Iceland Car Rental Insurances

We offer a wide range of Iceland car rental insurance products for people who want to be on the safe side.

We want all our customers to be able to travel around Iceland hassle-free. It is why we have some great insurance packages to offer. Insurance can be hard to understand, and we want to simplify it. Below you can see our insurances, what is included and what is not so that nothing will be a surprise.

We know that accidents can never be predicted, so it is essential to have the correct coverage to avoid unforeseen costs.

All our car rental vehicles come with Third Party Liability, Collision Damage Waiver (CDW), and Theft Protection(TP). CDW covers the bodywork of the car. Incase case of collision, the body of the vehicle usually gets damaged. The self-risk (excess) for CDW is 350.000 ISK. That means that in case of dents and scratches to the car, the maximum amount to pay is 350.000 ISK. If it is under the excess, we will only charge for the amount that will cost to repair the vehicle.

Some damages are not covered by CDW (included) or SCDW

  • Damage caused by animals
  • Driving while intoxicated
  • Damages to the chassis of the vehicle and undercarriage of the vehicle
  • Damages to tires/wheels
  • Water damages to the vehicle
  • Damages to the door structure (frame, hinges, etc.) caused by wind gusts

We recommend taking some extra coverage to reduce your liability and travel around Iceland without worry. It needs to be taken into consideration that Iceland is unique for the weather conditions and gravel roads that can cause damage to your rental vehicle.

If you have insurance through third-party insurances, such as your credit card, you will first pay Icerental 4x4 for any damage. Then you will get reimbursed through your insurance company. We will help you with all documents needed for this reimbursement.

We believe our customers should take additional insurance to reduce the risk and travel around Iceland without worry.


Icerental 4x4 OUR INSURANCE  Super Collision Damage Waiver (SCDW):

CDW insurance is included in the price; the driver liability is in excess of 350.000 ISK For all cars. The Renter can purchase SCDW insurance, and by doing so, he lowers the self-risk of CDW down to 150.000 ISK. If there is any dent/scratch on the vehicle, the maximum amount to pay is 150.000 ISK, depending on the vehicle model. If it is under the excess, we only charge for the amount to repair the vehicle. 

Excess with Silver Protection is 150.000 ISK 

Excess with Premium Protection is 110.000 ISK

Excess with Platinum Protection is 0.

Icerental 4x4 OUR INSURANCE  Gravel Protection (GP):

In Iceland, many gravel roads may lead to small rocks that can go loose while driving and hit the vehicle. This loose gravel can lead to chips on the painting at the front of the car, windscreen, headlights, or fog lights. We recommend having Gravel Protection while renting a car in Iceland.

This protection includes damage to the front windscreen, headlights, and the front of the car when gravel or rocks get thrown on the vehicle by another vehicle, with no self-risk.

With Silver Protection, the excess is 50.000 ISK

With Premium Protection, the excess is 25.000 ISK

With Platinum Protection, the excess is 0.

Icerental 4x4 OUR INSURANCE  Sand and Ash Protection (SAAP):

Sand and Ash Protection can be essential while driving in Iceland. The weather conditions can be extreme as the wind can be so strong it can reach 30-40 mph or 45-60 km/h. With these strong winds, the loose gravel can blow with the wind causing damage to the painting of the vehicle. It is common to happen on the south coast of Iceland as well as it can happen all year round. 

No regular insurance cover damage from ash or sandstorm. The damage to paint, glass and plastic parts can be costly to the lessee, up to 10.000 EUR. 

With Premium Protection, the excess is 90.000 ISK. 

With Platinum Protection, the excess is 0.

Icerental 4x4 OUR INSURANCE  Theft Protection (TP):

Iceland is known for being one of the most peaceful countries globally. However, dishonest people will always exist, so if your car were to be stolen, you would never pay more than 100.000 ISK. for the loss of your vehicle. Please note that this does not ensure missing items or other things inside the car.

This protection covers the lessee from liability should the vehicle be stolen.

Self Risk for Theft Protection is 0

In case of gross negligence on behalf of the lessee that leads to theft of the vehicle, the TP is void.

All rentals are subject to the entire rental agreement terms and conditions at the time of rental.

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