When Renting a Car in Iceland Makes Sense

Daniel Cramer

9 min read
When Renting a Car in Iceland Makes Sense

A Guide to Choosing the Right Rental Car for Your Trip

Renting a car can be a game-changer when planning a trip, offering flexibility, comfort, and often a more economical choice, depending on the type of trip you're taking. In this blog, we'll explore different types of trips, compare the costs of car rentals with other transportation options, and suggest the best types of vehicles for each scenario.

1. Urban Getaway:

7 Passengers, 3 Nights in Reykjavík

  • Transportation Options: Taxi vs. Rental Car (Minivan)
  • Scenario Overview:
    • Taxi: Taking taxis around Reykjavík might seem convenient, but with seven passengers, costs can quickly add up. Depending on the number of trips, the expense can be significant.
    • Rental Car: Renting a 7-seater minivan for three days allows you to travel together, split the cost, and explore the city at your own pace.
  • Cost Comparison:
    • Taxi: Estimated at $50-100 per trip, with multiple trips potentially totaling $500-$700.
    • Rental Car: A minivan could cost around $200-$300 for three days.
  • Verdict: For a group of seven, renting a car is not only cheaper but also more convenient, providing the flexibility to explore beyond Reykjavík.


2. Romantic Escape

2 Passengers, 3 Nights in Reykjavík

  • Transportation Options: Public Transport/Taxi vs. Rental Car (Compact Car)
  • Scenario Overview:
    • Public Transport/Taxi: Reykjavík's public transport is reliable, and taxis are readily available. For just two people, public transport is very affordable.
    • Rental Car: Renting a compact car offers more freedom to explore areas outside Reykjavík without relying on scheduled transport.
  • Cost Comparison:
    • Public Transport/Taxi: An estimated $200-$500 for the entire trip.
    • Rental Car: A compact car might cost $100-$200 for three days.
  • Verdict: Renting a car is slightly more expensive but provides enhanced flexibility, making it a better choice for those looking to explore beyond the city.
Image of a person in a romantic get away in Iceland
Romantic Getaway

3. Family Vacation:

4 Passengers, 5 Days on the South Coast

  • Transportation Options: Tour Bus vs. Rental Car (SUV or 4x4)
  • Scenario Overview:
    • Tour Bus: Pre-arranged tours offer a structured experience with guides but can be limiting in terms of flexibility and can be costly for a family of four.
    • Rental Car: An SUV or 4x4 allows for a personalized itinerary, especially important for exploring the South Coast's rugged terrain and remote locations.
  • Cost Comparison:
    • Tour Bus: Costs might range from $150-$200 per person, totaling $600-$800.
    • Rental Car: An SUV or 4x4 could cost around $300-$500 for five days, making it $90-$125 per person.
  • Verdict: Renting an SUV or 4x4 is not only more cost-effective but also offers the freedom to explore at your own pace, making it ideal for a family vacation.

Check our great selection of 4x4's in Iceland

Image of a father with his children in Iceland, on a family vacation
Family Vacation

4. Adventure Trip:

3 Friends, 7 Days Across the Highlands

  • Transportation Options: Guided Tour vs. Rental Car (4x4 Off-Road Vehicle)
  • Scenario Overview:
    • Guided Tour: While guided tours are safe and informative, they can be expensive and often follow a fixed itinerary.
    • Rental Car: A 4x4 F-Road vehicle is essential for navigating Iceland's Highlands. It allows you to chart your course and experience the adventure on your own terms.
  • Cost Comparison:
    • Guided Tour: Could cost around $1,000 per person for a week-long experience.
    • Rental Car: A 4x4 might cost $700-$900 for a week, about $233-$300 per person.
  • Verdict: For an adventure-filled trip with friends, renting a 4x4 is not only cheaper but also gives you the flexibility to create a unique and memorable experience.

5. Solo Traveler: 3 Days in the Golden Circle

  • Transportation Options: Tour Bus vs. Rental Car (Economy Car)
  • Scenario Overview:
    • Tour Bus: A convenient option for solo travelers, offering a chance to meet others and learn from guides.
    • Rental Car: A cheap economy car rental provides the freedom to explore the Golden Circle at your own pace, without being tied to a group schedule.
  • Cost Comparison:
    • Tour Bus: Might cost around $100-$150 for a 3-day tour.
    • Rental Car: An economy car might cost $60-$90 for three days.
  • Verdict: Renting an economy car is cheaper and allows a solo traveler the flexibility to enjoy the sights on their own terms.

We have a wide variety of Cheap Car Rentals in Iceland

6. Road Trip with Friends: 5 Passengers, 10 Days around Iceland

  • Transportation Options: Multiple Rental Cars vs. One Large Van
  • Scenario Overview:
    • Multiple Rental Cars: Splitting into two smaller cars offers flexibility, allowing different members to explore various places separately. However, this can be more expensive and complicates coordination.
    • Large Van: Renting a large van like a 9-seater allows everyone to stay together, making it easier to share costs, plan group activities, and reduce the logistical headache of coordinating multiple vehicles.
  • Cost Comparison:
    • Multiple Rental Cars: $100 per car per day, totaling $2,000.
    • Large Van: Around $1,500 for 10 days, translating to $300 per person.
  • Verdict: A large van is more cost-effective, simplifies planning, and enhances the group dynamic for a long road trip.

