Everyone will tell you that a campervan is one of the cheapest ways to travel in Iceland.
And it can be.
But there are a few more things to consider other than the price tag when you’re choosing between a campervan vs car rental and hotel combo for your trip.
Full disclosure, I absolutely love traveling in a campervan, but I also realize that it’s not for everyone.
I clearly remember times when I sat through some pretty rough weather and wished I had a real bed to sleep in!
If you’re finding it tough to decide which one would be best for your trip, just know that I’ve lived and traveled around for over a decade, so I’ve truly done it ALL! I’ve done road trips in rental cars, campervans, stayed in Airbnbs, hotels, guest houses – you name it.
So, I’ll give you an honest comparison between a campervan and a rental car in Iceland when it comes to cost, convenience, and a few other factors you might not have considered.
Let’s get into it!
Campervan vs Car Rental & Hotel in Iceland: Who Should Choose Which?
Short on time? Here’s the quick version of who each option is really for. Then I’ll break down the costs, the pros and cons, and the questions that’ll help you decide.
Rent a camper van if…
You’re traveling in summer and want the flexibility of going where the road takes you. There are no hotel bookings to plan around and no check-in times to rush for!
You might be more budget-conscious and are happy to cook most of your own meals.
You want nature right outside your door, and you don’t mind putting up with a bit of discomfort for the adventure.
Rent a car if…
Okay, so that’s it in a nutshell, but if you want more details, keep reading … 👇
Comfort is your top priority. You want your own warm bed and bathroom, total shelter from the elements, and space to stretch out at the end of the day.
You’re traveling in fall or winter. A car and hotel works year-round, but in the colder months, it’s a must!
You’d rather drive something easier to handle and lighter on fuel, or you’re traveling with a bigger group that won’t all fit in one van.
Okay, so that’s it in a nutshell, but if you want more details, keep reading… 👇
Is Renting a Campervan or Renting a Car in Iceland Cheaper?
Renting a campervan is *usually* cheaper than renting a car and booking a hotel. Here’s what I mean:
Campervan: If we’re talking about a week trip for two people during the summer, going the camper van route is going to mean spending money on the following:
- The van: $209/day (depending on the model)
- Campsites: $200 (with an Iceland Camping Card)
- Fuel: ($1.70 and $1.85 per liter of diesel)
- Mostly cooking your own food.
👉 Total cost: Anything between $2,000 – $2,500.
Car rental & hotel: You can obviously splurge here, but I’ve decided to keep it on the lower end for this comparison. Let’s assume you’re renting an economy car and staying in guest houses.
We’re looking at:
- Vehicle rental ($107 per day depending on the vehicle)
- Fuel ($1.70 and $1.85 per liter of diesel)
- Accommodation $145-$180 per night
- Maybe a mix of making your own food and eating out at restaurants.
👉 Total cost: Anything between $2,000 – $3500.
| Campervan | Car + Guesthouses | |
| Vehicle | $1,463 (209/day) | $749 (107/day) |
| Accommodation | $200 (campsites, with Camping Card) | $1,015 – $1,260 (145–180/night) |
| Fuel | ~$200–300 | ~$175–250 |
| Food | $350–550 (mostly cooking) | $900–1,250 (mix of cooking and eating out) |
| Total | ~$2,200–2,500 | ~$2,850–3,500 |
Looking at it upfront, yes, the van is cheaper by about $500 – $1,000 per week.
But here’s where it can be a little surprising…
The van is probably going to cost more in fuel because it’s heavier. It’s definitely the cheaper option if you’re using the kitchen in the van. But if you’re only using it for transport and plan on eating out at restaurants for most of your meals, then it could end up being the same. That’s something to keep in mind.
Pros and Cons of Campervans in Iceland
Having done more campervan trips than I can count, these are the biggest advantages I’ve found:
Pros of Renting a Campervan in Iceland
Flexibility: One of the main reasons why I love traveling with a campervan in Iceland with my young kids is because it gives us so much flexibility.
You don’t have to book a place every night and rush to get there if you’re falling behind.
Napping in the van can happen at the most random times, and when the kids get hungry, (which is very often 😊), you can whip up a meal whenever you need to.
The flexibility a camper gives you is also a huge plus if you’re a solo traveler or touring around the country as a couple.
Views: Yes, plenty of the hotels in Iceland are set in beautiful locations. But, there is nothing like waking up and sliding open the van door to absolutely stunning views. I still feel like a kid in a candy store every single time! I’ve never felt more part of nature than with a campervan.
If you’ve dreamed of having your coffee in front of the mountains or a waterfall, this is the way to go!
