Save on renting a car in Iceland

Strokkur geyser is a very popular stop along the Golden Circle. Photo: Craig Nelson

Getting out into the open country of Iceland is a breathtaking experience, but the expenses can also add up fast, especially as gas costs about $7 a gallon. The good news is that rental car prices are not as pricey as you might think. We found car rental prices for under $300 for a week-long rental with unlimited mileage.

Note: This article is part of our budget travel guide to Iceland.

Know your travel dates? Search for rental cars on EuroCheapo.

Driving the Ring Road

Traversing the nation on the famous Ring Road takes you across 800 miles of unbelievable landscape. Many people plan at least seven days to get around the island, but depending on the weather and road conditions, it can take even longer if you really want to stop and see the sights.

However, an Icelandic road trip like this will quickly leave cheapo territory with the high gas prices. If you choose to rent a car and camp along the way, that can be an affordable option, but it still comes with its own challenges. However, a car offers the freedom to explore one of the most beautiful countries in the world. Even if you rent a car for one day, you can cover a lot of territory outside of Reykjavik to get a true feel of Iceland.

Note: Driving in Iceland brings many challenges, so make sure to read up on road rules, weather conditions, and what kind of car you should rent before getting behind the wheel. Visit Iceland has a handy guide to driving in Iceland.

Driving through the stunning landscape of Iceland. Photo Michael C.

Driving through the stunning landscape of Iceland. Photo Michael C.

Other cities within driving distance of Reykjavik

It’s not all about Reykjavik, of course. Other cities and towns worth a visit are:

Akureyri (4.5 hours from Reykjavik; search for hotels) for skiing, Northern Lights, and whale watching

Stykkishólmur (2 hours from Reykjavik; search for hotels) offers historic architecture, fishing, and a volcano museum.

Selfoss is a lovely 45-minute drive through the Hellisheidi Highlands that offers dramatic scenery that you usually only get on a longer tour (search for hotels). Check out the public pool and eat at either Kaffi Krús or the superb Thai restaurant Menam.

Eyrarbakki and Stokkseyri are both situated along the scenic rocky coast about 45 minutes away from Reykjavik. Eyrarbakki features a maritime museum and excellent bird watching, while Stokkseyri has a popular seafood restaurant,Fjörubordid.

Discover the different regions of Iceland in more detail.


Our guide to budget travel in Iceland

Read more in our guide to saving in Iceland:

About the author

Craig Nelson

Craig is a New York-based writer and tour guide who has worked with many travel publishers including Not For Tourists, Frommer's, and Google. Now he is an editor for EuroCheapo and manager of Bowery Boys Walks. When he's not out exploring the five boroughs for his blog, he's dreaming up plans for his next trip across the pond.

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