Best Iceland Itinerary – Don’t Spend Your Entire Trip in the Car!

Creating the best Iceland itinerary can be frustrating and time-consuming. It’s a huge island and nearly everyone who visits drives the entire ring in a week or two and ends up miserable, however, most probably won’t admit to it.

Instead of driving around the island nonstop, never having the time to soak in the sites, we’re going to challenge you to do Iceland a bit differently. Several followers have reached out to us asking for some advice on how we did Iceland. So we put together this post explaining how, and why, we did Iceland a little differently.

Don’t Leave Disappointed

A few years ago, our friends decided to cross Iceland off their travel bucket list. Upon their return, I excitedly asked them to tell me about their experience. And they told me something that may make your jaw drop. They told me that they were disappointed.

How on Earth could anyone not like Iceland? How was each of our experiences so different, that we flew away from Iceland with such different perspectives?

This is Iceland’s Most Popular Tour: Snorkeling Between Continents in Silfra

If you peruse travel blogs and Iceland guides, most visitors take on Route 1, or the Ring Road, which is the national road that circles the island. The positive aspect of Iceland’s Ring Road is that it makes it pretty easy to layout your route. The negative? Once you begin, the only logical way to complete it is to make the full 1332 km or 828-mile loop.

Driving the Ring Road

Our friends had seven days in the country and opted to drive the Ring Road. They described long days of driving from point A to point B, often bored at some of the scenery. Some days they would drive through flat, uninspiring landscapes before they would reach the next scenic “must-see” attraction.

Not all of Iceland’s scenery is dramatic as seen here in this flat farm field of marshmallows.

This is why Iceland is a tricky travel destination. The best way to describe it is that it’s made up of all these small, scenic spots scattered across the country that together make up this all-encompassing essence of Iceland. But to experience them all is not an easy task.

Add to the fact that many segments of the Ring Road are so isolated, that it’s hard to find stops for bathroom breaks and lunch stops. Most visitors don’t brag about eating hot dogs in gas stations which is many times the only food option.

You Must Go on This Fun & Tasty Excursion!: Reykjavik Food Walk

If you are a die-hard road tripper or a camper van enthusiast and don’t mind spending five-plus hours in a vehicle per day, you’ll love touring Iceland. If not, you may want to see why we decided to do Iceland a little differently.

Don’t Spend Your Entire Trip in Your Car!

Iceland has become one of the hottest must-see countries in the world. Travelers are drawn to its dramatic landscapes, the quirky vibe of Reykjavik, and the chance to experience the elusive northern lights. Of course, every traveler’s favorite movie, “The Secret Life of Walter Mitty,” just added to Iceland’s allure. After having the opportunity to explore this country, we agree there’s nothing else quite like it in the world. The best Iceland itinerary includes:

1. Reykjavîk:  Spend three nights touring the local area with day trips to nearby attractions.

2. Bíldudalur: Drive up to Bíldudalur from Reykjavîk. This is one of the most scenic drives in all of Iceland. Spend three nights exploring the Westfjords, the most remote part of Iceland!

3. Keflavik: Spend your last night near the airport to make the transition back to the real world as seamless as possible.

It’s no wonder Iceland is on so many travelers’ bucket lists—it’s the land of waterfalls!

It’s Time to Do Iceland Different

There’s another important travel tip that many don’t discuss. Nice accommodations are very hard to come by at a low budget, everything seems quite expensive. This may be an urban legend, but fellow travelers told us their guest house was the same that hosted Ben Stiller during the filming of Walter Mitty (they supported this claim with photos).

This Is the Ultimate Iceland Photoshoot Location: Crystal Blue Ice Cave

They were surprised at how unkempt it was, especially the bathroom and shower. In our research, we also had a general sense of high costs for very average accommodations. If celebs are showering in grimy showers, well then the rest of us are up the creek.

So what did we do?

The following are our itinerary, lodging, and Iceland travel tips.

Our day trip from Reykjavîk to Vik was one of our favorite scenic drives!


