When you're exploring Iceland’s incredible landscapes, peace of mind matters. That’s why RV Iceland offers comprehensive insurance options designed to keep you covered on the road. From basic coverage to full protection packages, we’re here to make insurance simple, transparent, and stress-free.
Our Insurance Policy
At RV Iceland, we believe in clear terms, fair pricing, and complete transparency. Our insurance options are built to help you travel safely and confidently across Iceland’s diverse terrain, whether you're driving the Ring Road or venturing off the beaten path. We offer flexible insurance plans with no hidden fees, and we’re always happy to explain what’s included, what’s optional, and what you truly need based on your itinerary.
Included in All Rentals
Every RV Iceland rental comes with a standard insurance package so you're not driving off the lot unprotected. These basic protections are included in the rental price:
Collision Damage Waiver (CDW)
Covers damage to the rental vehicle in the event of a collision. A deductible (or “excess”) applies, but this can be reduced or eliminated with upgraded coverage options.
Theft Protection (TP)
Covers theft of the vehicle. Please note that personal belongings are not covered under this policy.
Third Party Liability (TPL)
Covers injury or damage to other people, vehicles, or property if you are at fault in an accident. This is a mandatory requirement in Iceland.
Free 24/7 Road Side Assistance
We’ve got your back around the clock. From flat tires to engine issues, our team is just a call away at anytime, anywhere in Iceland.
Our Insurance Options
We offer several optional insurance upgrades for added protection during your trip. These are designed specifically for Iceland’s unique driving conditions, such as gravel roads, volcanic ash, and high winds.
| Silver | Premium | Platinum | |
| Insurance Deductible | 188.480 ISK | 141.360 ISK | 0 ISK |
| Collision Damage Waiver | Yes | Yes | Yes |
| No Security Deposit | Yes | Yes | Yes |
| Theft Protection | Yes | Yes | Yes |
| Super Collision Damage Waiver | Yes | Yes | Yes |
| Gravel Protection | Yes | Yes | Yes |
| Sand & Ash Protection | No | Yes | Yes |
| Debit Card | No | No | Yes |
| Wi-Fi | No | No | Yes |
Understanding Car Rental Insurance in Iceland
Iceland’s landscapes are stunning, but its driving conditions can be challenging. Gravel roads, sudden weather changes, and volcanic terrain can all pose risks. That’s why choosing the right insurance is essential. Here’s a breakdown of the most important optional coverages you might consider:
Super Collision Damage Waiver (SCDW)
Reduces your financial liability in the event of an accident. This is especially helpful on narrow rural roads where accidents are more common. Our SCDW significantly lowers the deductible from 450.000 to as low as 200.000, depending on your chosen plan.
Gravel Protection (GP)
Gravel chips are one of the most common causes of vehicle damage in Iceland, especially to windshields and paint. GP covers damages caused by loose gravel, which is frequent even on major roads.
Sand and Ash Protection (SAAP)
Strong winds can carry volcanic ash and sand that can severely damage the paint, windows, and body of the vehicle. SAAP protects you from the high costs of this type of damage, which is not covered under standard insurance.
Damages Not Covered By Any Insurance
Even with full coverage, certain types of damage are never covered, especially when due to negligence or misuse:
- Damages caused by driving off-road or on unauthorized roads
- Damages due to driving under the influence
- Damages caused by animals
- Damages to the chassis of vehicle and undercarriage of the vehicle
- Damages to the tires/wheels
- Damages due to water
- Damages to the interior of the car
- Damages caused by smoking inside the car
- Damages caused by wind gusts
Charges Not Covered By Any Insurance
Some costs are the renter's responsibility, even with insurance:
- Charges or other costs for required assistance because of a breakdown or damage that is the driver's responsibility. Towing costs and other expenses
- Charges for using the wrong type of fuel
- Charges for losing extra equipment (e.g. car key or a GPS)
- Service charges and handling fees for the Renter's use of the car (e.g. fines for speeding, parking fines and tunnel fees)
- General charges for towing, resulting from the Renter's misuse or mistakes, such as getting stuck in snow, sand, water, or river.
Iceland Car Rental Insurance FAQs:
Still have questions about renting a vehicle in Iceland? We’ve answered some of the most common questions below to help you navigate the process:
What insurance is included with my RV Iceland rental?
Every rental includes Collision Damage Waiver (CDW), Theft Protection (TP), Third Party Liability (TPL), and 24/7 roadside assistance.
Should I get extra car rental insurance in Iceland?
Yes, we recommend it for most travelers. While basic insurance offers protection, optional coverages like SCDW, GP, and SAAP can significantly reduce your financial liability.
What does “excess liability” mean?
This is the maximum amount you’d pay out of pocket if the vehicle is damaged or stolen. With our Platinum Package, this excess is reduced to €0.
Do I need Gravel Protection insurance in Iceland?
Absolutely. Gravel damage is very common in Iceland, even on paved roads. GP can save you hundreds in repair costs.
Is it possible to upgrade my insurance coverage at the time of pickup?
Yes, you can upgrade your insurance at our rental office before you hit the road.
Can I decline RV Iceland’s insurance if my credit card offers insurance?
Yes, but we recommend confirming the terms with your credit card provider. Most don’t cover gravel, ash, or sand damage, which are common in Iceland.