Skip to content

Iceland on a budget: Why you should seriously consider renting a campervan

Aug. 08, 2021
6 min read
IMG_9778
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

Iceland: a country where you can catch the northern lights, visit all the thermal pools and highlands to your heart's desire... the list goes on. Add in the frequent flight deals you'll find to this island, and it's no coincidence that Iceland is a popular tourist destination year-round.

At the same time, Iceland is notoriously expensive. According to Numbeo's Cost of Living index, Iceland ranks as the fourth most expensive country in the world — just behind Bermuda, Switzerland and Norway.

Related: Traveling to Iceland during the coronavirus pandemic

Even though my mom and I snagged a bargain to Iceland for May (our flights were under $400 round-trip), we knew that prices would be astronomical once we were on the ground. You can expect to drop a pretty penny from renting a car to booking a hotel to dining at a restaurant.

Still, we were determined to do Iceland on a budget — and we were successful. We slept, ate and drove around the whole country in a campervan. While not the most glamorous of accommodations, we ended up saving a ton of money and had a blast.

Driving the campervan was similar to driving a van. (Photo by Stella Shon/The Points Guy)

[table-of-contents /]

Campervan culture is huge in Iceland

Before this trip, I had never been in a campervan, RV or any motorhome of the like. But campervan culture is huge in Iceland, with more than 170 campgrounds in the entire country (and most charge just a few euros per person). The facilities were well-kept and safe.

One of my favorite campgrounds at Borg í Grimsnesi, located right off the iconic Golden Circle. (Photo by Stella Shon/The Points Guy)

Likewise, there are a plethora of campervan companies to choose from. I booked our campervan through Lava Car Rental, and they offered free round-trip transportation to and from their airport. After a short five-minute drive, we arrived at the car rental center.

I was pleased with Lava's professionalism and customer service. (Photo by Stella Shon/The Points Guy)

After just putting 43€ ($50) down at booking, we paid the rest at the counter for a total price of 285€ ($335) for six days. That breaks down to just $55 per day, which I found more than reasonable. Pickup was also seamless and was just like any other rental car experience I've had in the past.

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

You can be spontaneous with your travel plans

The biggest draw for me when renting a campervan is that everything you need is in one place. This is especially helpful when you're in a country where you need a car to get around to visit all the sites.

The winds were brutal in the northern part of Iceland. (Photo by Stella Shon/The Points Guy)

Iceland is also bigger than you may think, and throw in unexpected weather conditions, and it may take you a long time to get to where you want to be. Rather than limiting yourself to one hotel — or stressing yourself out planning multiple hotels to stay at along your route — the freedom to park our campervan at the nearest campsite and do everything on our own time (and pace) was a huge advantage.

We had just hopped off our five-hour red-eye with minimal sleep. Instead of overdoing it, we both agreed to take a nap before we started our adventure. We parked in a random gas station for about two hours, caught up on some much-needed sleep and felt refreshed to begin our journey.

The Rangárþing eystra: The most beautiful waterfall I've seen in my life. (Photo by Stella Shon/The Points Guy)

In all, a campervan allows for the utmost spontaneity. While my mom and I drew out a rough itinerary of spots we wanted to hit, staying in a campervan helped us be as flexible as possible. There were winds of 40mph the first two nights of our trip, which made sightseeing much more complex, so we made sure to take things slowly at first.

Related: These are the best times to visit Iceland

The meals were delicious (and cheap)

When it comes to food, my mom is quite particular. Like Gordon Ramsay, she's quite critical of other people's cooking. Nine times out of 10, we'll leave a restaurant with her saying, "I could have cooked that better."

I can't blame her. She's an amazing cook, and I count the days until I can go back home and eat some of her traditional Korean meals.

Since Iceland isn't a country known for its cuisine, renting a campervan allowed us to have the freedom to cook our own meals to our tastebuds' delight. In her checked bag, my mom brought some of the Korean staples: gochujang (Korean red pepper paste), instant rice, seaweed, spicy ramen and more.

We bought everything else we needed at the grocery store, from Icelandic sausage for our budae jjigae (Korean army stew) and bagels and fruit for breakfast.

Best of all, all the kitchen utensils and cookware we needed came with our campervan. Not to mention, it was a bonding experience whipping up our meals after a long hike — and I swear the food tastes better in the fresh air.

Sleeping was not that bad

With such limited space in the campervan, the entire backside of the car housed our suitcases, cookware and our beds.

(Photo by Stella Shon/The Points Guy)

We had to make our bed every night by pulling out these wooden planks, topping them with a mattress pad and nestling in our sleeping bags. In the morning, we had to put everything away so we could have space to cook.

Plus, we were so tired at the end of the night that we fell asleep almost instantly, and it was certainly much more comfortable than sleeping in a tent.

Related: You don't want to make these mistakes when you visit Iceland

Bottom line

The campervan life may not be for everyone (I appreciated my tiny NYC apartment tenfold when I got home). Still, in a country like Iceland, it's the most economical way to visit all of your bucket list spots in a short amount of time. The campervan came with everything we needed, including a portable gas stove, cookware, a water jug, heater, cooler and so much more. Finally, sharing a small amount of space with one other person was also an experience of its own and will hands down be one of my favorite memories spent with my mom.

Related: How to get to Iceland on points and miles

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

TPG featured card

Rewards rate
3XEarn 3X Miles on Delta purchases.
1XEarn 1X Miles on all other eligible purchases.
Intro offer
Open Intro bonus
Earn up to 125,000 Bonus Miles
Annual fee
$650
Regular APR
19.49%-28.49% Variable
Recommended credit
Open Credit score description
Excellent to Good

Pros

  • Delta SkyClub access when flying Delta
  • Annual companion ticket for travel on Delta (upon renewal)
  • Ability to earn MQDs through spending
  • Various statement credits for eligible purchases

Cons

  • Steep annual fee of $650
  • Other Delta cobranded cards offer superior earning categories
  • Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
  • Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
  • Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
  • Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
  • Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
  • $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
  • $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
  • Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
  • With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
  • Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
  • No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
  • $650 Annual Fee.
  • Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
  • Terms Apply.
  • See Rates & Fees