Reykjavik – 3 Nights ➡️ Bildudalur – 3 Nights ➡️ Keflavik – 1 Night

We spent one week in Iceland. We stayed three nights in Reykjavîk, three nights in Bíldudalur, and one in Keflavík (the closest city to the airport). For us, apartments provided the best prices and value. To keep costs down, we did all our cooking except for trying a few of Iceland’s world-famous fried onion topped hot dogs.

Reykjavîk – Days 1 to 3

During the first three days, we took day trips to visit nearby attractions. Additionally, we spent a part of one of those days exploring Reykjavîk.

We liked and utilized Rough Guides. Using the included maps, it was easy to simply visit each viewpoint, national park, or scenic stop that we encountered as we made our way around the island.

Adrenaline Junkies Will Love This: Twin Peaks ATV Adventure

On our second day, we drove the Golden Circle, and on day three we drove to Vîk and back. These are common day trips to see the best sites in southwest Iceland.

Take some time to research these areas and stop at the sites that interest you. We won’t go into too much detail here as there is extensive information in Rough Guides.

Lodging: Book an apartment or stay at Reykjavik Residence Hotel

Bîldudalur – Day 4 to 6

Pictures don’t do the northwest side of Iceland justice. It’s out of this world.

This is where our itinerary deviates from the norm. Rather than take on the Ring Road, we opted to stay on the upper north peninsula of the island driving up to the Westfjords. This is considered the most remote part of Iceland. The roads are often gritty and slow, but the scenery is consistently dramatic and some of the most breathtaking on the island.

The Westfjords include some of the most amazing scenic drives we’ve ever done, and definitely the most stunning in Iceland! – The Budget Savvy Travelers

Stats differ, but estimate that only 3-14 percent of visitors make it to this part of Iceland and it was glorious! By now, our followers know that we love getting off that typical backpacker/traveler route. If you seek out experiences that take you off the beaten path, then the Westfjords are for you!

The view from our apartment in Bîldudalur, Iceland

Westfjords – One of the World’s Best-Kept Secrets

Time Magazine rated Iceland’s Westfjords as one of the world’s best-kept travel secrets. Before leaving Reykjavík, we stocked up on three days’ worth of groceries and drove to our beautiful getaway in the village of Bíldudalur.

This Is a Must-See: Lava Tunnel – Raufarhólshellir

After four full days of road tripping, we relished in that isolated, “cabin on the lake” feeling. It was here that we were hoping to see the northern lights, but unfortunately, our evenings were always cloudy. We thoroughly enjoyed our time here. It felt unexplored and remote. To us, this was Iceland.

The beauty of this segment of our trip was that we were able to slow down! We had time for a memorable picnic lunch surrounded by one-of-a-kind views, long walks exploring, and sunset cocktails on our balcony. In our opinion, rushing through Iceland on the Ring Road was just not how we wanted to spend our time.

Lodging: Book an apartment or stay at Hotel Reykjanes or Hotel Flokalundur

Keflavík – Day 7

We caught this student walking home from school on another dreary day in Keflavik, Iceland. This is exactly how you’ll feel if you try to do the Ring Road in one week.

The drive back from Bíldudalur took us about five to six hours. We opted to stay near the airport so that when we arrived in Keflavík, we could cook dinner and relax for the night after the long day of driving. The car rental agency was kind enough to drop us off at the house as it was nearby.

There was a small grocery store within walking distance from our accommodation. The next day, we took a taxi to the airport, which our host arranged. Since our lodging was close to the airport, the cost was only USD 10.

Lodging: Book an apartment or stay at Hotel Berg

Car Rental 

We rented our car with Discover Cars for USD 47 a day. The rental agency conveniently transferred us from the airport to the pickup location. Also, we liked that we opted not to rent a GPS, but the car came with a built-in one anyway. We did drive on some rocky terrain, but nothing that our rental car couldn’t handle.

General Travel Tips 

If you are going to take on the Ring Road, we suggest allowing yourself AT LEAST 10-14 days to enjoy the trip. Road tripping is hard here. At the end of the day, you don’t want to feel like you can’t wait to get out of your vehicle only to have to climb back in to do it all over again the next day (and the day after that, etc.).

