A very nice area not only for photographers is the stockness area close to the small town of Höfn. 
Few minutes driving at a off road from the ring road No1. we reach the parking place in front of a small cafe and an old viking museum village, where we have to pay a few Euros for parking.
We walk to the nice dunes which were spotted by the setting sun and set the gras at the top of the dunes in a wonderful light.
This place is also well known by a lot of photographers and a lot of these species are standing at the dunes with their tripos...like we are doing. Sometimes it is difficult to get a picture with out my photo friends.
Depending on the time this place will be visit, the tide is different and if you have luck you can get some nice mirror effect on some little lakes at the dunes.