Like Grundarfjörður Campsite at Kirkjufell mountain. 👇
The cost: As I wrote above, you’ll be saving on a 7-day trip with a campervan. Especially if you’re prepared to head out to a grocery store and pick up the supplies you need to cook most of your own meals. You can also save when you use the Iceland Camping Card, which gives you discounted rates at selected campsites around the country.
If you’re not sure if the camping card is worth it, I’ll give you the full breakdown in this video: 👇
It’s an adventure: A campervan trip just feels like a road trip in the truest sense. Even the rainy afternoons playing cards in the van, or the nights you’re tucked up inside listening to the wind howl, somehow turn into the stories you’re still talking about years later!
Cons of a Campervan Rental in Iceland
I want to be really transparent about what you’re trading when you opt for a campervan. And there definitely is a trade-off!
Cooking: As convenient as it is to cook your food on the go, you’re doing most of your meal prep in a small space. You might think, ‘oh, we’ll just cook it outside,’ but a lot of the time you can’t. The wind and rain won’t always let you!
We’ve had to prepare and eat meals in the van with everyone packed in, squirmy little kids and all!
Bathroom facilities: You’ll be sharing the bathroom facilities at the campsite you’re staying at. That in itself is enough for a lot of people to say, thanks,but no thanks!
Aside from sharing these facilities, if the weather’s not great, it’s not a very pleasant experience having to haul all your toiletries over to take a shower.
Space and overall comfort factor: While I must say, the bed in the campervan is very comfortable, you can’t really match the comfort and space of a hotel room.
Living out of the van for a week… yup, you’re going to feel it more compared to when you rent a car and book a hotel!
Driving a campervan: Iceland is windy! And with the campervans being taller and heavier than normal cars, you need to slow down, especially when the wind picks up. Driving in Iceland definitely requires a bit of preparation.
If you want the full breakdown of what to expect when camping in Iceland, including the best campsites, you can’t miss this post! 👇
➡️ READ: Is Camping in Iceland Worth It? The Complete Guide + Best Sites
Pros and Cons of Renting a Car & Hotel in Iceland
Now let’s flip it around and take a look at the advantages and disadvantages of renting a car and booking accommodation.
Pros
Rental cars are easier to drive: They’re not as bulky as a campervan, and it’s generally easier to find parking in Iceland with a car.
Best if you’re traveling shoulder season or winter: A car and hotel works any time of year, but I would choose this option especially in the shoulder season and winter. Most campsites are closed over the winter anyway, and a van can get really tough to stay in for a week in bad weather.
Lighter on fuel: Campervans tend to run heavier on fuel.
The most comfortable option: It goes without saying that a campervan vs a car rental with a hotel are two very different trips. A hotel is for people who want to go on a true vacation and stay in a nice plush bed at the end of the day. And NOT feel like they’re camping!
Yes, you’re going to pay a little bit more for it, but for a lot of travelers, that comfort is a big part of the trip.
If that’s you, there’s no shame in that! ☺️ Just make sure you get yourself a reliable vehicle and don’t overthink it.
💥 I’ve recommended Blue Car Rental for years. They’re incredibly reliable with sturdy vehicles that can handle Iceland’s weather and terrain challenges.
You can choose between their 2WD or 4WD if you’re visiting in the winter or tackling the F-Roads, and their online check-in really speeds up the process.
Use my 👉 VIP discount link and get 5% off your rental automatically applied at checkout. NO CODE NEEDED.
Cons
Less flexible: Hotels have set check-in and check-out times, so you could find yourself rushing to arrive on time. Bad weather can close roads and force you to stay put. If that happens, you’ll want a hotel that offers free cancellation so you’re not paying for the night you missed.
More expensive: There are some really nice hotels along the Ring Road, but because it’s such a popular route, they can get very pricey.
Prior booking: If there’s one thing you need to know about accommodation in Iceland, it’s that you need to book well in advance. I recommend doing so as soon as you’ve booked your trip. Especially if you’re traveling during peak season.
Iceland Campervan vs Hotel & Car: Questions That’ll Help You Decide What’s Best for Your Trip
If the pros and cons list hasn’t convinced you of either one, perhaps asking yourself these questions will help:
What Season Are You Traveling In?
If it’s summer, you have both choices on the table.
In the winter, I would recommend the car and the hotel option. A lot of campsites are closed in the winter and I don’t think it would be worth the hassle of having to cope with the weather at a campsite.
The verdict: Car rental & hotel for fall and winter.
Who’s Coming Along?
If you’re a family with young children or teens and you all don’t mind being in the same space, a campervan is SUCH a fun experience. Some of the best memories we’ve made as a family have been on campervan trips.
