Iceland - Ring Road 2023

ICELAND - The Country of Ice and Fire

Fjaðrárgljúfur Canyon 

I recently returned from a seven-day trip to Iceland (July 16–22, 2023). Hopefully, this blog will ease your preparation a little bit :)

The moment our rental car left the city of Reykjavik, I felt like we had accidentally entered an uninhabited but enchanting planet—complete with the newly erupted volcano we had seen from the airplane. Vibrant, pristine fields of lupines bursting with life lined both sides of the road. Geothermal vents emitted ethereal smoke (which inspired the name Reykjavik, or “smoky bay” in Icelandic). And one cannot forget the countless awe-inspiring waterfalls scattered across the country, each one openly inviting you to stop and marvel.

That said, the cost of living there hit me hard. Everything was double or triple what I normally pay in Vancouver (which is already the third most expensive place to live in North America).

So here’s some updated info and tips that you may find helpful—and possibly even save you from breaking the bank—if you plan to visit Iceland.

ARRIVAL

A typical 45-minute coach ride (Flybus) from Keflavík Airport to Reykjavik costs around $40 CAD per person. Tickets can be purchased at the airport or online here. Flybus departures are scheduled to align with flight arrivals.

After arriving at the Reykjavik BSI bus terminal, the 10-minute taxi we took had Icelandic Krona 4,000 (or $40 CAD) on the meter. My rental company arranged the Flybus ticket from the airport and also covered the taxi cost, so we didn’t have to pay these transportation expenses. That saved us around $60 per person.

BSI Bus Terminal is the largest public transit exchange in Iceland. They provide free brochures, which I highly recommend picking up. These brochures contain the latest updates about Iceland—some of which you might not find on Google.

A 20-minute walk from BSI, at a tourist center called "What's On" in the city center, you can get free guidebooks and brochures for Iceland’s national parks. Again, take them—they’re packed with useful resources for your trip.

Stock up on food at Krónan or Bónus before setting out.

If you choose to rent a car upon arrival, there are several rental companies located right at the arrival terminal exit area, including Europcar, Hertz, Blue Car Rental, and others.

CASH

They accept credit cards everywhere in Iceland, so you don’t need to carry cash unless you prefer it.
💳 Tip: Use a credit card with no foreign transaction fee to save yourself up to 2.5–3%. My TD credit card charged a 3% fee, so I used a Home Trust Visa throughout the trip. It has no monthly fee and no foreign transaction fee. However, it does not include vehicle rental insurance like many other credit cards do. So, when renting a car, it may be better to use a regular credit card that offers rental coverage.

💰 Currency Tip: If the exchange rate is favorable, consider exchanging some cash at home before your trip. For example, before I left, the exchange rate was 1 CAD = 108 Icelandic Krona. I ordered currency from the bank. While in Iceland, the rate dropped to 1 CAD = 98 Krona. So with $500 CAD, I saved around $55 by using cash exchanged in advance.

⚠️ Caution: Certain apps or websites may require a verification code to be sent to your phone (see the parking section). To avoid issues while abroad, consider using a credit card that does not require two-factor authentication. Ideally, have one set up with two-factor identification disabled before you leave the country. Contact your bank or credit card provider for guidance on how to manage this.

CAMPERVAN

We rented the cheapest model called Budget Campervan.

Here’s a breakdown of the campervan features we found especially useful during our Iceland trip:

• Tablet (WiFi device): It had unlimited data and served as our WiFi hotspot throughout the trip—super convenient. The GPS came preloaded with tourist locations and campsites. It also had several useful apps installed, including Park4Night, which helped us plan ahead by showing which campsites had the best facilities.
• Mini fridge: We managed to store a 1-liter bottle of juice, 3 boxes of precooked meals, 1 small bag of pre-cut broccoli, 6 eggs, and several slices of cheese. It runs on a separate battery, so there’s no risk of draining your car battery.
• Sink setup: A small sink connected to a large water container—easy to refill at any tourist location or campsite.
• Cooking gear: One portable gas stove with a canister included.
• Dining essentials: Bowls, plates, forks, pots, and other utensils for two people.
• Charging ports: Multiple ports for all your electronic devices. The video tutorials explain this well, but just a reminder—avoid charging devices from the front of the car to prevent draining the main battery.
• Bedding: Pillows and blankets were more than warm enough for the chilly nights. These were complemented by one of our favorite features…
• Heated mattress: A built-in heater warmed the mattress from below, keeping us cozy through Iceland’s long, cold nights.

⚠️ Caution: Do not charge your electronic devices using the front dashboard ports of the car, or you risk draining the main battery—your car may not start the next morning.

Inside the camper van - Cozy Camper - Budget Model

🚐 Campervan Caution: Budget campervan vehicles are typically more than five years old and tend to be more prone to mechanical issues compared to standard options—which is why they’re cheaper. Be sure to read the fine print: on the website, it stated that no refund would be issued if the vehicle experienced problems.

Our campervan failed to start four times during the first three days of our trip. On the fourth day, the company sent us to a nearby shop and replaced the battery at no cost. They even refunded us for half a day due to the inconvenience—despite their policy stating they weren’t obligated to do so.

While the situation caused us some stress, the support service was excellent, so we have no complaints in the end.

PICKING UP THE CAMPERVAN

• Before leaving, check your vehicle thoroughly for dents, scratches, or existing damages. Take photos and videos of them with the rental location in the background. This will serve as proof of where and when the footage was taken.

• Check if your rental office has a free food corner. These are usually unused items like soy sauce, sugar, pasta, etc., left behind by previous campers. They could save you a few bucks on groceries.

• Make sure you know how to contact your rental company in case of emergency, especially if you don’t have a local phone plan. Confirm they’re reachable via online platforms like WhatsApp.

