Exploring Iceland on a budget: Why renting a campervan is a smart choice

Iceland is a land of breathtaking natural wonders where you can witness the northern lights and enjoy countless thermal pools and highlands. With the numerous flight deals available, it's easy to see why this island is a sought-after travel destination all year long.

However, Iceland is known for its high costs. As per Numbeo's Cost of Living index, it ranks as the fourth most expensive country globally, trailing only Bermuda, Switzerland, and Norway.

While my mom and I scored an excellent deal for our May trip (our round-trip flights were under $400), we anticipated high prices once we arrived. From car rentals to hotel stays and restaurant meals, expenses can add up quickly.

Nevertheless, we were committed to experiencing Iceland on a budget — and we succeeded! By sleeping, cooking, and exploring the country in a campervan, we saved a significant amount of money and had an amazing time doing it.

Campervan culture thrives in Iceland

Prior to this journey, I had never experienced a campervan, RV, or motorhome before. However, campervan culture is incredibly popular in Iceland, with over 170 campgrounds spread across the country, most charging only a few euros per person. The facilities are well-maintained and secure.

Additionally, there's an abundance of campervan rental options available. I booked our campervan through Lava Car Rental, which provided complimentary round-trip transport to and from the airport. After a brief five-minute drive, we arrived at the car rental facility.

After making a deposit of 43€ ($50) during the booking process, we settled the remaining amount at the counter, totaling 285€ ($335) for six days. This comes out to a reasonable rate of just $55 per day. The pickup process was also smooth and similar to any rental car experience I've had before.

You can embrace spontaneity in your travel plans

What attracted me most to renting a campervan is that everything you require is conveniently located in one place. This is particularly advantageous when exploring a country where a car is essential for reaching various attractions.

Iceland is larger than one might expect, and with its unpredictable weather, reaching your desired destination can take longer than anticipated. Instead of confining ourselves to a single hotel or stressing over booking multiple accommodations along our journey, we greatly appreciated the freedom of parking our campervan at the nearest campsite and enjoying everything at our own pace.

After disembarking from our five-hour red-eye flight with very little sleep, we decided it would be best to rest before diving into our adventure. We parked at a random gas station for a couple of hours to catch up on much-needed rest, which left us feeling rejuvenated and ready to explore.

Overall, traveling in a campervan offers the ultimate flexibility. While my mom and I outlined a rough plan of the sites we wanted to see, having the campervan allowed us to adapt our plans on the fly. With winds reaching 40mph during the first two nights of our trip, making sightseeing a bit tricky, we opted to take things easy at the start.

The meals were both delicious and affordable.

My mom has very discerning taste when it comes to food. Much like Gordon Ramsay, she can be quite harsh when judging others' cooking. More often than not, she leaves a restaurant saying, "I could have made that better."

I can’t fault her for that; she’s an incredible cook, and I eagerly await my next visit home to indulge in her traditional Korean dishes.

Since Iceland isn't particularly famous for its culinary offerings, having a campervan gave us the flexibility to prepare our own meals to suit our preferences. My mom packed a checked bag with Korean essentials: gochujang (Korean red pepper paste), instant rice, seaweed, spicy ramen, and more.

We picked up everything else we needed from the grocery store, including Icelandic sausage for our budae jjigae (Korean army stew), as well as bagels and fruit for breakfast.

The best part was that all the necessary kitchen utensils and cookware were included with our campervan. Plus, cooking together after a long hike became a bonding experience — I swear food tastes better in the great outdoors.

Sleeping arrangements were quite comfortable.

Given the limited space in the campervan, the entire back area was utilized for our suitcases, cookware, and beds.

Each night, we had to make our bed by sliding out wooden planks, adding a mattress pad, and snuggling into our sleeping bags. In the morning, we packed everything away to create space for cooking.

Moreover, we were so exhausted by the end of the day that we fell asleep almost immediately, and it was definitely more comfortable than sleeping in a tent.

Bottom line

Campervan living might not suit everyone (I truly appreciated my tiny NYC apartment even more when I returned). However, in a place like Iceland, it's the most budget-friendly way to see all your must-visit locations in a limited time. The campervan was equipped with everything we needed, including a portable gas stove, cookware, a water jug, a heater, a cooler, and much more. Ultimately, sharing a compact space with one other person created a unique experience and will undoubtedly be one of my favorite memories with my mom.