Car Rental Insurance Iceland

Iceland is an incredible country to visit, and when you hire a rental car, you can explore the magnificent lands however you wish. However, the country’s unique geography and unpredictable weather can make the roads difficult to drive, so insurance is essential. Discover how rental car insurance works in Iceland.

Car Insurance Company in Iceland

At Iceland Car Rental, all of our rental vehicles come with Collision Damage Waiver (CDW), which is 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 420.000 ISK. We strongly recommend more coverage to reduce your liability. Take into consideration that Iceland is prone to extreme weather conditions which can cause damage to your hire car. Without rental car insurance, you would have to pay for this damage out of your own money, which can be very costly. It is in the best interest of our customers to invest wisely in an insurance package that is right for your circumstances.

If you are insured through a third party insurance provider, such as a credit card or insurance company, you will first pay Iceland Car Rental for any damage. You will then get reimbursed through your insurance provider. Adding the insurance package can lower your deductible down to  0 ISK.

Our Insurance Packages

At Iceland Car Rental, we offer a range of great insurance deals for your trip to Iceland. Our insurance deals come with more coverage, savings and convenience with our combined packages, which are highlighted below:

Silver discount package

    220.000 ISK
  • Super Collision Damage Waiver(SCDW)
  • Gravel Protection (GP)

Platinumdiscount package

    0.0 ISK
  • Super Collision Damage Waiver (SCDW)
  • Gravel Protection (GP)
  • Tire Protection (TP)
  • Windshield Protection (WP)
  • Theft Protection (THP)
  • Sandstorm Protection (SAAP)

You can also add individual insurance

Information about insurance

You are welcome to add insurance when you pick up the car - the price is the same as online. 

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 of what is not covered in our Terms.

You can always add insurance when you pick up the car for the same price as online.