That said, it really depends on your family! Not everyone loves being in super close quarters for a week. If someone’s a loud snorer, or your teens leave a trail of mess wherever they go, a van can start to feel very small, very fast. 😂
If you’re traveling with a big group or another couple that you don’t want to share such close quarters with, then renting a car would be best.
Psst…One more thing before I forget… Happy Campers are amazing because they have different levels of vans.
They have a small van for just two people, a bigger van for a bigger family, and then one that’s like a bunk sleeper.This is just something to keep in mind, because a bigger group doesn’t necessarily mean a campervan is off the table.
The verdict:
- Family or small group that don’t mind the close quarters – campervan
- Big group or not comfortable sharing close spaces – car & hotel.
Do You Want Adjoining Hotel Rooms?
Okay, this is a big one.
Finding accommodation with adjoining hotel rooms is not really a thing here.
So, if you are a family that’s traveling with kids, you’re either going to have to rent completely separate hotel rooms OR consider something like an Airbnb or a guest house where you can be in a closer shared space.
The verdict: Campervan or a guest house if you want a shared space.
What Overall Adventure Do You Want?
If the thought of opening your doors and sipping a hot coffee, with a waterfall in front of you sounds incredible…you’re gonna LOVE campervan life.
One of my most memorable experiences was waking up in our campervan in the mountains in Landmannalaugar, holding my cup of coffee, just thinking this is the dream life! I loved it.
I’ve also woken up in really lovely hotels and guest house beds. The kind you sink into and don’t want to leave!
I don’t think one is wrong, but being in a campervan and camping gives a more up-close and personal experience of the places you’re visiting.
The verdict:
- Up for an adventure – campervan
- If comfort wins – car & hotel
Pick the option that matches the trip that you want.
Are You Traveling on a Budget?
As we saw earlier, renting a campervan in Iceland can be the cheaper option if you’re trying to travel Iceland on a budget.
Iceland is notoriously expensive, but a campervan rolls your bed and transport into one. Skip the pricey restaurants and cook your own meals on the camp stove, and you’ll save a pretty penny.
FAQs
I’m sure you have a lot more questions about this, I’ve done my best to answer them:
When is the Best Time to Rent a Campervan?
In my honest opinion, the best time for traveling Iceland in a campervan is during summer.
That said, many campervan rental companies rent year-round, and a handful of campsites stay open through winter.
Just be aware that it’s a TOTALLY different experience because the weather can get quite intense in the winter.
Can You Sleep Anywhere in a Campervan in Iceland?
No. Just because you can park somewhere does NOT mean you can camp overnight there! Wild camping is not allowed for campervans.
You need to stay at designated campsites, unless you have permission from the landowner.
Can Campervans Drive on F-Roads?
If you decide to camp in the Highlands and drive the rugged F-Roads you will need to rent a 4X4 campervan in Iceland. No exceptions.
Is a Campervan Good for Families?
A campervan is great for families. Again, it depends on your family and if you’re able to live in a small space together! Personally, we’ve loved the experience with our kids.
Is it Worth Renting a Car in Iceland?
Absolutely. If you decide that you prefer the comforts of staying in a hotel and guesthouse every night, then renting a car to get around is perfect.
Is a Campervan Warm Enough at Night?
Yes. The campers at Happy Campers are made with extra insulation and built-in heating system. These usually run off an auxiliary battery, so you’ll stay warm all night. You can use extra blankets for free or rent a sleeping bag from them too.
How Does One Go About Charging Devices While on the Road?
With Happy Campers, all their vans have USB ports that can be used when the vehicle is running. You’ll also find 12 Volt ports that can be turned into more ports or a power socket.
Campervan vs Car for Traveling Around Iceland: Make Sure You Rent with the Right Company
Phew! That’s the long and short of it.
As you can see, there’s no wrong choice in the campervan vs car & hotel debate. It completely depends on how you want to experience your trip.
👉 If you choose a campervan, it really is a wonderful way to see Iceland. I’ve partnered with Happy Campers for the past 10 years because their vans are built well and they’re properly equipped with everything you need for your road trip. You have your transport, your bed, and your kitchen all in one, ready for you the minute you land.
Get a 10% discount on your Happy Campers rental when you use my code IWV10.
If renting a campervan in Iceland sounds a bit overwhelming, then opt for the freedom of a car and the comfort of a hotel.
👉 If you choose a car, you can’t go wrong with Blue Car Rental. You can pick up your vehicle as soon as you land at KEF airport. To make the whole process really smooth, see that you make use of their online check-in and keybox pickup. With their 24/7 roadside assistance, it gives you so much peace of mind when you’re out on the road.
Use this special LINK and get a 5% discounted price at checkout.
Here’s to road tripping around Iceland, no matter how you choose to see it. ☺️
Happy Planning,
