The most sparsely populated country in Europe with only slightly above 370 000 inhabitants. It’s main island is right below the Arctic Circle. The climate of Iceland is subarctic. Even though most coastal winters are warmer than most of us would think, due to Gulf Stream it has a temperate climate, despite a high latitude. The nature in this country is very unique due to it’s geysers, black sand, lava fields, mountains, glaciers, and many glacial rivers.
In my opinion, the best option is car rental. Since the country is sparsely populated and many points of interest are very remote, it’s quite logical that public transportation and hitchhiking is not like in other European countries. Be extra careful with hitchhiking, according to my driving experience, there are some parts of country, where maybe couple of cars will pass in hours.