If You’re Not First, You’re Last

Pay attention speed demons! Another reason driving the Ring Road is so aggravating is due to Iceland’s infamous speed cameras. Although roads are wide open, speed cameras are everywhere.

It was can be challenging to avoid putting the pedal to the metal because there isn’t another soul to be seen. Look up horror stories online. We read one driver’s mistake of hitting two-speed cameras costing them about $800 in fines.  On average, the speed limit is about 50 mph, which makes you feel like you’re crawling from one destination to the next.

Looking down on the small town of Bíldudalur, Iceland

Additional Iceland Tips

As previously mentioned, apartments provided the best value. However, there isn’t always the greatest selection. In some areas, especially away from the major tourist areas, there are not that many apartments to choose from and you may be forced to stay at a hotel or guesthouse. Below are some additional Iceland tips:

  • We are not camper van enthusiasts and don’t prefer to travel that way. But even if you are road tripping via car, stock up on snacks, food, toilet paper, etc. before you embark on your Ring Road journey. When we say you may not encounter food/rest stops, we’re not joking.
  • Bring music to enjoy in the car. In remote areas, there are no radio stations to make long travel days go by faster by listening to your favorite tunes.
  • If you’re a wine lover or want to enjoy sunset cocktails, plan on purchasing your alcohol at the duty-free shop at the airport. This will be the most budget-friendly place to buy it.
  • If you are not a budget traveler and/or don’t enjoy long-distance driving, you may want to consider traveling with an organized tour group.

When to Visit Iceland

We traveled to Iceland in the first week of September. It was fairly cold. Bring layers as the weather often changes within minutes. Raincoats come in handy if you want to take the opportunity to explore behind waterfalls!


For one seven-day Iceland itinerary, we spent USD 1,188 (this includes the flight from Norway) and averaged USD 170 a day. Please note, that this is probably cheaper than most would spend as we weren’t driving much while in Bíldudalur, however, there are plenty of opportunities to take scenic drives throughout the Westfjords. Driving the entire Ring Road will add additional cost to your budget for petrol which of course, is very expensive.

Have you visited Iceland? How did you do Iceland? What were your favorite and least favorite aspects?

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8 thoughts on “Best Iceland Itinerary – Don’t Spend Your Entire Trip in the Car!
  1. Thank you so much for this wonderful information. Helps so much as we plan for our trip to Iceland!

  2. Loved this post! Iceland is, ironically, one of the “hot” destinations of the moment, but you don’t see a lot of details beyond the Ring Road, or a stay in Reykjavik. Thanks for helping us fill in some of the blank spots, and the tip on Bildudalur.

  3. I love this blog post….I love that you did AirBnB. Also, I would recommend not being afraid of Hostels in Iceland. I went in April 2015 and stayed in Reykjavik and Skogar both places in Hostels and they were nicer than most hotels I have stayed in around the globe. They are clean, efficient, and cost effective.
    The one in Skogar was right in front, walking distance from the famous Skogarfoss (waterfall).

    1. Hi Eric,
      Thank you for adding some great, additional budget savvy information for anyone coming across this blog post. I’m sure our readers may find your tips very useful. 🙂 I’m so glad you stopped by.

  4. That’s a much cheaper itinerary that I’ve seen a lot of people travel on. Iceland much more expensive than I ever expected, I recently read on another that a pint of beer in a pub will cost about $15 US. That’s crazy. We’re right in Prague where it’ll cost a little over $1 for a beer. That alone puts me off going to Iceland.
    Frank (bbqboy)

    1. Hi Frank,

      Thanks for checking out our post. We made sure to include ALL travel expenses. (We get aggravated when bloggers flub numbers by leaving out such things as airfare.) It’s funny that you made this comment. Harry and I were just discussing how travel may look for us in the future after living this budget oriented lifestyle. For example, back in the day we spent SO much money on our 2 week vacations. Now, we can’t even fathom “getting ripped off” on things such as 3€ gelato or 5€ coffees! We wonder once we start having income again, if we will give in to those splurges. Constantly assessing the value of everything really does influence one’s spending priorities!

  5. VERY nicely done, and with beautiful pictures…if only i could have read this post before going there myself! :)~

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