Know all the Insurance Options in Iceland

Renting a car is a great idea to travel across Iceland, but being covered is a great idea too. Here are all the insurance options in Iceland for a worry-free trip.

phone showing the best insurance options in Iceland for a driver

blog authorBy Samuel Hogarth shield verificationVerified Expert

    OK, you made the decision to rent a car in Iceland and go on a self-drive trip so you can enjoy our beautiful country in total freedom. So what now? You need to be thinking about how much room you need and what type of places you are going to be going to. Iceland is one of those countries that is gathering attention as a must on many people’s bucket list. The incredible landscapes and rugged terrain offer an adventure for anyone that visit’s this country's shores, and having the freedom to go where you want when you want is definitely a big plus.

    You may not be thinking about it, but don’t forget the car insurance! Car insurance I hear you say! You may be one of those travelers that just wing it and goes the cheapest route possible when it comes to car insurance for a rental, but in Iceland that can end up costing you dearly.

    While the country is a beauty to behold, it comes with its own unique set of challenges. Let’s start with some of the options you most likely are not familiar with.

    Sand and Ash Protection in Iceland (SAAP)

    Iceland can get very windy at times and because of the large amount of geothermal activity in Iceland, this means that volcanic ash and fine Basalt grains of black sand can whistle by and do damage to your car. Think of it like volcanic sandpaper going to work on the paint and glass of the car.

    If you are going to be in Iceland for more than a quick conference in Reykjavik, this special form of insurance can save you a bundle. When you are ready to book your vehicle, make sure to get this as an option to protect your pocketbook from a nasty surprise when you return the rental car.

    Gravel Protection insurance for the Icelandic roads (GP)

    You may be coming from a country or a place that only has nicely paved roads. In Iceland, if you decide to head out of the capital city of Reykjavik and drive the world-famous Ring Road, you are sure to be doing some of that adventure on gravel roads.

    What you may not know is that it is very easy to break a headlight or crack a windshield when the vehicle in front of you spits up a gravel stone. Many a traveler has had the shock of returning a car and getting a surprise exit gift of a large invoice to fix or replace a windshield. You may not even drive on a gravel road and still have this happen to you as gravel tends to travel a bit. It gets picked up by the tires on other vehicles, stuck between the treads, and has a way of ejecting itself at the most inopportune time.

    Jeep driving through the highlands with the best insurance option in Iceland added

    Picture yourself driving down the nicely paved streets of Reykjavik. You turn a corner and are behind another vehicle that has just returned from a 2-week journey around the country on the Ring Road. The traffic light ahead starts to change and they accelerate to make it through the intersection. This little extra zip causes that nasty piece of gravel that has been stuck in their tire tread for the last 200kms to break free. Now shooting at high speed, smacks right into your windshield.

    You’ve got a little crack in the windshield now, but watch in horror as you continue to drive and each little bump seems to help it grow into a long crack spreading itself across your view.

    Theft Protection insurance (TP)

    No doubt about it, Iceland is one of the safest countries in the world. But the number of tourists visiting from around the world continues to increase. You just never know what can happen, so having theft protection is a smart move.

    Collision Damage Waiver (CDW)

    No doubt about it, accidents happen. Summer, winter, spring, or fall, the world can be an unpredictable place and the smart traveler plans ahead by lowering the risk to an acceptable level.

    Getting Collision Damage insurance is a very smart option and you will have a couple of options. Standard (CDW) and Super (SCDW) with super lowering the deductibles to a much smaller number for your protection. You will want to look at all the options at the time you are booking your car rental to make sure you have enough coverage.

    The smart traveler always gets extra coverage, but especially if you're planning to drive in Iceland in winter, you really want to go for this to protect yourself from an unforeseen expense if you should happen to have to be involved in an accident.

    So What's Your Best Insurance Choice in Iceland?

    If you are looking for a worry-free solution, then you want a package that covers you no matter what happens.

    This is where the packages come in. For one price you can cover all the different threats to your Iceland travels.

    We offer all-inclusive packages. The real difference between the two options is the deductibles.

    The Premium Insurance Package includes al of the above protections. Just visit our FAQ page to see what the current deductibles are. We highly recommend hiring this option so you will be well covered.

    Car damage being picture for the record - Best insurance options in Iceland

    Zero liability insurance in Iceland

    The PLATINUM Insurance Package again offers all of the above protections but will reduce your deductible to ZERO for any damage covered under standard insurance with Platinum Insurance.This is the absolute best option if you are looking for full protection and insurance during your travels in Iceland.

    So why not travel worry-free? When booking your car rental in Reykjavik, check the available options and select the best choice for your budget.

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