Explore Iceland on a Budget: The Campervan Advantage

You’ve likely heard that Iceland is an expensive place to visit. While this is true from a broad perspective, there are still ways to travel to Iceland on a budget. Renting a campervan is just one of the ways you can reduce your costs while still enjoying the trip of a lifetime. Here’s how to travel Iceland on a budget while seeing everything you want to experience.

Why Renting a Campervan Is the Best Budget Option in Iceland

When exploring the cheapest way to visit Iceland, the answer may surprise you. Renting a campervan can give you a cheap trip to Iceland that lets you check off all the boxes while having your transportation and accommodations rolled into one. If you’re starting your journey from the capital, check out our options for camper rental in Reykjavik. Here’s what you should know about planning a low-cost trip with a campervan.

Save on Accommodation and Transportation Costs

Renting a car in Iceland can be costly, especially when you add in the cost of fueling your vehicle. If you’ve been looking at hotels and other accommodations and the price of restaurants in Iceland, you’ll quickly see that each night can add up rapidly. By combining your accommodations and transportation into a campervan, you can see significant savings.

Not only do you pay one daily price for your accommodation and vehicle, but you also gain the advantage of more easily preparing your own meals, further saving money on your trip. You’ll find Iceland on a budget is much easier when booking a campervan, especially if you’re already planning to self-drive.

Flexibility to Explore Iceland’s Remote Beauty

While cost may be the driving factor behind considering a campervan trip in Iceland, flexibility is another prime reason to choose this option. When you have a campervan, you aren’t locked into your booked accommodations in a specific area. You don’t need to book campsites in Iceland, allowing you to change your plans as you wish.

One of the issues with traveling to Iceland any time of year is the rapidly changing weather. With booked accommodations, you may feel pressured to reach your destination, regardless of weather. With a campervan, you can choose a different destination to follow the better weather and maximize your trip without losing money on accommodations.

A campervan also allows you to more easily reach remote destinations without worrying about timing to make it to your next accommodations. You can spend as much or as little time as you wish at each location, giving you the freedom to maximize your budget and see what you want.

Planning Your Budget-Friendly Campervan Adventure

Once you decide a campervan is the cheapest way to travel to Iceland, it’s time to start planning your budget-friendly adventure. Even though you’ll mostly see people talk about how expensive a trip to Iceland can be, it’s vital to understand that it doesn’t have to be. You can find ways to reduce your costs and get the trip you want without breaking your travel budget. 

How to Find Affordable Campervan Rentals in Iceland

First, you need to find affordable campervan rentals to visit Iceland on a budget. With many campervan companies to choose from, it can be intimidating to browse through them all. A great option is Camper Rental Iceland, which offers reliable vehicles at competitive prices. The best way to save money is to find a campervan company that provides discounts on their rentals, giving you the same vehicle for a lower price. 

Tips for Booking Early to Secure the Best Deals

Iceland has become a popular destination for travelers worldwide, which can drive up prices, especially during the high-demand summer months. While campervans during the summer will be more costly, the earlier you book your campervan, the lower the prices are likely to be. Once the supply dwindles, the costs will rise, often making campervans too costly for a budget-friendly trip.

Instead, you should look for your campervan at least six months before your trip to ensure you can secure the model you want at an affordable price. If you can couple the early booking with a discount code, you can further reduce your costs. The good news is that you don’t need to worry about booking your campsites early since most campgrounds don’t accept bookings.

Choosing the Right Campervan for Your Budget

In addition to booking early, you will need to find the best campervan for your needs that falls within your budget. When aiming for an Iceland budget trip, you don’t want to pay more for something you don’t need. First and foremost, determine how many people will be in your group and how much space you need for luggage.

After you decide the proper size campervan to meet your needs, you should look at other factors based on your trip plan. Do you need a 4x4 campervan for F-roads in the summer? Are you camping in the winter and need a heater? What supplies are included and which insurance options are available? All of these factors can influence the cost of your campervan.

Essential Campervan Camping Sites for Budget Travelers

While a few of the most popular campgrounds in Iceland require booking ahead, if you’re trying to plan your trip on a budget and want more flexibility, it’s relatively easy to find a nearby campsite in the summer without reservations. Tjalda.is is the primary website to search for campgrounds in Iceland, along with opening dates, prices, and amenities.

Campground costs are relatively low, but you can save even more money by purchasing the Camping Card. This card is only valid at certain campgrounds, so you should check which ones are included before buying. The card has one low cost and covers two adults and up to four children in one campervan. You will only owe the overnight tax. It is valid for 28 nights through September 15.

