Why is car rental in Iceland so expensive?
Rental car prices in Iceland have usually been quite high when compared to the US and Europe, in part due to mandatory insurance requirements and high taxes.
Can I drive in Iceland with a UK Licence?
You can drive using a valid UK or other EU/EEA driving licence. If you're living in Iceland, check the Living in Guide for information on requirements for residents. Make sure you have the correct vehicle insurance cover before you arrive. Some car hire agreements limit the class of roads you are allowed to drive on.
Are all rental cars in Iceland manual?
Not all, but most are. Why aren't there more automatic cars in Iceland? It's a European thing. Manual cars are generally cheaper and more fuel-efficient, and fuel is more expensive in Europe than in North America.