Insurance Package Overview - Iceland to Go

Understanding Your Insurance in Iceland

Driving in Iceland is unlike driving anywhere else in the world. The stunning landscapes come with unique driving conditions: sudden and severe wind gusts, unpaved gravel roads, volcanic ash, and rapidly changing weather.

Because vehicle parts and repair labor in Iceland are exceptionally expensive, having a thorough understanding of your insurance coverage is essential.

We believe in 100% transparency, which is why we have outlined exactly how our protection packages work, what they cover, and what your financial responsibilities are.

1. BASIC Protection Package Included in your rental

Our BASIC package provides the mandatory legal coverage and essential protections to get you on the road legally and safely. It is included at no extra cost with every vehicle.

• Daily Cost: €0.00
  (Included in the rental price)

• Maximum Deductible (Self-Risk): Up to €3,500
  This means that in the event of an accident or damage, you are financially responsible for repair costs up to the first €3,500. Any amount above this is covered by the insurance company.

• Security Deposit:
  A credit card hold is strictly required at pickup:

  • €1,000 for passenger cars

  • €1,700 for campers

  The funds are blocked, not charged, and released upon the safe return of the undamaged vehicle.

What is Included

• TPL (Third-Party Liability)
  Covers bodily injury and property damage you may cause to others.

• TP (Theft Protection)
  Protects you against the total loss of the vehicle due to theft.

• GP (Gravel Protection)
  Covers damage to the vehicle’s bodywork caused by loose stones and gravel, which is very common on Route 1 and rural roads.

• CDW (Collision Damage Waiver)
  Basic collision coverage that limits your liability to €3,500.

  
  

What is NOT Included

• Damage to windshields

• Damage to windows

• Tire damage

• Undercarriage damage

• Damage caused by sand or ash storms

• Weather-related damage
  (for example: doors blown open by strong wind)

  
  

2. GOLD Protection Package

€29.00 / day

The GOLD package is designed for travelers who want to significantly reduce their financial risk and protect themselves against the most common types of damage in Iceland, especially damaged tires and cracked windshields.

• Daily Cost: €29.00 per day

• Maximum Deductible (Self-Risk): €1,500
  In the event of an accident, your maximum out-of-pocket expense is capped at €1,500.

• Security Deposit: €0
  No deposit is required and no funds are blocked on your credit card.

What is Included

• Everything included in the BASIC package:

  • TPL

  • TP

  • GP

• SCDW (Super Collision Damage Waiver)
  Upgrades the basic CDW and lowers your liability cap.

• Window and Tire Protection
  Fully covers the repair or replacement of:

  • cracked or shattered windows

  • damaged windshields

  • punctured or damaged tires

Who is this for?

The smart choice for the average traveler who wants to:

• avoid high credit card holds

• reduce financial risk

• stay protected against the most common road hazards in Iceland

  
  

3. PLATINUM Full Protection Package

€38.00 / day

The PLATINUM package offers complete peace of mind. It is a comprehensive zero-liability policy that eliminates your financial responsibility for covered damages.

• Daily Cost: €38.00 per day

• Maximum Deductible (Self-Risk): €0
  (Zero Liability)

  If the vehicle is damaged, scratched, or involved in a collision under normal driving conditions, you pay nothing.

• Security Deposit: €0
  No deposit required.

What is Included

• Everything included in the GOLD package:

  • TPL

  • TP

  • GP

  • CDW

  • SCDW

  • Window Protection

  • Tire Protection

• SADW (Sand and Ash Damage Waiver)
  Complete coverage against severe paint and glass damage caused by high winds blowing volcanic sand and ash.
  Repairs for this type of damage can easily exceed €10,000 without insurance.

• Undercarriage Protection
  Covers damage to the bottom of the vehicle.

• Water and Strong Wind Protection
  Covers specific weather-related damages, such as vehicle doors being overextended and damaged by sudden, violent wind gusts.

Free Extras

• Free In-Car Wi-Fi

Who is this for?

For travelers who want a 100% stress-free holiday.

You return the keys at the end of your trip with zero worries about unexpected repair invoices.