Costs: Transport

Iceland is one of the world’s most sparsely populated countries. Almost the whole interior of the island is uninhabited and inaccessible even with a four-wheel-drive vehicle. There is only one major road, known as the ring road, which connects the inhabited parts of the country, which are generally close to the coast. It is 1,332 km long, mostly with one lane in each direction. Outside of urban areas the speed limit is 90 km/h on paved roads. However, google drive time estimates often can not be trusted and are generally over optimistic. You need to factor in a number of conditions. Many stretches of the road are exposed to the harsh conditions and not always in perfect condition, we experienced a good number of road works, which were simply filling in potholes. There are many single lane bridges on the ring road, which have to be approached with caution. It's not unusual to see sheep on or alongside the road. There are more sheep in Iceland than people, often wandering freely. And remember that when the weather turns bad, visibility can be seriously impacted and you need to slow way down.

Taking less than 10 days to get all the way around, is going to be a rush. Factoring in some sightseeing and a few detours, you may be averaging as much as 200km/day.

We can estimate that for each 100km, you will use 5 liters of fuel at a cost of around 8€. So a journey of around 1,500km will be costing around 120€. For a more detailed estimate you will need to factor in the fuel consumption for your vehicle; can go here

For car hire, the safest and most comfortable choice is to go for a four-wheel drive car, though if you are sticking to the ring road in the summer months, you really do not need it. Estimate around 50€ per day. The next question concerns the extra insurance which means that you do not need to suffer the massive excess limit. Bear in mind that the chances of making it back without a scratch are less than in other countries. You are in a wilderness, the roads are not great and there are plenty of natural hazards as well as wild animals to upset your plans. We recommend taking some sort of gold packages which encompasses a number of what you may think of as unlikely events, but which in Iceland are not. In our case, we parked our car in a remote region and went for a hike. We maybe made the mistake of leaving some apples in the boot. We came back to find the car surrounded by wild horses, who had totally trashed the paintwork, leaving us with a bill for 4,000€. Be aware, that some circumstances are simply not covered at all, such as stranding your car in a river crossing, which happen often each year, to the dismay of the park rangers, when people do not consult them. If you are set on doing some off major road adventure, consider getting a four-wheel-drive with a higher clearest from the road, it could pay you back well.

To get the best deals, it is well worth considering a local company such as Reykjavik Cars or the unfortunately named sadcars

A way to reduce the extra car insurance charge is to use a company like icarhireinsurance.com

What about other options? Hitchhiking generally works well in Iceland and it is known as one of the safest places in the world. The road only goes one way, so that simplifies the ask. Travelling solo will work best.

Cycling? Our hearts really felt for the poor cyclists we crossed. You are really exposed and in the wind and rain, it really does not look like fun. The roads are narrow and lorries go past at high speed. Each time a lorry goes past, you need to get off your bike and get out of the way. I would not recommend it.

What about the bus? The buses are really expensive and not frequent. In many countries buses are a great option, when you are on a budget. In Iceland, not so much.

Iceland Trip Cost: Food

We did not find any vegan fine dining in Iceland. The restaurants in Reykavik were homely, cute affairs, with some quirky local art thrown in. The staff were all really lovely and enthusiastic and it was great to meet the locals, who all look so cool. The prices are of course, mega expensive. Around the country there are a few vegetarian restaurants, all making a great effort and we felt that we had to support and encourage them. To keep costs reasonable you need to be cooking as you go. Stock up in Reykjavik, on essentials, where the prices are around 10-15% cheaper than the small shops around the country. Eating well, which is what we always do, is going to cost around 30€ a day. You might want to throw some of your favourite energy bars into your suitcase before you set off. Another great idea is tea and coffee along with a thermos flask. Bring a water bottle, so the water at least if free. Beers are another story and best avoided when on a budget. One good tip, if you do enjoy a tipple, is to pick up some duty free; there is no local tax to pay. You will be saving around 30%. It makes a great gift if you know any Icelanders.

Iceland Trip Cost: Activities

All the major nature activities are free. There are a few small museums dotted around, that are not going to break the bank. Our favourite was at Húsavík, about whales and martime life, which nicely filled some time while we waited for the arrival of our whale watching boat. The strangest was the Witch and sorcery museum, which kind of set's a tone for entering into the Westfjords region. In the south a red brick road will guide you around and lead to the gift shop at the end. The car park is massive with lines of coaches bringing people in from Reykjavik on a day tour. In the north, there is just wilderness. There may be a tiny car park, with a half hidden panel pointing you in the right direction. Seeing the occasional other person, let's you know that you are not lost.

While we were in Reyjavik we were lucky to fall upon a music festival with a big stage and several groups dotted around the city. Everything was free. The cathedral is amazing, and you might feel like leaving a well deserved donation.