Our family of 5 (20,18,12) is excited to be spending a week in Iceland after Christmas. It's a bucket-list item for us. We are from MN, so we understand real winter, cold, snow and tricky driving conditions. I'd love to get some advice regarding housing locations and rental car. We are looking for an airbnb/similar option. Here are the options I'm considering:
Option 1. Rent a 4WD and stay outside of Reykjavik. The advantage is cheaper housing, freedom to explore the ring road/Golden Circle (weather permitting) and appreciation of rural Iceland. I'm assuming the best thing to do would be to stay in the same place the whole week. There may be some days that we are house-bound due to weather. I've read many times to "leave the driving to the experts"---does my rural MN upbringing change this recommendation? Does this option make sense?
Option 2. Stay in Reykjavik and skip the rental car. We'd have to go on organized tours to see sites outside of the city. The advantage is we'd get to experience the city at all times of the day and can walk to urban sites. This option is likely the most expensive.
Option 3. Hybrid option. Stay in Reykjavik 3 nights. Rent a car and stay in country area for rest of the nights. Best of both worlds---but plan could get messed up if weather doesn't cooperate on day we need to go to country house.
Let me know your thoughts and advice! Thank you in advance for your help with planning!