At Cozy Camper - The free food shelf where we took a package of eggs, sauces and noodles

FOOD

Bring backpacking meals with you. In Iceland, they become tastier and more valuable. Or cook your own meals and bring reusable stashers to store them during your outings.

If neither of the above works, you can buy sandwiches for around $11 per pack or ready-made meals at the same price. They offer pasta, rice with chicken, mashed potatoes, etc., though the selection is very limited. 

Otherwise, eat out—that would cost $33 per meal or more.

WEATHER

Windy. Windy. And Windy!

We arrived in mid-July, and the weather was pleasant—with lows around 7°C and highs up to 14°C. It was mostly sunny or had sunbreaks during our stay, which was lucky. However, the weather could change in an instant due to strong winds. Gusts could reach 30 km/h quickly, dropping the temperature by several degrees and making it feel quite chilly.

Treat summer in Iceland like fall or early winter in Vancouver—layers are essential.

CLOTHING

Dress in layers. You’ll need a base layer, fleece, and waterproof pants and jacket. The weather can shift quickly—from warm to quite cold—especially when the wind picks up.

Waterproof yourself from head to toe if you plan to walk behind any waterfalls. They’ll guarantee you a good shower if you don’t :)

CAMPSITES

First-come, first-served and rarely full.

Most main front campsites have everything you need, including heated bathrooms, hot showers, laundry, and dryers. The cost is around $10 to $20 CAD per person. Hot showers cost $3–$5 for 3 to 5 minutes at some popular campsites such as Vik or Höfn.

Washing machines cost $5 to $8, and dryers cost about the same at many campsites.

Most campsites are just like a regular parking lot in Vancouver—no designated camping spots. When you arrive, just park and voilà! Staff usually stop by around 8 PM or 10 PM to collect the camping fee. Some campsites can be paid in advance through the app Parka.is.

We didn’t use the Camping Card in Iceland since we didn’t stay long enough. If you're staying longer, it could be an option—but keep in mind that not all campsites accept the card, which may limit your flexibility and camping choices.

Vik campground - well-equipped and sparkly clean.

Vik Campground, clean and well-equipped with microwaves, stoves, sinks, kettles, etc. 

Visitors tend to take advantage of the midnight sun, so they often don’t arrive at campsites until around 9PM. Shared facilities get much busier during this time and stay active until midnight. Most major campsites typically have two shower rooms for women and another two for men, so waiting times can be long during peak hours.

💳 Tip: Bring some foldable hangers or a rope to hang clothes dry in your car or at your campsite. Arrive before 8PM or after midnight if you prefer a less crowded experience.

Make use of campsite facilities, especially the stove. This can save you money by allowing you to return unused gas bottles (around CAD 8 each). We used one bottle of gas over four days.

PARKING

Download Parka.is on your phone and add your credit card ahead of time. My bank requires two-step verification, and since my phone couldn’t receive the message, I wasn’t able to use the app. The lineup to pay at the onsite machine may not be long, but the waiting time adds up.  The cost is normally 1,000 Icelandic Krona (about CAD 10).

Some sites, like Black Sand Beach, didn’t have a payment machine onsite. We had to drive to the designated spot shown on their map—across the street—to pay for parking. This can be a hassle if the lot is busy and you lose your spot when you return.

Other than parking, you don’t have to pay for anything else at these tourist destinations :)

DRIVING THE ENTIRE RING ROAD

The most interesting road for us was Road 42. It winds through a volcanic area blended with lush green fields, grazing horses, and a geothermal site along the way. Most of the major tourist attractions are located on the East side, so take as much time as you can between Reykjavik and Höfn.

After Höfn, the scenery remains beautiful, but there aren’t many activities or notable stops until you reach Egilsstaðir. If you have less than 7 days in Iceland, it’s best to focus on exploring the South and East sides—and skip the rest.

A small town in the far East we stopped for a pit stop :)

While driving, you cannot stop wherever you like on the road. Both sides are often too narrow to make a safe stop, so you’re only allowed to pull over at designated stopping areas—which can be spaced up to an hour apart. Plan your washroom breaks accordingly.

POLICE

We saw police twice while driving, and they appeared so suddenly that we didn’t even know where they came from :) The speed limit is 90 km/h, so driving over 100 km/h is not recommended—you may get stopped. While the speeding ticket itself might not be very expensive, the rental company will charge an administration fee (around $50) if they have to handle the payment after you leave Iceland. That could end up costing more than expected, and honestly, it’s not worth the risk. Drive slowly and enjoy the serene landscapes that few places in the world can offer.

SKY LAGOON

The cost is around $86 CAD, and tickets can be purchased on site. We were given a hand ring when buying the ticket, which contains a chip to unlock the storage locker in the changing room. That same ring is linked to your credit card, so any drinks you order at the small bar while in the lagoon are recorded and charged when you check out. The showers are private and come stocked with body wash and conditioner. Just bring your slippers. You can grab a clean towel when leaving the lagoon.

Note: If you forget to bring a waterproof phone pouch, they sell one for 2,300 ISK. Alternatively, you can get a similar one for around $10 on Amazon.

ATTRACTIONS

The only fee you need to pay is for parking (1,000 ISK). It gets very busy between 9AM and 8PM, so if you're hoping to take good photos, try arriving outside those hours.

Many popular “Instagram hot spots” are currently closed off. Trails have been fenced to protect the fragile ecosystem, so if you're aiming for a specific photo you saw years ago, think twice—it may no longer be accessible.

Visitors generally did a great job following posted signs on the ground, from what I observed. That said, I did occasionally see drones flying illegally. Sad

Skógafoss - we saw a rainbow right at the foot of the waterfall <3