Free and Low-Cost Campsites Across Iceland

There are almost no free campsites in Iceland, which can make it challenging to do Iceland on the cheap. However, if you will be near Þorlákshöfn in South Iceland, you can stay at Gata Free Camping. They charge 500 ISK per person to shower and have access to toilets. Camping outside designated campsites without landowner permission is forbidden in Iceland.

Due to the lack of free campsites, you will need to search for the lowest cost campsites to keep your costs as low as possible. The Tjalda website allows you to sort campgrounds based on whether they are open year-round, the amenities offered, and location. You can then view the fees to find the cheapest campsites in the area.

Some of the lowest cost campgrounds in Iceland include campsites in the following locations:

• Hellissandur
• Þingvellir
• Skaftafell
• Svinafell
• Skógar
• Vík
• Höfn

Keep in mind that many Icelandic campsites charge a per-person fee and may have a charge for electricity. Some allow children to stay for free. Showers may also require payments above the campsite rate.

Budget Travel Tips for Exploring Iceland by Campervan

Now that you’ve found the ideal campervan and have an idea of where to stay during your Iceland adventure, it’s time to learn how to plan a trip to Iceland on a budget beyond where to stay. The following will help you plan your Iceland budget trip without cutting too many corners.

Save on Food: Cooking in Your Campervan

If you’ve ever looked at the menus in Iceland, you may already know that dining out can be costly, especially if you come from an area with a lower cost of living. While you may want to plan for a night out or two to fully experience Icelandic cuisine, food is a great way to keep your travel costs lower.

Many campervans you rent will come with everything you need to prepare meals if you choose. The grocery stores in Iceland sell everything you need at reasonable prices, often close to what you would pay at home. By stocking up at the grocery stores, you can make meals with Icelandic ingredients in your campervan or a campground kitchen.

If you prefer prepared food, the sandwiches you will find at grocery stores and gas stations are high-quality. Many visitors also enjoy the Icelandic hot dog, a unique mix of beef, lamb, and pork with ketchup, sweet mustard, remoulade, crispy fried onions, and raw onions. These hot dogs can be found at various stands and gas stations throughout the country and offer a quick, cheap meal.

Maximize Free and Low-Cost Attractions

Unlike many other popular travel destinations, you won’t find yourself paying a lot to see the things that attract people to visit Iceland. Many of the natural sites are either free or charge a nominal fee for parking, allowing you to see more without the high cost of admission fees. Unless you’re planning tours, museums, or other similar activities, you’ll have no shortage of cheap things to do in Iceland.

Must-See Waterfalls, Glaciers, and Scenic Spots That Cost Nothing

Seeing nature in Iceland is practically free, minus the sites that require parking fees. While there seem to be more places that charge for parking with each passing year, there are still many fantastic sites you can see without spending a thing. Here are some of the must-see waterfalls, glaciers, and scenic spots where you don’t need to pull out your wallet.

• Gullfoss in the Golden Circle
• Klifbrekkufoss
• Foss a Síðu
• Rjúkandafoss
• Glymur Waterfall
• Dettifoss and Selfoss Waterfalls
• Svínafellsjökull
• Mýrdalsjökull
• Víkurfjara Black Sand Beach
• Krýsuvík
• Lómagnúpur
• Fjallsárlón Glacier Lagoon
• Seyðisfjörður
• Dimmuborgir
• Ásbyrgi
• Djúpalónssandur

In addition to the many places that are still free to visit, the parking fees are relatively low, running between 750 and 1000 ISK per vehicle. With the low prices, you can easily visit several locations and still keep your travel budget under control. However, watch for signs that indicate paid parking to avoid costly fees from your rental company. 

Budgeting for Fuel and Travel Essentials

Beyond your campervan, the cost of food, and parking and entry fees where you want to go, you will need to budget for a few other things. Fuel is perhaps the most costly part of your campervan adventure in Iceland. The cost of fuel in Iceland can be high, depending on where you are from. You can find the latest prices per liter on the GSM Bensin website.

If you want to budget your cost for fuel, you can inquire with the rental company about the fuel efficiency of the vehicle you are renting and check the fuel prices to calculate how much you can expect to spend based on your itinerary. It’s best to calculate a little extra to ensure you are prepared.

In addition to fuel, you should account for other travel essentials. Some visitors purchase extra bedding for their campervan to help them sleep more comfortably. If you forget any essentials, such as winter gear or hiking boots, consider renting instead of buying them.

You can save some money by packing a reusable water bottle and filling up everywhere you go. Tap water in Iceland is very clean and drinkable, so don’t waste your money purchasing bottled water. In some cases, you can even fill your water bottle directly from a stream as long as the water is flowing and there are no animals upstream.

Seasonal Considerations for Budget Travel in Iceland

Another important consideration when planning Iceland on a budget is which time of year you will go. The answer to this question is personal, depending on what you want to see and how much you can spend. The following will help you make this critical decision so you can start planning.

