We are heading to Iceland in a couple weeks and we have a home exchange lined up and we were supposed to be using their car... well turns out my car insurance does not cover us for that in another country. So... I think we will probably rent, since I think it is unwise (and maybe illegal?) to drive their car without insurance - unless maybe theirs covers us.... I need to check that, just thought of it.
If I need to rent, I want to get a cheap one obviously, is it ok to get an economy or compact? We are planning the Golden Circle, Blue Lagoon, and south iceland all the way to ice lagoon.... I think all of those roads are paved?
And most cars don't seem to have A/C - I guess that is ok there?