Insurance in Iceland
All our insurance packages come with Collision Damage Waiver (CDW) equivalent to the amount stipulated by Icelandic law at any given time. This also applies to the amount of individual driver liability - now it is 320.000 ISK. We strongly recommend more coverage and you might want to reduce your liability. Take into consideration that Iceland is prone to extreme weather conditions which can cause damage to your hire car. Without insurance you would have to pay for this damage out of your own pocket and be left with a huge cost. We truly believe it is in the best interest for our customers to invest wisely for insurance that are right for their circumstances.
Our Insurance Packages
We offer great insurance deals with more coverage, savings and convenience with our combined packages.
Information About Insurance
COLLISION DAMAGE WAIVER DEDUCTIBLE 320.000 ISKIncluded
SUPER COLLISION DAMAGE WAIVER DEDUCTIBLE 75.000 ISKPrice per day for small / medium car: 1.395 ISKPrice per day for large / SUV: 2.150 ISK
Gravel Protection ALL CARSPrice per day: 1.750 ISK
TIRE INSURANCES ALL CARSPrice per day: 995 ISK
SANDSTORM PROTECTION DEDUCTIBLE 75.000 ISKPrice per day for small / medium car: 1.895 ISKPrice per day for large / SUV: 2.595 ISK
Theft protection ALL CARSPrice per day: 990 ISK
CDW Is Included, But What Is It?
Nearly all car rental companies in Iceland offer CDW in the price of your insurance, but this could still cost you if you are involved in an accident. Collision Damage Waiver is a liability waiver, which means the car rental company will not charge you more than a certain amount in the event of damage. Iceland Car Rental offers Super Collision Damage Waiver, which will only make you liable for 75.000 ISK (541 Eur) in the event of any damage.
Is Gravel Insurance Necessary?
Although this isn’t a necessary charge, it is a good addition to have with your insurance in Iceland. Your car can receive damage due to gravel being thrown by the vehicle in front of you, especially when travelling in some of the more remote locations of the country. Although this insurance usually costs around $5 a day, Iceland Car Rental include this protection as standard on all our insurance policies. This means you are protected from Gravel being thrown on the front of your vehicle.
Is It Worth Taking Premium Insurance?
Although Iceland Car Rental already offer a great deal of benefits with our standard insurance package, it is worth considering the premium insurance to give yourself peace of mind. Some of the benefits of our Platinum insurance include;
- Zero Liability – SCDW is set at 0 ISK. Please not that there are exceptions to what is covered, see examples of this below.
- Sandstorm Protection – should you encounter sandstorms during your visit, you will not be charged for any damage
- Theft Protection – this covers the total cost of the car in the event that it is stolen, so you won’t be liable to pay any damages
Examples of damages that are not included in any insurance:
Damages caused to the underside and the top of the vehicle. This also applies if the vehicle rolls over.
Damages caused when driving off road or through waters and rivers.
Damages caused by the wind blowing up the door. Review the full list in our Terms.