Visiting Iceland in Summer vs. Winter on a Budget

Summer versus winter is the first question many people ask. This is where you will need to evaluate what you expect to see during your trip and what your budget is overall.

A summer trip allows you to enjoy nearly 24 hours of daylight, puffins, and better weather conditions. However, this time of year typically comes at a higher price. There will be more campgrounds to choose from, but you will encounter larger crowds and may spend more on your campervan, especially if you don’t book early enough.

Traveling in the winter gives you a chance of seeing the northern lights and enjoying the beauty of snow-covered landscapes. Winter has shorter daylight hours and an increased chance of bad weather that can impede your travel plans. Fewer campgrounds are open, but you will experience lighter crowds and cheaper prices overall.

The decision whether to go in winter or summer can play a significant role in the type of adventure you have. Regardless of which time of year you choose, remember that flexibility is always key when traveling in Iceland. The good news is that a campervan gives you the ultimate flexibility.

Cost-Saving Advantages of Each Season

In general, winter is the cheaper of the seasons. Because fewer people are interested in camping and your campground options are more limited, you won’t spend as much on your campervan. However, the price of food, parking, fuel, and more are static and will not change based on the time of year.

Summer is typically viewed as the most in-demand season for trips to Iceland. All campgrounds are open and more visitors are traveling to the country. Booking a campervan during this time of year will come with higher costs due to the increased demand. 

Fall and spring are considered shoulder months. You can often find better deals on campervans during these seasons, helping you enjoy better weather without the high cost associated with summer rentals. However, these seasons are gaining popularity, so you will still need to book early.

Packing Essentials for a Campervan Trip in Any Season

Campervans often come with basic bedding and cooking essentials to ensure you don’t have to overpack for your trip. If you’re unsure what your rental company provides, contact us when you book the rental. 

As mentioned, campervans typically come with bedding, but some visitors find it either isn’t enough or they don’t feel comfortable. You can ask your rental company about additional bedding or purchase what you need at a local store and donate it when you leave. 

Packing for your campervan trip should otherwise look like any other trip to Iceland. Layers are key for ensuring you are warm enough while allowing you to remove layers as needed. Sturdy, waterproof hiking boots and a windproof, waterproof outer layer are also essential. During winter, ensure you have a warm base layer and good wool socks. A hat and gloves are good to have all year round.

FAQs About Traveling Iceland on a Budget with a Campervan

Even after reading the above, you may still have questions about traveling to Iceland on a budget. While you may feel like it isn’t possible after hearing how expensive Iceland can be, the good news is that you can keep your costs low with proper planning. Here are answers to some of the most common questions we see:

Are campervans cheaper than traditional travel options in Iceland?

Campervans can certainly be cheaper than traditional travel options, but it’s important to compare prices yourself. For the most part, because a campervan is both your accommodations and your vehicle, you will likely spend less than you would on a vehicle plus hotels every night. However, there are some low-cost accommodations available.

Fuel prices for a campervan can be comparable to renting a larger vehicle, but you may find it is a little cheaper to rent a small vehicle. The cost of accommodations is often much higher than the cost of campgrounds, though, which can still make a campervan a cheaper option. Tours are also more expensive, so it’s more cost-effective to drive yourself.

What are the best free activities to enjoy while campervanning?

The best free activities depend on what you’re interested in seeing during your trip. There are many free activities in Reykjavík and some other towns around Iceland. Nature is also free, but some tourist sights charge parking fees. As you drive around the country, you are sure to find places to stop and take in the nature, either right along the road or a short hike.

Even if you choose to avoid all sights that charge parking, you will have no shortage of things to do around the Ring Road. Don’t be afraid to venture away from the main road to find less popular spots that are just as stunning if not more so. However, be mindful of road conditions and stay off F-roads unless you have a campervan approved for them.

Can I save money by visiting Iceland in the off-season?

Yes, visiting Iceland during the off-season is a great way to save even more money on your budget Iceland trip. However, you should keep in mind that traveling in the off-season does have disadvantages. You will be more limited on daylight hours and some roads may be inaccessible. Bad weather is also more common during the off-season, which can impact your travel plans.

Final Thoughts: Discover Iceland on a Budget with a Campervan

Iceland is a beautiful country and contrary to what many say, it is a country that can be done on a budget with proper planning. Booking a campervan in Iceland can give you the ultimate in flexibility and lower costs at campgrounds throughout the country, often reducing the price of renting a car and booking hotels.

A campervan makes Iceland on a budget possible for more people, especially if you choose the shoulder months or are interested in winter camping to catch the northern lights. No matter which option you choose, renting a campervan and touring the country can help you save money on accommodations and food, helping you enjoy everything you want without spending too much.