If you’re on a budget then you might think it’s not worth it to rent a car in Iceland to get around. You’d be mistaken though, because it’s actually much cheaper to get around in a rental car than taking the bus, if you’re traveling in a group of two or more. See this article for tips on driving in Iceland. And with the added bonus of being totally in control of your own schedule it’s no wonder that self drive tours are becoming increasingly more popular.
If you don’t feel like driving yourself all the time, then you might want to book some daytours where you can enjoy looking out of the window at the nature passing by, instead of continuously looking at the road. For a cheap option you could book Iceland’s most popular tour, the Golden Circle tour, in the South of Iceland. It’s so popular that it runs every day and you can choose between a half day tour or a full day tour, in a bus, Super Jeep, horseback riding or on a motorcycle. You can also combine it with a number of other activities, such as a trip to the Blue Lagoon, where you can bathe in milky blue warm water that does wonders for your skin.
Of course, you won’t be able to drive the entire time you’ll be in Iceland, as Iceland is best explored on foot. Such is the case if you go on a glacier tour or on an blue ice cave tour. Tours like that almost always offer a pick-up service in Reykjavík - but by driving to the starting location yourself you can get a cheaper price – and have the flexibility to spend the night nearby and continue on further into the countryside the following day. The best, and cheapest, option for an accommodation is to camp (summertime only). Or you might want to rent a camper van. To make your trip even cheaper and to be more environmentally friendly, you can share your ride with others through Iceland’s carpooling website.