Check out our Minivan Rental Page

7. Photography Expedition: 1-2 Photographers, 7 Days in the Westfjords

  • Transportation Options: Public Transport vs. Rental Car (4x4 SUV)
  • Scenario Overview:
    • Public Transport: Limited schedules and routes make it challenging to access remote and photogenic locations in the Westfjords.
    • Rental Car: A 4x4 SUV provides access to rugged terrain and flexibility to chase the perfect light conditions, crucial for photographers.
  • Cost Comparison:
    • Public Transport: Minimal cost but highly inconvenient for this purpose.
    • Rental Car: A 4x4 SUV might cost $500-$700 for the week, a reasonable investment for professional or serious amateur photographers.
  • Verdict: Renting a 4x4 SUV is essential for photographers who need the freedom to explore remote areas and capture unique landscapes.

4x4's are the perfect choice for photographers and content creators

Photographer in Iceland
Photographer in Iceland

8. Corporate Retreat: 10 Colleagues, 4 Days in a Rural Conference Center

  • Transportation Options: Shuttle Service vs. Rental Car (Multiple SUVs or Minivans)
  • Scenario Overview:
    • Shuttle Service: Provides door-to-door service but might be costly and lacks flexibility for spontaneous team-building activities.
    • Rental Car: Renting multiple SUVs or minivans allows the team to arrive together, offers the freedom to explore nearby attractions, and facilitates any unexpected trips for supplies or events.
  • Cost Comparison:
    • Shuttle Service: Could cost around $100 per person, totaling $1,000.
    • Rental Car: Multiple vehicles could cost around $600-$800 total, $60-$80 per person.
  • Verdict: Renting vehicles offers more flexibility and is likely more economical, making it ideal for corporate retreats where spontaneity is part of the plan.

9. Family Reunion: 12 Passengers, 5 Days at a Remote Cabin

  • Transportation Options: Charter Bus vs. Rental Cars (Multiple Minivans)
  • Scenario Overview:
    • Charter Bus: Offers the convenience of keeping the group together but is inflexible for smaller, separate activities.
    • Rental Cars: Renting two or three minivans gives the family the flexibility to split into smaller groups for various activities while also saving costs compared to a charter bus.
  • Cost Comparison:
    • Charter Bus: Estimated at $2,000 for the duration.
    • Rental Cars: Two minivans might cost around $1,200-$1,400 total, saving money and adding convenience.
  • Verdict: Rental cars are more practical and flexible for a large family gathering, offering both cost savings and the ability to tailor trips to individual preferences.

10. Outdoor Adventure: 4 Friends, 3 Days Hiking and Camping in the Highlands

  • Transportation Options: Guided Tour vs. Rental Car (4x4 with Camping Gear)
  • Scenario Overview:
    • Guided Tour: Structured and safe but lacks flexibility and might not align with your adventure preferences.
    • Rental Car: A 4x4 equipped with camping gear provides the perfect setup for an off-the-beaten-path adventure, allowing you to camp in remote areas and explore without restrictions.
  • Cost Comparison:
    • Guided Tour: Around $400-$600 per person for a 3-day tour.
    • Rental Car: A 4x4 with camping gear might cost $400-$600 total, translating to $100-$150 per person.
  • Verdict: Renting a 4x4 with camping gear is more economical and provides the freedom to fully immerse in nature and adventure on your terms.

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11. Luxury Getaway: 2 Passengers, 5 Days Touring the Icelandic Coast

  • Transportation Options: Chauffeur Service vs. Rental Car (Luxury Vehicle)
  • Scenario Overview:
    • Chauffeur Service: Offers the ultimate in comfort but comes with a hefty price tag and less flexibility in itinerary changes.
    • Rental Car: A luxury rental car allows you to enjoy the scenic drives along the coast at your own pace while still experiencing a high level of comfort and style.
  • Cost Comparison:
    • Chauffeur Service: Could cost upwards of $2,000-$3,000 for the duration.
    • Rental Car: A luxury vehicle rental might cost $800-$1,200, offering a more budget-friendly way to enjoy a luxury experience.
  • Verdict: Renting a luxury vehicle provides a balance of comfort, style, and flexibility at a more reasonable cost than hiring a chauffeur.

12. Cultural Exploration: 3 History Buffs, 4 Days in Northern Iceland

  • Transportation Options: Local Tours vs. Rental Car (Economy Car)
  • Scenario Overview:
    • Local Tours: Often limited to major sites and fixed schedules, which may not cover all areas of interest.
    • Rental Car: An economy car provides the freedom to visit lesser-known historical sites and explore at your own pace, ensuring a more personalized cultural experience.
  • Cost Comparison:
    • Local Tours: Estimated at $150-$200 per person.
    • Rental Car: An economy car might cost $100-$150 total, about $33-$50 per person.
  • Verdict: Renting an economy car is a cost-effective and flexible way to ensure you don't miss out on any historical sites and can tailor your trip to your specific interests.

Conclusion

Renting a car makes sense in a variety of travel scenarios, especially when flexibility, cost-sharing, and convenience are important. Whether you're on a solo journey, a family vacation, or an adventure with friends, selecting the right vehicle can significantly enhance your travel experience. Always consider the nature of your trip, the number of passengers, and the places you plan to visit when deciding whether to rent a car and which type of vehicle will best suit your needs.