Coverage Options
Car Rental Insurance in Iceland
All rentals include basic CDW — upgrade for extra peace of mind on Iceland's roads
Basic
Included in all rentals
Included free
- ✓ Collision Damage Waiver (CDW)
- ✓ Theft Protection
- ✓ Third Party Liability
- ✓ Self risk: 450,000 ISK
Medium
For peace of mind
≈ €28 / $30 per day
- ✓ Collision Damage Waiver (CDW)
- ✓ Theft Protection
- ✓ Third Party Liability
- ✓ Self risk: 120,000 ISK
Gravel Protection
For the rustic roads
≈ €28 / $30 per day
- ✓ Collision Damage Waiver (CDW)
- ✓ Theft Protection
- ✓ Gravel Protection
- ✓ Third Party Liability
- ✓ Self risk: 0 ISK gravel & windshield damage
Full Insurance
For a worry-free holiday
≈ €41 / $44 per day
- ✓ Collision Damage Waiver (CDW)
- ✓ Theft Protection
- ✓ Gravel Protection
- ✓ Sand & Ash Protection
- ✓ Third Party Liability
- ✓ Self risk: 0 ISK all damage types covered
What does each coverage mean?
Collision Damage Waiver (CDW)
The standard car rental insurance in Iceland — CDW covers collision damages to a third party vehicle and injuries to the driver and passengers. Also covers damages to your rental vehicle that exceed the self risk amount of your selected insurance (450,000 / 120,000 / 0 ISK).
Theft Protection (TP)
Covers theft of the vehicle. Included in all coverages. Note: does not cover theft of items inside the car. Iceland is one of the safest countries in the world.
Gravel Protection (GP)
One of the most popular car rental insurance upgrades in Iceland — gravel protection covers damage to the body of the car when gravel or rocks are thrown at the vehicle, including windshield damage. Essential if you plan on driving on gravel roads in Iceland.
Self Risk
With Full Insurance your deductible is 0 ISK for all damage types — enjoy traveling Iceland with complete peace of mind. With Gravel Protection, the 0 ISK self risk applies to gravel and windshield damage.
Self Risk on Excluded Damages
The self risk (excess) applies only to damages covered under your insurance plan. For the excluded categories below, you are liable for the full cost of repairs regardless of which plan you purchased — even with Full Insurance.
🛑 Damages Not Covered by Any Insurance Plan
- Intentional damage or damage due to gross negligence
- Damage caused while driving under the influence of alcohol, drugs, or controlled substances
- Damage caused by a non-registered driver
- Damage caused during racing or test driving
- Damage caused by war, revolution, civil unrest, or riots
- Damage caused by animals
- Burns to seats, carpets, or mats
- Damage to wheels, tyres, suspension, batteries, glass (excluding windows), or radios
- Undercarriage damage
- Damage from driving where prohibited (off-road, beaches, closed roads)
- Water damage to the vehicle, engine, electrical system, or accessories
- Sand, ash, or pumice damage — covered under Full Insurance
- Damage caused by wind blowing up the door
- Damage to the roof or hood caused by standing, sitting, or climbing on the vehicle
- Damage from adding the wrong fuel, oil, coolant, AdBlue, or other liquids
- Damage from running the vehicle with insufficient oil, coolant, or fuel