Known as the Land of Fire and Ice, Iceland has exploded in popularity in recent years — waterfalls, glaciers, black sand beaches, wild horses and bubbling geothermal pools all packed into one small island. But with that popularity often comes the big question: can you actually experience Iceland properly without spending a small fortune?
The good news? Yes — and you absolutely don’t need an organised tour to do it.
In this guide, I’ll walk you through how to DIY Iceland, from planning and budgeting to getting around and deciding what’s actually worth your time. We planned this trip ourselves and found that with a bit of preparation, Iceland can be surprisingly easy, flexible and far more affordable than many people expect — even when travelling as a family.
As with any DIY trip, the key is planning. Put the work in up front and you’ll be rewarded with a relaxed, go‑at‑your‑own‑pace adventure that you’ll be talking about for years to come.
One thing you’ll see everywhere online are Golden Circle bus tours — but honestly, if you’re comfortable driving, you don’t need them. Most of Iceland’s iconic sights are completely free to visit, and hiring a car gives you total freedom while saving a significant amount of money. We also found Iceland to be a great choice for driving on the other side of the road for the first time, thanks to quiet roads and clear signage.
This guide will do a lot of the hard work for you — and if you’re short on time, I’ve also included a realistic 4‑day self‑drive itinerary, which I link to separately in more detail.
So, if you’re wondering whether DIY Iceland is right for you, let’s get started.
Step 1: Book Your Flights
We flew with Icelandair and were really happy with them. They were very family‑friendly, with a free kids’ snack box, complimentary movies and soft drinks included.
Flight prices to Iceland can vary a lot depending on the season and how far in advance you book, but it’s definitely worth keeping an eye on their website as they regularly have good deals. I also recommend signing up for ‘flight alerts’ on Skyscanner. This will tell you if the flights on the date you want are going up or down.
I usually search my flights on Skyscanner and once I see which ones are the best deal, I’ll book direct through the airline company.
Step 2: Car Hire (This is key for DIY Iceland)
For our trip, we hired a 4×4 from Northbound Icerental and chose a Suzuki Grand Vitara (2011 model). We picked the car up at Reykjavík airport and dropped it back there at the end of the trip.
- Cost: 28,280 ISK (approx. €400)
- Duration: 3 nights / 4 days
A few important car hire tips:
- Don’t automatically go for a brand‑new car. We felt much more relaxed with a slightly older vehicle and didn’t worry too much about gravel roads or small dents.
- Take photos of every existing scratch and dent before driving away.
- We added:
- Collision Damage Waiver
- Third‑Party Liability Insurance
- Super Collision Damage Waiver
- You’ll also see Sand and Ash insurance offered. We chose not to add it, but it’s very much a personal decision, so read up and decide what’s best for you.
Do you really need a 4×4?
In our opinion: yes.
You’ll see cheaper cars advertised (especially the Dacia Duster), but Iceland’s winds, weather and road conditions can be unpredictable. A solid 4×4 feels much safer and more stable, particularly outside summer months.
Is driving in Iceland scary?
Honestly? No.
We read so many horror stories online beforehand that we were genuinely nervous — but driving in Iceland turned out to be absolutely fine. Traffic is light, roads are well marked, and signage is clear.
A few practical tips:
- Drive slowly and don’t rush
- Check sunrise and sunset times if you want to avoid driving in the dark
- Be very careful opening car doors — strong winds near the coast can catch them (I’ve read real stories of doors being blown off 😮)
Overall, Iceland was actually the perfect place for us to drive on the other side of the road for the first time.
Step 3: Accommodation
One of my biggest tips when planning Iceland is to stay outside Reykjavík, ideally somewhere in the Golden Circle area.
You’ll spend most of your days exploring waterfalls, national parks and scenic routes, so there’s very little point driving back into the city every evening.
Where we stayed
We stayed at Minniborgir Cottages, and they were fantastic.
- Self‑catering cottages
- Option to book a private hot tub or use shared ones
- On‑site reception with a bar
- Breakfast available
Each evening, we sat in the hot tubs watching the sky and hoping to spot the Northern Lights. Unfortunately, they didn’t appear while we were there — but the skies were crystal clear, and stargazing was still amazing.
👉 Tip: There are plenty of apps you can download that give Northern Lights forecasts each evening.
Our final night
For our last night, we chose to stay at an airport hotel so we could:
- Return the car early
- Explore Reykjavík on our final day
- Get a good night’s sleep before our flight
We stayed at Hotel Keflavík, which was a great choice:
- Very close to the airport
- Shuttle bus available
- A lovely, affordable restaurant next door
- A kids’ play area, which was perfect for Lily
Best Time of Year to Go to Iceland
The best time to visit Iceland really depends on what you want from your trip.
Iceland is stunning year‑round, but if seeing the Northern Lights is high on your list, you’ll need to travel between late September and early April.
We visited in November, and it was perfect for what we wanted:
- Hiking
- Nature
- Spending as much time outdoors as possible
There was no snow for most of our trip (apart from the final day), which actually suited us really well. The roads were easier to navigate and we got to see the landscapes clearly without heavy winter conditions
Now that you know how to plan a DIY trip to Iceland, you can read our full 4‑day self‑drive itinerary here → The Ultimate 4 Day Iceland Self-Drive Holiday