What Car Insurance do I Need in Iceland?
If you’ve got your heart set on renting a car in Iceland, a key part of the booking process is choosing the right insurance package. The different acronyms can often be confusing, especially if you have not hired a car previously. Here at GO Iceland, we want the process of hiring one of our quality vehicles to be as simple as possible.
Risks When Driving in Iceland
With such a small and safe country, you may be wondering what the dangers are when driving around Iceland. The risks of the road, often caused by the weather conditions of this rugged island, are not to be underestimated. While the open road can be a joy, it’s best to be aware of what the threats to your rental car are before setting out. These include:
- Gravel on roads
- Ice and snow on roads
- Animals on roads
- Sand and ash storms
- Other drivers
What Insurance do I Need in Iceland?
The advice from most rental car companies is that Collision Damage Waiver (CDW) should be the minimum insurance you take out while driving around Iceland. Third-party Coverage is also important to cover yourself against other drivers, which is included within GO Iceland CDW.
Types of Car Insurance in Iceland
If you’re unsure of the different additional plans and additional coverage available, take a look at our handy summaries.
Collision Damage Waiver (CDW)
With a Collision Damage Waiver, you are covered for certain damages to the body of the rental vehicle with optional charges of up to 350.000 ISK. At GO Iceland we are happy to include this coverage within the basic price of your hire car.
This will cover a lot of the damage that might occur accidentally on your travels. It’s important to note that if you are in breach of your contract or driving illegally, such as under the influence of alcohol, your CDW is invalid should any damage occur. Other things not covered by CDW include negligent driving, damage to tires, wind-blown doors, damage to the underside of the car, sand and ash damages, and water damage, all of which are examined during your damage assessment upon returning your car.
The lessee is fully responsible for any and all damage to the car with the self-risk 350.000 ISK.
Super Collision Damage Waiver (SCDW)
We also offer an advanced version of CDW which leaves you less financially liable for any costs that are incurred through damage to your vehicle. All other factors are the same as CDW.
SCDW will lower the lessee’s self-risk for the vehicle body from 350.000 ISK down to 50.000 ISK.
Theft Protection
Rates of vehicle theft in Iceland are incredibly low. However, if you would like complete peace of mind, Theft Protection is available to add to your basic insurance plan with GO Iceland. If theft is found to be due to gross negligence of the lessee or intoxication, then this coverage may be void.
Deposit for self-risk of 350.000/50.000 ISK is still required, depending on other selected insurance.
Gravel Protection (GP)
Loose gravel is common on all Icelandic roads, not just the F-Roads within the remote Highlands. Chips to the car body are common due to these loose materials churned up by studded tires on vehicles all around the county. This covers damage to all parts of the outside of the vehicle caused by gravel from your own or other peoples’ tires.
Deposit for self-risk of 350.000/50.000 ISK is still required, depending on other selected insurance.
Sand and Ash Protection (SAAP)
As well as gravel, sand and ash can also pose significant risks to the outside of your rental vehicle. It is often carried in the wind or kicked up by tires on softer terrain. The South Coast is particularly known for this which is a common area for road trips for visitors to Iceland. On the open road, this can be an incredibly important coverage to add to your plan.
The lessee can purchase SAAP to lower self-risk from full liability down to 90.000 ISK.
Full details of all our coverage are available upon starting your rental car quote. Browse our range to find the right car for your trip – we can’t wait to welcome you to Iceland!