active volcanic zones are geologically young and extremely dynamic. The 2021 and 2022 eruptions of Fagradalsfjall near Grindavík became global spectacles. With safe paths and signage, these areas are ideal for travellers seeking a glimpse into Earth’s inner fire — no guide required in most cases, but always check conditions with ICE-SAR and SafeTravel.is.

3. Midnight Sun (Endless Days of Light)

From mid-May to late July, the sun barely sets in Iceland — especially in the north. The endless daylight means travellers can hike, drive, sightsee or photograph even at 2AM under a golden sky. Planning your travel during this period allows you to beat the crowds at top sights and enjoy an unhurried, dreamlike atmosphere that feels otherworldly.

4. The Blue Lagoon (Relaxation Meets Geology)

This mineral-rich geothermal spa is more than an Instagram hotspot. Located just 20 minutes from Keflavík Airport, it's fed by the warm waters of a nearby geothermal power plant, with high silica content that turns the water an opalescent blue. Treat yourself to a warm soak upon arrival or before departure — it’s the perfect way to reset your circadian rhythm after a long flight.

5. The Highlands (Landmannalaugar, Kjölur, Askja)

Iceland’s Highlands are a remote, uninhabited interior plateau accessible only by F-roads and 4x4 vehicles during the summer. Think vast volcanic deserts, bright rhyolite mountains, natural hot springs, and glacier-fed rivers. Sites like Landmannalaugar, Hveravellir, and Askja Caldera reward adventurous travellers with landscapes that feel like another planet. A true highlight for off-the-beaten-path explorers.

6. Black Sand Beaches (Reynisfjara and Beyond)

Formed from volcanic activity and the erosion of lava, Iceland’s black sand beaches are striking. Reynisfjara, near Vík, is known for its basalt columns, roaring Atlantic waves, and haunting sea stacks. It’s also one of the most dangerous beaches — obey all warning signs and never turn your back on the sea. Other gems include Diamond Beach near Jökulsárlón and Stokksnes near Höfn.

7. Waterfalls Everywhere (Over 10,000!)

Thanks to Iceland’s glacial melt and abundant rainfall, the country is dotted with majestic waterfalls — many of which are right off the main roads. Gullfoss, part of the Golden Circle, crashes into a canyon with thunderous force. Seljalandsfoss lets you walk behind the falls, while Dettifoss in the north is Europe’s most powerful waterfall by volume. These are just the beginning — you’ll encounter dozens more on your journey.

8. Icelandic Horses (More Than Just Cute)

Short, sturdy, and almost comically photogenic, Icelandic horses are a unique breed known for their friendly nature and special gait — the tölt, which offers an incredibly smooth ride. More than icons, these horses are protected by law: once an Icelandic horse leaves the country, it can never return. Riding tours are available throughout Iceland for both novice and experienced riders.

9. Geysers and Hot Springs (Nature’s Steam Show)

The Geysir geothermal area in southwest Iceland is home to Strokkur, which erupts every 5–10 minutes. It’s a spectacular and safe display of geothermal energy — no special gear required. Across the country, you'll find natural hot springs (some secret, others signposted) that invite spontaneous roadside swims — just be sure to follow local advice and respect nature.

10. The Ring Road (Route 1 – Iceland’s Grand Loop)

The Icelandic Ring Road (Route 1) loops around the entire country (about 1,332 km or 828 miles), connecting most towns and natural attractions. It’s the ultimate self-drive itinerary, perfect for 7–10 day trips. Along the way, you’ll pass glaciers, waterfalls, fjords, lava fields, and charming fishing villages. Renting a car from Keflavík Airport allows you to start your adventure immediately, at your own pace.

11. Ice Caves and Glaciers (Blue Wonderlands)

From November to March, Iceland’s glaciers form natural blue ice caves — safe to visit with experienced guides. Walking inside these glittering ice tunnels, formed anew each year, is truly a once-in-a-lifetime experience. Glaciers like Vatnajökull, Langjökull, and Sólheimajökull also offer hikes and snowmobile tours in both summer and winter.

12. Vík and the South Coast (Compact Adventure Region)

Located about 2.5 hours from Reykjavík, Vík is a perfect base for exploring the South Coast. It offers dramatic coastlines, hiking paths, waterfalls, and views of Mýrdalsjökull Glacier. Don’t miss the Dyrhólaey cliff for puffin spotting in summer or the nearby Sólheimasandur plane wreck — reachable via a 45-minute walk or permitted shuttle.

13. Westfjords (Iceland’s Wild Frontier)

Often overlooked due to their remoteness, the Westfjords offer some of Iceland’s most jaw-dropping cliffs and fjords. Látrabjarg cliffs are home to thousands of puffins, while Dynjandi Waterfall cascades down like a bridal veil. Driving here requires time and care — gravel roads and switchbacks abound — but the isolation makes it unforgettable.

14. Þingvellir National Park (Where Worlds Meet)

A UNESCO World Heritage Site, Þingvellir is the site of Iceland’s first parliament (established in 930 AD) and a geological marvel — you can literally walk between the North American and Eurasian tectonic plates. Located in the Golden Circle, it's also a popular snorkelling spot thanks to the Silfra fissure, where you can swim in crystal-clear glacial water.

15. Icelandic Culture and Sagas (Stories That Shaped a Nation)

From Viking sagas to elf folklore, Iceland’s cultural identity is rich and enduring. Visit museums like the Árni Magnússon Institute, Reykjavík’s National Museum, or attend a local storytelling session. You’ll find that many Icelanders believe in the hidden people (huldufólk) — a testament to how myth and nature intertwine in everyday life.

 

FAQs: Driving and Renting a Car in Iceland

Can I drive in Iceland with a UK or US licence?

Yes. As long as your licence is in English and valid, you can drive in Iceland.

Do I need a 4x4 rental car in Iceland?

If you're sticking to the Ring Road in summer, a standard vehicle is fine. For F-roads or winter conditions, a 4x4 is essential.

Where should I rent a car in Iceland?

The most convenient option is renting a car directly from Keflavík Airport via Höldur Europcar — seamless, reliable, and no need for airport transfers.

Is insurance included in my rental?

Yes, but additional protections like gravel, sand, or ash damage coverage are recommended due to Iceland’s unique terrain.

Are F-roads always open?

No. They usually open mid-June and close in early autumn due to snow. Always check umferdin.is for live updates.

How much time do I need for the Ring Road?

We recommend at least 7–10 days to drive it comfortably with stops.

What are fuel costs and availability like?

Fuel is relatively expensive, and stations may be far apart in rural areas. Fill up when you can.

Are Iceland’s roads safe?

Yes, but always drive with caution — especially in winter or on gravel/F-roads. Conditions can change quickly.

Is GPS necessary in Iceland?

Yes, or use an offline-capable map app. Mobile signals can drop in remote areas.

Can I camp in my rental car?

Not unless it’s a designated camper vehicle. Wild camping is restricted — always use official campsites.

 

Final Thoughts: Adventure Starts Where the Road Begins

From ancient lava fields to shimmering glaciers and lively folklore, Iceland is pure magic on wheels. With the right rental car, expert travel tips, and a spirit of discovery, your Icelandic journey can be as epic as the land itself.

At Höldur Europcar we are the largest of  iceland car rental companies — from Keflavík Airport to the Highlands and beyond — and experience personalised, eco-conscious service that supports every step of your adventure.

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