Rent a camper car. You can sleep in the back. It's very common and safe there, and it'll give you flexibility to go wherever you feel like.

Rent a car. It's cheap and you can stop as you like. Lots of places along the South Coast. Was very easy for us, we specified automatic, they dropped it off at our apartment in Reykjavik.

I have rented a car in Iceland. Beware first that many cars are stick, and second that many roads outside of Reykjavik are unpaved.... gravel roads that may require something more rugged than a typical rental car.

Going to iceland for about a week in July - what's the best way to see the country? I'd like to do some hiking and stay in huts - but it looks like a lot of that is either booked up/ reservation website not in English.

Could also rent a car. I'll be solo so would prefer the hut to lugging a tent and stuff around!